BILL ANALYSIS �
SB 1327
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Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1327 (Cannella) - As Amended: July 3, 2012
Policy Committee: Governmental
Organization Vote: 15 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the governor to establish a Web site to
provide an individual with all of the necessary information on
how to start a business in the state of California. In
addition, this bill authorizes the governor to impose a
reasonable fee upon users of the site.
FISCAL EFFECT
1)One time GF costs in excess of $500,000 GF to create the Web
site and to gather all of the required information. On-going
costs likely in excess of $100,000 GF per year to maintain and
update the Web site. On-going costs may be partially offset by
requiring users of the Web site to pay a fee.
2)The administration is currently working on a new, automated
licensing system for the Department of Consumer Affairs (DCA).
Over the life of the project, the BreEZe system could cost up
to $50 million (various DCA licensing funds).
COMMENTS
1)Rationale . The author's intent is to create a one-stop-shop
internet Web site for individuals to use as a tool in
obtaining the necessary permits and licenses to start a
business. He notes that this measure is designed to help
individuals navigate California's regulatory system by
streamlining the application process. In addition, the author
claims that "while CalGOLD is a useful resource, there is more
that can be done to expedite and streamline the application
process."
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2)Cal Government On Line to Desktops . The Governor's Office of
Business and Economic Development (GO-Biz) maintains Cal
Government On Line to Desktops (CalGOLD) as a catalog of
information posted on the Internet. CalGOLD does not issue
permits or licenses and specific permitting and licensing
questions must be directed to the agencies catalogued within
CalGOLD. The CalGOLD database provides links and contact
information that direct the user to agencies that administer
and issue business permits, licenses and registration
requirements from all levels of government. Much of the
information is specific to the type of business and its
location in California. The CalGOLD site currently lists 147
business types. As part of a 2012-13 business continuity
plan, the office is planning to add approximately 100 more
business types and make other improvements to the Web site.
3)There are multiple bills this session , that require various
entities to create Web sites or other automated systems to
streamline the business licensing process. In addition, the
administration is currently working on creating the BreEze
system within the Department of Consumer Affairs. The
committee may wish to consider whether it is prudent in this
fiscal environment to spend state resources on multiple
business licensing systems. In addition, it is unclear how
this system would differ from the existing CalGOLD system
described above.
4)Related Legislation .
a) AB 991 (Olsen, 2011) required the governor to create the
California Licensing and Permit Center Internet Web site to
assist the public, free of charge, with licensing,
permitting, and registration requirements of state
agencies. That bill was held in this committee.
b) AB 1549 (Gatto, 2012) would have re-established the
Office of Permit Assistance under the Governor's Office of
Planning and Research to help facilitate state and local
review of commercial and industrial development projects.
That bill was held in this committee.
c) AB 2641 (Skinner) would require GO-Biz to post on its
Internet Web site information to assist a person in
starting a nonprofit corporation and to assist nonprofit
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corporations to achieve compliance with the state's
statutory and regulatory requirements. That bill is
currently pending in the Senate Appropriations Committee.
d) SB 1520 (Calderon) requires the Office of Planning and
Research (OPR) to provide information to a permit applicant
regarding the permit process for a proposed development
project. That bill is currently pending in this committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081