BILL ANALYSIS Ó AB 49 Page 1 Date of Hearing: April 6, 2011 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Cameron Smyth, Chair AB 49 (Gatto) - As Amended: March 24, 2011 SUBJECT : Development: expedited permit review. SUMMARY : Recreates the Office of Permit Assistance (OPA) under the Governor's Office of Planning and Research (OPR) in order to help facilitate state and local level review of commercial and industrial development projects. Specifically, this bill : 1)Establishes OPA under OPR. 2)Requires OPA to be located in Sacramento, and consist of no more than four personnel through December 31, 2013. 3)Requires OPA to develop guidelines providing technical assistance to local agencies for the establishment and operation of an expedited development permit process. 4)Requires the guidelines to include, but not be limited to, all of the following components of a local permit process: a) An administrative entity in each city or county with a population of 100,000 or more that shall serve as an applicant's single point of contact with the city or county with respect to all applications and permits required by the city or county for the applicant's commercial or industrial development project; b) A referral process that may do any or all of the following: i) Refer the applicant to the appropriate local agencies and local agency officials to resolve problems and to fulfill requirements; ii) Refer the applicant to cities within the county which have review, comment, or conditional permit power over the proposed project; or, iii) Assign the local agency's administrative entity, or another individual or entity designated by the local AB 49 Page 2 agency, to be responsible for guiding the applicant through all local permitting requirements; c) A consolidated project information form that will collect the information required to complete all permits for the development project; d) A method for tracking the progress of development permit applications through the permitting process that may include the identification of a staff person responsible for monitoring permits; e) A process for determining whether the consolidated project information form is complete upon its submission; f) Timetables for action on specified types of permit applications; g) An expedited appeal process to ensure fair treatment to the applicant using existing agencies, staffs, commissions, or boards, where possible; and, h) A variety of administrative mechanisms that describe the least costly approaches for implementing these guidelines in a variety of local circumstances. 5)Requires OPA, in developing the guidelines, to recognize local variations in population, rate of growth, types of proposed development projects, geography, and local government structure. 6)Specifically states that the guidelines developed by OPA are advisory in nature and are not a mandate on local agencies. 7)Provides that upon appropriation by the Legislature, OPA shall provide grants and technical assistance to cities and counties for the establishment of an expedited development permit process. 8)Requires any city or county receiving a grant to enact an ordinance adopting an expedited development permit process according to the guidelines within 10 months of the date of receipt of the grant. 9)Specifies that a city or county who does not receive a grant AB 49 Page 3 is not prohibited from developing and establishing its own expedited development permit process. 10)Requires OPA to ensure that all state agencies comply with applicable requirements of this measure. 11)Requires OPA to do all of the following: a) Provide information to developers explaining the permit approval process at the state and local levels, or assisting them in meeting the requirements of the California Environmental Quality Act (CEQA); b) Assist state and local agencies in streamlining the permit approval process at the state and local levels; and, c) Assist an applicant in identifying any permit required by a state agency for the proposed project. 12)Specifies that the assistance provided by OPA on CEQA is purely technical in nature, and neither OPA nor the state shall incur any liability as a result of the provision of assistance. 13)Authorizes OPA to call a conference of parties at the state level to resolve questions or mediate disputes arising from a permit application for a proposed development project. 14)Authorizes OPA to charge an applicant for a development project a fee not to exceed the estimated reasonable cost of providing the services performed. 15)Requires OPA, prior to levying or charging a fee, to adopt or amend regulations to provide for the fee in accordance with the Administrative Procedure Act. 16)Requires OPA, upon request, to make available data indicating the cost, or estimated cost, of providing the services performed and the revenue sources anticipated to cover the cost of performing the services, including any general or special fund revenues. 17)Requires OPA, in consultation with the Natural Resources Agency and the California Environmental Protection Agency, to develop a consolidated project information form to be used by AB 49 Page 4 applicants for development projects. 18)Requires the form to collect sufficient information to allow OPA to determine the state agencies that have permitting requirements applicable to the development project for which the form was submitted. 19)Defines "administrative entity" as a person or agency designated by the legislative body of a city, county, or city and county. 20)Requires, upon the request of an applicant, a city, county, or city and county with a population of 100,000 or more to designate, and provide for, an administrative entity to serve as the applicant's single point of contact with the local agency with respect to all applications and permits required by the local agency for the applicant's commercial or industrial development project. 21)Requires the administrative entity to provide the applicant information regarding the status of, and coordinate the review and decision making process with respect to, the applications and permits required by the local agency for the development project. 22)Requires, upon the request of the applicant, the administrative entity to coordinate with OPA with respect to any applications or permits required by the state for the development project. 23)Authorizes a city, county, or city and county to charge a fee to defray costs incurred by the administrative entity that are directly attributable to the services it provides to an applicant. 24)Authorizes a city, county, or city and county to adopt, by resolution or ordinance, procedures for the implementation of this measure. 25)Contains an urgency clause. AB 49 Page 5 EXISTING LAW : 1)Creates the Permit Streamlining Act (Act). 2)Requires, under the Act, each state agency and local agency to compile one or more lists that specify in detail the information that will be required from any applicant for a development project, and requires a public agency that is the lead agency for a development project, or a public agency which is a responsible agency for a development project that has been approved by the lead agency, to approve or disapprove the project within applicable periods of time. 3)Requires, under the Act, any state agency which is the lead agency for a development project to inform the applicant that OPA has been created to assist, and provide information to, developers relating to the permit approval process. 4)Provides that the Legislature finds and declares that there is a statewide need to ensure clear understanding of the specific requirements which must be met in connection with the approval of development projects and to expedite decisions on such projects. 5)Defines "development project" as any project undertaken for the purpose of development. 6)Specifies that "development project" includes a project involving the issuance of a permit for construction or reconstruction but not a permit to operate. 7)Specifies that "development project" does not include any ministerial projects proposed to be carried out or approved by public agencies. 8)Prohibits a public agency, after it accepts an application for a development project as complete, from subsequently requesting of an applicant any new or additional information that was not specified in the list of the information required from a project applicant as part of its statement of application for a development project. FISCAL EFFECT : Unknown COMMENTS : AB 49 Page 6 1)Existing law requires, under the Act, each state agency and local agency to compile one or more lists that specify in detail the information that will be required from any applicant for a development project, and requires a public agency that is the lead agency for a development project, or a public agency which is a responsible agency for a development project that has been approved by the lead agency, to approve or disapprove the project within applicable periods of time. 2)In addition to mandating criteria and setting deadlines, the Act previously required the Governor's OPR to coordinate the state government's help to applicants. OPR set up the OPA in 1977 which the Legislature later codified ŬSB 992 (Garamendi), Chapter 1263, Statutes of 1983]. The Legislature moved OPA to the State Trade and Commerce Agency ŬAB 2351, (Assembly Ways and Means Committee), Chapter 56, Statutes of 1993]. The California Environmental Protection Agency (CalEPA) set up regional Permit Assistance Centers which the Legislature institutionalized in 1999 ŬAB 1102 (Jackson), Chapter 65, Statutes of 1999]. In 2003, the Legislature repealed the requirements for CalEPA's permit assistance centers and abolished the State Technology, Trade, and Commerce Agency ŬAB 1756, (Assembly Budget Committee, Chapter 228, Statutes of 2003]. Although the OPA no longer exists, the Act still requires agencies to adopt criteria and meet statutory deadlines. 3)This bill recreates the OPA under OPR in order to help facilitate state and local level review of commercial and industrial development projects. OPR already serves as the coordinating agency for statewide planning efforts and as a clearinghouse for all CEQA-related documents so adding back the additional duty of serving as a one-stop-shop for coordinating the state and local level review of specified development projects would be appropriate. 4)This measure is identical to SB 959 (Ducheny, 2010), which was vetoed by Governor Schwarzenegger. In his veto message he stated "this bill should be re-crafted to address the issues I have raised and create a more coherent state policy for economic assistance housed in one location, the Governor's Office of Economic Development (GOED)." According to its website, the GOED "permit assistance staff, combined with local and regional permitting agencies provides permit AB 49 Page 7 identification and regulatory compliance assistance. The permit assistance staff acts as a neutral third-party facilitators." The Committee should note, however, that according to the GOED website, the permit assistance activities that GOED helps with are related to business permits (sales and use tax, license, etc.) and not to development / land use permits. 5)Support arguments: According to the California Realtors Association "AB 49 would greatly benefit not only business but also governments by creating a consolidated and streamlined system by which businesses would seek permits and approvals. The increased certainty in the project approval process and timing is certain to result in a better business climate that will help boost California's economy." Opposition arguments: Opposition could argue that there is a role for streamlining when multiple departments or agencies are involved in a project. But imposing this requirement on the 70 cities with populations over 100,000 at the option and expense of the applicant does not guarantee this result. Cities are working to find job creation solutions that do not always easily avail themselves to this one-size-fits-all approach. 6)This bill is double-referred to the Committee on Natural Resources. REGISTERED SUPPORT / OPPOSITION : Support Opposition American Council of Engineering Companies of CANone on file CA Association of Realtors Analysis Prepared by : Katie Kolitsos / L. GOV. / (916) 319-3958