BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 49
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          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 








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                 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 








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            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 








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            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. 

           











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          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  :  








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          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 








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            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