BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   April 5, 2016


              ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE  
                                       ECONOMY


                                Eduardo Garcia, Chair


          AB 2605  
          (Nazarian) - As Amended March 18, 2016


          SUBJECT:  State Government:  Office of Permit Assistance


          SUMMARY:  Updates code sections to reflect the elimination of  
          the Office of Permit Assistance which had been administered  
          through the Technology, Trade, and Commerce Agency (TTCA) and  
          the Office of Permit Assistance which had been operated by the  
          Governor's Office of Planning and Research (OPR).  Neither of  
          these two Offices of Permit Assistance currently exist.  In some  
          instances another state entity is assigned the task and in other  
          cases the Office of Permit Assistance duty is eliminated.   
          Specifically, this bill:  


          1)Replaces the Office of Permit Assistance formerly operated by  
            OPR with the Governor's Office of Business and Economic  
            Development (GO-Biz) as the entity to which developers needing  
            information and assistance on the permit approval process are  
            referred.  Under existing law, a state agency which is the  
            lead agency for a development project is required to inform a  
            permit applicant that the OPR Office of Permit Assistance is  
            available to provide information about the permitting process.

          2)Deletes the requirement that a final report be filed upon the  
            conclusion of a state mediated land use dispute, including  








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            mediation on public actions related to local general plans and  
            zoning, the California Environmental Quality Act, development  
            impact fees, annexations and incorporations, and the Permit  
            Streamlining Act.  This information was to be used to prepare  
            a report that is no longer required.  Also deletes an  
            out-of-date reference to the Office of Permit Assistance at  
            the former TTCA as the entity that the final report is to be  
            filed.

          3)Removes the requirement that OPR's Office of Permit Assistance  
            assist, among other things, in identifying state and local  
            permits required for proposed hazardous waste facility  
            projects; convene meetings prior to the submittal of project  
            applications; assist state and local agencies in consolidating  
            public meetings and hearings permitted or required by law;  
            work with applicants to ensure decision making deadlines are  
            met; and call meetings and conferences to resolve questions or  
            mediate disputes.

          4)Replaces OPR's Office of Permit Assistance with the Department  
            of Toxic Substances Control as the responsible agency for  
            notifying affected state agencies regarding the filing of a  
            notice of intent to file an application for the siting of a  
            hazardous waste facility, and the 
            convening of a public meeting to inform the public on the  
            nature, function, and scope of a proposed hazardous waste  
            facility.  The Department of Toxic Substances Control also  
            becomes the state government entity notified by a local agency  
            following a land use decision related to the siting of a new  
            hazardous waste facility.

          5)Deletes the option for a local assessment committee and a  
            proponent of a hazardous waste facility to request assistance  
            from OPR's Office of Permit Assistance to help resolve  
            differences that occur during the review and evaluation of the  
            facility permit application.  No replacement government entity  
            is provided.

          6)Deletes the requirement that the Office of Permit Assistance,  








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            at the former TTCA, offer assistance to local governments  
            interested in establishing an expedited permit process related  
            to the Transit Village Development Planning Act of 1994.

          7)Deletes the requirement for the Commission to coordinate local  
            assistance with the Office of Permit Assistance at the former  
            TTCA relating to the siting of renewable energy projects.



          EXISTING LAW:  


          1)Authorizes GO-Biz to market business and investment  
            opportunities available in California by working in  
            partnership with local, regional, federal, and other state  
            public and private institutions to encourage business  
            development and investment in the state.
          
          2)Authorizes GO-Biz to support small businesses by providing  
            information about accessing capital, complying with  
            regulations, and supporting state initiatives that support  
            small business.
          
          3)Authorizes GO-Biz to provide, including, but not limited to,  
            all of the following:

             a)   Economic and demographic data;

             b)   Financial information to help link businesses with state  
               and local public and private programs;

             c)   Workforce information, including, but not limited to,  
               labor availability, training, and education programs;

             d)   Transportation and infrastructure information;

             e)   Assistance in obtaining state and local permits;









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             f)   Information on tax credits and other incentives; and

             g)   Permitting, siting, and other regulatory information  
               pertinent to business operations in the state.
          
          4)Authorizes GO-Biz to work cooperatively with local, regional,  
            federal, and other state public and private marketing  
            institutions and trade organizations in attracting, retaining,  
            and helping businesses grow and be successful in California.



          FISCAL EFFECT:  Unknown


          POLICY ISSUE FRAME


          It is the author's intent that this bill remove outdated  
          provisions of the code relating to the duties of the Office of  
          Permit Assistance, previously undertaken by the TTCA and OPR.   
          In reviewing the measure for hearing, the JEDE staff have  
          requested information on the prior duties and asked for  
          conformation from the state entities which are proposed to take  
          on the new duties.  In each case, confirmation has been  
          provided.  


          Technical and code maintenance bills can be deceivingly complex.  
           While the bill addresses several code deficiencies, two policy  
          issues arise with those changes.  The first issue being the  
          assignment of permit assistance responsibilities to GO-Biz.   
          While GO-Biz is ready to step in and currently operates a unit  
          that provides permit assistance, GO-Biz may need additional  
          statutory direction to become statutorily responsible for this  
          new duty.


          In the second issue, a section is struck regarding the  








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          assistance of the OPR Office of Permit Assistance in helping to  
          resolve ongoing differences between a local assessment committee  
          and an applicant for siting a new hazardous waste facility.  It  
          may be prudent to retain the duty and assign a different state  
          entity to facilitating disputes. 


          The analysis includes background on the statutory history of the  
          Office of Permit assistance and GO-Biz' current Permit  
          Assistance Unit.   Amendments are discussed in Comment 3.


          COMMENTS: 


          1)Author Purpose:  According to the Author, "In 2003, the  
            Legislature abolished the State Technology, Trade and Commerce  
            Agency, including with it the Office of Permit Assistance.   
            The GO-Biz Permit Assistance Unit in now responsible for many  
            of the duties previously given to the Office of Permit  
            Assistance, including providing direct permit assistance to  
            businesses, administering Cal-GOLD, and assisting with  
            permitting projects of statewide importance.
            Additionally, since the abolishment of the Office of Permit  
            Assistance, the Department of Toxic Substances Control has  
            taken over the functions related to the permitting of  
            hazardous waste facilities.  However, current law still  
            prescribes many aforementioned duties to the old Office of  
            Permit Assistance.  AB 2605 makes clarifying changes related  
            to GO-Biz and the Department of Toxic Substance Control  
            reduces ambiguity and overall, advances the state goal of  
            empowering and creating business growth in the state of  
            California."


          2)Permit Assistance Unit at GO-Biz:  The Permit Assistance Unit  
            within GO-Biz provides businesses with comprehensive permit,  
            regulatory, and compliance assistance.  Among other services,  
            the unit schedules pre-application meetings between businesses  








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            and the appropriate regulatory agencies to help streamline the  
            permitting process.  In some instances, GO-Biz can assign a  
            project manager to personally guide an applicant through the  
            entire permit process.  Services are confidential and provided  
            without cost.  The goal of the unit is to help businesses  
            solve permitting and regulatory challenges.  

            The Office of Permit Assistance works in partnership with the  
            California Business Investment Service, and other GO-Biz units  
            in serving employers, corporate executives, business owners,  
            and site location consultants who are considering California  
            for business investment and expansion.

            The unit is also responsible for maintaining the California  
            Government Online to Desktops (CalGOLD) website.   At  
             www.calgold.ca.gov  businesses can obtain a list of the  
            required federal, state, and local permits; webpage links;  
            addresses; application forms; and other contact information.   
            In July 2015, GO-Biz launched the California Business Portal  
            which expanded on the utility and availability of a searchable  
            online application that could provide individualized  
            information to businesses.   
            http://www.business.ca.gov/Programs/Permits.aspx     



          3)Uncodified Program at GO-Biz:  The Permit Assistance Unit was  
            established by GO-Biz, based on its statutory authority to  
            provide assistance to businesses in obtaining state and local  
            permits and support small businesses with complying with  
            regulatory requirements, which may include permitting.  Prior  
            to the demise of the TTCA, the state operated an Office of  
            Permit Assistance and maintained small regional offices to  
            help businesses obtain permits.
            As an uncodified program, a future Administration may choose  
            to not operate a Permit Assistance Office.  Current statute  
            does not require GO-Biz to offer permit assistance, statute  
            only authorizes the activity among an array of other actions  
            GO-Biz may take.  Members may wish to consider first  








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            establishing a Permit Assistance Program in statute, thereby  
            making it clear that permit assistance is a primary duty of  
            GO-Biz.    


          4)Challenges with Tracking Business Assistance:  When GO-Biz was  
            codified in 2011, it had limited technology capabilities.   
            Business services were largely tracked through unit-specific  
            data bases, which could not easily account for a business who  
            received assistance through multiple units within GO-Biz or  
            quickly produce a report differentiating between in-state and  
            out-of-state businesses.  It is not unusual, as an example,  
            for a business looking to relocate to California to work with  
            the Permit Assistance Unit, the California Business Investment  
            Services, and the Office of Innovation and Entrepreneurship.
            GO-Biz recognized these data collection and retrieval  
            challenges and is currently in the process of transitioning to  
            a new Customer Relationship Management computer-based  
            platform.  According to GO-Biz, the new system, related to the  
            development of the California Business Portal, will allow for  
            improved data management.  


            Members may wish to pursue a discussion with GO-Biz on the  
            content of the new tracking criteria so that in the future,  
            GO-Biz can provide timely reports on the businesses seeking  
            permit assistance, including the headquarters of those  
            businesses, and the types of permit challenges the businesses  
            were experiencing.


          5)Related Legislation:  Below is a list of the related bills.

             a)   SB 992 (Garamendi) Office of Permit Assistance:  This  
               bill created the Office of Permit Assistance within the  
               Office of Planning and Research and delegated certain  
               responsibilities, including providing information to  
               developers and mediating disputes.  Status:  Signed by the  
               Governor, Chapter 1263, Statutes of 1983.








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             b)   AB 2351 (Assembly Ways and Means) Permit Assistance at  
               the Commerce Agency:  This bill, among other actions,  
               eliminated the Office of Permit Assistance at the  
               Governor's Office of Planning and Research and established  
               the Department of Permit Assistance at the California Trade  
               and Commerce Agency.  The new department was vested with  
               all of the duties and purposes of the Office of Permit  
               Assistance. Status:  Signed by the Governor, Chapter 56,  
               Statutes of 1993



             c)   AB 1102 (Jackson) Regional Permit Assistance Centers:   
               This bill defined the duties of the Deputy Secretary for  
               Enforcement and the Deputy Secretary for External Affairs  
               in the California Environmental Protection Agency.  The  
               bill also authorized the establishment of Permit Assistance  
               Centers, and environmental management system pilot  
               projects. Status:  Signed by the Governor, Chapter 65,  
               Statutes of 1999.



             d)   AB 1756 (Assembly Budget Committee) Repeal of Commerce  
               Agency and Permit Centers:  This bill eliminated the  
               Technology, Trade and Commerce Agency, including the Office  
               of Permit Assistance.  Some programs were transferred to  
               other agencies, including the Small Business Loan Guarantee  
               Program and the California Business Investment Services.   
               The bill also eliminated the authority for the regional  
               Permit Assistance Centers.  Status:  Signed by the  
               Governor, Chapter 228, Statutes of 2003.
          6)Double Referral: This measure has been double referred to the  
            Assembly Committee on Jobs, Economic Development, and the  
            Economy and the Assembly Committee on Environmental Safety and  
            Toxic Materials (ESTM).  Should this measure pass JEDE, it  








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            will be referred to ESTM for further policy consideration.
          REGISTERED SUPPORT / OPPOSITION:




          Support
          California Association for Local Economic Development (sponsor)




          Opposition
          None Received




          


          Analysis Prepared by:Toni Symonds / J., E.D., & E. / (916)  
          319-2090