BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 959
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 959 (Ducheny) - As Amended:  June 22, 2010 

          Policy Committee:                             Local  
          GovernmentVote:9-0
                       Natural Resources                      8-0     

          Urgency:     Yes                  State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill reestablishes the Office of Permit Assistance (OPA)  
          under the Governor's Office of Planning and Research (OPR) to  
          help facilitate state and local review of commercial and  
          industrial development projects.

           FISCAL EFFECT
           
          1)OPR estimates that establishment of the OPA would result in an  
            annual cost of about $1.5 million (General Fund). The cost  
            estimate assumes five regional offices and 18 new employees.  
            Though OPA is authorized to charge a fee to applicants to  
            cover its costs, OPR believes that, in practice, it would  
            difficult for the fees to fully offset its costs.

          2)Significant costs to permitting agencies, in the range of  
            several hundreds of thousands of dollars annually (GF and  
            special funds), to evaluate and respond to consolidated  
            permitting forms forwarded to them by OPA. 

          3)Unknown, additional costs for grants to local governments,  
            depending on future actions of the Legislature. 

          4)The provision requiring cities and counties with population of  
            more than 100,000 to establish a single point of contact would  
            result in significant administrative costs to local agencies,  
            not state-reimbursable. 

           SUMMARY (Continued)
           








                                                                  SB 959
                                                                  Page  2

          1)Requires OPA to develop guidelines providing technical  
            assistance to local agencies for the establishment and  
            operation of an expedited development permit process. The  
            guidelines would include a point of contact for larger cities  
            for permit applications, a referral process to help guide  
            applicants through local permit processes, a method for  
            tracking the progress of development permit applications, and  
            an expedited appeal process.

          2)Provides that, upon appropriation by the Legislature, OPA  
            shall provide grants and technical assistance to cities and  
            counties for the establishment of an expedited permit process.

          3)Requires OPA to provide information to developers explaining  
            the permit approval process at the state and local levels, to  
            assist developers in meeting the requirements of the  
            California Environmental Quality Act (CEQA), and to assist  
            state and local agencies in streamlining the permit approval  
            process.

          4)Authorizes OPA to charge an applicant for a development  
            project a fee not to exceed the estimated reasonable cost of  
            providing the services performed.

          5)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  
            applicants for development projects. Authorizes an applicant  
            for a development project to submit a completed consolidated  
            project information form to OPA for distribution to the state  
            agencies that have permitting requirements. Requires state  
            agencies to respond to OPA regarding potential project  
            permitting requirements within 30 days.

          6)Requires, upon the request of an applicant, a city, county, or  
            city and county with a population of 100,000 or more to  
            designate an administrative entity to serve as the applicant's  
            single point of contact with respect to all applications and  
            permits required by the local agency for the applicant's  
            commercial or industrial development project. 

           COMMENTS  

           1)Purpose  . The bill is intended to streamline the permitting  
            process and remove barriers to commercial real estate  








                                                                 SB 959
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            development and economic growth in California. According to  
            the California Realtors Association, the bill would benefit  
            both businesses and governments by creating a consolidated and  
            streamlined system by which businesses would seek permits.

           2)Background  . The Permit Streamlining Act requires each state  
            agency and local agency to compile lists that specify in  
            detail the information that will be required from any  
            applicant for a development project, and requires the lead  
            agency for a development project to approve or disapprove the  
            project within applicable periods of time.  This Act  
            previously required the governor to coordinate the state  
            government's help to applicants.  In response to this  
            requirement OPR set up the OPA in 1977, which the Legislature  
            later codified 1983.  The OPA was moved to State Trade and  
            Commerce Agency in 1993, and was abolished along with that  
            agency in 2003. Although the Office of Permit Assistance no  
            longer exists, the Permit Streamlining Act still requires  
            agencies to adopt criteria and meet statutory deadlines.

            The Office of Planning and Research is the state's  
            comprehensive planning agency.  Located within the Office of  
            the Governor, OPR coordinates state agencies' planning  
            activities.  OPR is also responsible for helping regional and  
            local officials with land use planning.   The Governor's  
            Budget for 2010-11 called for OPR's elimination, reassigning  
            some of its functions to other state agencies. 

           2)Opposition  . The League of California Cities opposes the  
            provision requiring large cities to designate a single entity  
            as point of contact, stating that this "one-size fits all"  
            approach may not be cost-effective for some cities.

           3)Related legislation.   AB 2754 (J. Perez) creates a Planning  
            and Clearinghouse Unit within OPR. This unit would be  
            responsible reviewing state departments' functional plans for  
            consistency with the statutory state planning priorities, and  
            develop long-range policies for growth and development every  
            five years.
           
          Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081