BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 959 (Ducheny)
          As Amended  August 16, 2010
          2/3 vote.  Urgency

           SENATE VOTE  :31-3  
           
           LOCAL GOVERNMENT    9-0         NATURAL RESOURCES   8-0         
           
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          |Ayes:|Smyth, Caballero,         |Ayes:|Chesbro, Gilmore,         |
          |     |Arambula, Bradford, Coto, |     |Brownley,                 |
          |     |Davis, Knight, Logue,     |     |De Leon, Hill, Knight,    |
          |     |Monning                   |     |Logue, Skinner            |
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          APPROPRIATIONS      17-0                                        
                    
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          |Ayes:|Fuentes, Conway,          |     |                          |
          |     |Bradford, Huffman, Coto,  |     |                          |
          |     |Davis, De Leon, Gatto,    |     |                          |
          |     |Hall, Harkey, Miller,     |     |                          |
          |     |Nielsen, Norby, Skinner,  |     |                          |
          |     |Solorio, Torlakson,       |     |                          |
          |     |Torrico                   |     |                          |
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          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 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:








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             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  
                 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  








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               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  
            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  








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            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  
            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  








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            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. 

           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.









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          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  :   According to the Assembly Appropriations  
          Committee:

          1)Establishment of the OPA would result in an annual cost of  
            about $600,000 for additional personnel and overhead. Partly  
            offset by fees charged to applicants.

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

          3)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.

           COMMENTS  :  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. 

          In addition to mandating criteria and setting deadlines, the Act  
          previously required the Governor's OPR to coordinate the state  








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          government's help to applicants.  OPR set up the OPA in 1977  
          which the Legislature later codified [SB 992 (Garamendi),  
          Chapter 1263, Statutes of 1983].  The Legislature moved OPA to  
          the State Trade and Commerce Agency [AB 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 [AB 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 [AB 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.

          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. 

          Support Arguments:  According to the California Realtors  
          Association "SB 959 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:  The League of California Cities argues  
          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.  California's  
          cities are working double-time to find job creation solutions  
          that do not always easily avail themselves to this  
          one-size-fits-all approach."


           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  








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          319-3958 


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