BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 959|
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                              UNFINISHED BUSINESS


          Bill No:  SB 959
          Author:   Ducheny (D), et al
          Amended:  8/16/10
          Vote:     27 - Urgency

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  5-0, 4/7/10
          AYES:  Cox, Aanestad, Kehoe, DeSaulnier, Price

           SENATE ENV. QUALITY COMMITTEE  :  7-0, 4/19/10
          AYES:  Simitian, Runner, Corbett, Hancock, Lowenthal,  
            Pavley, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Denham, Walters, Wyland
          NO VOTE RECORDED:  Cox

           SENATE FLOOR  :  31-3, 6/2/10
          AYES:  Aanestad, Alquist, Ashburn, Calderon, Cedillo,  
            Cogdill, Corbett, Correa, Cox, DeSaulnier, Ducheny,  
            Dutton, Florez, Hancock, Harman, Hollingsworth, Huff,  
            Kehoe, Leno, Lowenthal, Negrete McLeod, Padilla, Pavley,  
            Price, Romero, Runner, Steinberg, Strickland, Wolk,  
            Wright, Wyland
          NOES:  Denham, Walters, Yee
          NO VOTE RECORDED:  Liu, Oropeza, Simitian, Wiggins,  
            Vacancy, Vacancy

           ASSEMBLY FLOOR  :  77-1, 8/19/10 - See last page for vote


           SUBJECT  :    Development:  expedited permit review
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           SOURCE  :     Author


           DIGEST  :    This bill recreates the Office of Permit  
          Assistance under the Governors Office of Planning and  
          Research  in order to help facilitate state and local level  
          review of commercial and industrial development projects. 

           Assembly Amendments  add the requirement for the Office of  
          Permit Assistance to develop specified guidelines in  
          providing technical assistance to local agencies.

           ANALYSIS  :    

           Existing law  

          1. Under the Permit Streamlining Act (PSA), sets time  
             limits relating to determining the completeness of  
             applications and reaching decisions on development  
             projects.  A lead agency for a development project must  
             approve or disapprove a project within specified time  
             periods (for example, 180 days from the date the lead  
             agency certifies an EIR, [except 90 days for a very low  
             or low income housing project under certain conditions],  
             60 days from the date of adopting a negative declaration  
             or determining that a project is exempt from the  
             California Environmental Quality Act [CEQA]).

          2. Requires each state agency to consolidate its existing  
             staff functions relating to contract opportunities for  
             small business into a single point of contact for small  
             businesses and designate a small business advocate as a  
             liaison to small business suppliers, and creates the  
             Office of Small Business Advocate within the Office of  
             Planning and Research (OPR) with various  
             responsibilities.

          3. Under the Environmental Protection Permit Reform Act of  
             1993, requires the Secretary for Environmental  
             Protection to establish an administrative process that  
             may be used at the request of a permit applicant for the  
             designation of a consolidated permit agency to  
             administer the processing and issuance of a consolidated  

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             permit for certain projects.  

          4. Requires the Secretary for Environmental Protection to  
             establish an electronic online permit assistance center  
             through the Internet that must be available for use by  
             any business or other entity subject to a law or  
             regulation by a board, department, or office within the  
             California Environmental Protection Agency (Cal-EPA).   
             The program must be called the California Government On  
             Line to Desktops (CALGOLD) program and must provide  
             software and other online resources to streamline and  
             expedite compliance with laws and regulations  
             implemented by entities within Cal-EPA.  The CALGOLD  
             program must, to the extent feasible, incorporate permit  
             assistance activities of local, state, and federal  
             entities into its operations.  

          This bill 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: 

             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.


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             B.    A referral process that may do any or all of the  
                following: 

                (1)      Refer the applicant to the appropriate  
                   local agencies and local agency officials to  
                   resolve problems and to fulfill requirements.

                (2)      Refer the applicant to cities within  
                   the county which have review, comment, or  
                   conditional permit power over the proposed  
                   project.

                (3)      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.

             H.    A variety of administrative mechanisms that  
                describe the least costly approaches for  
                implementing these guidelines in a variety of local  
                circumstances. 


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          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.

             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  

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             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 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. 

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          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. 

           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 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,  

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          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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          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. 
          
          SUPPORT  :   (Verified  8/20/10)

          California Apartment Association
          California Realtors Association
          Consulting Engineers and Land Surveyors of California

           OPPOSITION  :    (Verified  8/20/10)


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          Department of Finance
          League of California Cities

           ARGUMENTS IN SUPPORT  :    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." 

           ARGUMENTS IN OPPOSITION  :    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." 

           ASSEMBLY FLOOR  : 
          AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Galgiani, Garrick,  
            Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez,  
            Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Silva, Skinner,  
            Smyth, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, John A. Perez
          NOES: Gaines
          NO VOTE RECORDED: Yamada, Vacancy


          AGB:do  8/22/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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