BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB 
          1520
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis



          SB 1520  Author:  Calderon
          As Introduced:  February 24, 2012
          Hearing Date:  April 24, 2012
          Consultant:  Paul Donahue


                                     SUBJECT  

                         Streamlined Permit Review Team

                                  DESCRIPTION
           
          This bill establishes a Streamlined Permit Review Team, 
          consisting of the Secretary of Business, Transportation and 
          Housing, the Secretary for Environmental Protection, and 
          the Secretary of the Natural Resources Agency.  
          Specifically, this bill:

          1)Requires the Review Team, when requested by a permit 
            applicant, to convene a hearing of the permitting 
            agencies having jurisdiction over the project, to 
            coordinate actions on permits to help reduce or eliminate 
            unnecessary delay and paperwork, and to ensure that the 
            permitting agencies have necessary information. 

          2)Requires a permitting agency to determine the 
            completeness of an application within 30 days, or request 
            additional information from the applicant, and act on a 
            permit as soon as possible, but in any case no later than 
            the time permitted by law. 

          3)Specifies that if a permitting agency fails to act on a 
            completed permit application for a project as soon as 
            reasonably possible, the permit shall be deemed approved, 
            after which the agency must provide public notice of the 
            approval action in the same form and manner as it would 





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            under existing law.

          4)Provides that these time limits may be extended upon 
            mutual written agreement of the lead agency and a 
            permitting agency, and do not apply if federal laws or 
            rules establish different time schedules that may affect 
            the disposition of the project.

          5)Declares that, except as otherwise provided, these 
            provisions do not affect in any manner the requirements, 
            duties, or authority of a permitting agency established 
            by statute.

          6)Declares that the regulatory provisions of the Permit 
            Streamlining Act and this bill do not affect the 
            authority of an agency to adopt regulations.

          7)Except for a report to the Governor and the Legislature 
            due on March 1, 2015, this  urgency bill  sunsets on 
            January 1, 2014.

          8)Requires a statement of reasons for adoption of a 
            regulation to include a standardized impact analysis for 
            each major regulation<1> proposed after November 1, 2013, 
            instead of January 1, 2013 as provided in existing law.

                                   EXISTING LAW

           1)Prescribes specific procedures for the review and 
            approval of permits for development projects in the 
            state.  The Permit Streamlining Act (PSA): 

             a)   Requires public agencies to provide detailed 
               information that will be required from an applicant 


             -----------------------
          <1> A "major regulation" is one that will have an economic 
          impact on California business enterprises and individuals 
          in an amount exceeding $50 million, as estimated by the 
          agency adopting the regulation.












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               for a development project.<2>

             b)   Requires a lead agency for a development project to 
               approve or disapprove the project within 6 months 
               after the Environmental Impact Report is certified, or 
               within 3 months from the date of adoption of a 
               Negative Declaration or a determination by the lead 
               agency that the development project is exempt from 
               California Environmental Quality Act (CEQA), unless 
               the project proponent requests an extension of time. 

             c)   If no action is taken within the allotted time 
               after CEQA review is complete, the project may be 
               deemed approved, except that an application can only 
               be deemed approved as a result of that failure to act 
               if specified requirements for public notice and review 
               have been satisfied.

          2)The Administrative Procedure Act (APA) establishes 
            rulemaking procedures and standards for the adoption, 
            amendment, or repeal of regulations by state agencies, 
            including a requirement that an agency adopting a major 
            regulation to release a standardized economic impact 
            analysis.

                                    BACKGROUND
           
           1)  Author's purpose  :  The author states that, from a 
            substantive regulatory standpoint, this bill would create 
            a "one-stop shop" permitting process, which has been 
            modeled on trailblazing legislation that aided recovery 
            from the 1989 Loma Prieta earthquake.  The author states 
            that the agency secretaries on the Streamlined Permit 
            Review Team would be authorized to convene appropriate 
            state-level boards and departments in a single unified 
            process to expedite permitting and resolve interagency 
            inconsistencies or overlap.

           2)  Streamlined Permit Review Team  :  This bill adds Article 
            5.5 to the existing Permit Streamlining Act (PSA).  It 
            establishes a permit review team comprised of 3 state 
           ------------------------
          <2> A "development" means placement of any solid material 
          or structure on land or water; discharge of dredged 
          material or any gas, liquid, or solid waste; mining or 
          extraction of any materials; change in land use or water 
          use; timber operations; and removal of vegetation or kelp 
          harvesting. (Govt. Code � 65927) 





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            agency heads.  Upon request of a development project 
            applicant, the team would convene a hearing of the 
            permitting agencies having jurisdiction over the project, 
            to coordinate actions on permits to help reduce or 
            eliminate unnecessary inconsistencies, delay, 
            duplication, overlap or paperwork associated with the 
            issuance of multiple permits.

               Some of the provisions in this bill are very similar 
            to existing law found in the PSA.  For instance,  this 
            bill  specifies that if a permitting agency fails to act 
            on a completed permit application for a project no later 
            than the time specified in the PSA, the failure to act 
            shall be deemed approval of the permit application for 
            the project, in accordance with the requirements of the 
            PSA. However, the permitting agency must provide public 
            notice when the project is deemed approved.<3>

                The PSA  specifies that, in the event that a lead 
            agency or a responsible agency fails to act to approve or 
            to disapprove a development project within the required 
            time limits, the failure to act shall be deemed approval 
            of the permit application for the development project. 
            However, the permit shall be deemed approved only if 
            public notice has occurred. �Govt. Code � 65956 (b)]

               Another provision in  this bill  states that the 
            specified time limits shall not apply if federal 
            statutes, regulations, or delegation agreements establish 
            time schedules that differ from those time limits, and 
            failure to comply with federal time schedules could 
            affect the disposition of the project. <4>  The PSA  states 
            that the "time limits established by this article shall 
            not apply in the event that federal statutes or 
            regulations require time schedules which exceed such time 
            limits." �Govt. Code � 65954]

                Finally, this bill declares that it does not affect 
            in any manner the requirements, duties, or authority of a 
            permitting agency established by statute.  In addition, 
            the bill declares that nothing in the PSA shall be 
            construed to affect the authority or requirement for an 
           ------------------------
          <3> See proposed Section 65958.5(d) (2) on page 9

          <4> See proposed Section 65958.5(f) on page 9






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            agency to adopt regulations as provided by statute.<5> 

                As noted above, some provisions of this bill 
            essentially recast existing law within the PSA.  It would 
            seem that a clearer approach would be to incorporate by 
            reference the existing provisions of the PSA.  To that 
            end, the author and the Committee may wish to consider 
            amendments to the bill that leave intact provisions 
            enacting the permit review team and defining its 
            functions, delete subdivisions (c) through (h) of 
            proposed Govt. Code � 65958.5. �Page 8, line 39 and 40, 
            and page 9, line 1 through 31, inclusive], and in place 
            of these provisions, incorporate by reference the 
            relevant provisions of the PSA.  






























          -------------------------
          <5> See proposed Section 65958.5(g) and (h) on page 9


































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                            PRIOR/RELATED LEGISLATION
           
          SB 617 (Calderon) Chapter 496, Statutes of 2011  .  Revises 
          various provisions of the Administrative Procedure Act 
          (APA) and requires each state agency to prepare a 
          standardized regulatory impact analysis, as specified, with 
          respect to the adoption, amendment, or repeal of a major 
          regulation, proposed on or after November 1, 2013. 

           AB 49 (Gatto) 2011-2012 Session  . Would have required the 
          Office of Permit Assistance to provide information to 
          developers explaining the permit approval process at the 
          state and local levels, or assisting them in meeting 
          statutory environmental quality requirements. (Held in 
          Assembly Appropriations)
           
          SB 959 (Ducheny) 2009-2010 Session  .  Among other things, 
          would have required the Office of Permit Assistance to 
          provide information to developers explaining the permit 
          approval process at the state and local levels, or 
          assisting them in meeting statutory environmental quality 
          requirements. (Vetoed)

           AB 1805 (Calderon) and SB 1010 (Correa) 2009-2010 Session  . 
          Would have created a CEQA litigation protection pilot 
          program that would have allowed the BT&H agency to exempt 
          100 projects over four years from judicial review based on 
          CEQA. (Failed passage in Assembly Natural Resources and 
          Senate Environmental Quality Committees, respectively)

           AB 8 XX (Nestande) Chapter 6, Statutes of 2009  .  
          Temporarily established an expedited permit streamlining 
          procedure for specified projects by accelerating permit 
          review, issuance, or denial of permits for the projects 
          without affecting the underlying authority of permitting 
          agencies. 

           SUPPORT:   

          None on file

           OPPOSE:   

          None on file

           DUAL REFERRAL:   Senate Environmental Quality Committee





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          FISCAL COMMITTEE:   Senate Appropriations Committee 




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