We see this headline all the time: California’s High Taxes and Burdensome Regulations Drive Industry Away

It is true that California is already one of the most heavily taxed states in the nation, and its high tax, high regulation environment is driving many of its most productive people and businesses out of the state.

EconAlliance notes, however, that Northern Santa Barbara County has huge advantages with its size, quality of work force, options for high tech, robust space program, and rich agricultural base and tourism. EconAlliance brings together stakeholders from public policy offices, governmental organizations, municipal code enforcment and others to bring to light regulations that may be unnecessary, unduly burdensome or costly, duplicative of other requirements, outmoded, insufficient, ineffective, or not based on law.

For example, regulatory and permitting process has become legendary for halting business growth. It takes years of legal jousting before vineyards and wineries can be established, and even longer for tasting rooms to be built, despite our ideal agricultural environment and growing demand for quality wine products.

Education, infrastructure and economic stimulus are at the top of EconAlliance’s priorities. But here in California, the Legislature is considering a bill that would discourage progress on all three fronts.

Senate Bill 132 would stop the University of California from moving ahead with badly needed capital improvement projects unless the university submits to a costly and cumbersome annual certification process sought by one public employee union.

Faced with the need to support growing enrollment, additional student housing, earthquake safety improvements, deferred maintenance, health care and much more, UC is planning to make billions of dollars in capital improvements — all of which will help boost California’s economy as it recovers from the pandemic recession. At UC medical centers alone — the institutions responsible for many of our state’s medical advances — the estimated cost for capital projects over the next 10 years is $13.7 billion.

Despite numerous California state legislative wins in support of Accessory Dwelling Units (ADUs) in the last three years, local regulations still limit their production, UC Berkeley researchers have found.

UC Berkeley’s Center for Community Innovation graded local ADU ordinances throughout the state on a scale of A-F on their friendliness to ADU construction. Researchers reviewed over 200 ordinances based on 16 equally weighted criteria assessing their consistency with state law and user-friendliness for homeowners. Cities received extra credit for relaxed parking requirements for ADUs and maximum size requirements for attached and detached ADUs. See Report in our online library via the links above.

New state legislation that went into effect on January 1, 2020 forces cities to remove some of the remaining barriers to ADU construction. Per AB 68, localities are no longer able to require a minimum lot size, rear and side setback more than 4’, or replacement parking when converting a garage to an ADU. SB 13 removes impact fees for ADUs less than 750 square feet and adjusts them proportional to the unit size if larger. SB 13 and AB 881 also remove owner-occupancy requirements
for five years. In addressing these new requirements, jurisdictions will be able to improve their ordinances (and grades!) substantially.

EconAlliance will continue to monitor these and many other delays, uncertainties, regulations, and taxes that diminish our region’s prosperity and growth. For over a decade, this cross-sector initiative has been a key priority.