Intended to provide background information and preliminary options for the California Community Colleges' Commission on Innovation, this document proposes that approval processes for new facilities be simplified and that restrictions on the lease or purchase of off-campus facilities be eased. Following introductory materials detailing the Commission's charge, the proposal for simplifying the state approval processes is presented and background is provided on the current process. This section includes a sample table of steps in the approval process by time taken to complete each step, indicating that it takes at least 37 months to achieve state approval and funding, and reviews problems with this time-consuming process, including increases in cost; the unpredictability of inflation; and difficulties in responding to changing demography, technology, and employment patterns. Background is also provided on current restrictions to leasing or purchasing off-campus space, indicating that currently districts may not be able to rent for more than 3 years if the site does not meet the Field Act earthquake safety requirements which are stricter than commercial standards. Finally, the following policy options are presented: (1) using block grants, appropriated by the legislature to the Board of Governors, for capital spending; (2) accelerating construction funding schedules; (3) strengthening district planning capabilities; (4) removing the community colleges from Field Act requirements; (5) waiving utilization rules to support purchases of off-campus facilities; and (6) strengthening the analysis capacity of the Chancellor's Office. (KP)