BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 203
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          ASSEMBLY THIRD READING
          AB 203 (Stone) 
          As Amended  May 29, 2013
          Majority vote 

           NATURAL RESOURCES   6-2         APPROPRIATIONS      11-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Garcia,          |Ayes:|Gatto, Bocanegra,         |
          |     |Muratsuchi, Skinner,      |     |Bradford,                 |
          |     |Stone, Williams           |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk, Weber         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove, Bigelow            |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Linder, Wagner  |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Prohibits the Coastal Commission (Commission) from  
          acting on a coastal development permit (CDP) application that  
          involves property subject to an unresolved violation of the  
          California Coastal Act of 1976 (Coastal Act) until the violation  
          is resolved.  Specifically,  this bill  :

          1)Prohibits the Commission from filing as complete or acting  
            upon a CDP application that involves property subject to an  
            open, existing violation case for which a violation  
            notification letter, a cease and desist order, restoration  
            order, or notice of violation has been issued until the  
            violation is resolved.  This bill does not require or preclude  
            resolution of any new violation that is identified during the  
            permit application process.

          2)Provides that the above prohibition does not apply if the  
            executive director determines that the application includes a  
            provision that would fully resolve the violation.  The  
            prohibition also does not apply to an action by a local agency  
            that is associated with processing, submitting, certifying, or  
            implementing an amendment to, or original submission of, a  
            local coastal program, public works plan, or component of a  
            local coastal program or public works plan.

          3)Authorizes the Commission to file as complete a CDP  
            application involving property with an open, existing  








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            violation case for which a violation notification letter, a  
            cease and desist order, restoration order, or notice of  
            violation has been issued if the violation is a de minimis  
            violation (i.e., a violation that is so minor in nature that  
            it may be easily resolved through voluntary actions on the  
            part of the property owner).  If the Commission accepts such  
            an application for a CDP, the Commission may not take action  
            on the application until the violation has been fully  
            resolved.

          4)Allows an unresolved dispute between the executive director  
            and an applicant regarding the implementation of the above  
            provision to be resolved by the Commission at a noticed  
            hearing.

          5)Prohibits the above provisions from applying to a new  
            application for a development in a harbor, port, or marina for  
            a project that is individually owned or leased by a separate  
            party that is unaffiliated with an open, existing violation  
            case.  

           6)Prohibits the above provisions from applying to a new  
            development application for a development that is principally  
            permitted agricultural use, agricultural activity, or  
            agricultural facility on property zoned for agricultural  
            production.
           
          EXISTING LAW  :  Pursuant to the Coastal Act:

          1)Requires any person wishing to perform any development in the  
            coastal zone to first obtain a CDP.

          2)Authorizes the Commission's executive director to issue an ex  
            parte cease and desist order if he or she determines that  
            someone is undertaking or threatening to undertake an activity  
            that requires a CDP or that may be inconsistent with a  
            previously issued permit.  Before issuing the ex parte cease  
            and desist order, the director is required to give oral and  
            written notice.  The order is valid for 90 days from the date  
            of issuance.

          3)Authorizes the Commission, after a public hearing, to issue a  
            cease and desist order if it determines that someone is  
            undertaking or threatening to undertake an activity that  
            requires a CDP or that may be inconsistent with a previously  








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            issued permit.

          4)Authorizes the Commission to issue a restoration order if it  
            finds that development has occurred without a CDP and the  
            development is causing continuing resource damage.

          5)Requires the Commission's executive director to record a  
            notice of violation with a county recorder if:  1) he or she  
            has determined that real property has been developed in  
            violation of the Coastal Act; 2) a notice of intention to  
            record a notice of violation was mailed; and 3) the owner of  
            the property failed to object to the notice or the owner of  
            the property objected and the Commission found, after a  
            hearing, that a violation has occurred.

          6)Authorizes a superior court to impose civil penalties between  
            $500 and $30,000 on any person in violation of the Coastal  
            Act.  If a person intentionally and knowingly violates the  
            Coastal Act, additional civil penalties between $1,000 and  
            $15,000 may be imposed for each day in which the violation  
            persists.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:  1) potential annual special fund savings in the  
          range of $50,000 to $100,000 from avoided enforcement  
          proceedings; and 2) minor General Fund costs, likely in the tens  
          of thousands of dollars annually, associated with resolution of  
          unresolved disputes between the Commission's executive director  
          and property owners.

           COMMENTS  :  According to the author's office, the California  
          Coastal Commission has a backlog of more than 1,800 open,  
          unresolved enforcement cases.  The Commission estimates that,  
          based on the current rate of resolution, these would take 100  
          years to resolve.   

           Should violators be rewarded with a CDP  ?  

          Under existing law, anyone can apply for a CDP even if the  
          proposed development occurs on a parcel subject to a violation  
          or an alleged violation of the Coastal Act.  Furthermore, the  
          Commission must consider the application without regard to this  
          violation even if it is directly relevant to the proposed  
          development.  Procedurally, this results in a perverse,  
          bifurcated process even though it would make more sense to  








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          address both issues concurrently.  According to a Commission  
          staff report, "[t]his approach is costly for all parties, and  
          can delay the resolution of serious and ongoing violations for  
          years with harmful effects on coastal resources."

          In contrast, many other state agencies and some local  
          governments have the authority to require that an applicant  
          resolve outstanding issues at the same time as an application,  
          in order to save resources and create an incentive to  
          voluntarily resolve outstanding violations.  In fact, Fresno,  
          San Diego, Santa Cruz, and the counties of Los Angeles, Marin,  
          Mono, Monterey, Orange, Placer, San Diego, and San Luis Obispo  
          all have similar authorities.  State agencies such as the  
          Departments of Food and Agriculture, Public Health, Motor  
          Vehicles, Conservation, Fish and Wildlife, Consumer Affairs,  
          Alcohol and Drug Programs, and Social Services similarly have  
          authority to require resolution of a violation prior to  
          consideration of an application for a permit, license, or other  
          approval.

           The bill could result in process- and cost-efficiency  .  

          This bill would provide applicants the incentive to resolve  
          violations more quickly since they would otherwise be ineligible  
          to pursue any additional development.  At the same time, the  
          bill would give the Commission the ability to resolve  
          outstanding violations as part of a CDP application, something  
          that can only be accomplished voluntarily under existing law.   
          In turn, the applicant would likely not be subject to penalties  
          and an expensive enforcement proceeding.
          As mentioned above, the Commission has an existing backlog of  
          over 1,800 enforcement cases. Not considering new cases, at the  
          current rate of processing, it would take the Commission more  
          than 100 years to resolve these cases. 

           Previous legislation  .  A similar bill, AB 291 (Salda�a, 2009)  
          was passed by the Assembly Natural Resources Committee and the  
          Assembly Floor; however, the bill was substantially amended in  
          the Senate.


           Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092                                               










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