BILL ANALYSIS �
AB 976
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Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 976 (Atkins) - As Amended: April 4, 2013
Policy Committee: Natural
ResourcesVote:6-3
Judiciary 6-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the California Coastal Commission
(commission) to impose administrative penalties upon violators
of the California Coastal Act. Specifically, this bill:
1)Authorizes the commission, by majority vote, to impose
administrative penalties, not to exceed 75 % of the maximum
civil penalty that may be imposed in superior court for
certain Coastal Act violations . The penalties referenced in
PRC Section 30820 are between $1,000 and $15,000 per day,
which equates to $750 and $12,500 respectively.
2)Allows the commission to file a lien against property of a
violator for failure to pay the penalty.
3)Provides up to $1.5 million of the funds annually derived from
penalties associated with a violation of the Coastal Act to be
deposited in the Violation Remediation Account of the State
Coastal Conservancy Fund. Additional funds, if any, would be
deposited in the Coastal Act Services Fund administered by the
commission.
4)States that, in enacting this bill, it is not the intent of
the Legislature that unintentional, minor violations that only
cause de minimis harm should lead to civil penalties, if the
violator has acted expeditiously to correct the violation,
consistent with this act.
FISCAL EFFECT
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1)Potential penalty revenues to the conservancy, in the range of
$500,000 to $2,000,000 a year. If penalty revenues exceed
$1.5 million, the additional revenues will fund the
commission.
2)Minor savings, to the commission in avoided staffing and other
expenses related to pursuing Coastal Act violations in court.
3)Potential minor savings to the AG's office from representing
the commission before court.
COMMENTS
1)Rationale. According to Coastal commission staff and
supporters, AB 976 would allow the Coastal Commission to
impose administrative civil penalties for a knowing,
intentional violation of the Coastal Act. Currently, only a
court can impost civil penalties for Coastal Act violations,
and the Commission and the Attorney General's Office do not
have the resources to prosecute any but the most egregious
cases (four in the last 10 years).
At least 21 other state agencies have Administrative Civil
Penalty authority including the San Francisco Bay Conservation
and Development Commission (BCDC), a comparable regulatory
agency.
2)Background. The Coastal Act established the commission to
protect the coast's natural and scenic resources and to
regulate development along the coastal zone.
Under the Coastal Act, all development in the coastal zone
requires a permit unless statutorily exempt. The permitting
process allows the commission and local governments to review
proposed projects to ensure they will not have impacts
inconsistent with the environmental protection policies of the
Coastal Act and local coastal plans.
In order to develop property in the coastal zone, a CDP must
be obtained. The commission determines if the development is
consistent with the Coastal Act and state and local coastal
plans.
The commission has several enforcement options to address
violations of the Coastal Act. The commission generally uses
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cease and desist orders to halt ongoing violations, to order
removal of unpermitted development, and to obtain compliance
with requirements of the Coastal Act or local costal plans.
An order may be issued only after failure to respond to verbal
and written notice.
The commission generally uses restoration orders to bring
about removal of unpermitted development and/or restoration of
damaged coastal resources. The commission may only issue a
restoration order after a noticed public hearing.
The executive director of the commission can also issue cease
and desist orders when someone has undertaken, or is
threatening may undertake, development without a CDP or
inconsistent with a CDP. The executive director orders stay
in effect for 90 days and are followed by public hearings and
commission-issued orders if needed.
A superior court may impose civil penalties between $500 and
$30,000 per violation of the Coastal Act. Additional civil
penalties between $1,000 and $15,000 may be imposed for each
day in which the violation persists.
3)LAO Recommendations. The Legislative Analyst's Office (LAO),
in the 2011-12 Budget Analysis, recommended that the
Legislature grant the commission the authority to levy
administrative penalties in order to reduce the costs
associated with enforcing compliance.
4)Opposition. A coalition of business, construction,
manufacturing and other regulated entities are concerned the
bill will incentivize the imposition of fines and penalties at
the expense of due process, rather than pursuing those fines
and penalties through the judicial branch.
5)Suggested Amendments. The Committee may wish to consider
including a sunset provision in the bill, directing all the
penalty revenue to the Coastal Conservancy, and clarifying
legislative intent.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081
AB 976
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