BILL ANALYSIS Ó AB 694 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 694 (Rendon) - As Amended April 23, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 3 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the State Coastal Conservancy (SCC), subject to the availability of funding, to develop a program to provide loans or grants to meet the operation and maintenance needs of AB 694 Page 2 private low-cost coastal accommodations in exchange for an easement or binding agreement to protect the public benefit of the facility. Additionally, this bill: 1)Requires SCC, in consultation with the Coastal Commission, Department of Parks and Recreation and other relevant coastal public land holders to develop a list of potential projects in each region of the coast. 2)Requires SCC to provide the list to the Coastal Commission and requires the Coastal Commission to provide the list to local governments with Local Coastal Plans (LCPs). The Coastal Commission is required to use projects on the list as options for coastal development mitigation or in lieu public access fees. FISCAL EFFECT: 1)GF or special fund cost pressures potentially in the hundreds of thousands to millions of dollars range to provide the grants and loans specified in the bill. 2)Minor administrative costs of less than $50,000 for SCC to develop the program and list. COMMENTS: 1)Purpose. According to the author, although the 1972 Coastal Act requires lower cost visitor and recreational facilities to be protected, encouraged, and provided, a AB 694 Page 3 2006 Coastal Commission report found that only 8% of overnight accommodations in nine popular coastal counties were considered low-cost. This bill encourages the Coastal Commission to improve their current approach to coastal access, and increases the authority of the State Coastal Conservancy to protect and develop affordable accommodations along California's coast. 2)Background. The Coastal Act broadly protects public access for all by protecting and providing for lower cost public recreational and visitor serving facilities, including but not limited to, overnight accommodations. The Coastal Commission has carried out the Coastal Act mandate to protect and provide lower cost visitor accommodations in various ways. Additionally, the Coastal Commission has certified LCP policies throughout the coastal zone with low cost accommodation requirements. Through coastal development permit actions, the Coastal Commission has in some cases denied permit applications for development that would eliminate existing lower cost facilities, and has in other cases required low-cost accommodations to be constructed in conjunction with new higher cost hotels either on or off site. AB 694 Page 4 3)In Lieu Fees. The Coastal Commission has also collected over $19 million in "in-lieu" fee mitigation for impacts for low-cost accommodations, and those fees have resulted in the development of significant projects along the California coast, including support for the 260-bed Santa Monica Hostel, the restoration of Crystal Cove Cottages in Orange County, and nearly 200 new State Parks campsites. However, millions of dollars in "in lieu" fees remain un-spent, and the Coastal Commission is currently engaged in an effort to document all past "in lieu" fee requirements. The Commission partnered with State Parks, SCC, regional agencies, local governments, and non-profits on projects that spend "in lieu" fees. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 694 Page 5