BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 694


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           Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          694 (Rendon) - As Amended April 23, 2015


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          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  








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          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  








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            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.













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          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









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