BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2002


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          Date of Hearing:  April 18, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 2002  
          (Mark Stone) - As Amended April 12, 2016


          SUBJECT:  Political Reform Act of 1974:  California Coastal  
          Commission:  communications


          SUMMARY:  Provides that communicating with the Coastal  
          Commission (Commission) in order to influence specified actions  
          can result in a person being considered a "lobbyist" under the  
          Political Reform Act (PRA).  Prohibits an ex parte communication  
          with a member of the Commission regarding a matter during the 24  
          hours before that matter will be discussed at a Commission  
          hearing.


          EXISTING LAW:  


          1)Creates the Fair Political Practices Commission (FPPC) and  
            makes it responsible for the impartial, effective  
            administration and implementation of the PRA.



          2)Defines a "lobbyist," for the purposes of the PRA, as an  
            individual who receives $2,000 or more in a calendar month, or  
            whose principal duties as an employee are, to communicate with  
            an agency official, elected state official, or legislative  








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            official for the purpose of influencing legislative or  
            administrative action. This definition does not apply to any  
            elected public official acting in her official capacity, or  
            any state employee acting within the scope of his or her  
            employment.

          3)Defines "administrative action," for the purposes of the PRA,  
            as either of the following:


             a)   The proposal, drafting, development, consideration,  
               amendment, enactment, or defeat by any state agency of any  
               rule, regulation, or other action in any ratemaking  
               proceeding or a quasi-legislative proceeding, as specified;  
               or,


             b)   With regard only to placement agents, as defined, the  
               decision by any state agency to enter into a contract to  
               invest state public retirement system assets on behalf of a  
               state public retirement system.


          4)Defines "agency official," for the purposes of the PRA, as any  
            member, officer, employee, or consultant of any state agency  
            who as part of her official responsibilities participates in  
            any administrative action in other than a purely clerical,  
            secretarial, or ministerial capacity. Excludes Commissioners  
            from the agency official definition.

          5)Requires a lobbyist to register as a lobbyist and to comply  
            with various ethics and reporting rules.





          6)Requires lobbying firms and lobbyist employers to register  
            with the Secretary of State (SOS) and to file periodic  








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            disclosure reports that contain information about the firms'  
            and employers' lobbying interests and agencies lobbied.



          7)Permits any person to testify at a Commission hearing,  
            workshop, or other official proceeding, or submit written  
            comments for the record on a matter before the Commission.

          8)Requires any person who applies to the Commission for approval  
            of a development permit to provide the Commission with the  
            names and addresses of all persons who, for compensation, will  
            be communicating with the Commission or its staff on the  
            applicant's behalf or on behalf of the applicant's business  
            partners.  Requires that disclosure to be provided to the  
            Commission prior to any such communication.

          9)Requires Commissioners to disclose and make public any ex  
            parte communication by providing a full report of the  
            communication to the executive director within seven days of  
            the communication or, if the communication occurs within seven  
            days of the next Commission hearing, to the Commission on the  
            record of the proceeding at that hearing.

             a)   Defines an "ex parte communication," for the purposes of  
               communications related to actions of the Commission, as any  
               oral or written communication between a member of the  
               Commission and an interested person about a matter within  
               the Commission's jurisdiction, which does not occur in a  
               public hearing, workshop, or other official proceeding, or  
               that is not on the record at such a proceeding.   

             b)   Defines an "interested person" as (a) any applicant,  
               applicant's agent or representative, or participant in a  
               Commission proceeding, (b) any person with a financial  
               interest in a matter before the Commission, or her agent or  
               employee, or (c) a representative acting on behalf of any  
               civic, environmental, neighborhood, business, labor, trade,  
               or similar organization who intends to influence the  








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               decision of a Commissioner.



             c)   Defines a "matter within the commission's jurisdiction"  
               as any permit action, federal consistency review, appeal,  
               local coastal program, port master plan, public works plan,  
               or any other quasi-judicial matter requiring Commission  
               action, for which an application has been submitted to the  
               Commission.

          10)Prohibits a Commissioner who has knowingly had an ex parte  
            communication that has not been reported as required from  
            voting on the matter or influencing the Commission in any way.  
             Provides that knowing violations of the disclosure or recusal  
            requirements can result in fines of up to $7,500, and a court  
            order for the Commission to revoke its action and rehear the  
            matter.

          THIS BILL:


          1)Provides that communications with Commissioners regarding  
            specified business before the Commission can result in a  
            person being considered a lobbyist under the PRA, pursuant to  
            the following:


             a)   Expands the definition of "administrative action" to  
               also mean various actions intending to influence decisions  
               in proceedings before the Commission.


             b)   Provides, for the purposes of a quasi-judicial matter  
               before the Commission, that the term "agency official" only  
               means Commissioners, thereby generally excluding  
               communications with staff or consultants of the Commission  
               regarding matter before the Commission from the types of  
               communications that may result in a person being classified  








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               as a lobbyist under this bill.





             c)   Exempts from the definition of "lobbyist," for the  
               purposes of this bill, an employee of a local government  
               agency seeking, within the scope of his or her employment,  
               to influence quasi-judicial decisions of the Commission.

          2)Requires Commissioners to disclose any ex parte communication  
            in writing at least 24 hours before a hearing if the  
            communication occurs within seven days of the next hearing and  
            relates to a matter that the Commission will discuss at the  
            hearing.  Prohibits Commissioners or an interested person in a  
            Commission action from conducting an ex parte communication  
            within 24 hours before a hearing regarding a matter that the  
            Commission will discuss at that hearing.  

          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Author's statement.


          Currently members of the California Coastal Commission are  
          lobbied without the same level of transparency that is met  
          when other state officials are lobbied.  AB 2002 will amend  
          the California Coastal Act and the California Political  
          Reform Act to require that those lobbying the Commission  
          must register with the Fair Political Practices Commission  
          as a lobbyist; they must disclose activities they are  
          pursuing on behalf of a client. 










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               The decisions made by the Commission can have broad  
               and lasting impacts on coastal conservation and  
               coastal access.  The Commission works with cities and  
               counties in the coastal zone to approve land use  
               policy that reflects the values put forth by the  
               voters in 1972.  Due to the gravity of these  
               decisions, transparency of the process is critical.


          2)Coastal Commission.  The Commission was established by  
            voter initiative in 1972 (Proposition 20) and later made  
            permanent by the Legislature through adoption of the  
            California Coastal Act of 1976 (Coastal Act).  In  
            partnership with coastal cities and counties, the  
            Commission plans and regulates the use of land and water  
            in the coastal zone.  Development activities, which are  
            broadly defined by the Coastal Act to include  
            construction of buildings, divisions of land, and  
            activities that change the intensity of use of land or  
            public access to coastal waters, generally require a  
            Coastal Development Permit (CDP) from either the  
            Commission or the local government with a certified Local  
            Coastal Program (LCP).
            


            The Commission is an independent, quasi-judicial state  
            agency, and is composed of 12 voting members, appointed  
            equally (4 each) by the Governor, the Senate Rules  
            Committee, and the Speaker of the Assembly.  Six of the  
            voting commissioners are locally elected officials and  
            six are appointed from the public at large.  Three ex  
            officio (non-voting) members represent the Natural  
            Resources Agency, the Transportation Agency, and the  
            State Lands Commission. 












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            According to the Commission's mission statement: 





               The Commission is committed to protecting and  
               enhancing California's coast and ocean for present and  
               future generations. It does so through careful  
               planning and regulation of environmentally-sustainable  
               development, rigorous use of science, strong public  
               participation, education, and effective  
               intergovernmental coordination. 





          3)Ex parte communications.  Ex parte communications refer to any  
            communication made in private (i.e., off the record and  
            without notice and opportunity for all parties to participate)  
            between an interested party in a decision-making process and  
            any state official in a decision-making position.  Ex parte  
            communication disclosure requirements for state policy makers  
            are intended to provide the public with information regarding  
            a decision and to prevent bias in decision makers.  Prior to  
            1992, there was no mention of ex parte communications in the  
            Coastal Act.  There were claims of frequent unreported ex  
            parte communications at the Commission.  In 1992, basic ex  
            parte communications reporting was added to the Coastal Act.   
            In 2014, AB 474 (Stone), Chapter 125, Statutes of 2014,  
            improved ex parte communications reporting requirements.  The  
            additions to the reporting requirements included the identity  
            of the person on whose behalf the communication was made, the  
            identity of all persons present during the communication, and  
            a complete, comprehensive description of the content of the ex  
            parte communication, including a complete set of all text and  
            graphic material that was part of the communication.  However,  








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            concerns remain about ex parte communications at the  
            Commission.  Those concerns include the quality of the oral  
            reports that are required within a week of a meeting and the  
            ability of the public to find specific ex parte communication  
            reports.  This bill requires written reports for all ex parte  
            communications.  This bill also prohibits ex parte  
            communications within 24 hours of a Commission hearing.   
          4)Political Reform Act of 1974.  California voters passed an  
            initiative, Proposition 9, in 1974 that created the FPPC and  
            codified significant restrictions and prohibitions on  
            candidates, officeholders, and lobbyists. That initiative is  
            commonly known as the PRA.  Amendments to the PRA that are not  
            submitted to the voters, such as the lobbying provisions of  
            this bill, must further the purposes of the initiative and  
            require a two-thirds vote of both houses of the Legislature.


          5)Double-Referral.  This bill was double-referred to the  
            Elections and Redistricting Committee and on March 30, 2016  
            passed out of that Committee 6-1.





          6)Related legislation.
          SB 1190 (Jackson) prohibits all ex parte communications at the  
          Commission.  This bill is awaiting hearing in the Senate  
          Appropriations Committee.


          AB 2658 (Maienschein) imposes ex parte communications reporting  
          requirements on Commission staff.  Specifies when videos and  
          other related material must be posted on the Commission's  
          website.  This bill is scheduled to be heard in this Committee  
          on April 18.


          








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          REGISTERED SUPPORT / OPPOSITION:




          Support


          Asian Pacific Policy & Planning Council 
          Audubon California 
          Azul 
          Black Surfers Collective 
          Blue Frontier 
          California Coastal Protection Network 
          California Coastkeeper Alliance 
          California League of Conservation Voters 
          California Native Plant Society 
          California Watershed Network 
          CALPIRG 
          The City Project 
          Climate Parents 
          Coastal Environmental Rights Foundation 
          Controller Betty Yee 
          Courage Campaign 
          Environment California
          Environmental Defense Center 
          Environmental Justice Coalition for Water 
          Friends of Harbors, Beaches, and Parks 
          Hispanic Access Foundation 
          Humboldt Baykeeper  
          IDARE Sustainable Leadership 
          Inland Empire Waterkeeper 


          Klamath Riverkeeper
          Los Angeles Waterkeeper 
          Los Cerritos Wetlands Land Trust 








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          Monterey Coastkeeper & Otter Project 
          National Parks Conservation Association 
          The Nature Conservancy 
          Orange County Coastkeeper 
          Petaluma River Council 
          Preserve Rural Sonoma County 
          Russian Riverkeeper 
          San Diego Coastkeeper 
          San Francisco Baykeeper 
          San Luis Obispo Channelkeeper 
          Santa Barbara Channelkeeper 
          Sierra Club California 
          Smith River Alliance 
          Sonoma County Conservation Action 
          Surfrider Foundation 
          Turtle Island Restoration Network 
          Ventura Coastkeeper 
          WILDCOAST 
          Wishtoyo Chumash Foundation 
          One individual 




          Opposition


          California Apartment Association 


          California Building Industry Association
          California Business Properties Association


          California Cattlemen's Association 
          California Chamber of Commerce 


          California Construction and Industrial Materials Association








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          California Farm Bureau Federation
          California Independent Petroleum Association


          Western States Petroleum Association 


          Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092