BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2002 (Mark Stone) - Political Reform Act of 1974:  California  
          Coastal Commission:  communications
          
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          |Version: April 12, 2016         |Policy Vote: E. & C.A. 4 - 1,   |
          |                                |          N.R. & W. 6 - 2       |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          


          Bill  
          Summary: AB 2002 would (1) provide that communicating with the  
          California Coastal Commission in order to influence specified  
          actions can result in a person being considered a "lobbyist"  
          under the Political Reform Act (PRA), and (2) prohibit 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.


          Fiscal  
          Impact: 
                 The Fair Political Practices Commission (FPPC) indicates  
               that it would incur first-year costs of $215,000, and  
               ongoing annual costs of $201,000 to implement the  
               provisions of the bill (General Fund). 







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                 The California Coastal Commission would incur costs of  
               up to $240,000 annually related to conducting site visits  
               under the provisions of the bill. 


          Background: The Coastal Commission (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 (four  
          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.


          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. In 2014, AB 474 (Stone, Chapter 125,  
          Statutes of 2014), expanded 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  








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          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.  




          Proposed Law:  
          This bill would do the following:
                 Provide that communicating with the Commission in order  
               to influence specified actions can result in a person being  
               considered a "lobbyist" under the Political Reform Act  
               (PRA).


                 Require 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.


                 Prohibit 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.  







          Related  
          Legislation: SB 1190 (Jackson) would prohibit all ex parte  
          communications at the Commission. The bill is currently pending  
          in the Assembly Appropriations Committee.


          Staff  
          Comments: Due to the bill's expanding the regulation of lobbying  
          into matters before the Commission, FPPC would require two  
          positions, at an annual General Fund cost of around $200,000 to  








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          amend regulations and manuals, respond to additional advice  
          requests, and for additional enforcement.
          The work of Coastal Commissioners involves, among other duties,  
          voting monthly on several dozen permits, appeals, and agreements  
          of settlements of enforcement. It is common that Commissioners  
          will participate in site visits prior to a meeting to see  
          first-hand issues that may be considered in a meeting. By  
          creating a 24 hour blackout period on ex parte communication,  
          the Commission indicates that the bill would require that any  
          site visits conducted in that time period be done as formal  
          commission meetings with public participation. Costs resulting  
          from the bill would range from $3,000 to $10,000 per site visit,  
          depending on public interest. Assuming two site visits per  
          meeting, total annual costs could range from $72,000 to  
          $240,000. This estimate excludes live streaming, translation  
          services, and other access costs that typical commission  
          meetings incur.




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