BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2002|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 2002
          Author:   Mark Stone (D), Atkins (D), and Levine (D), et al.
          Amended:  4/12/16 in Assembly
          Vote:     27 

           SENATE ELECTIONS & C.A. COMMITTEE:  4-1, 6/21/16
           AYES:  Allen, Hancock, Hertzberg, Liu
           NOES:  Anderson

           SENATE NATURAL RES. & WATER COMMITTEE:  6-2, 6/28/16
           AYES:  Pavley, Allen, Hertzberg, Hueso, Jackson, Monning
           NOES:  Stone, Vidak
           NO VOTE RECORDED:  Wolk

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 8/11/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           ASSEMBLY FLOOR:  54-23, 6/2/16 - See last page for vote

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


          SOURCE:    Author
          
          DIGEST:   This bill 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) and 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. 








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          ANALYSIS:  

          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 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. 







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           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 and to file periodic 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.  


           10)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. 


           11)Defines an "interested person" as (a) any applicant,  







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             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 decision  
             of a Commissioner. 


           12)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. 


           13)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 the proposal, drafting, development,  
                consideration, amendment, enactment, or defeat of any  
                rule, regulation, permit action, federal consistency  
                review, appeal, local coastal program, port master plan,  
                public works plan, long-range development plan, or  
                categorical or other exclusion from coastal development  
                permit requirements.









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              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 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. 


           1) Requires Commissioners to disclose any ex parte  
             communication in writing as follows:


              a)    If the communication occurs more than seven days  
                before the next commission hearing, to the executive  
                director within seven days after the communication.


              b)    If the communication occurs within seven days of the  
                next commission hearing, to the commission on the record  
                of the proceeding at that hearing.


              c)    If the communication occurs within seven days of the  
                next commission hearing and relates to a matter that the  
                commission will discuss at the hearing, to the commission  
                in writing at least 24 hours before that hearing.



              d)    No commission member, nor any interested person, shall  
                conduct an ex parte communication within 24 hours before a  
                commission hearing regarding a matter that the commission  
                will discuss at the hearing.











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          Background
          
          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 from either the  
          Commission or the local government with a certified Local  
          Coastal Program. 

          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.

          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 through careful  
          planning and regulation of environmentally-sustainable  
          development, rigorous use of science, strong public  
          participation, education, and effective intergovernmental  
          coordination.

          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.  In 1992, basic ex parte communications  
          reporting was added to the Coastal Act.  In 2014, AB 474 (Stone,  







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          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.  This bill requires written  
          reports for all ex parte communications.  This bill also  
          prohibits ex parte communications within 24 hours of a  
          Commission hearing. 


          Comments
          
          According to the author, currently members of the 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 PRA to require that those  
          lobbying the Commission must register with the FPPC as a  
          lobbyist; they must disclose activities they are pursuing on  
          behalf of a client. 

          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.

          Related/Prior Legislation
          
          SB 1190 (Jackson), which is pending in the Assembly Natural  
          Resources Committee, prohibits all ex parte communications at  
          the Commission. 

          AB 2658 (Maienschein), which was never voted on in the Assembly  
          Natural Resources Committee, would have required Commission  
          staff to disclose certain communications as specified and  
          imposed time limits for posting specified recordings and  
          materials on the Commission Web site.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  







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          Com.:YesLocal:   Yes


          According to the Senate Appropriations Committee: 

           The FPPC indicates that it would incur first-year costs of  
            $215,000, and ongoing annual costs of $201,000 to implement  
            the provisions of this bill (General Fund). 


          SUPPORT:   (Verified8/11/16)


           California State Controller Betty Yee
           Asian Pacific Policy & Planning Council
          Audubon California 
           AzulBlack Surfers Collective 
           Blue Frontier
           California Coastal Commission
           California Coastal Protection Network
           California Coastkeeper Alliance
           California League of Conservation Voters
           California Native Plant Society
           California Public Interest Research Group
           California Watershed Network
           City of West Hollywood
           Climate Parents
           Coastal Environmental Rights Foundation
           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
           Monterey Coastkeeper & Otter Projects
           National Parks Conservation Association
           Orange County Coastkeeper
           Petaluma River Council







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                                                                    Page  9


           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
           The City Project
           The Nature Conservancy
           Turtle Island Restoration Network
           Ventura Coastkeeper
           WildCoast
           Wishotyo Chumash Foundation
           One individual


          OPPOSITION:   (Verified8/11/16)


           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
           California Farm Bureau Federation
           California Independent Petroleum Association
           Department of the Navy
           Fair Political Practices Commission
           Loftin Firm, P.C.
           National Federation of Independent Business
           Western States Petroleum Association 

          ASSEMBLY FLOOR:  54-23, 6/2/16
          AYES:  Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta,  
            Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer,  
            Levine, Lopez, Low, Maienschein, McCarty, Medina, Mullin,  
            Nazarian, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas,  







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            Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood,  
            Rendon
          NOES:  Achadjian, Travis Allen, Brough, Chang, Chávez, Dahle,  
            Gray, Grove, Harper, Jones, Kim, Lackey, Linder, Mathis,  
            Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Bigelow, Beth Gaines, Gallagher

          Prepared by:Darren Chesin / E. & C.A. / (916) 651-4106
          8/15/16 20:17:25


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