BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2185


                                                                    Page  1





          Date of Hearing:   April 11, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 2185  
          (Gonzalez) - As Amended March 18, 2016


          SUBJECT:  State Coastal Conservancy:  low-cost accommodations


          SUMMARY:  Requires State Coastal Conservancy (SCC) to develop a  
          program to assist private low-cost accommodations to continue to  
          provide low-cost accommodations to the public. Requires SCC to  
          develop a document with a list of potential low-cost  
          accommodation projects that could be used as options for  
          mitigation when considering coastal development permits (CDP).  


          EXISTING LAW:  


          1)Pursuant to the California Constitution, requires protection  
            of coastal access, requires maximum access and recreational  
            opportunities to be provided for all people consistent with  
            public safety needs and the need to protect public rights,  
            rights of private property owners, and natural resource areas  
            from overuse.  

          2)Establishes SCC with powers and responsibilities for  
            implementing and administering various programs intended to  
            preserve, protect, and restore the state's coastal areas.










                                                                    AB 2185


                                                                    Page  2





          3)Requires SCC to cooperate with the California Coastal  
            Commission (Commission), other public agencies, and with  
            nonprofit organizations to meet the policies and objectives of  
            the California Coastal Act of 1976 (Coastal Act), or a  
            certified local coastal program (LCP).





          4)Requires, pursuant to the Coastal Act, lower cost visitor and  
            recreational facilities to be protected, encouraged, and,  
            where feasible, provided.  Declares a preference for  
            developments providing public recreational opportunities. 

          5)Requires, pursuant to the Coastal Act, a person planning to  
            perform or undertake any development in the coastal zone to  
            obtain a CDP from the Commission or local government enforcing  
            a LCP.


          THIS BILL: 


          1)Requires SCC, subject to the availability of funding, to  
            develop either a grant or revolving loan program to assist  
            private low-cost accommodations to meet their operation and  
            maintenance needs in exchange for an easement or other legally  
            binding instruments requiring the facility to continue to  
            provide low-cost accommodations in the future.

          2)Creates the Low-Cost Accommodations Program Account to receive  
            funds for the new SCC program.

          3)Requires SCC, in consultation with the Commission, Department  
            of Parks and Recreation (State Parks), and other relevant  
            coastal public land holders, to develop a list of potential  
            low-cost accommodation projects in each region of the coastal  
            zone.  The list shall include, but not be limited to, the  








                                                                    AB 2185


                                                                    Page  3





            following:

             a)   Specific projects that will increase low-cost  
               accommodations at State Parks in the coastal zone  
               consistent with the recommendations of the Parks Forward  
               Commission;

             b)   Information on grant programs at SCC that assist public  
               agencies and non-profits in providing low-cost  
               accommodations in the coastal zone; and,

             c)   Information on the grant or loan program developed by  
               SCC.  

          4)Requires SCC to provide the list to the Commission and  
            requires the Commission to provide the list to local  
            governments with LCPs.

          5)Requires the Commission to refer to the list for two purposes:

             a)   Options for mitigation when considering a CDP that  
               impacts the availability of low-cost accommodations, and

             b)   Options for expending prior commitments of "in-lieu"  
               public access fees. 



          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Coastal Commission.  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.  As stated in  
            the Commission's Strategic Plan Vision:  "The California coast  








                                                                    AB 2185


                                                                    Page  4





            is available for all to enjoy through thousands of public  
            accessways to and along the shoreline, a completed California  
            Coastal Trail, a well-supported network of parks and open  
            spaces, and a wide range of visitor-serving facilities,  
            including lower cost campgrounds, hostels, and hotels." 



            Section 30213 requires permitted development to protect,  
            encourage, and, where feasible, provide lower cost visitor and  
            recreational facilities.  According to the Commission, this  
            protection is necessary because there is significant pressure  
            to develop new higher cost accommodations, sometimes by  
            replacing existing lower or moderate cost facilities.  This is  
            because market demand tends to push prices increasingly higher  
            in the California coastal zone where tourism and overnight  
            accommodations are extremely valuable commodities.





            The Commission has carried out the Coastal Act mandate to  
            protect and provide lower cost visitor-serving accommodations  
            in various ways.  The Commission has certified LCP policies  
            throughout the coastal zone that implement Section 30213  
            requirements.  Through coastal development permit actions, the  
            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.





            The Commission has also collected over $19 million in  
            "in-lieu" fee mitigation for impacts to low-cost  








                                                                    AB 2185


                                                                    Page  5





            accommodations, and those fees have resulted in the  
            development of significant low-cost accommodations 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 unspent,  
            and the 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.  





            The Commission's Strategic Plan Action 1.2.2 expresses a need  
            to work with SCC, State Parks, and other state and local  
            partners to identify, plan for, and provide new public access  
            and recreational opportunities and low-cost accommodations  
            through effective allocation of existing and potential future  
            "in-lieu" fees.  The Commission has had workshops on low-cost  
            accommodations, one in December of 2014 and one March of 2015.  
             During these workshops concerns were expressed over the  
            unspent "in-lieu" fees and the lack of low-cost  
            accommodations.  At the December workshop, San Francisco State  
            University Professor Patrick Tierney stated that many owners  
            of low-cost accommodations in the coastal zone are nearing  
            retirement and that many private motels and hotels that are a  
            low-cost option for visitors could be lost in the near future.





          2)Other players. While the federal and local governments also  
            have efforts to increase low-cost accommodations along the  
            coast, SCC and State Parks are the two other state agencies  
            that play a role providing low-cost accommodations.  SCC has  








                                                                    AB 2185


                                                                    Page  6





            targeted the provision of low-cost overnight accommodations  
            near the coast under part of its Public Access Program since  
            1985, and assisted nonprofit organizations and local  
            governmental agencies in developing campgrounds, hostels, and  
            cabins/cottages along the California Coast.  Since the start  
            of the Public Access Program in 1985, SCC has granted over $9  
            million to help fund 13 separate projects to enhance low-cost  
            coastal accommodations.  One concern raised by SCC with the  
            "in lieu" fees provided by the Commission is they are small  
            relative to the total cost of a low-cost accommodation  
            project.  In addition, "in lieu" fees are a condition of an  
            individual CDP and often have geographic and nexus  
            requirements that makes it more complicated to find  
            appropriate projects for the "in lieu" fees. 

            Coastal state parks cover 339 miles of Pacific coastline.   
            State parks along the coast also provide many lower cost  
            visitor-serving accommodations.  The Parks Forward Initiative  
            stated that more people will visit parks if parks offer a  
            broad range of affordable overnight accommodations.  A key  
            Parks Forward recommendation is increasing the number,  
            variety, and affordability of overnight accommodations.  It is  
            important to increase low-cost accommodations available at  
            State Parks because cabins on the coastal zone often are  
            booked through much of the summer season.  For example,  
            occupancy rates at the Crystal Cove Cottages in Crystal Cove  
            State Park are estimated to be approximately 97%.  Cabins  
            often offer options to disadvantaged Californians that may not  
            have traditional camping equipment. The Commission has ordered  
            construction of low-cost accommodations at State Parks as  
            direct mitigation and has awarded "in lieu" fees for that  
            purpose.

          3)AB 2185.  Allowing families of all income levels to have  
            access to California's beaches and coast is a central tenet of  
            the Coastal Act.  AB 2185 attempts to expand and preserve the  
            pool of low-cost accommodations to create more recreation  
            opportunities for all Californians.            
            AB 2185 embraces many of the recommendations that were either  








                                                                    AB 2185


                                                                    Page  7





            provided by individual commissioners or the presenters at the  
            workshops help by the Commission.  SCC will be the lead agency  
            implementing AB 2185, which is consistent with their duties  
            assisting implementation of the Coastal Act.  The bill will  
            develop a unique program that will attempt to preserve private  
            low-cost accommodations by providing grants or loans to meet  
            operation and maintenance needs in exchange for a commitment  
            of continued low-cost accommodations at the facilities.  The  
            program could be funded through private or public funds and  
            could offer a way to preserve small independent motels and  
            hotels along the coast that offer low-cost accommodations.  By  
            gaining legally binding agreements to continue to offer  
            low-cost accommodations, SCC could reduce the pressure for  
            hotel conversions on the coast.  One potential concern that  
            has been raised by the Commission and SCC with this approach  
            is any program would need to ensure a public benefit, and that  
            any benefit to a private entity must only be incidental to the  
            direct public purpose to avoid being a gift of public funds.

            AB 2185 also requires SCC, in consultation with the  
            Commission, State Parks, and other relevant coastal public  
            land holders, to develop a list of potential low-cost  
            accommodations in the coastal zone.  This list of potential  
            projects would include recommendations by the Parks Forward  
            Commission, current grant programs at SCC for public agencies  
            and non-profits, and the new grant or loan program that will  
            be developed by SCC, as specified in this bill.  This list  
            would be used by the Commission and local governments with  
            LCPs when considering CDPs that impact the availability of  
            low-cost accommodations to assist them with actual examples of  
            what direct mitigations and appropriate "in-lieu" fee  
            requirements could be.  The goal of this information is to  
            help the Commission and local governments with LCPs make more  
            informed decisions that result in the most appropriate  
            mitigation.  In addition, AB 2185 would provide the Commission  
            with a list of potential projects to reduce the backlog of  
            committed "in lieu" fees.  It is important to recognize that  
            "in-lieu" fees and off site mitigation are just a component of  
            the Commission's duties to protect low-cost accommodations.   








                                                                    AB 2185


                                                                    Page  8





            The list of potential new low-cost accommodation projects that  
            will be created by AB 2185 should not distract the Commission  
            from protecting existing low-cost accommodations and requiring  
            low-cost accommodations on site, where feasible. 

          4)Prior legislation.


          AB 694 (Rendon, 2015) was almost identical to this bill and was  
          held in Assembly Appropriations Committee.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Amigoes de los Rios


          Audubon California


          Azul


          Black Surfers Collective
          California Coastal Protection Network
          California League of Conservation Voters


          Climate Parents
          Coastal Environmental Rights Foundation


          Environmental California








                                                                    AB 2185


                                                                    Page  9





          Heal the Bay


          Hispanic Access Foundation


          Los Angeles Waterkeeper


          National Parks Conservation Association


          Natural Resources Defense Council
          San Diego Navy Broadway Complex Coalition
          Save Our Shores
          Sierra Club California
          Sugar Law Center for Social Justice
          Surfrider Foundation


          The City Project
          2 Individuals


          Opposition


          None on file




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














                                                                    AB 2185


                                                                    Page  10