BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2185


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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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  
          private low-cost coastal accommodations in exchange for an  
          easement or binding agreement to protect the public benefit of  
          the facility.  Additionally, this bill:










                                                                    AB 2185


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          1)Requires SCC, in consultation with the California Coastal  
            Commission (Commission), Department of Parks and Recreation  
            (DPR)  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 Commission and  
            requires the Commission to provide the list to local  
            governments with Local Coastal Plans (LCPs).  Requires the  
            Commission is 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)Increased initial costs to SCC of approximately $600,000 (GF  
            or special fund)  to develop the list of potential projects,  
            monitor and enforce the program and determine how best to  
            grant public funds to private businesses.   Potential unknown  
            future legal costs for defending the easements.



          3)Increased costs of approximately $330,000 for DPR to conduct  
            the coastal zone assessment and advise the SCC.



          4)Minor administrative costs of approximately $10,000 for the  
            Commission to provide information to SCC on potential low-cost  
            accommodation projects by region and consult with DPR.








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          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 2006 Commission  
            report found that only 8% of overnight accommodations in nine  
            popular coastal counties were considered low-cost.  This bill  
            encourages the Commission to improve their current approach to  
            coastal access, and increases the authority of the State  
            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 Commission has carried out the Coastal Act mandate to  
            protect and provide lower cost visitor accommodations in  
            various ways.  Additionally, the Commission has certified LCP  
            policies throughout the coastal zone with low cost  
            accommodation 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.








                                                                    AB 2185


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          3)In Lieu Fees.  The 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 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.  





          4)Implementation Issues.  This bill requires list of potential  
            projects but does not require the analysis necessary to  
            determine ongoing operations and maintenance costs to  
            determine the costs and benefits of the projects.  The author  
            may wish to amend the bill to include further analysis  
            requirements.



          5)Prior legislation.  AB 694 (Rendon, 2015) was almost identical  
            to this bill and was held on suspense in this Committee.










                                                                    AB 2185


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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081