BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 291                    HEARING DATE: June 23, 2009  
          AUTHOR: Saldana                    URGENCY: No  
          VERSION: May 11, 2009              CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Coastal resources: coastal development permits:  
          penalties.  
          
          BACKGROUND AND EXISTING LAW
          The California Coastal Act of 1976 requires any person wishing  
          to perform any development in the coastal zone to first obtain a  
          coastal development permit. The California Coastal Commission  
          (CCC) may issue a cease and desist order if it determines that  
          someone is undertaking or threatening to undertake any activity  
          that requires a coastal development permit (CDP) or that may be  
          inconsistent with a previously issued permit. The CCC may also  
          issue a restoration order if it finds that development has  
          occurred without a CDP and the development is causing continuing  
          resource damage. 

          A superior court may impose civil penalties on any person in  
          violation of the Coastal Act between $500 and $30,000;  
          additional penalties between $1,000 and $15,000 per day for each  
          day in which a violation persists may be imposed when anyone  
          knowingly and intentionally violates the Coastal Act. 

          PROPOSED LAW
          This bill would prohibit any person subject to a pending  
          enforcement action of the California Coastal Commission  
          (Commission) from submitting a (CDP) application until the  
          action has been resolved. This prohibition would not apply if  
          the executive director of the CCC determines that a permit  
          application would fully resolve the violation. It would also not  
          apply to de minimus violations, defined as those that may be  
          easily resolved through voluntary actions by the property owner.  


          ARGUMENTS IN SUPPORT
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          According to the author's office, "The [Commission] is currently  
          understaffed and backlogged by 1,300 enforcement cases.  Given  
          budget cuts, this backlog will not be resolved for 100 years.  
          This bill seeks to relieve the CCC of an overwhelming amount of  
          work in the face of limited resources by allowing the CCC to  
          require applicants to fix outstanding Coastal Act violations  
          before their CDP is processed.  In addition to saving the CCC  
          time and resources, the bill also serves as an incentive for  
          Coastal Act violations to be  cleaned up, subsequently helping  
          preserve coastal resources."

          Under existing law, anyone can apply for a CDP even if the  
          proposed development occurs on a parcel subject to a violation  
          or an alleged violation of the Coastal Act.  Despite the  
          inefficiency, the CCC must consider the application without  
          regard to this violation even if it is directly relevant to the  
          proposed development. Moreover, many new permit applications  
          must be reviewed within statutory deadlines, even those that  
          would affect properties facing current enforcement actions. 

          In contrast, many other state agencies and some local  
          governments have the authority to require that an applicant  
          resolve outstanding issues at the same time as an application,  
          in order to save resources and create an incentive to  
          voluntarily resolve outstanding violations. Humboldt, Mendocino,  
          Marin, San Luis Obispo, Monterey, Santa Barbara, Ventura  
          Counties all have similar authorities, according to CCC staff.   
          State agencies such as the Departments of Food and Agriculture,  
          Health Services, Motor Vehicles, Corporations, Fish and Game,  
          Forestry and Fire Protection, Consumer Affairs, and Insurance  
          similarly have authority to require resolution of a violation  
          prior to consideration of an application for a permit, license  
          or other approval. 

          This bill, according to the supporters, would give the CCC  
          another tool to resolve violations in the most efficient,  
          cost-effective manner possible.  According to CCC staff,  
          applicants are aware of the Commission's staffing limitations,  
          and many conclude that it is more cost-effective to ignore  
          unresolved violations, on the assumption that the CCC will be  
          unable to summon the resources to pursue enforcement on the vast  
          majority of open cases.

          ARGUMENTS IN OPPOSITION
          A coalition of opponents argues that the bill imposes a "guilty  
          until proven innocent" approach to certain coastal development  
          permit applications. In the Assembly, the bill was limited to  
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          situations in which a notice of a violation was issued or  
          recorded, or until the violation has been resolved. It is not  
          clear if these amendments have eliminated or reduced the  
          concerns of the opposition. 

          This concern may also reflect a misunderstanding about how the  
          CCC procedures designate pending violations. 

          Cease and desist orders issued by the executive director may  
          occur only after a person has failed to respond to an oral and  
          written notice and are valid for only 90 days.  If a violation  
          remains unresolved after this period, staff usually schedules  
          the order for CCC consideration at a duly noticed public  
          hearing.  The other enforcement option, restoration orders, may  
          only be issued after a noticed public hearing.  Only after the  
          executive director determines, based on substantial evidence,  
          that  property has been developed in violation of the Coastal  
          Act, does the Act authorizes the executive director to mail a  
          "notification of intent to record a notice of violation" to the  
          property owner. If the owner submits an objection to this notice  
          within 20 days, the owner is entitled to a public hearing to  
          plead his cause. Only after the CCC finds, based on substantial  
          evidence, that a violation has occurred, is the notice recorded.  


          Finally, the bill provides that any unresolved dispute between  
          the executive director and applicant regarding the bill's  
          implementation must be resolved by the CCC at a noticed public  
          hearing pursuant to its regulations, which require the executive  
          director to schedule the dispute at the next CCC hearing.  

















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          SUPPORT
          American Federation of State, County, and Municipal Employees,   
          AFL-CIO
          Buena Vista Audubon Society
          California Coast Keeper Alliance
          California Coastal Protection Network
          California Coastal Commission
          Committee for Green Foothills
          Clean Water Action
          Endangered Habitats League
          Heal the Bay
          Madrone Audubon Society of Sonoma County
          Natural Resources Defense Council
          Planning and Conservation League
          San Diego Coastkeeper
          San Diego Audubon Society
          Sea and Sage Audobon
          Sierra Club California
          Vote the Coast
          Wild Heritage Planners

          OPPOSITION
          American Council of Engineering Companies of California
          California Association of REALTORS
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California Council for Environmental and Economic Balance
          California Manufacturers and Technology Association
          City of Newport Beach
          League of California Cities















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