BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 262
                                                                  Page 1

          Date of Hearing:  July 6, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                   SB 262 (Lowenthal) - As Amended:  June 11, 2009

           SENATE VOTE  :  21-18
           
          SUBJECT  :  California Coastal Commission (Commission) meetings

           SUMMARY  :  Requires the Commission to meet 10 times per year,  
          instead of monthly, at a place convenient to the public; extends  
          application review and appeal deadlines to the next regularly  
          scheduled meeting after the deadline.

           EXISTING LAW  :

          1)Requires the Commission to meet at least once a month at a  
            place convenient to the public.

          2)Requires the Commission to set for hearing a coastal  
            development permit application or appeal no later than 49 days  
            after the date the application or appeal is deemed "filed."

          3)Pursuant to the Permit Streamlining Act, the Commission is  
            required to approve or disapprove a development project within  
            180 days of the date that the application is deemed  
            "complete."

          4)Provides that a Local Coastal Program (land use plan) or  
            related elements are deemed approved or certified if the  
            Commission does not act with 60-90 days of submittal.  There  
            are similar deadlines for the consideration of appeals.

           FISCAL EFFECT  :  Non-fiscal

           COMMENTS  :  According to the author, the purpose of this bill is  
          to give the Commission the "flexibility to legally cancel a  
          meeting should that be necessary for fiscal reasons, without  
          losing jurisdiction over pending items."

           1)Background : Under severe fiscal duress, even meeting on a  
            monthly basis, as it is currently required to do, could force  
            the Commission into deficit spending.  According to Commission  
            staff, the total cost of meetings ranges between $25,000 and  








                                                                  SB 262
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            $50,000/month.  To cut costs, meetings each month have been  
            reduced from a total of about five days to three days.  Even  
            though meetings costs represent a small percentage of its  
            overall $12 million budget, the Commission has been  
            under-funded for so long that, according to staff, "literally  
            every dollar it spends has an impact on operations." For  
            example, the savings associated with canceling a meeting could  
            offset unanticipated rent increases, purchase critical office  
            equipment, or avoid further layoffs.

            Other state entities such as the San Francisco Bay  
            Conservation and Development Commission, Fish and Game  
            Commission, Wildlife Conservation Board, and Ocean Protection  
            Council have recently cancelled or relocated meetings either  
            due to budget shortfalls or lack of bond funds.  This bill  
            gives the Commission similar authority to cancel a meeting for  
            the same reasons.

           2)Cancellations only due to fiscal necessity  .  The Commission's  
            budget has teetered on the edge of fiscal solvency for quite  
            some time and lacks much of a buffer.  Commission staff states  
            that even an unanticipated retirement, workers comp claim,  
            adverse court judgment or vacation payment can push its budget  
            into deficit mode.  Since fiscal year 01-02, the Commission  
            has lost 26 positions and $2.7 million in funding.  All  
            discretionary spending has been eliminated and meetings are  
            held in public venues to avoid costs.  Replacing its computer  
            network with surplus Department of Fish and Game computers  
            represented an "upgrade." Commission staff has voluntarily  
            taken leave without pay to prevent layoffs beyond the recent  
            loss of nine positions.

            Thus, this bill appears to be one of the last remaining  
            measures to cuts costs (i.e.., about $100,000/year).  If this  
            bill becomes law, the Commission will continue to plan for  
            monthly meetings but will cancel a meeting only if financially  
            warranted.  Commission staff has indicated that only the  
            Commission itself, at a public hearing, would cancel a  
            meeting.  However, since the bill is silent in this regard,  
             the committee and author may wish to consider  whether the bill  
            should be amended to require the Commission to provide notice  
            of a proposed meeting cancellation at least 21 days in advance  
            and to direct the Commission to act on such a proposal at a  
            public hearing to allow the opportunity for public comment.









                                                                  SB 262
                                                                  Page 3

           3)Extending permit deadlines  : Existing law imposes deadlines on  
            the consideration of permits, local coastal plan amendments,  
            appeals of coastal development permits issued by local  
            governments, and other discretionary actions.  Canceling a  
            Commission meeting may result in a de facto approval of a  
            permit or amendment, for example.  In order to ensure that the  
            Commission would continue to exercise jurisdiction over these  
            and other actions, this bill extends relevant deadlines until  
            the next regularly scheduled meeting after the deadlines.   
            However, the bill does not make this extension contingent upon  
            an action to cancel a meeting.  Accordingly,  the committee and  
            author may wish to consider  whether the bill should be amended  
            to make these extensions contingent upon a Commission action  
            to cancel a meeting at properly noticed hearing.  

          4)Arguments in support and opposition  :  A supporter of the bill  
            who has represented applicants before the Commission for over  
            25 years notes that the major obstacle to speedy resolution of  
            permit issues is the lack of availability of Commission staff  
            due to workload (not for lack of want).  This bill would allow  
            the opportunity for more dialogue between staff and  
            applicants, which would expedite, not slow, consideration of  
            projects, according to the supporter.  In her experience,  
            resolution of issues in advance increases the chances that a  
            project will be approved in a single hearing versus over  
            multiple hearings.  

             Before the Senate, a coalition of opponents argued that the  
            Commission "should not be allowed to decrease its meeting  
            schedule under the guise of budgetary savings" though it does  
            not identify any other motive for such a proposal.  Instead,  
            in order to preserve an applicant's right to timely permit  
            consideration, opponents suggested that the Commission should  
            "undertake a managerial review as to how it categorizes and  
            processes various types of permits and undertake measures to  
            streamline workload flow and increase productivity while  
            maintaining high standards of coastal resource protections."  

             It appears that the Commission already liberally exercises its  
            existing administrative permit or waiver authority to  
            streamline its regulatory program.  Information provided by  
            Commission staff indicates that between July and December  
            2008, over one-third of all entitlements issued by the  
            Commission were handled administratively and it expects this  
            share to increase this year.  It is unclear whether there is  








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            still opposition to this bill.  
             

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Coastal Commission
            Culbertson and Associates
          Sierra Club California

           Opposition 
           
          None on file


           Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092