BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 262
                                                                  Page 1


          SENATE THIRD READING
          SB 262 (Alan Lowenthal)
          As Amended  July 13, 2009
          Majority vote 

           SENATE VOTE  :21-18  
           
           NATURAL RESOURCES   8-0                                         
           
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          |Ayes:|Skinner, Gilmore,         |     |                          |
          |     |Brownley, Chesbro, De     |     |                          |
          |     |Leon, Hill, Huffman,      |     |                          |
          |     |Logue                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Requires the California Coastal Commission  
          (Commission) to meet 10 times per year, instead of monthly, at a  
          place convenient to the public.  Specifically,  this bill  : 

          1)Requires the Commission to meet 10 times per year, instead of  
            monthly, at a place convenient to the public.

          2)Directs the Commission to give the public at least 10-days  
            notice prior to canceling a meeting and must consider such an  
            action at a public hearing to allow for public comment.

          3)Extends permit application and appeal deadlines to the next  
            regularly scheduled meeting after the deadline if the  
            Commission cancels a meeting.

           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  








                                                                  SB 262
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            "complete."

           FISCAL EFFECT  :  None

           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."

          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 $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.

          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  








                                                                  SB 262
                                                                  Page 3


          law, the Commission will continue to plan for monthly meetings  
          but will cancel a meeting only if financially warranted.  This  
          bill requires the Commission to give the public 10-days notice  
          prior to canceling a meeting and must do so at a public hearing  
          to allow for public comment.

          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 if the Commission cancels a meeting.  

           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.  

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


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