Existing law establishes the State Coastal Conservancy with prescribed powers and responsibilities for implementing and administering various programs intended to preserve, protect, and restore the states coastal areas.

This bill would require the conservancy to develop, subject to the availability of funding, a program to assist, by loan or grant, private low-cost coastal accommodations to meet their operation and maintenance needs in exchange for an easement or other legally binding instrument that protects the public benefit of the facility continuing to provide low-cost coastal accommodations. This bill would create the Low-Cost Accommodations Program Account in the State Coastal Conservancy Fund and provide that moneys in the fund are available upon appropriation by the Legislature to fund this program.

This bill would require the conservancy, in consultation with the California Coastal Commission, the Department of Parks and Recreation, and other relevant coastal public landholders, to develop a document containing a list of potential low-cost accommodations projects in each region of the coast and information on grant or loan programs. This bill would require the conservancy to provide the document to the commission and would require the commission to provide the document to local governments with local coastal programs. This bill would require the commission to refer to the list of potential low-cost accommodations projects, as prescribed.

The California Coastal Act of 1976 requires the California Coastal Commission to implement and administer various coastal protection programs in the state, and requires any person undertaking development in the coastal zone to obtain a coastal development permit issued by the commission in accordance with prescribed procedures. Existing law requires a person receiving a coastal development permit or certificate of exemption for development on a vacant lot within an area designated pursuant to certain provisions to pay an in-lieu public access fee, for deposit into the Coastal Access Account. Existing law authorizes money in the account to be available, upon appropriation, to the State Coastal Conservancy for grants to public and nonprofit entities for development, maintenance, and operation of new or existing facilities that provide public access to the shoreline of the sea.

This bill would authorize in-lieu public access fees in the account to be made available, upon appropriation, to the commission for purposes of retaining and developing low-cost accommodations, as defined, along the coast by providing low-interest loans and entering into cost-sharing agreements for the renovation of those facilities.

The bill would also declare the intent of the Legislature to enact legislation to authorize the California Coastal Commission to accept conservation easements for purposes of low-cost accommodations in the coastal zone that would provide tax advantages to the property owner in return for the loss of development rights.

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 694

Author:(Rendon) – As Amended Ver:April 23, 2015

Urgency: No State Mandated Local Program: No Reimbursable: 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:

1. Requires SCC, in consultation with the Coastal Commission, Department of Parks and Recreation 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 Coastal Commission and requires the Coastal Commission to provide the list to local governments with Local Coastal Plans (LCPs). The Coastal Commission is required 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. Minor administrative costs of less than $50,000 for SCC to develop the program and list.

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

Through coastal development permit actions, the Coastal 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.

3. In Lieu Fees. The Coastal 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 Coastal 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.

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

Date of Hearing: April 13, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 694

Author:Rendon – As Amended Ver:April 7, 2015

SUBJECT: California Coastal Commission: fees: low-cost accommodation

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 the 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.

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 following:

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

2. Information on grant programs at SCC that assist public agencies and non-profits in providing low-cost accommodations in the coastal zone.

3. 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:

1. Options for mitigation when considering a CDP that impacts the availability of low-cost accommodations.

2. Options for expending prior commitments of “in-lieu” public access fees.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement.

Section 30213 of the 1972 Coastal Act provides that “lower cost visitor and recreational facilities shall be protected, encouraged, and where feasible, provided.”… A 2006 Commission report found that only 8% of overnight accommodations in nine popular coastal counties were considered low-cost, affirming the on-going need for effective implementation of Section 30213. AB 694 encourages the Coastal Commission to improve their current approach to coastal access, and increases the authority of the State Coastal Conservancy to protect and develop affordable accommodations along California’s coast.

2. 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 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 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 project 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 two recent workshops on low-cost accommodations, one in December of last year and one March of this year. 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.

3. 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 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.

4. AB 694. Allowing families of all income levels to have access to California’s beaches and coast is a central tenet of the Coastal Act. AB 694 attempts to expand and preserve the pool of low-cost accommodations to create more recreation opportunities for all Californians.

AB 694 embraces many of the recommendations that were either provided by individual commissioners or the presenters at the workshops help by the Commission. SCC will be the lead agency implementing AB 694, 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 694 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 694 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. The list of potential new low-cost accommodation projects that will be created by AB 694 should not distract the Commission from protecting existing low-cost accommodations and requiring low-cost accommodations on site, where feasible.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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