Coastal resources: local coastal program: coastal development permit: non-owner-occupied short-term rentals.

The entire second section of the bill (amending Section 30511 of the Public Resources Code on local coastal program submission options) was deleted. The bill now only amends Section 30604.

The short-term rental approval provision now applies only to permits or amendments 'submitted by a local government,' rather than any applicant. Previously it did not specify who could submit the restriction.

Two new conditions were added: (1) the local agency must have made findings that restricting or prohibiting non-owner-occupied short-term rentals was necessary to address significant local housing needs, and (2) the commission must determine that the permit or amendment strikes a reasonable balance between local housing needs and public access to the coast.

The provision now explicitly states it applies 'Notwithstanding Sections 30210, 30213, and 30222,' which are policy sections of the Coastal Act that could otherwise be used to deny such restrictions based on visitor-serving accommodation availability or other grounds.

A new legislative intent paragraph was added stating the Legislature's intent to provide guidance to the commission on standards of review for approving, approving with modifications, or disapproving short-term rental restrictions, balancing public access against affordability, housing, and equity goals.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review, likely due to the new commission determination requirement creating potential state cost implications.

The bill now amends Section 30604 of the Public Resources Code (coastal development permits) in addition to its original amendment of Section 30511 (local coastal program submission). This dramatically broadens the bill's reach from a technical cleanup to substantive permit policy.

New subdivision (g)(2) requires the commission to approve a coastal development permit or local coastal program amendment that restricts or prohibits non-owner-occupied short-term rentals, regardless of the availability of other visitor-serving accommodations to meet demand. This removes the commission's ability to deny such restrictions on the basis that tourists would lack alternative lodging.

New subdivision (h) allows the issuing agency or the commission on appeal to consider environmental justice, or the equitable distribution of environmental benefits throughout the state, when acting on a coastal development permit.

In subdivision (f), the language was changed from 'may require measures that reduce residential densities' to 'shall not require measures that reduce residential densities below the density sought by an applicant' for low- and moderate-income housing, making the density protection a hard prohibition rather than a discretionary standard.

New subdivision (g)(1) adds a legislative finding and declaration that it is important for the commission to encourage the protection of existing and the provision of new affordable housing opportunities for persons of low and moderate income in the coastal zone.

Multiple instances of 'No... shall not' double negatives were corrected to 'A... shall not' throughout Section 30604 (subdivisions d and e), clarifying that development outside the coastal zone is not subject to permit requirements and that permits cannot be denied based on planned public acquisition.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has identifiable state fiscal implications due to the new mandate on short-term rental restrictions.