Section 30213 of California Coastal Act requires the California Coastal Commission (“CCC”) to protect, encourage, and, where feasible, provide for lower cost overnight visitor accommodations (“LCOVA”) along the State’s coast. As mitigation measure consistent with this charge, the CCC imposes a $30,000 fee for 25 percent for rooms of new hotel developments determined to be higher cost (the “$30,000/25% fee”), in-lieu of LCOVA facility provision. Generally, the CCC applies this fee in two circumstances: (1) As an ad hoc fee for developers upon CCC review of coastal development permit (“CDP”) applications, and (2) as a legislatively imposed fee to be adopted by coastal jurisdictions upon CCC review of a local coastal program (“LCP”) or related policy. This paper explores the policy and legal implications of the $30,000/25% fee. The findings of this paper show that the $30,000/25% fee likely fails the applicable Federal California legal tests governing monetary exactions.