BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 694
                                                                  Page 1

          Date of Hearing:  April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                 AB 694 (Saldana) - As Introduced:  February 26, 2009
           
          SUBJECT  :  Tidelands and submerged lands:  City of San Diego.

          SUMMARY  :  Repeals Chapter 642 of the Statutes of 1929 which  
          removed the "tidelands" designation on all land shoreward of the  
          bulkhead in City of San Diego and declared them to be free from  
          all public trusts and restrictions.

           EXISTING LAW  :

          1)Section 3 of Article X of the California Constitution  
            prohibits all tidelands within two miles of any incorporated  
            city, city and county, or town from being granted or sold to a  
            private party; section 4 of Article X prohibits anyone from  
            excluding the right of access to or navigation of tidelands  
            whenever it is required for any public purpose.

          2)Chapter 700, Statutes of 1911 conveyed certain tideland  
            parcels to the City of San Diego to be held in public trust,  
            without the right to grant or convey such tidelands, on the  
            condition that it make certain harbor improvements.

          3)Chapter 250, Statutes of 1913 authorized any municipality to  
            which tidelands have been granted by the Legislature to grant  
            portions of such lands to the United States for the "public  
            purposes of the United States" if approved by a majority of  
            electors.

          4)Chapter 642 of the Statutes of 1929 removed the "tidelands"  
            designation on all land shoreward of the bulkhead in City of  
            San Diego and declared them to be free from all public trusts  
            and restrictions except that the city shall not grant or  
            convey these lands to anyone for any purpose.  The city is  
            permitted, however, to lease or rent these lands for a period  
            not to exceed 50 years.  The city may also use, lease or rent  
            all land lying seaward of the bulkhead line to any person or  
            corporation for a maximum of 50 years provided that the use or  
            lease does not interfere with public trust purposes such as  
            navigation, commerce or fisheries.









                                                                  AB 694
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           THIS BILL  :

          1)Repeals Chapter 642 of the Statutes of 1929.  All former  
            tidelands shoreward of the bulkhead, with the exception of the  
            parcels conveyed to the United States by the City of San Diego  
            within the Navy Broadway Complex, and tidelands or submerged  
            lands seaward of the bulkhead would therefore be subject to  
            public trust restrictions.

          2)States that the repeal of Chapter 642 may not be construed to  
            overturn or otherwise nullify the decision in United States of  
            America v. 15.320 Acres of Land, U.S. Dist. Lexis 21875 or any  
            title settlement agreement entered into by the State of  
            California acting by and through the State Lands Commission.

          3)Requires the State Lands Commission (Commission) to represent  
            the state and cooperate with the state's local trustees and  
            the United States in resolving their respective title and  
            boundary issues involving tidelands and submerged lands,  
            including, but not limited to, those involved in the 1993  
            federal Base Closure and Realignment Law.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background  

          This bill responds to a federal district court decision in 1991  
            upholding the Navy's assertion that 
          about 15 acres of downtown waterfront land, former tidelands  
            granted to it by the City of San 
          Diego for exclusive use of the Navy (known as the Navy Broadway  
          Complex), are free from the public trust and associated use  
          restrictions.  The U.S. brought this case in order to "quiet  
          title" or settle all claims to the property in order to develop  
          it.  In defense, the state argued that Chapter 642 did not  
          terminate the public trust on the property but simply lifted  
          certain use restrictions and the absolute prohibition, contained  
          in the original 1911 grant to the city, against its transfer  
          (especially when read with Chapter 808, passed by the  
          Legislature in the same year as Chapter 642, which defined to  
          whom and for what purpose tidelands could be granted).   
          Moreover, the state argued that even if the Legislature intended  
          to lift the public trust from the property, it did not have the  








                                                                  AB 694
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          power to do so because such action would conflict with common  
          law precedent upholding the public's unalienable interest in  
          tidelands.

          The court rejected the state's position and ruled in favor of  
          the U.S. citing, in part, the plain, unambiguous language of  
          Chapter 642 and the fact that neither the Legislature nor a  
          court of law has taken any action to invalidate it.   
          Accordingly, and pursuant to federal authorization, the Navy  
          entered into a long-term lease in December 2006 with a private  
          developer in exchange for a new Navy Administration building on  
          the 15 acre property.  The developer is proposing 1.7 million  
          square feet of office use, 1.2 million square feet of hotels,  
          lesser amounts for retail and "public attraction" space, and a  
          1.9 acre public park.  The Navy has entered into a memorandum of  
          understanding with the City of San Diego to develop the  
          property.

           2)The Legislature takes action  .  

          This bill only pertains to the remaining tidelands or submerged  
          lands, both filled and unfilled, subject to Chapter 642 and  
          outside of the Navy Broadway Complex.  While the author has no  
          intention of overturning the federal court decision, the intent  
          is to clarify that the remaining tidelands in the City of San  
          Diego are subject to the public trust and associated use  
          restrictions.  In fact, according to the State Lands Commission,  
          the court's decision is final, no longer subject to appeal, and  
          irrespective of this bill, cannot be re-tried with respect to  
          the subject tidelands.  The author's office is concerned that  
          without this bill, the Navy could assert a similar right to  
          lease or dispose of other tidelands for non-military or  
          non-trust uses.  

           3)History and current use of Chapter 642 tidelands  .  

          Chapter 250, Statutes of 1913 authorized any municipality to  
          which tidelands have been granted by the Legislature to grant  
          portions of such lands to the United States for the "public  
          purposes of the United States" if approved by a majority of  
          electors.   Between 1919 and 1940, the City of San Diego granted  
          to the United States government several parcels of land,  
          including the Navy Broadway Complex.  All of the grants, though  
          some obviously in vain, restricted use of the parcels to the  
          "purposes" of the U.S. Navy.  In 1962, the Legislature created  








                                                                  AB 694
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          the Port of San Diego and transferred most of the remaining  
          tidelands subject to Chapter 642 to the Port.  On behalf of the  
          state, the Port holds in trust about 3415 acres of filled  
          tidelands and 3402 acres of submerged tidelands.  According to  
          the Port, these lands are all used to promote the public trust  
          (e.g., ship building, marinas; visitor-serving hotels and  
          restaurants; berths, ship channels; parks, open space).

           4)Previous legislation  

          This bill is similar to AB 1832 (Salda?a), which the Governor  
          vetoed last year because it eliminated the authority of local  
          governments, upon voter approval, to grant tidelands and  
          submerged lands to the federal government for "public" or  
          "governmental" purposes.  This bill retains this authority.

           5)Dual-referral  

          This bill has been dual-referred to the Assembly Local  
          Government Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
          
          None on file

           Opposition 
           
          None on file

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