BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 694
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          Date of Hearing:  May 6, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, 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.  Specifically,  this bill  :  

          1)Repeals state law concerning tidelands shoreward of the  
            bulkhead in the City of San Diego and makes these lands, with  
            the exception of the lots conveyed to the United States by the  
            City of San Diego within the Navy Broadway Complex, along with  
            tidelands or submerged lands seaward of the bulkhead, 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  
            (Commission).

          3)Requires the 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.

           EXISTING LAW  :

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

          2)Conveys, pursuant to Chapter 700, Statutes of 1911, certain  
            tideland parcels to the City of San Diego to be held in public  








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            trust, without the right to grant or convey such tidelands, on  
            the condition that it make certain harbor improvements.

          3)Authorizes, pursuant to Chapter 250, Statutes of 1913, 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)Removes, pursuant to Chapter 642, Statutes of 1929, the  
            "tidelands" designation on all land shoreward of the bulkhead  
            in the City of San Diego and declares them to be free from all  
            public trusts and restrictions except that the city may not  
            grant or convey these lands to anyone for any purpose.  


          5)Permits the city to lease or rent the above-mentioned lands  
            for a period not to exceed 
          50 years, and 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.

          6)Authorizes, pursuant to Chapter 808, Statutes of 1929, any  
            municipality, upon voter approval, to convey tide and  
            submerged lands to the United States for "public or  
            governmental (including military or naval) purposes."

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)AB 694 responds to a federal district court decision in 1991  
            upholding the Navy's assertion that about 15 acres of the San  
            Diego waterfront, 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 pursuant to Chapter 642, Statutes  
            of 1929.  The U.S. brought this case in order to "quiet title"  
            or settle all claims to the property in order to develop it.   
            It was opposed by the State of California.  The court rejected  
            the state's position and ruled in favor of the Navy, citing,  
            in part, the plain, unambiguous language of Chapter 642 and  
            the fact that neither the Legislature nor a court of law had  








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            taken any action to invalidate it.

          2)AB 694 pertains to the remaining tidelands or submerged lands  
            in San Diego Bay, both filled and unfilled, subject to Chapter  
            642 and outside of the Navy Broadway Complex.  While the  
            author has neither the intention nor the authority to overturn  
            the federal court decision, she does intend, by repealing  
            Chapter 642, to make explicit the fact that the remaining  
            tidelands in the City of San Diego are subject to the public  
            trust and associated use restrictions.  

          3)It is worth noting that, in Chapters 250 and 808, the state  
            authorized municipalities to which tidelands had been granted  
            to then grant portions of those lands to the federal  
            government, but only for "public purposes of the United  
            States" (Ch. 250) or "public or governmental (including  
            military or naval) purposes" (Ch. 808).  In the case of the  
            Navy Broadway Complex, the Navy has entered into a long-term  
            lease in December 2006 with a private developer to build a new  
            administration building on part of the property for the Navy's  
            benefit, and 1.7 million square feet of office space, 1.2   
            million square feet of hotels, lesser amounts for retail and  
            "public attraction" space, and a 1.9 acre public park on the  
            remainder of the land for the developer's benefit.  The  
            Committee may wish to consider whether having the federal  
            government gain control of state tidelands and then turn them  
            over to a private developer constitutes "the public purposes  
            of the United States."  The author's office is concerned that  
            without AB 694, the Navy could assert a similar right to lease  
            or dispose 
          of other tidelands for non-trust uses of a similarly  
            questionable "public" nature.  

          4)This bill is similar to AB 1832 (Saldana), 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)This bill is double-referred to the Committees on Natural  
            Resources, where it was passed with a 6-0 vote on April 13,  
            2009, and to Local Government.

           REGISTERED SUPPORT / OPPOSITION  :   









                                                                  AB 694
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           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958