BILL ANALYSIS                                                                                                                                                                                                    





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          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 694                    HEARING DATE: July 6, 2009  
          AUTHOR: Saldana                    URGENCY: No  
          VERSION: As Introduced             CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: No  
          SUBJECT: Tidelands and submerged lands: City of San Diego.    
          
          BACKGROUND AND EXISTING LAW
          Chapter 700, Statutes of 1911, granted tidelands and submerged  
          lands to the City of San Diego for the development of commerce,  
          navigation and fishing, including the construction of all  
          wharves, docks, piers, slips, and the construction and operation  
          of a municipal belt line railroad in connection with said dock  
          system. That act was amended in both 1915 and 1917 to allow the  
          city to lease those lands, under certain conditions. In 1919,  
          The City of San Diego, authorized by Chapter 250, Statutes of  
          1913, granted some of these tidelands and submerged lands to the  
          United States Navy for their exclusive use. Additional parcels  
          were granted to the Navy in 1933, 1938, and 1940.

          Chapter 642, Statutes of 1929, declared that the tidelands and  
          submerged lands granted by the 1911 act have ceased to be  
          tidelands and were free from all trusts and restrictions, except  
          that the city was prohibited from granting, conveying, or  
          otherwise giving those lands to any individual, firm or  
          corporation.

          In 1991, United States District Court For The Southern District  
          Of California found, in United States Of America V. 15.320 Acres  
          Of Land, More Or Less, In San Diego County, State Of California,  
          et al., that the US Navy could convert previously transferred  
          tidelands to private use.  In its decision, the court found  
          California does not have a property interest in the deeded  
          parcels, called the Navy Broadway Complex, by virtue of either  
          the tidelands trust or the use restrictions contained in the  
          deeds themselves. The court's decision extensively cited  
          Chapters 642 and 808, Statutes of 1929 as justification for its  
          decision.
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          The State Lands Act of 1938 created the State Lands Commission  
          (commission) and gave it exclusive jurisdiction over all  
          ungranted tidelands and submerged lands owned by the state.  The  
          commission was further charged with managing and protecting the  
          state's tide and submerged lands for the public trust. 

          PROPOSED LAW
          This bill would repeal law that declares certain granted  
          tidelands and submerged lands in San Diego free from all trusts  
          and restrictions. Specifically, this bill would:
           Repeal Chapter 642 of the Statutes of 1929.
           Clarify that the State Lands Commission shall represent the  
            state and cooperate with the state's local trustees and the  
            United States in resolving title and boundary issues involving  
            tidelands and submerged lands.
           Establish that the repeal of Chapter 642 of the Statutes of  
            1929 shall not be construed as overturning or otherwise  
            nullifying the decision in United States of America v. 15.320  
            Acres of Land or any title settlement agreement entered into  
            by the State of California.

          ARGUMENTS IN SUPPORT
          According to the author, "In an effort to claim the title to a  
          tidelands property in San Diego in order to develop it for  
          commercial use, the United States took the State and the San  
          Diego Unified Port District to federal court in 1991. The  
          property had originally been granted by the state to the City of  
          San Diego and then to the United States for military use. The  
          federal court found in favor of the United States, citing  
          Chapter 42 of Statutes of 1929 as justification to take  
          ownership of the tidelands from the State. As a result of this  
          ruling, in December 2006, the United States Navy signed a  
          99-year lease with a private developer to allow the property to  
          be developed and used in a manner that is inconsistent with the  
          Public Trust uses that were required in the language of Chapter  
          642?According to testimony by the Attorney General's office, the  
          State Lands Commission, and public trust advocates at a hearing  
          of the Assembly Subcommittee on Base Closure and Redevelopment  
          in San Diego in August of 2006, this type of conveyance is  
          contrary to Constitutional prohibitions, legal precedent, and  
          common law. It was pointed out,  however, that the only action  
          that would prevent the practice of suing the State in order to  
          take over San Diego's tidelands is to repeal the specific  
          Chapter cited in the previous court rulings."

          ARGUMENTS IN OPPOSITION
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          The Navy, in opposition to the bill, cites two situations where  
          they feel a person could bring litigation against the Navy for  
          violating the public trust should AB 694 pass.

          The Downtown San Diego Partnership, in opposition to the bill,  
          states, "[T]he Downtown San Diego Partnership believes this bill  
          attempts to nullify the current agreement between the United  
          States Department of Defense and Manchester Financial Group with  
          regard to the Navy Broadway Complex."

          COMMENTS 
           Related past bills:  This bill is very similar to AB 1832  
          (Saldana, 2008) with two exceptions. AB 1832 was passed by the  
          Legislature but ultimately vetoed by the Governor because it  
          repealed two statutes that would have required municipalities to  
          work through the State Lands Commission to transfer tidelands to  
          the United States. In his veto message, the Governor stated his  
          concern that repealing those two statutes diminished local  
          input. AB 694 removes the sections which the Governor objected.

          According to the author, the language in AB 1832 represented a  
          compromise between the Navy, the State Lands Commission, the  
          City of San Diego, and the Port of San Diego. In fact, the Navy  
          had submitted a letter to this committee to remove its  
          opposition from AB 1832. Despite that this bill is identical to  
          AB 1832, less the two sections opposed by the Governor, the Navy  
          has taken an oppose position on this bill.
           
          What lands would this bill affect?:  The author does not have the  
          intention, nor the legal ability, to change the previous court  
          rulings on the Navy Broadway Complex with this bill. However,  
          this bill would apply to the remaining tidelands and submerged  
          lands that were originally granted to the City of San Diego in  
          1911. The author's intent is to prevent the Navy from asserting  
          a similar right to lease or dispose of the remaining tidelands  
          for non-military or non-trust uses.











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          SUPPORT
          California State Lands Commission staff

          OPPOSITION
          Department of the Navy
          Downtown San Diego Partnership
          San Diego Military Advisory Council
          None Received






































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