BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 694|
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                                 THIRD READING


          Bill No:  AB 694
          Author:   Saldana (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  7-3, 7/6/09
          AYES:  Pavley, Kehoe, Leno, Padilla, Simitian, Wiggins,  
            Wolk
          NOES:  Benoit, Hollingsworth, Huff
          NO VOTE RECORDED:  Cogdill

           ASSEMBLY FLOOR  :  48-30, 5/28/09 - See last page for vote


           SUBJECT  :    Tidelands and submerged lands:  City of San  
          Diego

           SOURCE  :     Author


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

           ANALYSIS  :    

          Existing law: 

          1. Section 3 of Article X of the California Constitution  
             prohibits all tidelands within two miles of any  
                                                           CONTINUED





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             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 of the 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 of the 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 the 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. 

          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  ,  







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             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 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. 

           Background  

          Chapter 250 of the 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 United States Navy.  In 1962, the Legislature created  
          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 approximately 3,415  
          acres of filled tidelands and 3,402 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, and open space). 

           Comments
           
          This bill is similar to AB 1832 (Salda?a), which Governor  
          Schwarzenegger 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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No








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           SUPPORT :   (Verified  7/7/09)

          State Lands Commission

           OPPOSITION  :    (Verified  7/7/09)

          Department of the Navy
          Downtown San Diego Partnership
          San Diego Military Advisory Council

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "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  :    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  







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          and Manchester Financial Group with regard to the Navy  
          Broadway Complex."  
           

           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,  
            Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V.  
            Manuel Perez, Portantino, Price, Ruskin, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Torrico, Yamada,  
            Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson,  
            Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman,  
            Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran,  
            Villines
          NO VOTE RECORDED:  Salas, Torres


          CTW:mw:n  7/8/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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