BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 418
                                                                  Page  1

          Date of Hearing:   April 27, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                 AB 418 (Ammiano) - As Introduced:  February 14, 2011
           
          SUBJECT  :  Tidelands and submerged lands:  City and County of San 
          Francisco:  Pier 70.

           SUMMARY  :  Authorizes the State Lands Commission to approve and 
          effectuate a land exchange involving public trust lands within 
          the Pier 70 area in San Francisco for the purpose 
          of facilitating the Port of San Francisco's redevelopment plans. 
           Specifically,  this bill  :  

          1)Authorizes State Lands Commission (SLC) to approve and 
            effectuate a land exchange involving public trust lands within 
            the Pier 70 area in San Francisco provided in part that:

             a)   The public trust lands exchanged out of the trust (1) 
               have been filled, reclaimed, and are cut off from access to 
               waters of the San Francisco Bay, (2) are relatively useless 
               for public trust purposes, and (3) constitute a relatively 
               small portion of the granted lands within the city;

             b)   The lands to be received into the trust have a monetary 
               value equal to or greater than the monetary value of lands 
               to be exchanged out of the trust;

             c)   The exchange will not substantially interfere with trust 
               uses and purposes, and the lands impressed with the trust 
               will provide significant benefit to the trust;

             d)   The applicable state agencies have approved a risk 
               management plan or remedial action plan sufficient to 
               protect human health and the environment from hazardous 
               substances in the Pier 70 area, the Port is in compliance 
               with the approved plan, and the Port has provided adequate 
               financial assurances to ensure continuing compliance with 
               the plan;

             e)   The Port and San Francisco board of supervisors have 
               approved the exchange; and,

             f)   The exchange furthers the purpose of the public trust 








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               and is in the best interest of the statewide public.

          2)Requires SLC to grant the lands received into the trust as a 
            result of the exchange to the Port.  These granted lands are 
            to be managed by the Port pursuant to the Public Trust 
            Doctrine and the Burton Act.

           EXISTING LAW  :

          1)Establishes the SLC, comprised of the Lieutenant Governor, the 
            State Controller, and the State Director of Finance.

          2)Provides that SLC is the state agency that manages and 
            protects the state's tide and submerged lands.  

          3)Requires SLC to carry out its responsibilities consistent with 
            the Public Trust Doctrine which provides that tide and 
            submerged lands are reserved for uses associated with 
            commerce, fishing, navigation, recreation and the environment.

          4)Authorizes SLC to administer and control those lands and to 
            lease, exchange, and otherwise dispose of them as provided by 
            law, subject to the terms and any considerations established 
            by SLC for each transfer or exchange of those lands.  In most 
            instances, the Legislature has enacted statutes specifically 
            authorizing the transfer of particular parcels of state lands 
            to local jurisdictions for specified public trust uses, such 
            as navigation improvements, port construction, piers and 
            wharves, recreation, and public access, and SLC carries out 
            the transaction and exercises ongoing oversight responsibility 
            to make sure the grantee complies with the terms of the 
            transfer and public trust obligations.

           FISCAL EFFECT  :  Unknown

           COMMENTS  : 

          1)Under the Burton Act (Chapter 1333, Statutes of 1968), the 
            state conveyed certain state tidelands along the San Francisco 
            waterfront, generally extending from Fisherman's Wharf to 
            Candlestick Point, to the City and County of San Francisco, 
            through its Port, in 1969 in trust for public trust and Burton 
            Act trust purposes, subject to the obligation on the part of 
            the City and County San Francisco to assume $55 million in 
            state debt obligations then existing relating to the 








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            waterfront properties.

          2)Tide and submerged lands and the beds of lakes, streams, and 
            other navigable waterways are held in trust by the state for 
            the benefit of the people of the state and are to be used to 
            promote the public's interest in water or water-dependent 
            activities, such as commerce, navigation, fisheries, 
            environmental preservation and recreation.  SLC is the steward 
            and manager of the state's public trust lands.  Actions of SLC 
            are subject to the California Environmental Quality Act.

          Existing law allows SLC to lease trust lands, enter into 
            boundary agreements, and exchange public trust lands for 
            non-trust lands and lift the trust from public trust lands.  
            SLC must be provided equal value in any exchange.  The 
            Legislature retains the authority to modify uses permitted on 
            public trust lands.

          The Legislature has granted certain public trust lands to local 
            governments or local agencies for management.  A grantee must 
            manage trust lands consistent with its own granting statutes 
            and the public trust doctrine.  Grantees are generally 
            entitled to undertake development activities on their trust 
            lands provided those activities are consistent with the public 
            trust.  The Legislature has retained for the state, by 
            delegating to SLC, the power to approve land exchanges, 
            boundary line agreements, and equivalent transactions.

          3)Pier 70 is a 69-acre brownfields site on San Francisco's 
            Central Waterfront. For over 150 years, some portion of this 
            site has been in use for ship building and repair. The federal 
            government controlled portions of the site until 1967. Now, 
            the Pier 70 area is poised to become a unique new San 
            Francisco neighborhood, while preserving the history that 
            helped make San Francisco a world class waterfront city.

            Following an extensive public planning process, the Port 
            published its Master Plan for the Pier 70 area in April 2010.  
            The Port's vision for Pier 70 is to create a vibrant and 
            authentic historic district that re-establishes the historic 
            activity level, activates new waterfront open spaces, creates 
            a center for innovative industries, and integrates ongoing 
            ship repair operations.

            Last year, the Legislature passed AB 1199 (Ammiano), Chapter 








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            664, Statutes of  2010, which revised the special statute that 
            controls how local officials can form, finance, and operate an 
            infrastructure financing district along the San Francisco 
            waterfront, at Pier 70, on land that is under the jurisdiction 
            of the Port of San Francisco.   

          4)The Port acquired Pier 70 parcels from the state, the federal 
            government, and private parties.
            Portions of the site are historic uplands that were never 
            submerged tidelands subject to the public trust, and several 
            parcels have been in and out of private and federal ownership, 
            creating a patchwork of sites subject to public trust 
            restrictions.  AB 418 will authorize the SLC to effect a 
            public trust swap to rationalize the location of trust 
            property along the water's edge to promote maritime uses and 
            public access in these areas.
           
          5)Support arguments:  According to the sponsor, the Port of San 
            Francisco, a trust realignment will make both trust and 
            non-trust parcels more valuable by enabling major economic 
            development and waterfront restoration and providing for the 
            preservation of ongoing ship repair and historic resources, 
            while creating a vibrant and authentic historic district that 
            will activate new waterfront open spaces and development.

            Opposition arguments:  Opposition could argue that the 
            property being swapped by the SLC may be better off remaining 
            in the public's trust instead of being transferred to the 
            City. 

          6)This bill was heard by the Committee on Natural Resources on 
            March 21, 2011, and passed with an 8-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support                                   Opposition 
           
          Port of San Francisco ÝSPONSOR]              None on file
          Dog Patch Neighborhood Association 
          Green Trust San Francisco - Central Waterfront
          Neighborhood Parks Council 
          Northern CA District Council of the International 
               Longshore and Warehouse Union 
          Potrero Boosters Neighborhood Association
          San Francisco Architectural Heritage








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          San Francisco Building and Construction Trades Council 
          San Francisco Chamber of Commerce 
          San Francisco Planning and Urban Research Association

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958