BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 551
                                                                  Page 1


          SENATE THIRD READING
          SB 551 (DeSaulnier)
          As Amended  September 2, 2011
          2/3 vote

           SENATE VOTE  :39-0  
           
           NATURAL RESOURCES   6-1         LOCAL GOVERNMENT    7-0         
           
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          |Ayes:|Chesbro, Brownley,        |Ayes:|Smyth, Alejo, Bradford,   |
          |     |Dickinson, Hill, Monning, |     |Campos, Gordon, Hueso,    |
          |     |Skinner                   |     |Norby                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Halderman                 |     |                          |
          |     |                          |     |                          |
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           APPROPRIATIONS      17-0                                        
           
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          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Hall, Hill, Lara,         |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Repeals the 2006 public trust grant made to the City 
          of Pittsburg (City) and makes a new grant that includes the 
          lands from the 2006 grant as well as lands annexed to the City 
          in 2009.  Specifically,  this bill:

           1)Repeals the 2006 grant made by AB 2324 (Canciamilla), Chapter 
            275, Statutes of 2006, and makes a new grant to the City that 
            includes the lands from the 2006 grant as well as lands 
            annexed to the City on December 31, 2009.  This new grant is 
            substantially similar to the AB 2324 grant except that it:

             a)   Requires the City to submit a trust lands use plan by 
               January 1, 2017.








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             b)   Authorizes the City to lease trust lands for limited 
               periods not to exceed 49 years.

             c)   Requires the City to report to State Lands Commission 
               (SLC) every five years, beginning in 2022, regarding the 
               utilization of trust lands for the five preceding years; 
               and, 

             d)   Requires that at the end of every fiscal year beginning 
               on June 30, 2012, the City is to transmit 20% of all gross 
               revenue generated from the trust lands to the SLC.  Of this 
               amount, 80% will be deposited in the General Fund and the 
               remaining 20% will be deposited in the Land Bank Fund.

           EXISTING LAW  :

             1)   Protects, pursuant to the common law Public Trust 
               Doctrine, the public's right to use California's waterways 
               for commerce, navigation, fishing, boating, natural habitat 
               protection, and other water oriented activities.  The 
               Public Trust Doctrine provides that filled and unfilled 
               tide and submerged lands and the beds of lakes, streams, 
               and other navigable waterways (i.e., public trust lands) 
               are to be held in trust by the state for the benefit of the 
               people of California.  

          2)Establishes that SLC is the steward and manager of the state's 
            public trust lands.  

          3)Grants, in trust, state public trust lands to over 80 local 
            public agencies (also known as local trustees or grantees) to 
            be managed for the benefit of all the people of the state and 
            pursuant to the Public Trust Doctrine and terms of the 
            applicable granting statutes.  SLC has oversight authority 
            over these granted public trust lands to ensure that they are 
            managed pursuant to the Public Trust Doctrine and relevant 
            granting statutes.

             4)   Grants, pursuant to Chapter 214, Statutes of 1937; 
               Chapter 1835, Statutes of 1961; and Chapter 1828, Statutes 
               of 1963, portions of state tide and submerged lands to the 
               City for public trust purposes.

             5)   AB 2324 (Canciamilla), Chapter 275, Statutes of 2006:








                                                                  SB 551
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             a)   Repealed existing legislative grants to the City and 
               enacted a new grant, subject to specified conditions and 
               public trust restrictions;

             b)   Defines "trust lands" to mean all tidelands and 
               submerged lands, whether filled or unfilled, situated 
               within the boundaries of the City as such boundaries exist 
               on January 1, 2007;


             c)   Requires the City, on or before July 1, 2008, to submit 
               to SLC for approval a plan of intended development, 
               preservation, or other use of the trust lands, including 
               the projected statewide financial, environmental, or other 
               benefits of the proposed uses of the trust lands, the 
               method of financing the plan, and a timetable for 
               implementation;


             d)   Authorizes the City to lease the trust lands for periods 
               not exceeding 66 years, for purposes consistent with the 
               public trust and the development plan; the City may collect 
               and retain rents and other trust revenues from those 
               leases, but can only use them for trust consistent 
               purposes;


             e)   Directs the revenue generated from four specific parcels 
               to the General Fund rather than the City; and, 


             f)   Sets forth oversight, accounting, enforcement, and 
               revenue sharing provisions required of the City and 
               administered by SLC.

             6)   Establishes the Land Bank Fund for which SLC is the 
               trustee.  The Land Bank Fund may receive funds for 
               mitigation or from title settlements.  Additionally, the 
               Land Bank Fund can receive revenues from any party for the 
               purpose of providing management and improvement of real 
               property held by SLC for the public trust.











                                                                  SB 551
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           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:

          1)Annual revenue reduction of approximately $330,000 for forgone 
            rents on the trust lands granted to the City.  (Land Bank 
            Fund.)

          2)Potential revenues of an unknown amount, but likely greater 
            than the amount of lost annual revenue, resulting from 
            development by the City of the granted trust lands.  (General 
            Fund and Land Bank Fund.)

           COMMENTS  :  For over 100 years, the Legislature has granted 
          public trust lands to local public agencies so they can be 
          managed locally for the benefit of the people of California.  
          SLC retains oversight authority to ensure that the lands are 
          managed pursuant to the Public Trust Doctrine and the relevant 
          granting statutes.  A granting statute generally explains what 
          lands have been granted and how the land is to be managed by the 
          grantee.  Without a public trust grant, the SLC has direct 
          authority to lease or otherwise manage public trust lands within 
          the jurisdiction of a local public agency.  

          The City pursued AB 2324 (Canciamilla) in 2006 in response to 
          its desire to control its entire shoreline for the purposes of 
          waterfront economic development.  In 2009, approximately 1,467 
          acres and 17 parcels of public trust lands were annexed to the 
          City.  Since these lands were annexed after AB 2324, they were 
          not part of the grant.  This bill will grant administrative 
          control over these annexed lands to the City so they can be 
          incorporated into the City's shoreline redevelopment plans.


           Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916) 
          319-2092 


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