BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 551|
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UNFINISHED BUSINESS
Bill No: SB 551
Author: DeSaulnier (D)
Amended: 9/2/11
Vote: 27
SENATE NATURAL RES. AND WATER COMMITTEE : 9-0, 4/26/11
AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe,
Padilla, Simitian, Wolk
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/26/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SENATE FLOOR : 39-0, 6/2/11 (Consent)
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De León, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Strickland, Vargas, Walters, Wolk,
Wright, Wyland, Yee
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 70-6, 9/7/11 - See last page for vote
SUBJECT : State property: tidelands transfer: City of
Pittsburg
SOURCE : City of Pittsburg
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DIGEST : This bill 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.
Assembly Amendments uncodify this bill by removing its
provisions from the Public Resource Code and make minor
clean-up amendments.
ANALYSIS : Existing law:
1. Grants tidelands and submerged lands to the City,
subject to specified conditions, for purposes of
commerce, navigation, and fisheries, and for other
public trust purposes.
2. Grants to the City of Martinez all right, title, and
interest of the state to three specified parcels of land
in the Straits of Carquinez. The Kapiloff Land Bank Act
creates the Land Bank Fund and continuously appropriates
moneys in the fund, subject to a statutory trust, to the
State Lands Commission (SLC), acting as the Land Bank
Trustee, to acquire real property or any interest in
real property for the purposes of public trust title
settlements.
This bill 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:
1. Requires the City to submit a trust lands use plan by
January 1, 2017.
2. Authorizes the City to lease trust lands for limited
periods not to exceed 49 years.
3. Requires the City to report to SLC every five years,
beginning in 2022, regarding the utilization of trust
lands for the five preceding years; and,
4. Requires that at the end of every fiscal year beginning
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on June 30, 2012, the City is to transmit 20 percent of
all gross revenue generated from the trust lands to the
SLC. Of this amount, 80 percent will be deposited in
the General Fund and the remaining 20 percent will be
deposited in the Land Bank Fund.
Background
The SLC is charged with managing and protecting the state's
tide and submerged lands for the public trust. With
legislative approval, the SLC may grant state tidelands to
local governments for their use and maintenance.
Article 4 of Chapter 4 of Part 1 of Division 6 of the
Public Resources Code (commencing with 6361) grants tide
and submerged lands to City for the development of
commerce, navigation, fishing, recreation, and the other
public trust uses. These lands are to be held by the city
for public trust purposes under a number of conditions,
including:
1. Pittsburg must submit its plan to develop and preserve
the granted lands to the SLC for approval by July 1,
2008.
2. Pittsburg may not lease any of the trust lands for terms
exceeding 66 years.
3. At the end of every third fiscal year, 85 percent of the
excess trust revenues that are not being reserved for
future capital expenditures will be transferred to the
Kapiloff Land Bank Fund.
Chapter 815 of the Statutes of 1976 and Chapter 387 of the
Statutes of 2002 grant certain tidelands to the City of
Martinez.
SLC is the trustee of the Land Bank Fund (LBF) created
pursuant to the Kapiloff Land Bank Act of 1982 (commencing
with Section 8600 of the Public Resources Code. The LBF
may receive funds for mitigation or from title settlements.
Additionally, the LBF can receive revenues from any party
for the purpose of providing management and improvement of
real property held by the commission for the public trust.
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FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
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.)
SUPPORT : (Verified 5/27/11 - unable to reverify at time
of writing)
City of Pittsburg (source)
GenOn Energy
ARGUMENTS IN SUPPORT : The City of Pittsburg, sponsor of
this bill, states, "This amendment will extend the area of
the grant from the State Lands commission to include the
area to the west that was annexed into the City of
Pittsburg in 2009. The City is very interested in
developing our shoreline which includes old underutilized
industrial properties which we feel can be developed into
productive uses that will benefit the people of Pittsburg
and the region as a whole."
ASSEMBLY FLOOR : 70-6, 9/7/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Beth Gaines,
Galgiani, Gatto, Gordon, Hagman, Hall, Harkey, Hayashi,
Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries,
Jones, Lara, Bonnie Lowenthal, Ma, Mendoza, Miller,
Mitchell, Monning, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel Pérez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
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Wieckowski, Williams, Yamada, John A. Pérez
NOES: Donnelly, Garrick, Grove, Halderman, Logue, Morrell
NO VOTE RECORDED: Furutani, Gorell, Knight, Mansoor
CTW:kc 9/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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