BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 595                    HEARING DATE: March 22, 2011  

          AUTHOR: Wolk                       URGENCY: No  
          VERSION: As Introduced             CONSULTANT: Marie Liu  
          DUAL REFERRAL: Judiciary           FISCAL: Yes  
          SUBJECT: Tidelands and submerged lands: removal of vessels.  
          
          BACKGROUND AND EXISTING LAW
          Section 6302.1 of the Public Resources Code (PRC) gives the 
          State Lands Commission (Commission) authority to remove any 
          vessel or watercraft from areas under their jurisdiction that is 
          left unattended, is obstructing waterway traffic, and is 
          creating a hazard to other vessels, or to the public's safety. 
          The Commission may also destroy an abandoned vessel or similar 
          obstruction if the obstruction hinders navigation or creates a 
          public nuisance. The Commission may recover its costs through 
          the courts.

          Section 525 of the Harbors and Navigation Code (HNC) prohibits a 
          vessel from being abandoned, except in emergencies, on public 
          waterways, public land, or private land. Similar to PRC §6302.1, 
          HNC §523 allows any peace officer, any employee or officer of 
          the State Lands Commission, or any lifeguard or marine safety 
          officer employed by a county, city, or district to remove and 
          store, if necessary, a vessel removed from a public waterway if 
          the vessel is left unattended in a manner that obstructs a 
          waterway, creates a hazard, or is a public safety concern. HNC 
          §526 establishes a process to attempt to notify an owner of an 
          abandoned vessel that has been moved. If an owner is identified, 
          the owners have 15 days to recover the property and pay any 
          costs incurred by the public agency related to salvage and 
          storage of the property. If no owner is identified, the public 
          agency that removed the vessel may dispose of the abandoned 
          property, subject to certain conditions including property value 
          limits. 

          PROPOSED LAW
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          This bill would give the Commission an administrative process to 
          remove a vessel that has been abandoned or placed in areas in 
          its jurisdiction without permission. Specifically, this bill 
          would:
               Allow the Commission to immediately remove an unattended 
              vessel that poses a threat to navigation, public safety, or 
              the environment without notice. After removal of the vessel, 
              the Commission would be required to attempt to identify and 
              notify the owner of the vessel. If the vessel remains 
              unclaimed for 30 days or more, the Commission may dispose of 
              it. (PRC §6302.1(a))
               Allow the Commission to remove a vessel that has been 
              placed on state lands without permission (PRC §6302.1(b)) 
              after a 30-day notice. If the vessel remains unclaimed, the 
              Commission may dispose of it 
               Allow the Commission to dispose of a vessel that remains 
              unclaimed 30-days after removal. (PRC §6302.1(c))
               Require the Commission to return a vessel to an owner, 
              upon their request, and after payment of any removal and 
              storage costs.
               Defines a vessel as abandoned property if the vessel 
              remains in an unseaworthy or dilapidated condition in areas 
              of the Commission's jurisdiction for more than 30 days. The 
              owner of the vessel, if identified, would have 15 days to 
              remove the property. Otherwise, the Commission may dispose 
              of the vessel. (PRC §6302.2)
               Allow the Commission to hold a publicly noticed hearing in 
              order to dispose of a vessel. No disposal actions may take 
              place until 30 days after the Commission's hearing to allow 
              additional time for an owner to respond.
               Provide that the removal and disposition of abandoned 
              vessels are not subject to the California Environmental 
              Quality Act or any other law or regulation that governs the 
              acquisition, disposal, or destruction of property by a state 
              agency.

          ARGUMENTS IN SUPPORT
          The author states, "There are a number of boat owners storing 
          their vessels on state lands without permission. There are also 
          boat owners dumping or abandoning their old or unseaworthy 
          vessels on state lands without permission?The Commission's 
          current recourse against these boat owners is limited to court 
          action. This is usually a long and costly process that requires 
          approximately two years and involves the Attorney General's 
          office...ÝThe administrative process established in SB 595] 
          would streamline the current lengthy and expensive judicial 
          process while allowing for a fair and practical approach to the 
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          handling the problem of abandoned vessels, trespassing vessels, 
          and trespassing ground tackle." 

          ARGUMENTS IN OPPOSITION
          None received.

          COMMENTS 
           Establishing an administrative process for removal will improve 
          the Commission's ability to remove problematic vessels:  The 
          Commission estimates that there are thousands of abandoned 
          vessels across the state, which can cause environmental and 
          navigation impacts. Oil, gasoline, sewage, and toxic metals can 
          leak from abandoned vessels and their equipment such as motors 
          and batteries. Abandoned vessels can also be navigational 
          hazards. According to the Commission, the down economy has 
          increased the number of abandoned vessels as owners find 
          themselves unable to afford the cost of storage and upkeep and 
          instead elect to illegally leave their vessels on public land. 
          The Commission currently has authority to remove abandoned 
          vessels, however it must do so by taking action in court. Vessel 
          removal can have costs in the tens of thousands of dollars, 
          partially because of the legal costs. Being that the Commission 
          has no dedicated funding stream for vessel removal, the cost of 
          vessel remove has largely prevented the Commission from widely 
          addressing abandoned vessels. This bill would establish an 
          administrative process for vessel removal that would both reduce 
          removal costs and the time that it takes to remove abandoned 
          vessels. 

          The Commission estimates that under the process established in 
          this bill, it would take approximately 90 to 120 days from the 
          time that an abandoned vessel is reported to when the vessel is 
          disposed, compared to a court process which takes approximately 
          two years. The administrative process would additionally save 
          $50,000 to $100,000 per incident in costs.

           Should derelict vessels and illegally stored vessels be treated 
          differently?  This bill establishes similar, but different, 
          requirements for notification and disposal of derelict vessels 
          and illegally stored vessels. While these requirements are not 
          conflicting, it is unclear why there should be different 
          procedures based on the vessels' condition. According to the 
          Commission, any differences are unintentional. The author may 
          wish to consider working with committee staff to consolidate the 
          language in PRC §6302.1(b) and §6302.2 so that there is no 
          distinction drawn between derelict vessels and illegally stored 
          vessels.
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          Other clarification amendments  : Should the Commission remove a 
          vessel into storage, this bill seems to require an additional 
          30-day notice before a vessel is disposed of.  According to the 
          Commission, this is unintentional. The author intends to require 
          only one 30-day notice to be given before the Commission 
          declares a vessel abandoned and holds a hearing to decide on the 
          fate of the vessel. If the abandoned vessel poses an urgent 
          danger, the Commission may remove the vessel immediately, and 
          then issue a 30-day public notice. The committee may wish to 
          delete PRC §6302.1(c) to make this intended process more clear. 
          (See amendment 1)
           
          Overlap with HNC language regarding abandoned vessels  : This bill 
          declares that if there are any conflicts with the abandoned 
          vessel language in the HNC, the language in this bill should 
          govern. The committee may wish to find that it would be more 
          clear and direct to remove the Commission's authority to remove 
          abandoned vessels in HNC §523. In doing so, the abandoned vessel 
          language in the PRC would govern the Commission's 
          responsibilities and abilities and the HNC language would only 
          govern local government responsibilities. (See amendment 2)
           
          Appropriate environmental review for vessel removal and 
          disposal:  This bill exempts the removal or disposal action of 
          the Commission from CEQA or any other law or regulation that 
          governs the acquisition, disposal, or destruction of property by 
          a state agency, such as those established by DGS. While removal 
          and disposal of a vessel might be constructed as a "project" for 
          the purposes of CEQA, this action may qualify for a categorical 
          exemption or be eligible for a negative declaration. Thus, the 
          exemption may not be necessary especially since removing an 
          abandoned vessel most likely will result in environmental 
          benefits. 

          However, the Commission is concerned that if a categorical 
          exemption cannot be used in a particular removal, the cost of 
          CEQA review may become cost prohibitive. The Commission has no 
          dedicated fund for these removal activities and there is a 
          significant likelihood that they will not be able to recover all 
          their costs either because an owner cannot be identified or the 
          value of the vessel is very low. The Commission feels that their 
          use of a CEQA categorical exemption is most likely to be 
          challenged in the removal of large commercial vessels, which 
          have the largest impact on the environment should they not be 
          removed.

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          The Committee may wish to strike the CEQA exemption from this 
          bill. (See amendment 3)
           
          Previous legislation  : This bill is very similar to SB 459 (Wolk, 
          2009), which passed this Committee with an 8-1 vote. While SB 
          459 was eventually passed by both houses of the Legislature, it 
          was ultimately vetoed by Governor Schwarzenegger. In his veto 
          message, the Governor stated:
               I recognize that, to the extent that unattended and 
               abandoned property can be removed from public lands and 
               waterways more quickly, state and local agencies could 
               experience potentially significant savings in court costs 
               and environmental cleanup costs.  However, there are also 
               potentially significant costs that the state would incur 
               under this bill since it would enhance the Commission's 
               ability to remove and dispose of abandoned vessels.  These 
               implementation costs cannot be overlooked, especially given 
               the state's current
               fiscal condition and the fact that no source of funding is 
               identified in this bill.




          SUGGESTED AMENDMENTS 
               AMENDMENT 1
               On page 3, beginning with line 18, delete subdivision (c) 
               of Section 6302.1.  

               AMENDMENT 2  
               Add to the bill, an amendment to Section 523 of the HCN as 
               follows: 
          523.  (a) Any peace officer, as described in Section 663,  any 
          employee or officer of the State Lands Commission designated by 
          the State Lands Commission,  or any lifeguard or marine safety 
          officer employed by a county, city, or district while engaged in 
          the performance of official duties, may remove, and, if 
          necessary, store a vessel removed from a public waterway under 
          any of the following circumstances:
          ?

               AMENDMENT 3 
                On page 5, starting on line 30, delete "the requirements 
          of the California Environmental Quality Act (Division 13 
          (commencing with Section 21000)), and from"

          SUPPORT
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          California State Lands Commission

          OPPOSITION
          None Received











































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