BILL ANALYSIS Ó ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2011-2012 Regular Session | | | ----------------------------------------------------------------- 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 1 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 2 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. 3 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. 4 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 5 California State Lands Commission OPPOSITION None Received 6