BILL ANALYSIS                                                                                                                                                                                                    Ó
                                                                  SB 595
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          SENATE THIRD READING
          SB 595 (Wolk)
          As Amended  June 29, 2011
          Majority vote 
           SENATE VOTE  :39-0  
           
           NATURAL RESOURCES   8-0         JUDICIARY           9-0         
           
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          |Ayes:|Chesbro, Knight,          |Ayes:|Feuer, Wagner, Atkins,    |
          |     |Brownley, Dickinson,      |     |Dickinson, Beth Gaines,   |
          |     |Halderman, Hill, Monning, |     |Huber, Jones, Monning,    |
          |     |Skinner                   |     |Wieckowski                |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           APPROPRIATIONS      15-0                                        
           
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          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly,          |     |                          |
          |     |Dickinson, Hill, Lara,    |     |                          |
          |     |Nielsen, Norby, Solorio,  |     |                          |
          |     |Wagner                    |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Provides the State Lands Commission (Commission) with 
          administrative authority to dispose of abandoned vessels located 
          on state waterways.  Specifically,  this bill:
           1)Clarifies that the Commission may take immediate action, 
            without notice, when it removes a vessel from an area in its 
            jurisdiction that is a hazard to navigation or poses a 
            significant threat to the public health, safety, or welfare, 
            or to the environment.  Classifies a vessel as "abandoned" if, 
            after removal and the expiration of a 30 day notice mailed to 
            all known owners and lienholders, the vessel remains 
            unclaimed.  
           2)Authorizes the Commission to remove a vessel, regardless of 
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            its effect on navigation, the public, or environment, if it 
            has been placed on state lands without the Commission's 
            permission.  Requires the Commission to attach a 30 day 
            "notice to remove" on the vessel and mail a 15 day notice to 
            any owner and lienholder that can be located before removal 
            may occur.  Classifies a vessel as "abandoned" if, after 
            notice has expired, the vessel remains unclaimed.   
           3)Authorizes the Commission at a properly noticed hearing to 
            take title to an abandoned vessel for the sole purpose of 
            abatement and may cause the property to be sold, destroyed, or 
            otherwise disposed of in any manner it determines expedient or 
            convenient.  Requires the Commission to give notice of the 
            hearing to the owner and any lienholders, who will be given 
            the right to appear and be heard prior to disposition of the 
            property.  Prohibits the Commission from implementing a final 
            decision to dispose of a vessel for 30 days in order to allow 
            the owner to pursue any other available legal remedy.
          4)Authorizes the Commission, at its discretion, to take action 
            to remove and dispose of an abandoned or derelict vessel on a 
            navigable waterway in the state that is not under the 
            Commission's jurisdiction if requested to do so by another 
            public entity that has regulatory authority over the area 
            where the vessel is located.
           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 the Commission is the steward and 
               manager of the state's public trust lands.  The Commission 
               has direct administrative control over the state's public 
               trust lands and oversight authority over public trust lands 
               granted by the Legislature to local governments.
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          3)Authorizes the Commission to remove from areas under its 
            jurisdiction any vessel, boat, raft, or watercraft that 
            either:
             a)   Is left unattended and is moored, docked, beached, or 
               made fast to land and in a position as to obstruct the 
               normal movement of traffic, or to create a hazard to other 
               vessels, to public safety, or to the property of another; 
               or, 
             b)   Seriously interferes with, or otherwise poses a critical 
               and immediate danger to navigation or to the public health, 
               safety, or welfare.
          4)Authorizes the Commission, through court action, to remove or 
            destroy any vessel, boat, watercraft, raft, or other similar 
            obstruction which hinders navigation or otherwise creates a 
            public nuisance.  The Commission may recover its costs to 
            remove a vessel or obstruction through appropriate court 
            action.
          5)Creates the Abandoned Watercraft Abatement Fund, administered 
            by the Department of Boating and Waterways, to provide grants 
            to local agencies to remove, store, and dispose of abandoned, 
            wrecked, or dismantled recreational vessels which pose a 
            substantial hazard to navigation.
          6)Creates a pilot project that allows local agencies to use 
            Abandoned Watercraft Abatement Fund monies to accept a 
            surrendered recreational vessel if the vessel is in danger of 
            being abandoned and has a likelihood of causing environmental 
            degradation or becoming a hazard to navigation.
           FISCAL EFFECT  :  According the Assembly Appropriations Committee: 
                    
          1)The costs of this bill depend upon the number of vessels the 
            Commission removes and disposes of each year, as well as 
            logistical, legal and other factors associated with each 
            vessel.  The Commission estimates that, generally, it could 
            remove and dispose of about two vessels a year using existing 
            resources and at a cost of less than $100,000.  (General Fund)
          2)Annual revenue recovered from owners of abandoned vessels 
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            subject to removal or disposal would likely be less than 
            $100,000 a year.  (The Commission anticipates difficulty 
            recovering its costs for abandoned vessel removal and 
            disposal.  This is because the owners of such vessels 
            generally have little financial wherewithal, a condition that 
            often leads to the vessel's abandonment.)
           COMMENTS  :  The Commission has been entrusted with the 
          responsibility of managing lands underlying the state's 
          navigable and tidal waterways, known as "sovereign lands," 
          including those underlying state waters in the Pacific Ocean.  
          These lands, acquired at statehood in 1850, cover nearly four 
          million acres and include more than 120 navigable river and 
          streams and about 40 lakes.  The Commission holds these 
          sovereign lands in public trust and can only be used for 
          purposes consistent with the trust (e.g., water related 
          commerce, navigation, fisheries, recreation, preservation).
          According to the Commission, "boat owners in increasing numbers 
          are abandoning both recreational and commercial vessels in areas 
          within the Commission's jurisdiction.  Our state waterways are 
          becoming clogged with hulks that break up, leak, sink and add 
          pollutants to our waterways and marine habitat."  Recent press 
          has documented how this problem has been exacerbated by the 
          deteriorating economy as boat owners chose to abandon their 
          boats instead of maintaining them.  
          Currently, the Commission has authority to sue a vessel owner to 
          remove his/her abandoned boat.  To litigate a case like this can 
          cost the state well over $100,000, not to mention hundreds if 
          not thousands of hours of staff time.  The Department of Boating 
          and Waterways has a program that grants about $500,000 annually 
          to local governments to remove abandoned vessels.  This program, 
          however, is limited to recreational boats and requires a 
          proactive local government that is willing to apply for grants 
          and provide 10% matching funds.  If a local government does not 
          apply for funding or does not have the ability to provide 
          matching funds, it does not receive state aid to remove 
          abandoned vessels.  
          Through this bill, the Commission has proposed an administrative 
          adjudication process that will provide a more cost effective and 
          streamlined process to remove abandoned vessels from state 
          waters.  The Commission may take title and sell or dispose of a 
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          vessel only after exhausting due process and notice requirements 
          specified in the bill. The Commission has and continues to deal 
          with salvors and scrap metal dealers for the purpose of vessel 
          disposal; however, such dealers require clear title to scrap 
          vessels.  This bill will allow the Commission to provide clear 
          title to these dealers.
           Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916) 
          319-2092
                                                                FN: 0001819