BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 691
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          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 691 (Muratsuchi) - As Amended:  April 22, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:6-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires specified local trustees of granted public  
          lands to prepare and submit an assessment on addressing see  
          level rise to the State Lands Commission (SLC).  This bill  
          provides various exemptions to this requirement. 

           FISCAL EFFECT  

          1)Potential redirection of an unknown amount of granted public  
            trust revenue offset by potential future state savings  
            resulting from planning and preventative measures.

            This bill would require certain local trustees of granted  
            public lands to submit planning information relating to sea  
            level rise to the State Lands Commission.  

            This bill however exempts trustees if gross annual revenues  
            are less than $250,000 and requires the SLC to provide an  
            exemption if the revenues derived from the trustee's granted  
            public lands or available through third-party funding are not  
            sufficient to pay for the cost of the plan.  This bill also  
            exempts trustees from using the revenue for this purpose if it  
            is not allowed by the deeded trust or if the granted lands are  
            not subject to sea level rise.

          2)Minor, absorbable (special fund) costs to the SLC to make  
            copies available to other state agencies and post the  
            information on their website.

           COMMENTS  









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           1)Rationale.   According to the author, a local trustee's failure  
            to plan for sea level rise may be considered a breach of trust  
            responsibilities since the trustee has a fiduciary duty to the  
            people of California to take reasonable steps under the  
            circumstances to take and keep control of and to preserve the  
            trust property.  To assist in avoiding such a breach, this  
            bill will require a local trustee to assess the impacts of sea  
            level rise on granted public trust lands and describe how the  
            local trustee proposes to protect those lands.  The local  
            trustee is in the best position to conduct this assessment  
            because it has the administrative control over its granted  
            trust land and, in most cases, generates revenues off of the  
            land, which must be used for purposes such as managing and  
            preserving the trust assets.


           1)Background.   For over 100 years, the Legislature has granted  
            public trust lands to local trustees so they can be managed  
            locally for the benefit of the people of California.  There  
            are over 80 trustees in the state, including the ports of Los  
            Angeles, Long Beach, San Diego, San Francisco, Oakland,  
            Richmond, Benicia, and Eureka.  While these trust lands are  
            managed locally, the SLC has oversight authority to ensure  
            those local trustees are complying with the Public Trust  
            Doctrine and the applicable granting statutes.
             
             On August 10, 2009, as part of its oversight responsibilities,  
            the SLC sent out 104 surveys regarding sea level rise to all  
            of its grantees and lessees of major facilities along the  
            coast and San Francisco Bay.  Of the 104 surveys sent out,  
            only 40 responses were received.  A majority of these  
            responses provided information indicating that trustees had  
            not yet begun to comprehensively consider the impacts of sea  
            level rise.

            On July 23, 2010, SLC staff resurveyed its grantees and  
            lessees.  Twenty-seven responses were received, of which 13  
            were first responders.  Approximately half of these responses  
            indicated that no action to address sea level rise had been  
            considered

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081 










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