BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 691 
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          ASSEMBLY THIRD READING
          AB 691 (Muratsuchi)
          As Amended  April 22, 2013
          Majority vote 

           NATURAL RESOURCES      6-2      APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Garcia,          |Ayes:|Gatto, Bocanegra,         |
          |     |Muratsuchi, Skinner,      |     |Bradford,                 |
          |     |Stone, Williams           |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Hall,      |
          |     |                          |     |Rendon, Pan, Quirk, Weber |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove, Patterson          |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Linder, Wagner  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires a local trustee of granted public trust lands  
          whose annual gross public trust revenues exceed $250,000 to  
          prepare and submit to the State Lands Commission (Commission) an  
          assessment of how it proposes to address sea level rise.   
          Specifically,  this bill  :

          1)Defines "local trustee" as a local trustee of granted public  
            trust lands that is a county, city, or district, including  
            water, sanitary, regional park, port, or harbor district, or  
            any other local political or corporate subdivision that has  
            been granted public trust lands through a legislative grant.

          2)Establishes that addressing the impacts from sea level rise  
            for all of its legislatively granted public trust lands  
            pursuant to this section shall be among the management  
            priorities of a local trustee. 

          3)Requires, by July 1, 2019, a local trustee whose gross public  
            trust revenues average over $250,000 annually between January  
            1, 2009, until January 1, 2014, to prepare and submit to the  
            Commission an assessment of how it proposes to address sea  
            level rise (sea level rise assessment).  

          4)Requires the sea level rise assessment to include all of the  
            following:








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             a)   An assessment of the impact of a range of sea level rise  
               on granted public trust lands, as described in the  
               Resolution of the California Ocean Protection Council on  
               Sea-level Rise and the latest version of the State of  
               California Sea-Level Rise Interim Guidance Document;

             b)   Maps showing the areas that may be affected by sea level  
               rise in the years 2030, 2050, and 2100.  These maps shall  
               include the potential impacts of 100-year storm events.  A  
               local trustee may rely on appropriate maps generated by  
               other entities;

             c)   An estimate of the financial cost of the impact of sea  
               level rise on granted public trust lands.  The estimate  
               shall consider, but is not limited to, the potential cost  
               of repair of damage to and the value of lost use of  
               improvements and land, and the anticipated cost to prevent  
               or mitigate potential damage; and 

             d)   A description of how the local trustee proposes to  
               protect and preserve natural and manmade resources and  
               facilities located, or proposed to be located, on trust  
               lands and operated in connection with the use of the trust  
               lands.

          5)Requires the Commission to exempt a local trustee from  
            preparing a sea level rise assessment if the Commission finds  
            any of the following:

             a)   The local trustee's public trust lands are not subject  
               to sea level rise by 2100, based upon the highest  
               projections in the most recent version of the State of  
               California Sea-Level Rise Guidance; 

             b)   The cost to provide an assessment of how the local  
               trustee proposes to address the impacts of sea level rise  
               substantially outweighs the benefit the action would have  
               in preventing the potential economic and environmental  
               harms associated with sea level rise on the local trustee's  
               granted public trust lands; or

             c)   The revenues derived from its granted public trust lands  
               and assets or funding made available to it from other  








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               discretionary sources is not sufficient to pay for the cost  
               of assessing the impacts of sea level rise on granted  
               public trust land.

           EXISTING LAW  :

          1)Protects, pursuant to the common law doctrine of the Public  
            Trust (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.

          3)Grants, in trust, state public trust lands to over 80 local  
            public agencies (local trustees) to be managed for the benefit  
            of all the people of the state and pursuant to the Public  
            Trust Doctrine and terms of the applicable granting statutes.

          4)Recognizes a local trustee's fiduciary duty to take reasonable  
            steps under the circumstances to take and keep control of and  
            to preserve the trust property.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          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 Commission.  

            This bill however exempts trustees if gross annual revenues  
            are less than $250,000 and requires the Commission to provide  








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            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 the granted lands are not subject to sea level rise.

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

           COMMENTS  :  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 Commission has oversight authority to  
          ensure those local trustees are complying with the Public Trust  
          Doctrine and the applicable granting statutes.
           
           Sea level rise is an issue that has far reaching consequences  
          for public trust lands held by local trustees.  Sea level rise  
          threatens coastal communities and infrastructure, including  
          transportation facilities, electric utility systems and power  
          plants, storm water systems and wastewater treatment plants and  
          outfalls, vast areas of wetlands, and many other human and  
          natural systems.  According to research funded in part by the  
          California Ocean Protection Council, a 55 inch sea level rise,  
          with a 100 year storm event along the California coast places  
          approximately 480,000 people and nearly $100 billion of property  
          at risk.

          A local trustee's failure to plan for sea level rise may be  
          considered a breach of its 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 (this duty is  
          codified in Public Resources Code Section 6009.1).  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,  








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          generates revenues off of the land, which must be used for  
          purposes such as managing and preserving the trust assets.

           California Environmental Quality Act (CEQA)  .  According to  
          Section 15262 of the CEQA Guidelines, a project involving only  
          feasibility or planning studies for possible future actions  
          which the agency, board, or commission has not approved,  
          adopted, or funded does not require the preparation of an  
          environmental impact report or negative declaration.  A sea  
          level rise assessment required by this bill appears to fall  
          under this feasibility or planning studies provision.  
           
           
          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092 


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