BILL ANALYSIS Ó AB 691 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 691 (Muratsuchi) As Amended August 12, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |51-21|(May 23, 2013) |SENATE: |24-13|(September 6, | | | | | | |2013) | ----------------------------------------------------------------- Original Committee Reference: NAT. RES. 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 (sea level rise assessment). The Senate amendments : 1)Requires the sea level rise assessment to also include a description on how wetlands restoration and habitat preservation would mitigate impacts of sea level rise. 2)Requires the Commission, in determining whether a local trustee should be exempt from this bill due to costs substantially outweighing benefits, to consider the economic benefits of all ecological services provided by the existing natural resources in the local trustee's granted public trust lands. 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 AB 691 Page 2 administrative control over the state's public trust lands and oversight authority over public trust lands granted in trust by the Legislature to local governments (local trustees). 3)Grants, in trust, state public trust lands to over 80 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 Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. 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 AB 691 Page 3 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. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092 FN: 0001798