BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 691
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 691 (Muratsuchi)
          As Amended  August 12, 2013
          Majority vote
           
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          |ASSEMBLY:  |51-21|(May 23, 2013)  |SENATE: |24-13|(September 6,  |
          |           |     |                |        |     |2013)          |
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           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
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            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
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          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 


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