BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 727
                                                                  Page 1

          Date of Hearing:  April 1, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     AB 727 (Stone) - As Amended:  March 21, 2013
           
          SUBJECT  :  Public trust lands:  dredging:  notice and leases

           SUMMARY  :  Requires a person or entity who intends to conduct  
          maintenance dredging operations on granted public trust lands to  
          notify the State Lands Commission (Commission) in writing of the  
          dredging project rather than submit a lease application and  
          processing fee.

           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)Generally requires, through individual granting statutes, that  
            the mineral rights of the granted public trust lands are  
            reserved by the state.  

           THIS BILL  :

          1)Requires a person or entity, including a local grantee, who  
            intends to conduct dredging operations on granted public trust  








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            lands on which the state reserves the minerals, to notify the  
            Commission in writing no later than 90 days prior to the time  
            dredging commences.  

          2)Requires the notice of dredging to contain (1) a description  
            of the dredging to be conducted on the granted public trust  
            lands, including a map showing the general area and project  
            site, and (2) a description of the amount of material to be  
            dredged, disposal amount, location and means of disposal,  
            location of the dredging activity, a sediment characterization  
            report, and an explanation of the purpose of the dredging.

          3)Upon the receipt of the notice of dredging, requires the  
            Commission to (1) determine whether the dredging will require  
            the person or entity to enter into a lease with the Commission  
            and (2) notify the person or entity if a lease will be  
            required.

          4)Applies only to dredging operations that are commenced on or  
            after January 1, 2014.

          5)Does not exempt a person or entity from any permit or other  
            approval necessary to carry out dredging operations that may  
            be required by another local, state, or federal law.

          6)Requires any dredging on granted public trust lands to be  
            carried out pursuant to a lease entered into by the person or  
            entity and the Commission.  

          7)Does not require a lease with the Commission for maintenance  
            dredging on granted public trust lands where the materials  
            from the dredging are disposed of at a United States  
            Environmental Protection Agency or United States Corps of  
            Engineers approved onshore or offshore disposal site.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background and Purpose of the Bill.   Since 1851, public trust  
            lands have been legislatively granted to local government  
            entities to manage in trust on behalf of the people of  
            California.  While these entities manage these lands, most  
            statutory grants reserve the mineral rights to the state.   
            These mineral reservations stipulate that any dredging  








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            activities on these lands require a dredging lease from the  
            Commission.  
             
             When a local grantee of public trust lands applies for a  
            dredging lease with the Commission, it is responsible for the  
            Commission's staffing costs for processing the application.   
            These costs are approximately $1,500 and the processing can  
            take several months depending on the completeness of the  
            application, the Commission's meeting schedule, and staff  
            resources.  According to Commission staff, if dredging will  
            result in a public good, the Commission does not charge an  
            annual rent for the lease.

            In an effort to streamline the dredging lease process and to  
            more efficiently allocate Commission staff resources, this  
            bill will eliminate the requirement that dredging on granted  
            public trust lands requires a lease if the dredging materials  
            are disposed of at a United States Environmental Protection  
            Agency or United States Corps of Engineers approved onshore or  
            offshore disposal site.  The person or entity wishing to  
            conduct the dredging will, however, be required to notify the  
            Commission of their intent to dredge and include specific  
            information about the project.  No lease application or fee  
            will be required with this notice.

            This bill does not affect other local, state, and federal  
            requirements associated with a dredging project, such as those  
            imposed by the Coastal Commission, the U.S. Army Corps of  
            Engineers, and Regional Water Quality Control Boards.

           2)Suggested Amendments.   A number of parties that benefit from  
            dredging projects on granted public trust lands support the  
            intent of the bill, but have voiced concerns about potential  
            unintended consequences of the current language.   The author  
            may wish to consider amendments  that address these concerns by  
            (1) including clarifying intent language, (2) more  
            specifically describing the notice of dredging process, and  
            (3) ensuring that the Commission's main goal, which is to  
            streamline the Commission's dredging approval process for  
            activities such as basic maintenance dredging, is achieved.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           








                                                                  AB 727
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          California Association of Harbor Masters and Port Captains
          California Marine Parks and Harbors Association
          California Special Districts Association
          California State Lands Commission
          California Yacht Brokers Association
          Marina Recreation Association
          Moss Landing Harbor District
          National Marine Manufacturers Association
          Western Boaters Safety Group

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916)  
          319-2092