BILL ANALYSIS �
AB 727
Page 1
Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 727 (Stone) - As Amended: April 30, 2013
Policy Committee: Natural
ResourcesVote:6-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires a local grantee or dredging applicant to
notify the State Lands Commission (SLC) in writing of a
maintenance dredging project rather than automatically
submitting a lease application and processing fee. Upon receipt
of the notice, the SLC will determine if a lease is required.
Specifically, this bill:
1)Requires a person or entity, including a local grantee, who
intends to conduct dredging operations on granted public trust
lands on which the state reserves the mineral rights, to
notify the Commission in writing at least 120 days prior to
dredging, as specified.
2)Allows dredging without a lease if the following conditions
are met:
a) The dredging is consistent with the proper management of
granted lands.
b) The dredged material is not sold or used for private
benefit.
c) The dredged material is disposed of at an approved
onshore or offshore disposal site.
3)The Commission will determine whether a lease is necessary and
may require or delegate the authority to require a lease
within 30 days of the dredging notification.
AB 727
Page 2
4)Applies only to dredging operations that are commenced on or
after January 1, 2014.
FISCAL EFFECT
Minor fiscal impact.
Grantees or applicants pay approximately $1,500 per dredging
lease, and there are approximately 7 to 10 leases per year. The
State Lands Commission would forgoe about $15,000 annually in
tideland trust revenues offset by reduced workloads.
COMMENTS
1)Purpose. This bill is intended to streamline the dredging
lease process and 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.
2)Background. 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 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.
AB 727
Page 3
3)Amendments. This bill was significantly amended in this
committee to clarity the intent and avoid unintended
consequences.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081