BILL ANALYSIS �
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: AB 727 HEARING DATE: June 11, 2013
AUTHOR: Stone URGENCY: No
VERSION: April 30, 2013 CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Public trust lands: dredging: notice and leases.
BACKGROUND AND EXISTING LAW
The California State Lands Commission (commission) was created
by the Legislature in 1938 as an independent body composed of
three members - the Lieutenant Governor, State Controller and
the Director of Finance. Among other duties, the commission is
responsible for managing over 4 million acres of sovereign land
acquired by California at statehood. These sovereign lands
include the beds of navigable rivers, lakes and streams, and
tide and submerged lands. These lands are subject to the common
law public trust doctrine which protects the public's right to
use California's waterways for commerce, navigation, fishing,
boating, natural habitat protection, and other water-oriented
activities.
Public trust lands are held in trust by the state for the
benefit of the people of California. Periodically, however, the
Legislature transfers sovereign lands to local government
entities for management purposes subject to certain terms and
conditions, including the public trust. The state retains
oversight authority over public trust lands granted to local
governments. Currently there are 85 grants to local governments
(grantees). The grantee is a trustee to the lands and the
revenues generated from these lands, which are held in trust and
may only be used for purposes consistent with the public trust.
Examples of granted lands include the Ports of San Francisco,
Oakland, and San Diego.
Harbors, berths, navigable waterways and other granted tidelands
typically must be dredged from time to time in order for trust
purposes to be pursued including promotion and accommodation of
commerce and navigation. This dredging typically requires
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multiple approvals and permits from various local, state and
federal regulators. In instances where the state has retained
the mineral rights of the trust lands, dredging activities
require that a lease be entered into with the commission. The
commission holds public meetings throughout the year where
leases and permits for the use of the state's lands and
resources are considered. According to the commission obtaining
a lease can take several months and processing costs for the
applicant are on the order of $1,500 - $2,000.
PROPOSED LAW
This bill would eliminate the requirement that local trustees of
tide or submerged lands, where mineral rights are reserved,
obtain a lease from the commission, if certain conditions are
met. Those conditions include providing a written notice to the
commission least 120 days prior to the scheduled start of
dredging. The notice must include specified information
regarding the proposed dredging project.
After submitting the written notice, a local trustee or
applicant for dredging is not required to enter into a lease for
the dredging if all of the following conditions are met:
The dredging is maintenance dredging consistent with the
proper management of the granted lands.
The dredged material is not sold or used for a private
benefit.
The dredged material is disposed of at an approved onshore or
offshore disposal site.
Further, the bill would:
Require a lease be executed prior to dredging if those
specified conditions are not met.
Require that the commission notify the local trustee or
applicant within 30 days of receiving notification of the
proposed dredging that a lease is required.
Allow the commission to delegate the authority to determine if
a lease is required to its executive officer.
Require that any revenues earned from dredging be held or
spent consistent with the public trust and any terms specific
to the granted lands. The commission is to be notified
immediately if undisclosed revenue is obtained and may require
a reasonable royalty be paid and a dredging lease executed.
Apply to only dredging operations that commence on or after
January 1, 2014.
ARGUMENTS IN SUPPORT
According to the commission, "in an effort to streamline [the
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dredging] process, eliminate duplicity, preserve tideland trust
revenue, and to more efficiently allocate commission staff
resources, this bill would eliminate the requirement that
dredging on granted public trust lands wherein minerals are
reserved requires a lease from the commission, if certain
conditions are met."
"AB 727 expressly preserves the authority of the commission to
require a lease for any dredging on granted lands wherein
minerals are reserved if the proposed dredging is inconsistent
with the conditions specified in the bill [?] A grantee of
public lands has the primary responsibility to administer the
trust within the parameters of its granting statute. Except for
certain statutory authorizations, the commission is not involved
in day-to-day management operations for granted public trust
lands. Eliminating the lease requirement for dredging and
replacing it with a notification requirement is consistent with
this structure and will result in more efficiency for the
commission."
The California Association of Harbor Masters and Port Captains
points out that in order to comply with the public trust
requirements, "harbors must maintain a navigable depth which
allows for commercial and recreational activity to continue
unimpeded, necessitating periodic dredging. This has
historically involved applying for and entering into a lease
with [the commission]." They continue "AB 727 streamlines the
process, allowing for the submission of a Notice and other
procedures that protect the rights reserved to the State, but at
the same time will result in a cost savings and expedite the
process considerably."
ARGUMENTS IN OPPOSITION
None received
COMMENTS
Five permits, authorizations and approvals required . According
to the commission, Orange County recently applied for an amended
dredging lease to increase the amount of material removed. In
addition to commission approval, Orange County required permits
or approvals from the California Coastal Commission, the
Regional Water Quality Control Board, the City of Newport Beach
and the US Army Corps of Engineers.
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SUPPORT
State Lands Commission (sponsor)
California Association of Harbor Masters and Port Captains, Inc.
California Special Districts Association
Moss Landing Harbor District
OPPOSITION
None Received
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