BILL ANALYSIS                                                                                                                                                                                                    Ó





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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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