BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 727|
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CONSENT
Bill No: AB 727
Author: Stone (D)
Amended: 6/18/13 in Senate
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 9-0, 6/11/13
AYES: Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,
Monning, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/20/13 - See last page for vote
SUBJECT : Public trust lands: dredging: notice and leases
SOURCE : State Lands Commission
DIGEST : This bill requires, for maintenance dredging on
granted public trust lands, a local trustee of public trust
lands (local trustee), to notify the State Lands Commission
(Commission) in writing, of the dredging project rather than
submit a lease application and processing fee.
ANALYSIS :
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,
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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 (i.e., 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.Requires, generally, through individual granting statutes,
that the mineral rights of the granted public trust lands are
reserved by the state.
This bill:
1.Declares that it is the intent of the Legislature to
streamline the process of dredging on granted tide and
submerged lands wherein mineral deposits are reserved to the
state when consistent with the preservation and promotion of
tideland trust activities, and to preserve tideland trust
revenue within the corpus of the trust.
2.Requires a local trustee or an applicant for dredging on
granted tide and submerged lands, that intends to commence
dredging on granted public trust lands, upon which any right
to minerals on those lands is reserved by the state, to notify
the Commission, in writing, no later than 120 days prior to
the time dredging is commenced.
3.Requires the dredging notice to contain all of the following
information:
A. A description of the dredging to be conducted on those
lands, including a map and land description showing the
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area and project site;
B. A description of the amount of material to be dredged,
disposal amount, location, and means of disposal, if
available;
C. The time and manner in which dredging is to occur;
D. The relevant permits, authorizations, and approvals that
exist or must be obtained to complete dredging, or, if
applicable, demonstration of compliance with a dredged
materials management office plan that is administered by
the United States Army Corps of Engineers;
E. A declaration that the dredging is necessary for the
proper management of the grant consistent with the public
trust for commerce, navigation, and fisheries, or a
statement of why the dredging is necessary to be undertaken
for other purposes and a declaration that the dredging is
consistent with the statutory grant; and,
F. A statement with supporting documents that explains
whether the trustee anticipates receipt of any revenues
from the materials to be dredged, and, if so, in what
amounts.
1.Provides that, after submission of the written dredging
notice, a local trustee or applicant for dredging may presume
that a dredging lease is not required if all of the following
conditions are met:
A. The dredging is maintenance dredging consistent with the
proper management of the granted lands;
B. The dredged material is not sold or used for a private
benefit; and
C. The dredged material is disposed of at an approved
onshore or offshore disposal site.
1.Authorizes the Commission to require a lease for any dredging
on granted tide and submerged lands wherein the right to
minerals is reserved to the state if the proposed dredging
does not meet the conditions described in 3) above. The
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Commission may delegate the authority to determine whether a
lease is necessary to its executive officer. If the
Commission determines that a lease is required, the Commission
shall provide the grantee or applicant for dredging with
written notification of that determination within 30 days
after the Commission receives notification of the proposed
dredging. All applicable reimbursement costs shall be
submitted with the application for a lease, if a lease is
necessary.
2.Does not exempt a local trustee of tide and submerged lands or
other person or entity dredging on those lands from any permit
or other approval necessary to carry out dredging operations
that may be required by another local, state, or federal law.
3.Requires any revenue that is earned by a local trustee from
the dredging of granted lands to be held or spent in a manner
consistent with the trustee's existing obligations under the
Public Trust Doctrine and the specific terms of its grant of
lands.
4.Requires, if a local trustee receives any revenue from the
dredged materials not otherwise disclosed in the dredging
notice, the local trustee to immediately notify the Commission
in writing. The Commission may require the grantee to pay a
reasonable royalty and enter into a lease for the dredging.
If a grantee fails to notify the Commission, the Commission
may require the local trustee to remit all revenues to the
state.
Background
The Commission was created by the Legislature in 1938 as an
independent body composed of three members - the Lieutenant
Governor, the 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.
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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
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/24/13)
State Lands Commission (source)
California Association of Harbor Masters and Port Captains, Inc.
California Special Districts Association
ARGUMENTS IN SUPPORT : According to the Commission, "in an
effort to streamline the 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."
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"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."
ASSEMBLY FLOOR : 74-0, 5/20/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Jones,
Levine, Linder, Lowenthal, Maienschein, Mansoor, Medina,
Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, V. Manuel P�rez,
Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,
Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Fox, Holden, Jones-Sawyer, Logue, Vacancy,
Vacancy
RM:ej 6/25/13 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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