California Legislature—2013–14 Regular Session

Assembly Bill No. 1943

Introduced by Assembly Member Chesbro

February 19, 2014

An act to amend Section 3 of Chapter 1086 of the Statutes of 1970, relating to tidelands and submerged lands of the City of Eureka.

LEGISLATIVE COUNSEL’S DIGEST

AB 1943, as introduced, Chesbro. Tidelands: City of Eureka.

Existing law grants to the City of Eureka all the right, title, and interest of the State of California in and to certain tidelands and submerged lands located in Humboldt Bay in trust for certain purposes. Existing law provides that certain moneys received by the City of Eureka from the State Controller shall be deposited in the Humboldt Bay Fund and may be used by the City of Eureka for the purposes for which revenues accruing from or out of the use of those granted tidelands may be used.

Existing law requires the City of Eureka, prior to June 30 of each year, to pay to the State Controller a specified amount of the money deposited by the city into the Humboldt Bay Fund during the preceding fiscal year in lieu of all obligations incurred by the city, as specified.

This bill would provide that when the State Controller certifies that the amount of the original payments has been made by the city, the obligation to make payments shall cease.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 3 of Chapter 1086 of the Statutes of 1970,
as amended by Section 1 of Chapter 1068 of the Statutes of 1982,
is amended to read:

Sec. 3.  

begin insert (a) end insert  The city shall establish the Humboldt Bay Fund in
begin delete such end delete begin insert the end insert manner as may be approved by the State Lands
Commission, and the city shall deposit therein all moneys received
directly from, or indirectly attributable to, the tide and submerged
lands granted to the city. An annual statement of financial condition
and operations, to conform with begin delete such end delete begin insert those end insert requirements as the
State Lands Commission may prescribe, shall be submitted to the
State Lands Commission by the city on or before September 30th
of each year for the preceding fiscal year. In furtherance of its
management and administration over granted tide and submerged
lands, the State Lands Commission shall audit, or cause to be
audited, the operations and all books and records of the city.
Further, the city shall prepare and submit to the State Lands
Commission, for its review and approval, an annual budget with
respect to all revenues and expenditures regarding tide and
submerged lands granted to the city. All moneys received from
the begin insert State end insert Controller pursuant to Section 18 of this act shall be
deposited in the Humboldt Bay Fund and may be used by the city
for the purposes for which revenues accruing from or out of the
use of the granted tidelands may be used pursuant to the provisions
of this act.

begin delete

Prior to June 30, 1979, and prior

end delete

begin insert (b) end insert begin insert   end insert begin insert Prior end insert to June 30 of each begin delete succeeding end delete year, the city shall pay
to the begin insert State end insert Controller a sum that is not less than 15 percent of the
amount of the money deposited by the city into the Humboldt Bay
Fund during the preceding fiscal year, after deducting from the
fund the principal and interest payments required by the currently
outstanding 1973 Municipal Harbor Improvement Revenue Bond
issue, and after the credit for reverted funds provided for in Section
18 of this act. Moneys received from the begin insert State end insert Controller pursuant
to Section 18 of this act shall not be included in the calculation of
the amount deposited into the Humboldt Bay Fund. Payments
made to the begin insert State end insert Controller pursuant to this section shall be in
lieu of all obligations incurred by the city pursuant to this section,
as amended by Section 2 of Chapter 1252 of the Statutes of 1971,
and prior to the amendment of this section during the 1977-78
Regular Session of the Legislature. begin insert When the State Controller
certifies that the amount of the original payments has been paid
by the city, the obligation to make payments shall cease. end insert

begin delete

In the event

end delete

begin insert (c) end insert begin insert   end insert begin insert If end insert the city fails to make any payment required to be made
hereby for any reason whatsoever, the State Board of Equalization,
upon the order of the begin insert State end insert Controller, shall deduct the amount of
that payment from the sales and use taxes to be paid to the city
thereafter pursuant to Section 7204 of the Revenue and Taxation
Code and shall pay the same to the begin insert State end insert Controller.

begin delete

All

end delete

begin insert (d) end insert begin insert   end insert begin insert All end insert payments made by the city and the State Board of
Equalization shall be considered as oil revenues and dry gas
revenues payable to the state pursuant to Chapter 138 of the
Statutes of 1964, First Extraordinary Session, during the year they
are received.

begin delete

For

end delete

begin insert (e) end insert begin insert   end insert begin insert For end insert the purposes of Section 7 of this act, begin delete such end delete begin insert the end insert amounts
paid to the begin insert State end insert Controller by the city shall be considered as
current and accrued operating costs and expenditures directly
related to the operation and maintenance of tideland trust activities.