BILL NUMBER: AB 1943	INTRODUCED
	BILL TEXT


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.   (a)  The city shall establish the Humboldt Bay
Fund in  such   the  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
 such   those  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  State  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. 
   Prior to June 30, 1979, and prior 
    (b)    Prior  to June 30 of each
 succeeding  year, the city shall pay to the 
State 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  State  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
 State  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.  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.  

   In the event 
    (c)     If  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  State 
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
 State  Controller. 
   All 
    (d)     All  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. 
   For 
    (e)     For  the purposes of Section 7
of this act,  such   the  amounts paid to
the  State  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.