Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2764

Introduced by Committee on Natural Resources (Chesbro (Chair), Grove (Vice Chair), Garcia, Muratsuchi, Skinner, Stone, and Williams)

March 27, 2014

An act begin insert to amend Section 126 of the Government Code, to amend Section 39512.5 of the Health and Safety Code, end insert to amend Sections 6306 and 8750 of the Public Resources Code, begin insert and end insert begin insert to amend Section 1 of Chapter 321 of the Statutes of 1961, end insert relating to begin delete state lands. end delete begin insert public resources. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2764, as amended, Committee on Natural Resources. begin delete State Lands Commission. end delete begin insert Public end insert begin insert resources: State Lands Commission: State Air Resources Board. end insert

begin insert

(1) Existing law establishes the State Lands Commission in the Natural Resources Agency and prescribes the functions and duties of the commission. Under current law, the State Lands Commission cedes concurrent criminal jurisdiction to the United States with regard to specified properties.

end insert begin insert

This bill would revise and recast these provisions and make technical and organizational changes.

end insert begin delete

(1)

end delete

begin insert ( end insert begin insert 2) end insert  Existing law requires that every local trustee of granted public trust lands, as defined and except as provided, file with the State Lands Commission, on or before October 1 of each year, a detailed statement of all revenues and expenditures relating to its trust lands and trust assets, as prescribed, including obligations incurred, but not yet paid, covering the fiscal year preceding the submission of the statement.

This bill instead would require the statement to be filed with the commission on or before December 31 of each year.

begin delete

(2)

end delete

begin insert ( end insert begin insert 3) end insert  The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup, and to represent the state in any coordinated response efforts with the federal government. Existing law imposes various administrative civil and criminal penalties on a person that violates specified provisions of the act. The act, for purposes of specified provisions primarily under the jurisdiction of the State Lands Commission, defines marine waters to exclude waters in the Sacramento-San Joaquin Rivers and Delta, as specified.

This bill would no longer exclude from the definition of marine waters for this purpose the waters in the Sacramento-San Joaquin Rivers and Delta and would further revise the definition of marine waters to include waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton. By expanding the scope of crimes within the act, this bill would impose a state-mandated local program.

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(4) Existing law authorizes a grant in the form of a trust of specified tidelands and submerged lands to the County of Orange, subject to certain restrictions, including that the lands remain available for public use.

end insert begin insert

This bill would modify the terms of the grant to change the conditions for expenditures by the trust and to permit the trustee to acquire additional property in order to further the purposes of the trust, if specific conditions are met.

end insert begin insert

(5) Existing law establishes the State Air Resources Board, which is responsible for control of emissions from motor vehicles and is designated the air pollution control agency for all purposes set forth in federal law. Existing law requires the state board to consist of 12 members, who are appointed based on certain qualifications. Existing law provides for the compensation of those members.

end insert begin insert

This bill would correct an erroneous cross-reference to clarify that certain members of the state board are prohibited from receiving compensation for serving on the state board, but are required to be reimbursed for their actual and necessary expenses, as specified.

end insert begin delete

(3)

end delete

begin insert ( end insert begin insert 6) end insert  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 126 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

126.  

begin insert (a) end insert begin insert   end insert Notwithstanding any other provision of law, general
or special, the Legislature of begin delete California end delete begin insert California, acting through
the State Lands Commission, end insert hereby cedes concurrent criminal
jurisdiction to the United States within begin delete land end delete begin insert lands identified and end insert
held by the United States upon and subject to each and all of the
following express limitations, conditions, and reservations, in
addition to any other limitations, conditions, or reservations
prescribed by law:

begin delete

(a) The lands must be held by the United States for the erection
of forts, magazines, arsenals, dockyards, and other needful
buildings, or other public purpose within the purview of clause 17
of Section 8 of Article I of the Constitution of the United States,
or for the establishment, consolidation, and extension of national
forests under the act of Congress approved March 1, 1911, (36
Stat. 961) known as the “Weeks Act,” or for any other federal
purposes.

(b) The cession must be pursuant to and in compliance with the
laws of the United States.

(c) The United States must in writing have requested the state
to cede concurrent criminal jurisdiction within such land and
subject to each and all of the conditions and reservations in this
section and in Section 7 of Article X of the Constitution prescribed.

(d) The State Lands Commission is authorized for the state to
cede concurrent criminal jurisdiction to the United States, upon
having found and declared that the conditions and reservations
prescribed in subdivisions (a), (b), (c), and (g) have occurred and
exist and that the cession is in the interest of the state. Certified
copies of its orders or resolutions making these findings and
declarations shall be recorded in the office of the county recorder
of each county in which any part of the land is situated. The State
Lands Commission shall keep copies of its orders or resolutions
and make them available to the public upon request. The purposes
for which concurrent criminal jurisdiction is ceded shall be
specified in and made a part of the orders or resolutions.

(e) Jurisdiction ceded pursuant to this section continues only so
long as the land continues to belong to the United States and is
held by it for the purpose for which jurisdiction is ceded in
accordance and in compliance with each and all of the limitations,
conditions, and reservations in this section prescribed, or for five
years, whichever period is less.

(f) “Land held by the United States”, as used in this section
means: (1) lands acquired in fee by purchase or condemnation, (2)
lands owned by the United States that are included in the military
reservation by presidential proclamation or act of Congress, (3)
leaseholds acquired by the United States over private lands or
state-owned lands, and (4) any other lands owned by the United
States including, but not limited to, public domain lands that are
held for a public purpose.

(g) In ceding concurrent criminal jurisdiction, the Legislature
and the state reserve jurisdiction over the land, water, and use of
water with full power to control and regulate the acquisition, use,
control, and distribution of water with respect to the land affected
by the cession.

(h) In ceding concurrent criminal jurisdiction, the Legislature
and the state except and reserve to the state all deposits of minerals,
including oil and gas, in the land, and to the state, or persons
authorized by the state, the right to prospect for, mine, and remove
the deposits from the land.

(i) Concurrent criminal jurisdiction shall vest when certified
copies of the State Lands Commission’s orders or resolutions,
making such finding or declaration, have been recorded in the
office of the county recorder of each county in which any part of
the land is situated.

The finding and declaration of the State Lands Commission
provided for in subdivision (d) shall be made only after a public
hearing. Notice of the hearing shall be published pursuant to
Section 6061 in each county in which the land or any part of the
land is situated and a copy of the notice shall be personally served
upon the clerk of the board of supervisors of each such county.
The State Lands Commission shall make rules and regulations
governing the conditions and procedure of the hearings, which
shall provide that the cost of publication and service of notice and
all other expenses incurred by the commission shall be borne by
the United States.

The provisions of this section do not apply to any land or water
areas heretofore or hereafter acquired by the United States for
migratory bird reservations in accordance with Sections 10680 to
10685, inclusive, of the Fish and Game Code.

end delete begin insert

(1) Before making a cession, the State Lands Commission shall
make the following findings:

end insert begin insert

(A) The United States has requested in writing the state to cede
concurrent criminal jurisdiction within the identified lands.

end insert begin insert

(B) The lands are held by the United States for the erection of
forts, magazines, arsenals, dockyards, and other needful buildings
within the purview of clause 17 of Section 8 of Article I of the
United States Constitution, or for any other federal purposes. For
purposes of this section, lands held by the United States are defined
as: (i) lands acquired in fee by purchase or condemnation, (ii)
lands owned by the United States that are included in the military
reservation by presidential proclamation or act of Congress, (iii)
any other lands owned by the United States, including, but not
limited to, public domain lands that are held for a public purpose,
and (iv) leaseholds acquired by the United States over private
lands or state-owned lands that are held for a public purpose.

end insert begin insert

(C) The cession is made pursuant to and in compliance with the
laws of the United States.

end insert begin insert

(D) A notice of the proposed cession has been given to the clerk
for the board of supervisors of the county in which the federal
lands are located at least 15 days prior to the proposed cession.

end insert begin insert

(E) The proposed cession is in the best interests of the State of
California.

end insert begin insert

(F) The United States has agreed to bear all costs and expenses
incurred by the State Lands Commission in making the cession.

end insert begin insert

(2) The cession shall continue only so long as the lands are
owned by the United States and used for the purposes for which
jurisdiction is ceded or for 10 years, whichever period is less.

end insert begin insert

(3) The cession shall be made at a publicly noticed meeting of
the State Lands Commission. The cession shall vest when the State
Lands Commission has received notice of the United States’
acceptance of the cession and certified copies of the State Lands
Commission’s orders or resolutions making the findings described
in paragraph (1) have been recorded in the office of the county
recorder of each county in which any part of the land is situated.
The State Lands Commission shall keep copies of its orders or
resolutions in its records and make them available to the public
upon request.

end insert begin insert

(b) In ceding concurrent criminal jurisdiction, the Legislature
and the state reserve jurisdiction over the land, water, and use of
water with full power to control and regulate the acquisition, use,
control, and distribution of water with respect to the land affected
by the cession.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 39512.5 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

39512.5.  

(a) With respect to the members appointed pursuant
to subdivision begin delete (c) end delete begin insert (d) end insert of Section 39510, those members shall serve
without compensation but shall be reimbursed for actual and
necessary expenses incurred in the performance of their duties to
the extent that reimbursement for expenses is not otherwise
provided or payable by another public agency or agencies. Each
elected public official member of the state board shall receive one
hundred dollars ($100) for each day, or portion thereof, but not to
exceed one thousand dollars ($1,000) in any month, attending
meetings of the state board or committees thereof, or upon
authorization of the state board while on official business of the
state board.

(b) Reimbursements made pursuant to subdivision (a) shall be
made as follows:

(1) A member appointed from a district that is specifically
named in subdivision begin delete (c) end delete begin insert (d) end insert of Section 39510 shall be reimbursed
by the district from which the person qualified for membership.

(2) The member appointed as a board member of a district that
is not specifically named in subdivision begin delete (c) end delete begin insert (d) end insert of Section 39510
shall be reimbursed by the state board.

begin delete SECTION 1. end delete
begin insert SEC. 3. end insert   

Section 6306 of the Public Resources Code is amended
to read:

6306.  

(a) For purposes of this division, “local trustee of granted
public trust lands” means a county, city, or district, including a
water, sanitary, regional park, port, or harbor district, or any other
local, political, or corporate subdivision that has been granted,
conveyed, or transferred by statute, public trust lands, including
tidelands, submerged lands, or the beds of navigable waters,
through a legislative grant. A local trustee of granted public trust
lands is a trustee of state lands.

(b) Notwithstanding any other law, every local trustee of granted
public trust lands shall establish and maintain accounting
procedures, in accordance with generally accepted accounting
principles, providing accurate records of all revenues received
from the trust lands and trust assets and of all expenditures of those
revenues. If a trust grantee has several trust grants of adjacent lands
and operates the granted lands as a single integrated entity,
separation of accounting records for each trust grant is not required.

(c) All revenues received from trust lands and trust assets
administered or collected by a local trustee of granted public trust
lands shall be expended only for those uses and purposes consistent
with the public trust for commerce, navigation, and fisheries, and
the applicable statutory grant.

(d) All funds received or generated from trust lands or trust
assets shall be segregated in separate accounts from nontrust
received or generated funds.

(e) (1) Unless otherwise prescribed by an applicable statutory
grant, on or before December 31 of each year, each local trustee
of granted public trust lands shall file with the commission a
detailed statement of all revenues and expenditures relating to its
trust lands and trust assets, including obligations incurred but not
yet paid, covering the fiscal year preceding submission of the
statement.

(2) The statement shall be prepared in accordance with generally
accepted accounting principles and may take the form of an annual
audit prepared by or for the local trustee of granted public trust
lands.

(3) (A) The detailed statement shall be submitted along with a
standardized reporting form developed by the commission.

(B) The commission shall use an existing reporting form
previously developed for purposes of this paragraph, if a finding
is made by the commission that it is generally responsive to the
needs of the commission as prescribed in this section. Alternatively,
the commission may develop a reporting form that requires a local
trustee of granted public lands to report on all of the following:

(i) A summary of all funds received or generated from trust
lands or trust assets.

(ii) A summary of all spending of funds received or generated
from trust lands or trust assets.

(iii) Any other disposition of funds received or generated from
trust lands or trust assets or of the trust lands or trust assets
themselves.

(iv) A description of the manner in which the statement required
by this subdivision and accompanying the reporting form is
organized.

(v) Any other information that the commission deems to be
included in an accounting of granted public trust lands.

(C) The adoption of the form by the commission pursuant to
this subdivision is the prescription of a form for purposes of
subdivision (c) of Section 11340.9 of the Government Code.

(4) All forms and supporting statements submitted pursuant to
this section shall be public records and be made available on the
commission’s Internet Web site.

(f) (1) The costs that may be incurred by a local trustee of
granted public trust lands that result from any new duties imposed
upon that trustee pursuant to Chapter 206 of the Statutes of 2012,
including the requirement to submit a standardized reporting form
required by paragraph (3) of subdivision (e), shall be paid from
the revenues derived from its granted public trust lands and assets
specified in subdivision (b).

(2) If the revenues derived from the granted public trust lands
and assets specified in subdivision (b) are not sufficient to pay the
costs for the duties specified in paragraph (1), the commission
shall exempt the local trustee of granted public trust lands from
performing those duties for which the revenues are not sufficient,
or grant a deadline extension from the performance of those duties
until sufficient funds are available.

begin delete SEC. 2. end delete
begin insert SEC. 4. end insert   

Section 8750 of the Public Resources Code is amended
to read:

8750.  

Unless the context requires otherwise, the following
definitions govern the construction of this division:

(a) “Administrator” means the administrator for oil spill response
appointed by the Governor pursuant to Section 8670.4 of the
Government Code.

(b) “Barges” means any vessel that carries oil in commercial
quantities as cargo but is not equipped with a means of
self-propulsion.

(c) (1) “Best achievable protection” means the highest level of
protection that can be achieved through both the use of the best
achievable technology and those manpower levels, training
procedures, and operational methods that provide the greatest
degree of protection achievable. The administrator’s determination
of best achievable protection shall be guided by the critical need
to protect valuable coastal resources and marine waters, while also
considering (A) the protection provided by the measures, (B) the
technological achievability of the measures, and (C) the cost of
the measures.

(2) It is not the intent of the Legislature that the administrator
use a cost-benefit or cost-effectiveness analysis or any particular
method of analysis in determining which measures to require.
Instead, it is the intent of the Legislature that the administrator
give reasonable consideration to the protection provided by the
measures, the technological achievability of the measures, and the
cost of the measures when establishing the requirements to provide
the best achievable protection for coastal and marine resources.

(d) “Best achievable technology” means that technology that
provides the greatest degree of protection taking into consideration
(1) processes that are being developed, or could feasibly be
developed anywhere in the world, given overall reasonable
expenditures on research and development, and (2) processes that
are currently in use anywhere in the world. In determining what
is best achievable technology, the administrator shall consider the
effectiveness and engineering feasibility of the technology.

(e) “Commission” means the State Lands Commission.

(f) “Local government” means any chartered or general law
city, chartered or general law county, or any city and county.

(g) “Marine facility” means any facility of any kind, other than
a vessel, that is or was used for the purposes of exploring for,
drilling for, producing, storing, handling, transferring, processing,
refining, or transporting oil and is located in marine waters, or is
located where a discharge could impact marine waters unless the
facility (1) is subject to Chapter 6.67 (commencing with Section
25270) or Chapter 6.75 (commencing with Section 25299.10) of
Division 20 of the Health and Safety Code or (2) is placed on a
farm, nursery, logging site, or construction site and does not exceed
20,000 gallons in a single storage tank. For purposes of this
division, a drill ship, semisubmersible drilling platform, jack-up
type drilling rig, or any other floating or temporary drilling
platform is a “marine facility.” For purposes of this division, a
small craft refueling dock is not a “marine facility.”

(h) “Marine terminal” means any marine facility used for
transferring oil to or from tankers or barges. For purposes of this
section, a marine terminal includes all piping not integrally
connected to a tank facility as defined in subdivision (n) of Section
25270.2 of the Health and Safety Code.

(i) “Marine waters” means those waters subject to tidal influence
and includes waterways used for waterborne commercial vessel
traffic to the Port of Sacramento and the Port of Stockton.

(j) “Nonpersistent oil” means a petroleum-based oil, such as
gasoline, diesel, or jet fuel, that evaporates relatively quickly.
Specifically, it is an oil with hydrocarbon fractions, at least 50
percent of which, by volume, distills at a temperature of 645
degrees Fahrenheit, and at least 95 percent of which, by volume,
distills at a temperature of 700 degrees Fahrenheit.

(k) “Oil” means any kind of petroleum, liquid hydrocarbons,
or petroleum products or any fraction or residues therefrom,
including, but not limited to, crude oil, bunker fuel, gasoline, diesel
fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and
liquid distillates from unprocessed natural gas.

(l) “Onshore facility” means any facility of any kind that is
located entirely on lands not covered by marine waters.

(m) “Operator” when used in connection with vessels, marine
terminals, pipelines, or facilities, means any person or entity that
owns, has an ownership interest in, charters, leases, rents, operates,
participates in the operation of or uses that vessel, terminal,
pipeline, or facility. “Operator” does not include any entity that
owns the land underlying the facility or the facility itself, where
the entity is not involved in the operations of the facility.

(n) “Person” means an individual, trust, firm, joint stock
company, or corporation, including, but not limited to, a
government corporation, partnership, limited liability company,
and association. “Person” also includes any city, county, city and
county, district, and the state or any department or agency thereof,
and the federal government, or any department or agency thereof,
to the extent permitted by law.

(o) “Pipeline” means any pipeline used at any time to transport
oil.

(p) “Responsible party” or “party responsible” means either of
the following:

(1) The owner or transporter of oil or a person or entity accepting
responsibility for the oil.

(2) The owner, operator, or lessee of, or person who charters
by demise, any vessel or marine facility or a person or entity
accepting responsibility for the vessel or marine facility.

(q) “Small craft refueling dock” means a fixed facility having
tank storage capacity not exceeding 20,000 gallons in any single
storage tank and that dispenses nonpersistent oil to small craft.

(r) “Spill” or “discharge” means any release of at least one barrel
(42 gallons) of oil not authorized by any federal, state, or local
government entity.

(s) “State oil spill contingency plan” means the California oil
spill contingency plan prepared pursuant to Article 3.5
(commencing with Section 8574.1) of Chapter 7 of Division 1 of
Title 2 of the Government Code.

(t) “Tanker” means any self-propelled, waterborne vessel,
constructed or adapted for the carriage of oil in bulk or in
commercial quantities as cargo.

(u) “Vessel” means a tanker or barge as defined in this section.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1 of Chapter 321 of the Statutes of 1961 is
amended to read: end insert

Section 1.  

There is hereby granted to the County of Orange
and to its successors all of the right, title and interest of the State
of California held by begin delete said State end delete begin insert the state end insert by virtue of its sovereignty
in and to all that portion of the tidelands and submerged lands of
the Pacific Ocean within the County of Orange, State of California,
in the following area:

Commencing at the intersection of the westerly line of fractional
Section 22, Township 8 South, Range 8 West, San Bernardino
Base and Meridian with the line of Mean High Tide of the Pacific
Ocean from which point said westerly Section line bears North 0°
07′ East; thence South 45° 00′ East to the point of intersection with
a line parallel to and five thousand seven hundred and fifty feet
(5,750 ft.) southerly of the northerly line of said fractional Section
22; thence easterly along said last mentioned parallel line, 5,750
feet southerly of the northerly line of Section 22, and the easterly
prolongation of said parallel line to the point of intersection with
a meridian line passing through the intersection of the westerly
line of Rancho Boca de la Playa as said line is established and
shown on a map recorded in Book 4, Pages 118 and 119 of Patents,
Records of Los Angeles County, June 29, 1887 and the line of
Mean High Tide of the Pacific Ocean; thence northerly along said
meridian line to the intersection with the line of Mean High Tide
of the Pacific Ocean; thence westerly along said line of Mean High
Tide to the point of beginning, the same to be forever held by begin delete said end delete
begin insert the end insert county and by its successors in trust for the uses and purposes
and upon the express conditions following, to wit:

(a) That begin delete said end delete begin insert these end insert lands shall be used by begin delete said end delete begin insert the end insert county, and
its successors, only for the establishment, improvement and conduct
of a harbor, and for the construction, begin delete maintenance end delete begin insert maintenance, end insert
and operation thereon of wharves, docks, piers, slips, begin delete quays end delete begin insert quays, end insert
and other utilities, structures, begin delete facilities end delete begin insert facilities, end insert and appliances
necessary or convenient for the promotion and accommodation of
commerce and navigation, and for recreational use, public park,
parking, highway, playground, and business incidental thereto;
and begin delete said end delete begin insert the end insert county, or its successors, shall not, at any time, grant,
convey, begin delete give end delete begin insert give, end insert or alien begin delete said end delete begin insert these end insert lands, or any part thereof, to
any individual, firm or corporation for any purposes whatever;
provided, that begin delete said end delete begin insert the end insert county, or its successors, may grant
franchises thereon for limited periods (but in no event exceeding
50 years), for wharves and other public uses and purposes and may
lease begin delete said end delete begin insert these end insert lands, or any part thereof, for limited periods (but
in no event exceeding 50 years), for purposes consistent with the
trust upon which begin delete said end delete begin insert these end insert lands are held by the State of
California, and with the requirements of commerce and navigation
at begin delete said end delete begin insert the end insert harbor, and collect and retain rents from begin delete such end delete begin insert these end insert
leases.

(b) That begin delete said end delete begin insert these end insert lands shall be improved by begin delete said end delete begin insert the end insert county
without expense to the begin delete State, end delete begin insert state, end insert and shall always remain
available for public use for all purposes of commerce and
navigation, and the State of California shall have at all times, the
right to use, without charge, all wharves, docks, piers, slips, quays,
and other improvements and facilities constructed on begin delete said end delete begin insert these end insert
lands, or any part thereof, for any vessel or other water or aircraft,
or railroad, owned or operated by the State of California.

(c) That in the management, conduct, or operation of begin delete said end delete begin insert the end insert
harbor, or of any of the utilities, structures, begin delete appliances end delete begin insert appliances, end insert
or facilities mentioned in begin delete paragraph end delete begin insert subdivision end insert (a), no
discrimination in rates, tolls, or charges or in facilities for any use
or service in connection therewith shall ever be made, begin delete authorized end delete
begin insert authorized, end insert or permitted by begin delete said end delete begin insert the end insert county or its successors.

(d) There is hereby reserved, however, in the people of the State
of California the absolute right to fish in the waters of begin delete said end delete begin insert the end insert
harbor with the right of convenient access to begin delete said end delete begin insert the end insert waters over
begin delete said end delete begin insert these end insert lands for begin delete said end delete begin insert these end insert purposes.

(e) There is hereby excepted and reserved to the State of
California all deposits of minerals, including oil and gas, in begin delete said end delete
begin insert the end insert land, and to the State of California, or persons authorized by
the State of California, the right to prospect for, mine, and remove
begin delete such end delete deposits from begin delete said end delete begin insert the end insert land.

(f) The lands herein described are granted subject to the express
reservation and condition that the begin delete State end delete begin insert state end insert may at any time in
the future use begin delete said end delete begin insert these end insert lands or any portion thereof for highway
purposes without compensation to the county, its successors or
assigns, or any person, begin delete firm end delete begin insert firm, end insert or public or private corporation
claiming under it, except that in the event improvements have been
placed upon the property taken by the begin delete State end delete begin insert state end insert for begin delete said end delete begin insert these end insert
purposes, compensation shall be made to the person entitled thereto
for the value of his begin insert or her end insert interest in the improvements taken or
the damages to begin delete such end delete begin insert the end insert interest.

(g) That within 10 years from the effective date of this act begin delete said end delete
begin insert these end insert lands shall be substantially improved by begin delete said end delete begin insert the end insert county
without expense to the begin delete State, end delete begin insert state, end insert and if the State Lands
Commission determines that the county has failed to improve begin delete said end delete
begin insert these end insert lands as herein required, all right, title, and interest of begin delete said end delete
begin insert the end insert county in and to all lands granted by this act shall cease and
begin delete said end delete begin insert these end insert lands shall revert and vest in the begin delete State end delete begin insert state end insert .

begin insert

(h) (1) That any funds derived from the management, conduct,
or operation of the lands described in this section shall be used
within the geographic boundary of the lands for purposes
consistent with subdivision (a).

end insert begin insert

(2) Notwithstanding paragraph (1), funds derived from the
management, conduct, or operation of these lands may also be
expended on state-owned tidelands and submerged lands, outside
the geographic boundary of these lands within the County of
Orange and southeasterly of the southern city limits of the City of
Laguna Beach, to fund the portion of the Dana Point Branch of
the Orange County Harbor Patrol that provides direct protection
for public health, safety, and security relating to navigation and
other public trust uses on state-owned tidelands and submerged
lands.

end insert begin insert

(i) (1) Notwithstanding subdivision (h), any funds derived from
the management, conduct, or operation of the lands described in
this section may be used to purchase, lease, or otherwise acquire
real property necessary for or incidental to the development and
operation of a harbor and that property shall be held as an asset
of the trust and used for purposes consistent with the trust grant.

end insert begin insert

(2) If the real property that is proposed to be purchased, leased,
or acquired is adjacent to the geographic boundary of the lands,
the county, or its successors, shall give written notice of the
proposed expenditure to the State Lands Commission at least 90
days before purchasing, leasing, or acquiring the real property in
excess of one hundred thousand dollars ($100,000), but not more
than five hundred thousand dollars ($500,000). Expenditures in
excess of five hundred thousand dollars ($500,000) for real
property adjacent to the geographic boundary of those lands shall
not be made unless the State Lands Commission approves the
expenditure pursuant to Chapter 2 (commencing with Section
6701) of Part 2 of Division 6 of the Public Resources Code. For
the purpose of this subdivision, “adjacent” means adjoining or
separated by a street or road.

end insert begin insert

(3) If the real property that is proposed to be purchased, leased,
or acquired is not adjacent to the geographic boundary of the
lands, the county, or its successors, shall give written notice of the
proposed expenditure to the State Lands Commission at least 90
days before purchasing, leasing, or acquiring the real property
not to exceed fifty thousand dollars ($50,000). Expenditures in
excess of fifty thousand dollars ($50,000) for real property not
adjacent to the geographic boundary of those lands may not be
made unless the State Lands Commission approves the expenditure
pursuant to Chapter 2 (commencing with Section 6701) of Part 2
of Division 6 of the Public Resources Code.

end insert begin insert

(4) The notice required in paragraphs (2) and (3) shall include
the total proposed expenditure from the tideland’s trust, the
location of the real property, the purpose of the purchase,
acquisition, or lease, and an explanation of how the purchase,
acquisition, or lease is consistent with the terms of the trust grant.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 6. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.