BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          SB 968 (Hill)
          As Amended April 9, 2014
          Hearing Date: April 22, 2014
          Fiscal: Yes
          Urgency: No
          TH


                                        SUBJECT
                                           
                 Public Lands: Martin's Beach Property: Access Route

                                      DESCRIPTION  

          This bill would direct the State Lands Commission to enter into  
          negotiations with the owner of the property known as Martin's  
          Beach to acquire a right-of-way or easement for the creation of  
          a public access route.  If the Commission is unable to reach an  
          agreement to acquire a right-of-way or easement by January 1,  
          2016, this bill would direct the Commission to acquire such a  
          right-of-way or easement by eminent domain.

                                      BACKGROUND  

          Situated approximately 10 miles south of Half Moon Bay in  
          unincorporated San Mateo County is a 200-acre crescent-shaped  
          beach known popularly as Martin's Beach.  Prior to the sale of  
          two upland parcels in 2008, the beach was accessible via a road  
          that connected to the Cabrillo Highway and traversed across  
          private land.  According to residents, Martin's beach "was once  
          a destination for families, surfers and beach lovers."  (Rosato,  
          Half Moon Bay Beach Battle: California Lawmaker Wants to Reopen  
          Martin's Beach (Feb. 11, 2014) NBC Bay Area - KNTV  
           (as of April 6, 2014).)   
          The prior owners of the upland parcels reportedly "built a store  
          and began charging visitors for access and parking" beginning in  
          the 1950s, and "[t]he fee to visit the beach was $5 at the time  
          of the sale [in 2008]."  (Fimrite, Surfers Lose Fight to Access  
          Half Moon Bay Beach (Oct. 25, 2013) San Francisco Chronicle  
                                                                (more)



          SB 968 (Hill)
          Page 2 of ?



           (as of April 6, 2014).)   
          Following the sale of the upland parcels, "the new owner erected  
          a barricade on Martin's Beach Road intended to prevent the  
          public from getting to the small neck of sand, nestled between  
          rocky shoulders on either side."  (Newman, Mysterious Owner of  
          San Mateo County Beach Paradise is Asked to Let the Outside  
          World In (October 29, 2012) Santa Cruz Sentinel  
           (as of April 6, 2014).)  A  
          gate with a sign that says "Beach Closed, Keep Out" now blocks  
          the road that once allowed access to the beach, and the only  
          remaining route of public access to Martin's Beach is via the  
          ocean.  (Fimrite, Surfers Lose Fight to Access Half Moon Bay  
          Beach (Oct. 25, 2013) San Francisco Chronicle  
           (as of April 6, 2014).)

          Following the closure of Martin's Beach Road, a group called the  
          Friends of Martin's Beach sued the new landowner to re-establish  
          public access via the road.  (See Friends of Martin's Beach v.  
          Martins Beach 1, LLC, Civ-517634, San Mateo County Superior  
          Court.)  The Surfrider Foundation brought a second lawsuit  
          challenging the new owner's compliance with various provisions  
          of the California Coastal Act.  (See Surfrider Foundation v.  
          Martins Beach LLC, et al., Civ-520336, San Mateo County Superior  
          Court.)  Both lawsuits are currently pending in the Superior  
          Court for the County of San Mateo.

          This bill would direct the State Lands Commission to consult and  
          enter into any necessary negotiations with the new owner of the  
          two upland Martin's Beach parcels to acquire a right-of-way or  
          easement for the creation of a public access route to Martin's  
          Beach.  If the Commission is unable to reach an agreement to  
          acquire a right-of-way or easement by January 1, 2016, this bill  
          would direct it to acquire the right-of-way or easement through  
          an exercise of eminent domain.

                                CHANGES TO EXISTING LAW
           
           Existing law,  the California Constitution, provides that no  
          individual, partnership, or corporation, claiming or possessing  
          the frontage or tidal lands of a harbor, bay, inlet, estuary, or  
          other navigable water in this state, shall be permitted to  
          exclude the right of way to such water whenever it is required  
          for any public purpose, nor to destroy or obstruct the free  
                                                                      



          SB 968 (Hill)
          Page 3 of ?



          navigation of such water; and the Legislature shall enact such  
          laws as will give the most liberal construction to this  
          provision, so that access to the navigable waters of this state  
          shall be always attainable for the people thereof.  (Cal.  
          Const., art. X, Sec. 4.)

           Existing law  finds and declares that the basic goals of the  
          state for the coastal zone are, among other things, to maximize  
          public access to and along the coast and maximize public  
          recreational opportunities in the coastal zone consistent with  
          sound resource conservation principles and constitutionally  
          protected rights of private property owners.  (Pub. Res. Code  
          Sec. 30001.5(c).)

           Existing law  provides that no lands owned by the state which  
          front upon or are near to any lake, navigable stream or other  
          body of navigable water, convenient access to which is not  
          provided by public road or roads, or otherwise, shall ever be  
          sold, leased or rented, without reserving to the people of the  
          state an easement across the lands for convenient access to such  
          waters.  (Pub. Res. Code Sec. 6210.4.)

           Existing law  provides that the State Lands Commission may, in  
          the name of the state, acquire by purchase, lease, gift,  
          exchange, or, if all negotiations fail, by condemnation, a  
          right-of-way or easement across privately owned land or other  
          land that it deems necessary to provide access to public land,  
          including school land, tide or submerged lands, and lands  
          subject to the public trust for commerce, navigation, and  
          fisheries, to which there is no access available.  (Pub. Res.  
          Code Sec. 6210.9.)

           Existing federal law  provides that "private property [shall not]  
          be taken for public use, without just compensation." (U.S.  
          Const. Amend. V.)

           Existing state law  provides that private property "may be taken  
          or damaged for public use only when just compensation,  
          ascertained by a jury unless waived, has first been paid to, or  
          into court for, the owner."  (Cal. Const. art. I, Sec. 19(a).)   
          Existing state law defines "just compensation" as a property's  
          fair market value "as determined by any method of valuation that  
          is just and equitable."  (Code Civ. Proc. Secs.  
          1263.310-1263.320.)

           This bill  would direct the State Lands Commission to consult,  
                                                                      



          SB 968 (Hill)
          Page 4 of ?



          and enter into any necessary negotiations, with the owners of  
          the property known as Martin's Beach, consisting of two parcels  
          of land, APN: 066-330-230 and APN: 066-330-240, in the  
          unincorporated area of the County of San Mateo, to acquire a  
          right-of-way or easement for the creation of a public access  
          route to and along the shoreline, including the sandy beach, at  
          Martin's Beach at the South Cabrillo Highway.

           This bill  would provide that if the Commission is unable to  
          reach an agreement to acquire a right-of-way or easement by  
          January 1, 2016, it shall acquire by eminent domain a  
          right-of-way or easement for the creation of a public access  
          route to and along the shoreline, including the sandy beach, at  
          Martin's Beach at the South Cabrillo Highway in accordance with  
          the procedures set forth under the Eminent Domain Law.

           This bill  would also direct the Commission to enter into  
          consultation and negotiation with local stakeholders, including,  
          but not limited to, local and regional government and  
          governmental entities, to address the ongoing management and  
          operation of any property acquired pursuant to this bill.

                                        COMMENT
           
           1.Stated Need for the Bill  
          
          The author writes:

            SB 968 was introduced to try and provide a pathway for  
            compromise so the public can once again access Martin's Beach.  
             The only road leading to the beach has been closed since  
            2008, and it might remain shut into the future as various  
            legal battles play out in the courts.  There are cliffs at  
            both ends of Martin's Beach making it impossible to access  
            from neighboring beaches.  Otherwise you have to access the  
            beach from the ocean.  Local residents and Californians have  
            been deprived of this natural treasure for long enough.

            This bill requires the State Lands Commission to enter into  
            negotiations with the landowner to reopen [a route] for public  
            access.  If a settlement can't be reached by January 1, 2016,  
            then the legislation would direct the State Lands Commission  
            to acquire [a route] for public access using their eminent  
            domain authority.  This bill does not grant any new authority  
            to the State Lands Commission - they already have the ability  
            to condemn a right-of-way or easement across privately owned  
                                                                      



          SB 968 (Hill)
          Page 5 of ?



            land that it deems necessary to provide access to public land.

            The California Coastal Act envisioned this delicate balancing  
            act between maximizing public access to the coast while  
            protecting the rights of private property owners.  This bill  
            tries to bring the landowner to the table to reach a  
            compromise since they have been unresponsive to other efforts.  
             I hope a compromise can be reached because no one wants to  
            use eminent domain; however, I believe this is an appropriate  
            use consistent with our constitution and with the State Lands  
            Commission's existing eminent domain authority under Public  
            Resources Code Section 6210.9.  All Californians deserve equal  
            access to the beach.    

           2.Public Access to Coastal Resources
           
          The right of public access to California's rivers, beaches, and  
          waterways is enshrined in Article X, Section 4, of the  
          California Constitution.  Section 4 declares that "no  
          individual, partnership, or corporation, claiming or possessing  
          the frontage or tidal lands of a harbor, bay, inlet, estuary, or  
          other navigable water in this state, shall be permitted to  
          exclude the right of way to such water whenever it is required  
          for any public purpose, nor to destroy or obstruct the free  
          navigation of such water."  Emphasizing that access to public  
          waterways is a matter of fundamental public importance, the  
          Constitution further states that "the Legislature shall enact  
          such laws as will give the most liberal construction to this  
          provision, so that access to the navigable waters of this state  
          shall be always attainable for the people thereof."  (Cal.  
          Const., art. X, Sec. 4.)  More specifically directed at the  
          State's coastal resources - including beaches - the California  
          Coastal Act of 1976 "finds and declares that the basic goals of  
          the state for the coastal zone are . . . to maximize public  
          access to and along the coast and maximize public recreational  
          opportunities in the coastal zone consistent with sound resource  
          conservation principles and constitutionally protected rights of  
          private property owners."  (Pub. Res. Code Sec. 30001.5(c).)

          This bill furthers these constitutional and statutory declared  
          public policy goals of providing public access to the state's  
          waterways and coastal areas by directing the State Lands  
          Commission to secure a public access route to Martin's Beach,  
          first through negotiation, and if negotiation fails, then  
          through an exercise of eminent domain.  Without an overland  
          route of public access, this particular beach would be cut off  
                                                                      



          SB 968 (Hill)
          Page 6 of ?



          from public enjoyment since it is bounded both on the north and  
          the south by impassable sea cliffs.  Additionally, this bill  
          recognizes that acquisition of a public access route may impair  
          the constitutionally protected property rights of upland  
          landowners, and protects those property rights by first  
          directing the Commission to enter into negotiations with  
          affected landowners.  Only if those negotiations fail is the  
          Commission to proceed with an eminent domain action.  In so  
          doing, the bill ensures that any landowners impacted by the  
          acquisition of this public access route are guaranteed to  
          receive no less than the fair market value of any property  
          rights taken by eminent domain.
           
          3.Eminent Domain
           
          The Fifth Amendment to the U.S. Constitution states that a  
          person's private property may be taken for a "public use" if the  
          owner is given "just compensation."  When a public entity takes  
          private property under this provision, the public entity is  
          exercising its power of eminent domain.  California's Eminent  
          Domain Law (Code Civ. Proc. Sec. 1230.010, et seq.) specifies  
          how public entities are to exercise the power of eminent domain.  
           In sum, it states that the owner of property to be acquired by  
          eminent domain is entitled to just compensation, that  
          compensation shall be awarded for any property interest taken,  
          and that the measure of that compensation is the fair market  
          value of the property interest taken.

          The Eminent Domain Law requires public entities to go through a  
          specific set of procedures when exercising the power of eminent  
          domain.  Prior to filing an eminent domain action in court, a  
          public entity seeking to acquire property by eminent domain must  
          generally adopt a "resolution of necessity" and, before adopting  
          that resolution, must give each person whose property is to be  
          acquired by eminent domain a reasonable opportunity to appear  
          before it and to be heard.  (Code Civ. Proc. Sec. 1245.235.)   
          Under existing law, affected property owners have a forum to  
          dispute three requirements that must exist for a property to be  
          acquired by eminent domain: (1) that public interest and  
          necessity require the project; (2) that the project is planned  
          or located in a manner that will be most compatible with the  
          greatest public good and the least private injury; and (3) that  
          the property sought to be acquired is necessary for the project.  
           (Code Civ. Proc. Sec. 1245.230.)  A public entity must also,  
          before adopting that resolution, establish an amount that it  
          believes to be just compensation for the property and make an  
                                                                      



          SB 968 (Hill)
          Page 7 of ?



          offer to the owners to acquire the property for that amount.   
          That offer, which cannot be less than the public entity's  
          appraisal of the fair market value of the property, generally  
          provides owners who are willing to sell with the opportunity to  
          do so at an early point in the process.  (Gov. Code Sec.  
          7267.2.)

          This bill would not alter the existing process for acquiring  
          property via eminent domain.  Rather, the bill specifies that if  
          negotiations with affected landowners do not result in an  
          agreement to acquire a public access right-of-way or easement by  
          January 1, 2016, the State Lands Commission shall commence  
          eminent domain proceedings in accordance with the procedures set  
          forth in the Eminent Domain Law.  This requirement to engage in  
          good faith negotiations prior to initiating a condemnation  
          action is consistent with the policy of having public entities  
          "make every reasonable effort to acquire . . . real property by  
          negotiation."  (Gov. Code Sec. 7267.1(a).)  As the Legislature  
          articulated in its "Guidelines for public entities," engaging in  
          pre-condemnation negotiations with affected property owners  
          helps to "avoid litigation and relieve congestion in the courts,  
          to assure consistent treatment for owners in the public  
          programs, and to promote public confidence in public land  
          acquisition practices."  (Gov. Code Sec. 7267.)

           4.Implied Dedication of Public Access Route
           
          Staff notes that recent amendments to this bill restrict the  
          property interest to be acquired by the State Lands Commission  
          to a right-of-way or easement for the creation of a public  
          access route to and along Martin's Beach.  This restriction  
          aligns the property interest to be acquired with the articulated  
          need for the property, which is to provide for an overland  
          public access route to the beach.

          Furthermore, the public may already have an existing  
          right-of-way or easement for access to Martin's Beach through  
          operation of an implied dedication of land for public access.   
          The California Supreme Court has held that "a common law  
          dedication of property to the public can be proved either by  
          showing acquiescence of the owner in use of the land under  
          circumstances that negate the idea that the use is under a  
          license or by establishing open and continuous use by the public  
          for the prescriptive period."  (Gion v. Santa Cruz (Cal. 1970) 2  
          Cal.3d 29, 38 [superseded by statute].)  Where "the public has  
          used . . . land for a period of more than five years with full  
                                                                      



          SB 968 (Hill)
          Page 8 of ?



          knowledge of the owner, without asking or receiving permission  
          to do so and without objection being made by anyone," then  
          dedication by adverse use or "implied dedication" to public use  
          may be said to have occurred.  (Id.)

          In response to the Gion decision, the Legislature enacted Civil  
          Code Section 1009 to prevent the Gion rule from being used to  
          establish common law implied dedications for public access in  
          certain cases, such as for establishing a right to access  
          coastal property lying more than 1,000 yards inland of the mean  
          high tide line of the Pacific Ocean after 1972.  (See Civ. Code  
          Sec. 1009(e).)  Staff notes that whether or not the public  
          currently enjoys an existing right-of-way or easement for access  
          to Martin's Beach by operation of implied dedication is the  
          subject of pending litigation.

           5.Pending Litigation
           
          In the past, this Committee has raised concerns about bills that  
          interfere with pending litigation.  Any such interference could  
          result in a direct financial windfall to a private party,  
          prevent a court from deciding an action based upon the laws in  
          place at the time the cause of action accrued, or create a  
          situation where the legislative branch is used to circumvent the  
          discretion and independence of the judicial branch.  This bill,  
          however, does not raise the concerns normally associated with  
          measures that could impact pending litigation.  First, this bill  
          would not alter or amend any law at issue in the two lawsuits  
          currently pending against the new owner of the two parcels  
          upland of Martin's Beach.  Neither case involves an exercise of  
          eminent domain authority or challenges the State Land  
          Commission's power to acquire a right-of-way or easement for  
          public use.  Second, this bill is not retroactive and would not  
          compromise the independence of the judicial branch nor  
          circumvent its discretion to expound and interpret California  
          law.  By its terms, the bill pertains only to future actions by  
          the State Lands Commission; it does not attempt to attach "new  
          legal consequences to events completed before its enactment."   
          Landgraf v. USI Film Products (1994), 511 U.S. 244, 269-70  
          (internal citations omitted).  Nor does the bill attempt to  
          decide an issue or dispute pending before a court or interfere  
          with a court's ability to control its docket.


           Support  :  Black Surfers Collective; California Coastal  
          Commission; California Coastal Protection Network; Coastside  
                                                                      



          SB 968 (Hill)
          Page 9 of ?



          Beach Coalition; Committee for Green Foothills; Environmental  
          Action Committee of West Marin; Ocean Conservancy; Save the  
          Waves Coalition; Sierra Club California Coastal Committee;  
          Surfrider Foundation; WildCoast

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation :

          AB 3691 (Doyle, Ch. 1954, Stats. 1955) authorized the State  
          Lands Commission to acquire through purchase, lease, gift,  
          exchange, or condemnation, rights-of-way and easements across  
          privately owned land or other land that the Commission deems  
          necessary to provide access to public land that is offered for  
          sale.

          AB 1715 (Goggin, Ch. 1205, Stats. 1975) authorized the State  
          Lands Commission to acquire through purchase, lease, gift,  
          exchange, or condemnation, rights-of-way and easements across  
          privately owned land or other land that the Commission deems  
          necessary to provide access to public land, including school  
          land, tide or submerged lands, and lands subject to the public  
          trust for commerce, navigation, and fisheries, to which there is  
          no access available.

           Prior Vote  :  Senate Committee on Natural Resources and Water  
          (Ayes 7, Noes 2)

                                   **************