BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 968
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          Date of Hearing:   August 6, 2016

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 968 (Hill) - As Amended:  June 30, 2014 

          Policy Committee:                             Natural  
          ResourcesVote: 6-3
                        Judiciary                                 7-1 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the State Lands Commission (SLC) to enter  
          into negotiations to acquire a public access right-of-way to the  
          beach, located at the Martins Beach property south of Half Moon  
          Bay.  If SLC is unable to reach an agreement or the owners do  
          not voluntarily provide access by January 1, 2016, SLC may  
          require a right of way or easement by condemnation.   
          Additionally, this bill:

          1)Clarifies that nothing in this bill prohibits the owner of the  
            property from voluntarily providing public access to and along  
            the shoreline at Martins Beach upon terms acceptable to SLC.

          2)Requires SLC to consult and enter into negotiations with local  
            stakeholders to address the ongoing operation and management  
            issues of any property acquired pursuant to this bill.

          3)Makes various legislative findings and declarations.

           FISCAL EFFECT  

          1)Potential one-time GF costs, in the several millions to tens  
            of millions of dollars range if the SLC purchases a  
            right-of-way or easement.

          2)Potential ongoing GF costs for the operations and maintenance  
            if SLC purchases a right-of-way or easement.

           COMMENTS
           








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           1)Purpose.   According to the author, Martins Beach, located in  
            San Mateo County, is a significant local coastal resource that  
            had been accessible to local residents and visitors for more  
            than 100 years.  However, after the sale of the property  
            adjacent to the beach in 2008, Californians are now unable to  
            access Martins Beach by land because the only road leading to  
            the beach has been closed by the new land owner who controls  
            the road and adjacent property. To address the current lack of  
            access to Martins Beach caused by this closure, this bill  
            seeks to reinforce the public's right to access California  
            beaches and coastal resources by taking steps to reestablish  
            an access route to Martins Beach.   

          2)Background.   The Martins Beach property consists of two  
            parcels, totaling approximately 89 acres of beachfront  
            property in San Mateo County, located about 10 miles south of  
            Half Moon Bay along the Cabrillo Highway.  The property traces  
            its origins to a rancho granted by the governor of Spanish  
            Mexico in 1838.  From the early 1900s until 2008, the property  
            was owned by the Deeney family who allowed public access via  
            Martins Beach Road for a fee.
                
             In 2008, the property was sold to two limited liability  
            companies owned by Vinod Khosla   (referred to here as Martins  
            Beach LLC).  Following a warning issued by San Mateo County in  
            2009 that the new owner must preserve the coastal access  
            previously provided by the Denney family, Martins Beach LLC  
            sued the county to clarify and settle its legal obligation to  
            provide public access. San Mateo County Superior Court Judge  
            John Grandsaert ruled in the County's favor.  After two years  
            of complying with San Mateo County's request to maintain  
            access to the beach, Martins Beach LLC locked the gates and  
            posted no trespassing signs.

            In response, a group called Friends of Martins Beach sued  
            Martins Beach LLC on various grounds, including the claim that  
            prohibiting access to the beach violated Article 10, Section 4  
            of the California Constitution regarding public access to  
            navigable water.  In April 2014, Judge Gerald Buchwald ruled  
            in favor of Martins Beach LLC finding the property's federal  
            land patent, which served as a quitclaim deed of all US  
            interests in the property and predates any sovereign claim in  
            the property by the state of California, prevents the state  
            from asserting a new interest in public access at Martins  
            Beach ( Comment 4 below).  This ruling is being appealed.








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            In 2013, the Surfrider Foundation sued Martins Beach LLC,  
            claiming that blocking access to the beach required a coastal  
            development permit which was never sought nor obtained.  Final  
            arguments concluded in July 2014, and a ruling is expected  
            within 90 days.

           3)Public Trust Lands and Coastal Access.

             The California Constitution prohibits an individual from  
            claiming or possessing the frontage of tidal lands of  
            navigable waters for excluding the right of way for any public  
            purpose.  The common law doctrine of the public trust protects  
            the public's right to use California waterways for water  
            dependent commerce, navigation, fishing, boating, natural  
            habitat and water-oriented activities.  Filled and unfilled  
            tide and submerged lands and the bed of lakes, streams, and  
            other navigable waterways are to be held in trust by the state  
            for the benefit of the people of California.

            SLC is the steward and manager of the state's public trust  
            lands.  Existing law authorizes SCL to acquire public access  
            to public trust lands by purchase, lease, gift, exchange, or  
            if all negotiations fail, by condemnation.  This bill restates  
            this existing authority.

            Existing law requires the state to maximize public access to  
            and along the coast and to maximize recreational opportunities  
            in the coastal zone.  The California Coastal Commission (CCC)  
            is charged with protecting public access to and along the  
            coast.

           4)Martins Beach Pre-1900  . In 1838, the governor of Spanish  
            Mexico granted an 8,905 acre of property to Jose Maria Alviso,  
            who subsequently conveyed the property to his brother Jose  
            Antonio Alviso.  The present Martins Beach was part of the  
            larger land grant.  

             In 1848, the Treaty of Guadalupe Hidalgo formerly ended the  
            Mexican-American War and resulted in Mexico ceding a region,  
            including California, to the United States.  The Treaty  
            required the United States to honor pre-existing Mexican land  
            grants.  Congress passed the California Land Act in 1851 to  
            settle Mexican land claims, following which the federal  
            government issued federal land patents for properties  








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            recognized by the Treaty.  Jose Antonio Alviso filed a claim  
            for the property that was ultimately upheld by the United  
            States Supreme Court, and a patent was issued for the rancho.   
            The patent established fixed boundaries for the property,  
            including a fixed boundary for the seaward edge of the  
            property that, as a result of over 150 years of coastal  
            erosion, resides well offshore of the current intertidal zone.

            In a 1984 Supreme Court decision, the court held that the  
            public trust doctrine to determine the applicability of the  
            constitutional provision on public access does not apply to an  
            area of tide and submerged lands if all the following apply:

             a)   The tide and submerged lands were part of a Mexican land  
               grant (i.e., grants issued to individuals by the Mexican  
               Governor of California prior to the Treaty of Guadalupe  
               Hidalgo in 1848);

             b)   Those lands were patented by the federal government  
               through a process established to protect the property  
               rights of Mexican landowners, which was an obligation the  
               U.S. committed to under the Treaty of Guadalupe Hidalgo;  
               and

             c)   The federal patent was confirmed without any mention of  
               a public trust easement. 

            It is this Supreme Court ruling upon which the trial court  
            relied in finding that the federal land patent prevents the  
            state of California from asserting a new interest in public  
            access in the Friends of Martins Beach case.     

            Supporters of this bill assert the trial court based one of  
            its findings on an unprecedented and questionable holding that  
            the California Constitution's provision prohibiting an  
            individual from excluding the public's right of way to  
            navigable waters codifies the common law public trust  
            doctrine.  Supporters argue the Supreme Court  decision was  
            mistakenly applied because the common law public trust  
            doctrine-which protects the public's right to use tide and  
            submerged lands for commerce, navigation, fishing, boating,  
            natural habitat protection, and other water oriented  
            activities-does not confer any right on the public to use  
            non-trust lands to access the water.  









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           5)The California Coastal Commission (CCC).   The CCC, who is not  
            a party to either suit, sent a Notice of Violation to the  
            property owner in 2011 for closing the gate and denying public  
            access.  According to CCC staff, they have been in  
            conversation with the owner and his representatives about how  
            to resolve the violation (closed gate), but no agreement has  
            been reached and progress has been slow. 
             
             In light of the lack of progress, the CCC initiated a  
            Prescriptive Rights documentation process in July, and posted  
            a "Prescriptive Rights Survey" on its website asking anyone  
            who has accessed and used the beach in the past to submit the  
            questionnaire to help the CCC document historic public use of  
            the beach or prescriptive use.

            The concept of prescriptive rights has its roots in British  
            Common Law, and is codified in the California Code of Civil  
            Procedures, and supported by existing case law. If it can be  
            shown that the public has been utilizing private property as  
            if it were public land for a period of at least five years, a  
            right to continued public access may be established.

           6)Opposition.   According to representatives for the property  
            owners, this legislation is premature for this unique property  
            currently in active litigation.  Martins Beach has complex,  
            site-specific property rights, unique to it and better  
            addressed by the current legal process and good faith  
            negotiations.

            The opposition further asserts, in May 2014, the court issued  
            a written Opinion and Judgment in the Friends of Martins Beach  
            case finding that Martins Beach 1, LLC and Martins Beach 2,  
            LLC are the fee owners of the property including the off-shore  
            submerged tidelands, and there is no right of public access or  
            easement for the public to use or access the property for any  
            purpose whatsoever.

            According to the opponents, because there are no existing  
            public lands to which access is needed, there is no authority  
            to acquire a right-of-way or easement across this private  
            property.  Furthermore, any acquisition of easement or access  
            by way of condemnation may require the state to compensate the  
            property owner for use of the beach and submerged tidelands in  
            addition to the access road.  There is no precedent for state  
            acquisition of such a property interest, the cost of which is  








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            unknown but could be very substantial.


           Analysis Prepared by  :    Jennifer Galehouse and Joel Tashjian /  
          APPR. / (916) 319-2081