Senate BillNo. 1424


Introduced by Senator Wolk

(Principal coauthor: Assembly Member Bonilla)

(Coauthor: Senator DeSaulnier)

February 21, 2014


An act to repeal Section 3 of Chapter 815 of the Statutes of 1976, relating to tidelands, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1424, as introduced, Wolk. State property: tidelands transfer: City of Martinez

(1)  Existing law grants to the City of Martinez all right, title, and interest of the state to 3 specified parcels of land in the Straits of Carquinez, to be held in trust for specified uses. The Kapiloff Land Bank Act creates the Land Bank Fund and continuously appropriates moneys in the fund, subject to a statutory trust, to the State Lands Commission, acting as the Land Bank Trustee, to acquire real property or any interest in real property for the purposes of public trust title settlements.

This bill would repeal that grant of trust lands to the City of Martinez and would instead provide for a new grant of trust land to the City of Martinez that would include an additional 4th parcel. The bill would require the trust lands to be held by the city, as trustee, for the benefit of all the people of the state for purposes consistent with the public trust doctrine, including the protection of maritime or water dependent commerce, navigation, and fisheries, and the preservation of the lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. The bill would authorize the city to lease trust lands under specified conditions for purposes consistent with the grant and the public trust doctrine

The bill would require the City of Martinez to submit to the commission by January 1, 2020, for its approval a trust lands use plan, as prescribed. The bill would require the city to file with the commission by September 30, 2025, and every 5 years thereafter, a detailed report of its trust lands uses and, by October 1 of each year, a statement of trust revenues and expenditures. The bill would require the city to file a specific document with the commission before expending trust revenues for any single capital improvement on the trust lands greater than $250,000 and would prohibit that expenditure of funds if the commission determines it is not authorized.

The bill would require, on June 30, 2015, if the Department of Parks and Recreation determines that specified loans have been repaid, and at the end of every fiscal year thereafter, that 20% of all gross revenues generated from the trust lands be transmitted to the commission, for allocation by the Treasurer, of which 80% would be deposited in the General Fund and 20% in the Kapiloff Land Bank Fund, thereby making an appropriation.

By imposing new duties on the City of Martinez with respect to the trust lands, the bill would impose a state-mandated local program.

(2) 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: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1

SECTION 1.  

Section 3 of Chapter 815 of the Statutes of 1976,
2as amended by Section 1 of Chapter 387 of the Statutes of 2002,
3is repealed.

begin delete
4

Sec. 3.  

(a) There is hereby granted to the City of Martinez,
5and to its successors, all right, title and interest of the state held
6by virtue of its sovereignty in and to the three parcels of land
7situated in the County of Contra Costa and described as follows:

          
8Parcel “A”

9Commencing at the intersection of the north line of Tideland
10Survey No. 9 and the east line of North Court Street as shown on
11Map of “City of Martinez Waterfront Area” filed March 10, 1955,
P3    1in Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the
2Office of the Contra Costa County Recorder; thence along said
3northerly line of Tideland Survey No. 9 North 76° 56´ 53ȳ East
4488.36 feet; thence leaving said northerly line North 20° 03´ 30ȳ
5West 130.00 feet; thence North 63° 50´ 00ȳ East 85.00 feet to the
6true point of beginning; thence North 03° 30´ 00ȳ East 110.00 feet;
7thence North 12° 10´ 00ȳ East 660.00 feet; thence North 05° 05´
839ȳ West 119.71 feet; thence North 88° 03´ 16ȳ East 242.85 feet;
9thence South 12° 10´ 00ȳ West 797.24 feet; thence South 63° 50´
1000ȳ West 233.84 feet to the point of beginning.

          
11Parcel “B”

12Commencing at the intersection of the north line of Tideland
13Survey No. 9 and the east line of North Court Street as shown on
14Map of “City of Martinez Waterfront Area” filed March 10, 1955,
15in Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the
16Office of the Contra Costa County Recorder; thence along said
17northerly line of Tideland Survey No. 9 North 76° 56´ 53ȳ East
18488.36 feet; thence leaving said northerly line North 20° 03´ 30ȳ
19West 130.00 feet; thence North 63° 50´ 00ȳ East 318.84 feet to the
20true point of beginning being the southeasterly corner of Parcel
21“A” described above; thence North 12° 10´ 00ȳ East 797.24 feet
22along the east line of said Parcel “A”; thence leaving said east line
23North 88° 03´ 16ȳ East 156.26 feet; thence South 89° 00´ 00ȳ East
24100.00 feet; thence South 66° 20´ 00ȳ East 120.00 feet; thence
25South 25° 45´ 00ȳ East 453.00 feet; thence South 68° 10´ 00ȳ West
26385.00 feet; thence South 63° 50´ 00ȳ West 416.16 feet to the point
27of beginning.

          
28Parcel “C”

29That parcel of land described in the lease to the Southern Pacific
30Transportation Company by the City of Martinez per Resolution
31No. 111 (1959 series) dated August 5, 1959, and Resolution No.
3272-75 dated June 4, 1975.

33The bearings and distances used in the above descriptions of
34Parcels “A” and “B” are based on the California Coordinate System
35Zone 3 as shown on Map of “City of Martinez Waterfront Area”
36filed March 10, 1955, in Volume 16, Pages 39 to 43, Licensed
37Surveyor’s Maps in the Office of the Contra Costa County
38Recorder.

P4    1(b) Such lands shall be held by the city and its successor in trust
2for the following uses, in which there is a general, statewide
3interest, and upon the following express conditions:

4Parcel “A” shall be used only for Marina spoils and spoil
5removal, parking, boat storage, chandlery, recreation, landscaping,
6and any other use permitted by the Martinez Waterfront Land Use
7Plan.

8Parcel “B” shall be used only for Marina spoils and spoil removal
9and any other use permitted by the Martinez Waterfront Land Use
10Plan.

11Parcel “C” shall be used only in its present use as a railroad
12right-of-way.

13Further, all such uses shall accord with the terms and conditions
14of the lease and agreements specified in subdivision (f) of Section
151, and the development and operation of the entire area of such
16parcels shall be under the supervision of the City-State Committee,
17in the same manner as is presently provided by such lease and
18agreements with respect to lands subject to such lease and
19agreements.

20The grant made by this section shall not become effective unless
21and until the city files quitclaim to all previously granted tidelands
22that are within the area hereby granted to the district by this act
23and described in Section 15.

end delete
24

SEC. 2.  

(a) For purposes of this act, the following definitions
25shall apply:

26(1) “Commission” means the State Lands Commission.

27 (2) “Public trust doctrine” means the common law doctrine, as
28enunciated by the court in National Audubon Soc. v. Superior
29Court (1983) 33 C.3d 419, and other relevant judicial decisions,
30specifying the state’s authority as sovereign to exercise continuous
31supervision and control over the navigable waters of the state, the
32lands underlying those waters, and nonnavigable tributaries to
33navigable waters, including the protection of maritime or water
34dependent commerce, navigation, and fisheries, and the
35preservation of the lands in their natural state for scientific study,
36open space, wildlife habitat, and water-oriented recreation.

37(3) “State” means the State of California.

38(4) “Trustee” means the City of Martinez, a municipal
39corporation.

P5    1(5) “Trust lands” means Parcel “A,” Parcel “B,” Parcel “C,”
2and Parcel “D”, as described in subdivision (b), situated in the
3County of Contra Costa. The descriptions of these parcels are based
4on the California Coordinate System Zone 3 as shown on Map of
5“City of Martinez Waterfront Area” filed March 10, 1955, in
6Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the
7Office of the Contra Costa County Recorder.

8(6) “Trust revenues” means all revenues received from trust
9lands and trust assets.

10(7) “Trust lands use plan” or “plan” means the trust lands use
11plan required to be submitted by the trustee to the commission
12pursuant to Section 4 of this act.

13(8) “Trust lands use report” means the report of the trustee’s
14utilization of the trust lands required to be submitted by the trustee
15pursuant to Section 5 of this act.

16(b) There is hereby granted in trust to the City of Martinez and
17to its successors, all of the rights, title, and interest of the state,
18held by the state by virtue of its sovereignty, in and to four parcels
19of land situated in the County of Contra Costa and described as
20follows:

21Parcel “A”

Commencing at the intersection of the north line of Tideland Survey No. 9 and the east line of North Court Street as shown on Map of “City of Martinez Waterfront Area” filed March 10, 1955, in Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the Office of the Contra Costa County Recorder; thence along said northerly line of Tideland Survey No. 9 North 76° 56´ 53″ East 488.36 feet; thence leaving said northerly line North 20° 03´ 30″ West 130.00 feet; thence North 63° 50´ 00″ East 85.00 feet to the true point of beginning; thence North 03° 30´ 00″ East 110.00 feet; thence North 12° 10´ 00″ East 660.00 feet; thence North 05° 05´ 39″ West 119.71 feet; thence North 88° 03´ 16″ East 242.85 feet; thence South 12° 10´ 00″ West 797.24 feet; thence South 63° 50´ 00″ West 233.84 feet to the point of beginning.

35Parcel “B”

36Commencing at the intersection of the north line of Tideland Survey No. 9 and the east line of North Court Street as shown on Map of “City of Martinez Waterfront Area” filed March 10, 1955, in Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the Office of the Contra Costa County Recorder; thence along said northerly line of Tideland Survey No. 9 North 76° 56´ 53″ East 488.36 feet; thence leaving said northerly line North 20° 03´ 30″ West 130.00 feet; thence North 63° 50´ 00″ East 318.84 feet to the true point of beginning being the southeasterly corner of Parcel “A” described above; thence North 12° 10´ 00″ East 797.24 feet along the east line of said Parcel “A”; thence leaving said east line North 88° 03´ 16″ East 156.26 feet; thence South 89° 00´ 00″ East 100.00 feet; thence South 66° 20´ 00″ East 120.00 feet; thence South 25° 45´ 00″ East 453.00 feet; thence South 68° 10´ 00″ West 385.00 feet; thence South 63° 50´ 00″ West 416.16 feet to the point of beginning.

P6   12Parcel “C”

13That parcel of land described in the lease to the Southern Pacific
14Transportation Company by the City of Martinez per Resolution
15No. 111 (1959 series) dated August 5, 1959, and Resolution No.
1672-75 dated June 4, 1975.

17Parcel “D”

18Commencing at the intersection of the north line of Tideland
19Survey No. 9 and the east line of North Court Street as shown on
20Map of “City of Martinez Waterfront Area” filed March 10, 1955,
21in Volume 16, Pages 39 to 43, Licensed Surveyor’s Maps in the
22Office of the Contra Costa County Recorder; thence South 20°
2303´ 30˝ East 240.00 feet to the true point of beginning; thence
24South 69° 56´ 30˝ West 50.00 feet to the centerline of North Court
25Street; thence North 20° 03´ 30˝ West 630.00 feet along the
26centerline of North Court Street; thence leaving said centerline
27North 63° 05´ 00˝ West 410.36 feet; thence North 20° 03´ 30˝
28West 530.00 feet; thence North 17° 02´ 14˝ East 272.81 feet; thence
29North 16° 00´ 00˝ West 380.00 feet; thence South 79° 47´ 48˝ East
30380.00 feet; thence North 69° 56´ 30˝ East 810.00 feet; thence
31South 81° 03´ 30˝ East 710 feet; thence South 07° 00´ 00˝ West
32900.00 feet; thence South 05° 05´ 39˝ East 119.71 feet thence
33South 12° 10´ 00˝ West 660.00 feet; thence South 03° 30´ 00˝
34West 110.00 feet; thence South 63° 50´ 00˝ West 85.00 feet; thence
35South 20° 03´ 30˝ East 130.00 feet to the intersection with the
36northerly line of the Tideland Survey No. 9; thence along said
37northerly line South 76° 56´ 53˝ West 35.00 feet; thence leaving
38said northerly line South 20° 03´ 30˝ East 184.70 feet; thence South
3969° 56´ 30˝ West 450.00 feet to the point of beginning.

P7    1

SEC. 3.  

The trust grant specified in Section 2 of this act is
2subject to all of the following express conditions:

3(a) The trust lands shall be held by the trustee in trust for the
4benefit of all the people of the state for purposes consistent with
5the public trust doctrine, including, but not limited to, maritime
6or water dependent commerce, navigation, and fisheries,
7preservation of the lands in their natural state for scientific study,
8open space, wildlife habitat, and water-oriented recreation.

9(b) On and after January 1, 2020, the use of the trust lands shall
10conform to an approved trust lands use plan, as required by Section
114 of this act.

12(c) The trustee shall not, at any time, grant, convey, give, or
13otherwise alienate or hypothecate the trust lands, or any part of
14the trust lands, to any person, firm, entity, or corporation for any
15purpose whatsoever.

16(d) The trustee may lease the trust lands, or any part of the trust
17lands, for limited periods, not exceeding 49 years, for purposes
18consistent with the trust upon which those lands are held, as
19specified in subdivision (a) and the public trust doctrine. The
20trustee may collect and retain rents and other trust revenues from
21those leases, under rules and regulations adopted in accordance
22with Section 7 of this act, and in accordance with all of the
23following requirements:

24(1) On and after January 1, 2020, all leases or agreements
25proposed or entered into by the trustee shall be consistent with the
26trust lands use plan approved by the commission, as required by
27Section 4 of this act. Any leases entered into prior to January 1,
282020, shall be consistent with the public trust doctrine and the
29terms of subdivision (a).

30(2) The lease rental rates shall be for a fair annual rent.

31(3) The lease shall be in the best interest of the state.

32(e) When managing, conducting, operating, or controlling the
33trust lands or an improvement, betterment, or structure on the trust
34lands, the trustee or his or her successor shall not discriminate in
35rates, tolls, or charges for any use or service in connection with
36those actions and shall not discriminate against or unlawfully
37segregate any person or group of persons because of sex, race,
38color, creed, national origin, ancestry, or physical disability for
39any use or service in connection with those actions.

P8    1(f) The state shall have the right to use without charge, a
2transportation, landing, or storage improvement, betterment, or
3structure constructed upon the trust lands for a vessel or other
4watercraft or railroad owned or operated by, or under contract to,
5the state.

6(g) The trust lands are subject to the express reservation and
7condition that the state may, at any time, use those lands, or any
8portion of those lands, for highway purposes without compensation
9to the trustee or a person, firm, or public or private corporation
10claiming a right to those lands, except that, if the improvements
11have been placed with legal authority upon the property taken by
12the state for highway purposes, compensation shall be made to the
13person entitled to the value of the interest in the improvements
14taken or the damages to that interest.

15(h) There is reserved to the people of the state the right to fish
16in the waters over the trust lands, with the right of convenient
17access to those waters over the trust lands for this purpose.

18(i) There is excepted and reserved to the state all remains or
19artifacts of archaeological or historical significance and all deposits
20of minerals, including, but not limited to, all substances specified
21in Section 6407 of the Public Resources Code in the trust lands,
22and the right to prospect for, mine, and remove those deposits from
23the lands.

24(j) The trustee shall reimburse the commission for all expenses
25incurred in the administration of this act, including periodic audits
26or investigations.

27

SEC. 4.  

(a) On or before January 1, 2020, the trustee shall
28submit to the commission a trust lands use plan describing any
29proposed development, preservation, or other use of the trust lands.
30The trustee shall thereafter submit to the commission for approval
31all changes of, amendments to, or extensions of, the trust lands
32use plan.

33(b) The commission shall review with reasonable promptness
34the trust lands use plan submitted by the trustee and any changes
35or amendments to determine whether they are consistent with the
36public trust and the requirements of this act. Based upon its review,
37the commission shall either approve or disapprove the plan. If the
38commission disapproves the plan, the commission shall notify the
39trustee and the trustee shall submit a revised plan to the commission
40no later than 180 days after the date of notice of disapproval. If
P9    1the commission determines the revised plan is inconsistent with
2the common law public trust doctrine and the requirements of this
3act, all rights, title, and interest of the trustee in and to the trust
4lands and improvements on the trust lands shall revert to the state.

5(c) The trust lands use plan shall consist of a plan, program, or
6other document that includes all of the following:

7(1) A general description of the type of uses planned or proposed
8for the trust lands. The location of these land uses shall be shown
9on a map or aerial photograph.

10(2) The projected statewide benefit to be derived from the
11planned or proposed uses of the trust lands, including, but not
12limited to, financial benefit.

13(3) The proposed method of financing the planned or proposed
14uses of the trust lands, including estimated capital costs, annual
15operating costs, and anticipated annual trust revenues.

16(4) An estimated timetable for implementation of the trust land
17use plan or any phase of the plan.

18(5) A description of how the trustee proposes to protect and
19preserve natural and manmade resources and facilities located on
20trust lands and operated in connection with the use of the trust
21lands, including, but not limited to, addressing impacts from sea
22level rise.

23(d) The governing body of the trustee shall also submit to the
24commission, as part of the trust lands use plan, for its approval,
25procedures, rules, and regulations to govern the use or development
26of the trust lands. These rules and regulations shall include, but
27are not limited to, lease rates, the basis upon which the rates are
28established, lease terms and conditions, provisions for renegotiation
29of rates and terms and assignments, and any other information as
30may be required by the commission.

31(e) Any use of the trust lands, including, but not limited to, all
32leases or agreements proposed, or entered into, by the trustee after
33January 1, 2020, shall be consistent with the trust lands use plan
34submitted by the trustee and approved by the commission.

35(f) Upon request, the trustee shall submit to the commission a
36copy of all leases and agreements entered into, renewed, or
37renegotiated.

38

SEC. 5.  

(a) On or before September 30, 2025, and on or before
39September 30 of every succeeding fifth year, the trustee shall
40submit a report of its utilization of the trust lands for each
P10   1immediately preceding five-calendar-year period ending with June
230 of the calendar year in which the report is required to be
3submitted.

4(b) The report required by this section shall include all of the
5following:

6(1) A general description of the uses to which the trust lands
7have been placed during the period covered by the report.

8(2) A list of the holders of leases or permits that have been
9granted or issued by the trustee, which list shall specify all of the
10following, as to each holder:

11(A) The use to which the trust lands have been placed by the
12holder.

13(B) The consideration provided for in each lease or permit, and
14the consideration actually received by the trustee for the lease or
15permit granted or issued.

16(C) An enumeration of the restrictions that the trustee has placed
17on the use of the trust lands, and each area of the trust lands, for
18the period covered by the report.

19

SEC. 6.  

(a) The trustee shall demonstrate good faith in carrying
20out the provisions of its trust lands use plan and amending it when
21necessary in accordance with Section 4 of this act.

22(b) If the commission determines that the trustee has
23substantially failed to improve, restore, preserve, or maintain the
24trust lands, as required by the trust lands use plan, or has
25unreasonably delayed implementation of the trust lands use plan,
26all rights, title, and interest of the trustee in and to the trust lands
27and improvements on the trust lands shall revert to the state.

28

SEC. 7.  

(a) (1) The trustee shall establish and maintain
29accounting procedures, in accordance with generally accepted
30accounting principles, providing accurate records of all revenues
31received from the trust lands and trust assets and of all expenditures
32of those revenues.

33(2) All trust revenues received from trust lands and trust assets
34shall be expended only for those uses and purposes consistent with
35this act. The trustee shall provide for the segregation of funds
36derived from the use of the trust lands by the trustee from other
37city municipal funds, so as to ensure that trust revenues are only
38expended to enhance or maintain the trust lands in accordance with
39the uses and purposes for which the trust lands are held.

P11   1(3) Trust revenues may be expended to acquire appropriate
2upland properties to benefit and enhance the trust, subject to a
3determination by the commission that the acquisition is consistent
4with this act and in the best interest of this state. Property acquired
5with these trust revenues shall be considered an asset of the trust
6and subject to the terms and conditions of this act.

7(b) On or before October 1 of each year, the trustee shall file
8with the commission a detailed statement of all trust revenues and
9expenditures relating to its trust lands and trust assets, including
10obligations incurred but not yet paid, covering the fiscal year
11preceding submission of the statement. The commission may
12specify the form and content of this statement. The statement shall
13meet both of the following requirements:

14(1) The statement shall be prepared according to generally
15accepted accounting principles.

16(2) The statement shall be specific to the trust lands and trust
17assets and shall not include city municipal financial or accounting
18information unrelated to the trust lands and trust assets.

19(c) (1) Before expending trust revenues for any single capital
20improvement on the trust lands involving an amount in excess of
21two hundred fifty thousand dollars ($250,000) in the aggregate,
22the trustee shall file with the commission a detailed description of
23the capital improvement not less than 120 days prior to the time
24of any disbursement of trust revenues for, or in connection with,
25that capital improvement.

26(2) Within 120 days after the time of a filing specified in
27paragraph (1), the commission shall determine whether the capital
28improvement is in the statewide interest and benefit and, if the
29filing is made on or before December 1, 2019, whether it is
30consistent with subdivision (a) of Section 3 of this act or, if the
31filing is made on or after January 1, 2020, whether it is consistent
32with the trust lands use plan. The commission may request the
33opinion of the Attorney General on the matter, and if the
34commission makes this request, the Attorney General shall deliver
35a copy of the opinion to the trustee with the notice of its
36determination.

37(3) If the commission notifies the trustee that the capital
38improvement is not authorized, the trustee shall not disburse any
39trust revenues for, or in connection with, the capital improvement,
P12   1unless it is determined to be authorized by a final order or judgment
2of a court of competent jurisdiction.

3(4) The trustee may bring suit against the state for the purpose
4of securing an order or judgment for purposes of paragraph (3),
5which suit shall have priority over all other civil matters. Service
6shall be made upon the executive officer of the commission and
7the Attorney General, and the Attorney General shall defend the
8state in that suit. If judgment is given against the state in the suit,
9no costs may be recovered.

10(d) (1) Except as provided in paragraph (2), on June 30, 2015,
11and at the end of every fiscal year thereafter, 20 percent of all gross
12revenue generated from the trust lands shall be transmitted to the
13commission. Of this amount transmitted, the commission shall
14allocate 80 percent to the Treasurer, for deposit in the General
15Fund, and 20 percent to the Treasurer, for deposit in the Kapiloff
16Land Bank Fund for expenditure pursuant to Division 7
17(commencing with Section 8600) of the Public Resources Code
18for management of the commission’s granted lands program.

19(2) The trustee shall not transmit the gross revenues to the
20commission as specified in paragraph (1) until the Department of
21Parks and Recreation determines the City of Martinez has repaid
22the five outstanding loans that the city owes to the department.

23(e) The commission may, from time to time, institute a formal
24inquiry to determine that the terms and conditions of this act, and
25amendments to this act, have been complied with, and that all other
26applicable provisions of law concerning the trust lands are being
27complied with in good faith.

28(f) The commission shall approve any loan or expenditures of
29nontrust revenues for improvements made to the trust lands prior
30to the loan or expenditure. If not approved, those expenditures
31shall be deemed a gift to the trust.

32

SEC. 8.  

(a) If the commission finds that the trustee has violated
33or is about to violate the terms of its trust grant or any other
34principle of law relating to its obligation under the public trust
35doctrine or under this act, the commission shall notify the trustee
36of the violation.

37(b) The trustee shall have 30 days from receipt of a notice of
38violation to conform to the terms of its grant and the principles
39and laws under the public trust doctrine. If the trustee fails or
40refuses to take those actions, the commission may bring an action
P13   1to enforce the rights of the state and people as settlor beneficiary
2of the public trust doctrine.

3(c) The Attorney General shall represent the state and people
4in all actions or proceedings taken pursuant to this section. If the
5judgment is given against the state in the action or proceeding, no
6costs shall be recovered from the state and people.

7

SEC. 9.  

No reimbursement is required by this act pursuant to
8Section 6 of Article XIII B of the California Constitution because
9a local agency or school district has the authority to levy service
10charges, fees, or assessments sufficient to pay for the program or
11level of service mandated by this act, within the meaning of Section
1217556 of the Government Code.



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