BILL NUMBER: SB 1424 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 8, 2014
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 amended, 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 lands 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: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3 of Chapter 815 of the Statutes of 1976, as
amended by Section 1 of Chapter 387 of the Statutes of 2002, is
repealed.
SEC. 2. (a) For purposes of this act, the following definitions
shall apply:
(1) "Commission" means the State Lands Commission.
(2) "Public trust doctrine" means the common law doctrine, as
enunciated by the court in National Audubon Soc. v. Superior Court
(1983) 33 C.3d Cal.3d 419, and other
relevant judicial decisions, specifying the state's authority as
sovereign to exercise continuous supervision and control over the
navigable waters of the state, the lands underlying those waters, and
nonnavigable tributaries to navigable waters, including the
protection of maritime or water dependent
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.
(3) "State" means the State of California.
(4) "Trustee" means the City of Martinez, a municipal corporation.
(5) "Trust lands" means Parcel "A," Parcel "B," Parcel "C," and
Parcel "D", as described in subdivision (b), situated in the County
of Contra Costa. The descriptions of these parcels are based on the
California Coordinate System Zone 3 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.
(6) "Trust revenues" means all revenues received from trust lands
and trust assets.
(7) "Trust lands use plan" or "plan" means the trust lands use
plan required to be submitted by the trustee to the commission
pursuant to Section 4 of this act.
(8) "Trust lands use report" means the report of the trustee's
utilization of the trust lands required to be submitted by the
trustee pursuant to Section 5 of this act.
(b) There is hereby granted in trust to the City of Martinez and
to its successors, all of the rights, title, and interest of the
state, held by the state by virtue of its sovereignty, in and to four
parcels of land situated in the County of Contra Costa and described
as follows:
Parcel "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" 53?
East 488.36 feet; thence leaving said northerly line North 20
03´ 30" 30? West 130.00 feet; thence
North 63 50´ 00" 00? East 85.00 feet
to the true point of beginning; thence North 03 30´ 00"
00? East 110.00 feet; thence North 12 10´
00" 00? East 660.00 feet; thence North
05 05´ 39" 39? West 119.71 feet;
thence North 88 03´ 16" 16? East
242.85 feet; thence South 12 10´ 00" 00?
West 797.24 feet; thence South 63 50´ 00"
00? West 233.84 feet to the point of beginning.
Parcel "B"
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" 53?
East 488.36 feet; thence leaving said northerly line North 20
03´ 30" 30? West 130.00 feet; thence
North 63 50´ 00" 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"
00? East 797.24 feet along the east line of said
Parcel "A"; thence leaving said east line North 88 03´ 16"
16? East 156.26 feet; thence South 89 00´
00" 00? East 100.00 feet; thence South
66 20´ 00" 00? East 120.00 feet;
thence South 25 45´ 00" 00? East
453.00 feet; thence South 68 10´ 00" 00?
West 385.00 feet; thence South 63 50´ 00"
00? West 416.16 feet to the point of beginning.
Parcel "C"
That parcel of land described in the lease to the Southern Pacific
Transportation Company by the City of Martinez per Resolution No.
111 (1959 series) dated August 5, 1959, and Resolution No. 72-75
dated June 4, 1975.
Parcel "D"
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 South 20 03´ 30? East 240.00
feet to the true point of beginning; thence South 69 56´ 30? West
50.00 feet to the centerline of North Court Street; thence North 20
03´ 30? West 630.00 feet along the centerline of North Court Street;
thence leaving said centerline North 63 05´ 00? West 410.36 feet;
thence North 20 03´ 30? West 530.00 feet; thence North 17 02´ 14?
East 272.81 feet; thence North 16 00´ 00? West 380.00 feet; thence
South 79 47´ 48? East 380.00 feet; thence North 69 56´ 30? East
810.00 feet; thence South 81 03´ 30? East 710 feet; thence South 07
00´ 00? West 900.00 feet; thence South 05 05´ 39? East 119.71 feet
thence South 12 10´ 00? West 660.00 feet; thence South 03 30´ 00?
West 110.00 feet; thence South 63 50´ 00? West 85.00 feet; thence
South 20 03´ 30? East 130.00 feet to the intersection with the
northerly line of the Tideland Survey No. 9; thence along said
northerly line South 76 56´ 53? West 35.00 feet; thence leaving said
northerly line South 20 03´ 30? East 184.70 feet; thence South 69
56´ 30? West 450.00 feet to the point of beginning.
SEC. 3. The trust grant specified in Section 2 of this act is
subject to all of the following express conditions:
(a) The trust lands shall be held by the trustee in trust for the
benefit of all the people of the state for purposes consistent with
the public trust doctrine, including, but not limited to, maritime or
water dependent commerce, navigation, and fisheries, preservation of
the lands in their natural state for scientific study, open space,
wildlife habitat, and water-oriented recreation.
(b) On and after January 1, 2020, the use of the trust lands shall
conform to an approved trust lands use plan, as required by Section
4 of this act.
(c) The trustee shall not, at any time, grant, convey, give, or
otherwise alienate or hypothecate the trust lands, or any part of the
trust lands, to any person, firm, entity, or corporation for any
purpose whatsoever.
(d) The trustee may lease the trust lands, or any part of the
trust lands, for limited periods, not exceeding 49 years, for
purposes consistent with the trust upon which those lands are held,
as specified in subdivision (a) and the public trust doctrine. The
trustee may collect and retain rents and other trust revenues from
those leases, under rules and regulations adopted in accordance with
Section 7 of this act, and in accordance with all of the following
requirements:
(1) On and after January 1, 2020, all leases or agreements
proposed or entered into by the trustee shall be consistent with the
trust lands use plan approved by the commission, as required by
Section 4 of this act. Any leases entered into prior to January 1,
2020, shall be consistent with the public trust doctrine and the
terms of subdivision (a).
(2) The lease rental rates shall be for a fair annual rent.
(3) The lease shall be in the best interest of the state.
(e) When managing, conducting, operating, or controlling the trust
lands or an improvement, betterment, or structure on the trust
lands, the trustee or his or her successor shall not discriminate in
rates, tolls, or charges for any use or service in connection with
those actions and shall not discriminate against or unlawfully
segregate any person or group of persons because of sex, race, color,
creed, national origin, ancestry, or physical disability for any use
or service in connection with those actions.
(f) The state shall have the right to use , without
charge, a transportation, landing, or storage improvement,
betterment, or structure constructed upon the trust lands for a
vessel or other watercraft or railroad owned or operated by, or under
contract to, the state.
(g) The trust lands are subject to the express reservation and
condition that the state may, at any time, use those lands, or any
portion of those lands, for highway purposes without compensation to
the trustee or a person, firm, or public or private corporation
claiming a right to those lands, except that, if the improvements
have been placed with legal authority upon the property taken by the
state for highway purposes, compensation shall be made to the person
entitled to the value of the interest in the improvements taken or
the damages to that interest.
(h) There is reserved to the people of the state the right to fish
in the waters over the trust lands, with the right of convenient
access to those waters over the trust lands for this purpose.
(i) There is excepted and reserved to the state all remains or
artifacts of archaeological or historical significance and all
deposits of minerals, including, but not limited to, all substances
specified in Section 6407 of the Public Resources Code ,
in the trust lands, lands and the right
to prospect for, mine, and remove those deposits from the lands.
(j) The trustee shall reimburse the commission for all expenses
incurred in the administration of this act, including periodic audits
or investigations.
SEC. 4. (a) On or before January 1, 2020, the trustee shall submit
to the commission a trust lands use plan describing any proposed
development, preservation, or other use of the trust lands. The
trustee shall thereafter submit to the commission for approval all
changes of, amendments to, or extensions of, the trust lands use
plan.
(b) The commission shall review with reasonable promptness the
trust lands use plan submitted by the trustee and any changes or
amendments to determine whether they are consistent with the public
trust and the requirements of this act. Based upon its review, the
commission shall either approve or disapprove the plan. If the
commission disapproves the plan, the commission shall notify the
trustee and the trustee shall submit a revised plan to the commission
no later than 180 days after the date of notice of disapproval. If
the commission determines the revised plan is inconsistent with the
common law public trust doctrine and the requirements of this act,
all rights, title, and interest of the trustee in and to the trust
lands and improvements on the trust lands shall revert to the state.
(c) The trust lands use plan shall consist of a plan, program, or
other document that includes all of the following:
(1) A general description of the type of uses planned or proposed
for the trust lands. The location of these land uses shall be shown
on a map or aerial photograph.
(2) The projected statewide benefit to be derived from the planned
or proposed uses of the trust lands, including, but not limited to,
financial benefit.
(3) The proposed method of financing the planned or proposed uses
of the trust lands, including estimated capital costs, annual
operating costs, and anticipated annual trust revenues.
(4) An estimated timetable for implementation of the trust land
use plan or any phase of the plan.
(5) A description of how the trustee proposes to protect and
preserve natural and manmade resources and facilities located on
the trust lands and operated in connection with the use of the
trust lands, including, but not limited to, addressing impacts from
sea level rise.
(d) The governing body of the trustee shall
also submit to the commission, as part of the trust lands use plan,
for its approval, procedures, rules, and regulations to govern the
use or development of the trust lands. These rules and regulations
shall include, but are not limited to, lease rates, the basis upon
which the rates are established, lease terms and conditions,
provisions for renegotiation of rates and terms and assignments, and
any other information as may be required by the commission.
(e) Any use of the trust lands, including, but not limited to, all
leases or agreements proposed, or entered into, by the trustee after
January 1, 2020, shall be consistent with the trust lands use plan
submitted by the trustee and approved by the commission.
(f) Upon request, the trustee shall submit to the commission a
copy of all leases and agreements entered into, renewed, or
renegotiated.
SEC. 5. (a) On or before September 30, 2025, and on or before
September 30 of every succeeding fifth year, the trustee shall submit
a report of its utilization of the trust lands for each immediately
preceding five-calendar-year period ending with June 30 of the
calendar year in which the report is required to be submitted.
(b) The report required by this section shall include all of the
following:
(1) A general description of the uses to which the trust lands
have been placed during the period covered by the report.
(2) A list of the holders of leases or permits that have been
granted or issued by the trustee, which list shall specify all of the
following, as to each holder:
(A) The use to which the trust lands have been placed by the
holder.
(B) The consideration provided for in each lease or permit, and
the consideration actually received by the trustee for the lease or
permit granted or issued.
(C) An enumeration of the restrictions that the trustee has placed
on the use of the trust lands, and each area of the trust lands, for
the period covered by the report.
SEC. 6. (a) The trustee shall demonstrate good faith in carrying
out the provisions of its trust lands use plan and amending it when
necessary in accordance with Section 4 of this act.
(b) If the commission determines that the trustee has
substantially failed to improve, restore, preserve, or maintain the
trust lands, as required by the trust lands use plan, or has
unreasonably delayed implementation of the trust lands use plan, all
rights, title, and interest of the trustee in and to the trust lands
and improvements on the trust lands shall revert to the state.
SEC. 7. (a) (1) The trustee 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.
(2) All trust revenues received from the trust lands
and trust assets shall be expended only for those uses and purposes
consistent with this act. The trustee shall provide for the
segregation of funds derived from the use of the trust lands by the
trustee from other city municipal funds, so as to ensure that trust
revenues are only expended to enhance or maintain the trust lands in
accordance with the uses and purposes for which the trust lands are
held.
(3) Trust revenues may be expended to acquire appropriate upland
properties to benefit and enhance the trust,
trust lands, subject to a determination by the commission that
the acquisition is consistent with this act and in the best interest
of this the state. Property acquired
with these trust revenues shall be considered an asset of the trust
and subject to the terms and conditions of this act.
(b) On or before October 1 of each year, the trustee shall file
with the commission a detailed statement of all trust 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. The commission may specify the
form and content of this statement. The statement shall meet both of
the following requirements:
(1) The statement shall be prepared according to generally
accepted accounting principles.
(2) The statement shall be specific to the trust lands and trust
assets and shall not include city municipal financial or accounting
information unrelated to the trust lands and trust assets.
(c) (1) Before expending trust revenues for any single capital
improvement on the trust lands involving an amount in excess of two
hundred fifty thousand dollars ($250,000) in the aggregate, the
trustee shall file with the commission a detailed description of the
capital improvement not less than 120 days prior to the time of any
disbursement of trust revenues for, or in connection with, that
capital improvement.
(2) Within 120 days after the time of a filing specified in
paragraph (1), the commission shall determine whether the capital
improvement is in the statewide interest and benefit and, if the
filing is made on or before December 1, 31,
2019, whether it is consistent with subdivision (a) of Section
3 of this act or, if the filing is made on or after January 1, 2020,
whether it is consistent with the trust lands use plan. The
commission may request the opinion of the Attorney General on the
matter , and , if the commission makes
this request, the Attorney General shall deliver a copy of the
opinion to the trustee with the notice of its determination.
(3) If the commission notifies the trustee that the capital
improvement is not authorized, the trustee shall not disburse any
trust revenues for, or in connection with, the capital improvement,
unless it is determined to be authorized by a final order or judgment
of a court of competent jurisdiction.
(4) The trustee may bring suit against the state for the purpose
of securing an order or judgment for purposes of paragraph (3), which
suit shall have priority over all other civil matters. Service shall
be made upon the executive officer of the commission and the
Attorney General, and the Attorney General shall defend the state in
that suit. If judgment is given against the state in the suit, no
costs may be recovered.
(d) (1) Except as provided in paragraph (2), on June 30, 2015, and
at the end of every fiscal year thereafter, 20 percent of all gross
revenue revenues generated from the
trust lands shall be transmitted to the commission. Of this amount
transmitted, the commission shall allocate 80 percent to the
Treasurer, for deposit in the General Fund, and 20 percent to the
Treasurer, for deposit in the Kapiloff Land Bank
Fund for expenditure pursuant to Division 7 (commencing with Section
8600) of the Public Resources Code for management of the commission's
granted lands program.
(2) The trustee shall not transmit the gross revenues to the
commission as specified in paragraph (1) until the Department of
Parks and Recreation determines the City of Martinez has repaid the
five outstanding loans that the city owes to the department.
(e) The commission may, from time to time, institute a formal
inquiry to determine that the terms and conditions of this act, and
amendments to this act, have been complied with, and that all other
applicable provisions of law concerning the trust lands are being
complied with in good faith.
(f) The commission shall approve any loan or expenditures of
nontrust revenues for improvements made to the trust lands prior to
the loan or expenditure. If not approved, those expenditures shall be
deemed a gift to the trust.
SEC. 8. (a) If the commission finds that the trustee has violated
or is about to violate the terms of its trust grant or any other
principle of law relating to its obligation under the public trust
doctrine or under this act, the commission shall notify the trustee
of the violation.
(b) The trustee shall have 30 days from receipt of a notice of
violation to conform to the terms of its grant and the principles and
laws under the public trust doctrine. If the trustee fails or
refuses to take those actions, the commission may bring an action to
enforce the rights of the state and people as settlor beneficiary
of under the public trust doctrine.
(c) The Attorney General shall represent the state and people in
all actions or proceedings taken pursuant to this section. If the
judgment is given against the state in the action or proceeding, no
costs shall be recovered from the state and people.
SEC. 9. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.