BILL NUMBER: SB 1424 CHAPTERED
BILL TEXT
CHAPTER 628
FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2014
APPROVED BY GOVERNOR SEPTEMBER 26, 2014
PASSED THE SENATE AUGUST 20, 2014
PASSED THE ASSEMBLY AUGUST 14, 2014
AMENDED IN ASSEMBLY JUNE 18, 2014
AMENDED IN SENATE MAY 28, 2014
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, 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 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,
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.
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, an annual statement of
trust revenues and expenditures that meets specified requirements.
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, commencing June 30, 2015, and at the end
of every fiscal year thereafter, and subject to an exception, 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 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.
Appropriation: 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 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 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? 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.
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? 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.
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 west 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? West 300.00 feet; thence North 10 12´ 12? West
200.00 feet; thence North 79 47´ 48? East 380.00 feet; thence North
69 56´ 30? East 810.00 feet; thence South 81 03´ 30? East 710.00
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, the
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). 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 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 race, religious
creed, color, national origin, ancestry, physical disability, mental
disability, medical condition, genetic information, marital status,
sex, gender, gender identity, gender expression, age, sexual
orientation, or military and veteran status, in accordance with
Article 1 (commencing with Section 12940) of Chapter 6 of Part 2.8 of
Title 2 of the Government Code and other state antidiscrimintation
laws, 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 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
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 lands
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 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 the 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 lands, subject to a
determination by the commission that the acquisition is consistent
with this act and in the best interest of 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) The trustee shall comply with Section 6306 of the Public
Resources Code. The annual statement and standardized reporting form
required to be filed pursuant to subdivision (e) of that section
shall also include a summary explaining how the trustee is using
trust revenues to revitalize the marina and prevent its closure.
(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, if the filing is made
on or before December 31, 2019, whether the capital improvement is
consistent with subdivision (a) of Section 3 of this act or, if the
filing is made on or after January 1, 2020, whether the capital
improvement 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), commencing June 30,
2015, and at the end of every fiscal year, 20 percent of all gross
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 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) In recognition of the deteriorated conditions at the marina,
commencing June 30, 2015, and until June 30, 2021, the commission
may, at its discretion, relieve the trustee of its obligation to
transmit the gross revenues as specified in paragraph (1) so that the
trustee can take action to address those conditions, including the
dredging of sediment to restore adequate depth for launching,
berthing, and safe navigation at the marina.
(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
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.