BILL ANALYSIS Ó
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: SB 141 Hearing Date: March 24,
2015
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|Author: |McGuire | | |
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|Version: |January 26, 2015 |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Angee Doerr |
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Subject: Humboldt Bay Harbor, Recreation, and Conservation
District Act: land use
BACKGROUND AND EXISTING LAW
The Humboldt Bay Harbor, Recreation & Conservation District
(District) is a trustee of sovereign lands granted to it by the
Legislature in the 1970s. These lands are considered "granted
lands" by the California State Lands Commission (Commission),
which maintains oversight authority. The District is governed by
the specific granting statute(s), the common law Public Trust
Doctrine and other applicable law.
Revenues generated by a trustee arising out of the use or
operation of its granted lands are public trust assets of the
State and must be reinvested back into the trust. These revenues
must be kept separate from the general funds of a local
government and may not be used for any purpose unconnected with
the trust. Expenditures of trust funds by a trustee must be
consistent with the common law Public Trust Doctrine and the
statutory trust grant.
While granted public trust lands and assets are managed locally,
the Legislature delegated the State's residual and review
authority for granted lands to the Commission. The Commission
is responsible for monitoring administration of each statutory
grant by the trustee to ensure compliance with provisions of the
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granting statute and the Public Trust Doctrine. The Commission
has the authority to investigate, audit, and review the
administration of all statutory trust grants. The Commission
also has the authority to investigate specific allegations of
maladministration, to seek corrective measures by trustees, and
make recommendations to the Legislature; the ultimate trustee of
public trust lands.
In the course of conducting a review of a mismanagement
allegation against the District (which the Commission did not
find), Commission staff discovered an ambiguity in the granting
statutes relative to the District's authority to dispose of
property acquired after the initial grant ("after-acquired
property"). Existing law bars any grantee from transferring,
selling or otherwise alienating sovereign tide and submerged
lands. However, the statute governing the District restricts
its ability to dispose of any lands ("Irrevocable grants of fee
title shall not be granted or issued." (see §23, c. 1040,
Statutes of 1976)).
PROPOSED LAW
This bill would eliminate the ambiguity in the District's
granting statutes and thus allow the District to dispose of
after-acquired property by striking the sentence of its granting
statutes quoted above.
ARGUMENTS IN SUPPORT
According to the State Lands Commission, "SB 141 eliminates the
prohibition on transferring irrevocable grants of fee title as
it related to after-acquired lands. Eliminating this restriction
is intended to provide helpful clarification and assist the
District in managing trust assets of the state. This
clarification is beneficial to the District and to the state
because the sale of after-acquired lands provides funds that the
District can reinvest into administering and improving its trust
lands within Humboldt Bay for the statewide public's use and
enjoyment."
ARGUMENTS IN OPPOSITION
None
COMMENTS
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Stringent restrictions remain on the District . The District is
still restricted in its purchasing and sale of land,
particularly in regards to Public Trust property, by the
remainder of its granting document, as well as by other existing
law.
In particular (from Chapter 1283 of the Statutes of 1970):
SEC. 28. The district may take by grant, purchase, gift,
devise, lease or otherwise acquire, hold and enjoy and
lease and dispose of real and personal property of every
kind, within the district, necessary to the full or
convenient exercise of its powers
SEC. 77(7b). The district or its successors shall not,
at any time, grant, convey, give or alienate said lands, or
any part thereof, to any individual, firm or corporation
for any purposes whatsoever; provided, that said district,
or its successors, may grant franchises thereon for limited
periods, not exceeding 66 years, for wharves and other
public uses and purposes, and may lease said lands, or any
part thereof, for limited periods, not exceeding 66 years,
for purposes consistent with the trusts upon which said
lands are held by the State of California, and with the
requirements of commerce and navigation, and collect and
retain rents and other revenues from such leases,
franchises and privileges. Such lease or leases, franchises
and privileges may be for any and all purposes which shall
not interfere with commerce, navigation, fisheries, and
ecological protection.
SUPPORT
Board of Commissioners of the Humboldt Bay Harbor
Recreation and Conservation District
California State Lands Commission
OPPOSITION
None Received
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