BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 141  


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          Date of Hearing:  July 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 141  
          (McGuire) - As Amended June 22, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:  This bill clarifies that the Humboldt Bay Harbor,  
          Recreation, and Conservation District (District) is authorized  
          to sell or transfer certain property, and makes several other  
          changes to the District's Act.  Specifically, this bill:  


          1)Deletes the provision prohibiting irrevocable grants of fee  








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            title be granted or issued. 


          2)Clarifies the responsibilities of the chief executive officer  
            (CEO) and the Treasurer of the District. 


          3)Prohibits the District from making an expenditure of trust  
            moneys from the Humboldt Bay, Harbor, Recreation, and  
            Conservation District Fund (Fund) to purchase or otherwise  
            acquire real property without first having provided at least  
            90 days' written notice of the proposed expenditure to the  
            State Lands Commission (SLC);


          FISCAL EFFECT:


          Negligible state fiscal impact.


          COMMENTS:


          1)Purpose. According to the State Lands Commission (SLC),  
            sponsor of the bill, "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."  
          2)Background.  The District is a trustee of sovereign lands  
            granted to it by the Legislature in the 1970s.  These lands  
            are considered "granted lands" by the SLC which maintains  
            oversight authority.  The District is governed by the specific  








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            granting statute(s), the common law Public Trust Doctrine, and  
            other applicable law. 


            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 SLC.   The SLC is  
            responsible for monitoring and administration of each  
            statutory grant by the trustee to ensure compliance with  
            provisions of the granting statute and the Public Trust  
            Doctrine.  


            The SLC has the authority to investigate, audit, and review  
            the administration of all statutory trust grants.  The SLC  
            also has the authority to investigate specific allegations of  
            maladministration, to seek corrective measures by trustees,  
            and make recommendations to the Legislature.


            In the course of conducting a review, SLC 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").  This bill corrects that  
            inconsistency.


          3)Prior Legislation. AB 1943 (Chesbro), Chapter 891, Statutes of  
            2014, revised the statutory obligation for the City of Eureka  
            to remit certain funds to the state related to tidelands and  
            submerged lands located in Humboldt Bay that were granted to  
            the City in the 1970s.
          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081










                                                                     SB 141  


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