BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        SB 141|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                UNFINISHED BUSINESS 

          Bill No:  SB 141
          Author:   McGuire (D), et al.
          Amended:  6/22/15  
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 3/24/15
           AYES:  Pavley, Stone, Allen, Fuller, Hertzberg, Hueso, Jackson,  
            Monning, Wolk


           SENATE FLOOR:  38-0, 5/22/15 (Consent)
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Gaines, Galgiani, Hall, Hancock, Hernandez,  
            Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu,  
            McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell,  
            Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak,  
            Wieckowski, Wolk
           NO VOTE RECORDED:  Fuller

           ASSEMBLY FLOOR:  54-25, 8/17/15 - See last page for vote

           SUBJECT:   Humboldt Bay Harbor, Recreation, and Conservation  
                     District Act: land grants, acquisitions, and  

          SOURCE:    Author

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


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                                                                    Page  2

          Assembly Amendments allow the District to proceed with a  
          purchase or acquisition of real property within 90 days of  
          providing notice to the State Lands Commission (SLC) of an  
          intended purchase if the SLC does not object.


          Existing law:

          1)Establishes the District under the Humboldt Bay Harbor,  
            Recreation, and Conservation District Act. The Act:

             a)   Regulates the use of specified tide and submerged lands  
               within Humboldt Bay and provides for the fill, improvement,  
               and reclamation of those tidelands, as prescribed.

             b)   Requires that all grants, franchises, leases, permits,  
               rights or privileges be made in accordance with those rules  
               and regulations as the board of commissioners of the  
               District prescribes by resolution, and prohibits  
               irrevocable grants of fee title from being granted or  

             c)   Authorizes the District to 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.

          This bill enacts several changes to the District's Act,  
          including the following:


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                                                                    Page  3

          1)Deletes language requiring that irrevocable grants of fee  
            title be granted or issued, thereby deleting an inconsistency  
            in the District's Act;

          2)Clarifies the responsibilities of the chief executive officer  
            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  

          4)Requires the notice to include the total amount of the  
            proposed expenditure from the Fund, the location of the real  
            property, the purpose of the purchase or acquisition, and an  
            explanation of how the purchase or acquisition is consistent  
            with the terms of the trust grant;

          5)Provides, in the event that the SLC does not object within 90  
            days of receipt of the notice, the District, may proceed with  
            the purchase or acquisition; and,

          6)Requires the District to give the SLC at least 90 days'  
            written notice of a proposed disposition of any interest in  
            real property if the interest was acquired by the District  
            with revenue generated from the granted lands, and requires  
            the notice to include the proposed consideration to be  
            received by the District, the location of the real property,  
            and the purpose of the disposal.


          The District is a trustee of sovereign lands granted to it by  


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                                                                    Page  4

          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 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 SLC.  The SLC is responsible  
          for monitoring 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; the ultimate trustee of public trust lands.

          In the course of conducting a review of a mismanagement  
          allegation against the District (which the SLC did not find),  
          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").   
          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 Section 23, c. 1040,  
          Statutes of 1976)).


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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Assembly Appropriations Committee, the state  
          fiscal impact of this bill is negligible.

          SUPPORT:   (Verified8/19/15)

          Board of Commissioners of the Humboldt Bay Harbor Recreation and  
            Conservation District
          Humboldt County Board of Supervisors 
          State Lands Commission 

          OPPOSITION:   (Verified8/19/15)

          None received

          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."  

          ASSEMBLY FLOOR:  54-25, 8/17/15
          AYES:  Achadjian, Alejo, Bloom, Bonilla, Bonta, Brown, Burke,  
            Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh,  
            Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia,  
            Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández,  
            Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, Maienschein,  
            McCarty, Medina, Mullin, Nazarian, O'Donnell, Perea, Quirk,  
            Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood, Atkins


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                                                                    Page  6

          NOES:  Travis Allen, Baker, Bigelow, Brough, Chang, Chávez,  
            Dahle, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey,  
            Linder, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson,  
            Steinorth, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Beth Gaines

          Prepared by:Angee Doerr / N.R. & W. / (916) 651-4116
          8/19/15 21:10:57

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