BILL ANALYSIS Ó
SB 399
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Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
SB
399 (Hall) - As Amended June 25, 2015
SENATE VOTE: 36-0
SUBJECT: Tidelands and submerged lands: City of Los Angeles
SUMMARY: Allows the City of Los Angeles (City) to grant one or
more renewals to franchises, permits, and leases of its granted
tidelands and submerged lands (public trust lands) for
unspecified periods of time.
EXISTING LAW:
1)Protects, pursuant to the common law doctrine of the Public
Trust (Public Trust Doctrine), the public's right to use
California's waterways for commerce, navigation, fishing,
boating, natural habitat protection, and other water oriented
activities. The Public Trust Doctrine provides that filled
and unfilled tide and submerged lands and the beds of lakes,
streams, and other navigable waterways are to be held in trust
by the state for the benefit of the people of California.
2)Requires the State Lands Commission (SLC) to be the steward
and manager of the state's public trust lands. SLC has direct
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administrative control over the state's public trust lands and
oversight authority over public trust lands granted by the
Legislature to local governments.
3)Grants, in trust, public trust lands to over 80 local public
agencies (local trustees) to be managed for the benefit of all
the people of the state and pursuant to the Public Trust
Doctrine and terms of the applicable granting statutes.
4)Prohibits any public trust lands, granted to any city by the
state, from being leased more than 66 years unless the
grantee's statute specifies the term for which granted lands
may be leased.
5)Require public trust lands to be leased only for industrial
uses; the improvement and development of any harbor or harbors
of the city; the construction and maintenance of wharves,
docks, piers, or bulkhead piers; or any other public use or
purpose consistent with the requirements of commerce or
navigation at, or in, any such harbor or harbors.
6)Grants to the City all the right, title, and interest of the
State of California in and to all public trust lands situated
below the line of mean high tide of the Pacific Ocean within
the boundaries of the City in trust for certain purposes,
including promotion of commerce, navigation, and fisheries,
and for certain specific uses relating to these purposes.
7)Allows the City to grant franchises and permits on, and leases
of, its granted lands for specified purposes for a maximum
term of 50 years.
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FISCAL EFFECT: Unknown
COMMENTS:
1)Author's Statement. According the author's office:
Historically, the Port of Los Angeles (Port) and the
surrounding San Pedro-Wilmington communities have been
closely linked and mutually interdependent.
Unfortunately, this connection has diminished in
recent decades, and while there are isolated areas of
successful visitor-oriented commercial enterprises
along the waterfront, there is a growing issue of
abandoned, vacant, or underutilized sites.
Recognizing that these issues needed to be addressed
in a comprehensive fashion, Los Angeles City
Councilman Joe Buscaino, in close cooperation with
Mayor Eric Garcetti and the Los Angeles Harbor
Department, initiated the LA Waterfront planning and
development program. This program is focused on
establishing a framework for enhancing the San
Pedro-Wilmington communities by providing waterfront
access with landscaped boulevards, promenades, parks,
and urban squares as well as development opportunities
that will provide one-of-a-kind experiences for both
tourists and residents alike.
Unfortunately, major public and private stakeholders,
including the Los Angeles County Economic Development
Corporation (LAEDC), have concluded that having the
ability to exceed the current 50-year regulatory
restriction on franchises, permits and leases granted
for port and waterfront area activities is necessary
for the success of the LA Waterfront program. In order
for the LA Waterfront program to realize its full
potential of generating new community benefits and
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private development opportunities, restrictions on
lease terms must be addressed.
2)Public Trust. The foundational principle of the common law
Public Trust Doctrine is that it is an affirmative duty of the
state to protect the people's common heritage in navigable
waters for their common use. The traditional uses allowed
under the Public Trust Doctrine were described as
water-related commerce, navigation, and fisheries. As a common
law doctrine, the courts have significantly shaped the Public
Trust Doctrine in a number of important ways. Courts have
found that the public uses to which sovereign lands are
subject are sufficiently flexible to encompass changing public
needs. The courts have also found that preservation of these
lands in their natural state, so that they may serve as
ecological units for scientific study, as open space, and as
environments that provide food and habitat for birds and
marine life, are appropriate uses under the common law Public
Trust Doctrine. Courts have also made clear that sovereign
lands subject to the Public Trust Doctrine cannot be sold into
private ownership.
3)Background on Granted Lands. For over 100 years, the
Legislature has granted public trust lands to local
governments so the lands can be managed locally for the
benefit of the people of California. There are over 80
trustees in the state, including the ports of Los Angeles,
Long Beach, San Diego, San Francisco, Oakland, Richmond,
Benicia, and Eureka. While these trust lands are managed
locally, SLC has oversight authority to ensure those local
trustees are complying with the Public Trust Doctrine and the
applicable granting statutes.
4)City of Los Angeles. In 1911, the Legislature granted, in
trust, three public trust parcels to the City. Since then
there have been numerous revisions to the statutes granting
the City those lands. Originally the statute allowed 25-year
leases. It was later amended to 30 years and finally in 1951
it was lengthened to 50 years. There are efforts in the City
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to redevelop the Los Angeles Waterfront including its granted
public trust lands. One obstacle to redevelopment the City and
the Port have identified is the 50-year lease. While no
specific potential lessor has been identified as not wanting
to enter into a lease that is only 50 years the author and the
supporters point to a competitive disadvantage with the City
of Long Beach, which is allowed to have one 25-year renewal in
addition to their 50-year lease. Granted public trust lands
that don't have specific lease requirements are held to a
general 66 year limit. A concern with long leases is that they
prohibit the grantee or the state from reevaluating whether
the use of the land is consistent with the Public Trust
Doctrine. If the local trustees enter into a lease that is not
consistent with the Public Trust Doctrine and SLC discovers
that after buildings have been constructed and put to use,
there is little SLC can do until the lease expires. There are
examples of public trust lands being used for narrow private
interests that interfere with allowing the public to use their
waters. The current language of the bill would allow for
unlimited renewal without a clear definition whether the
renewals would create an opportunity to evaluate whether the
use is consistent with Public Trust Doctrine. The author and
committee may wish to consider amending the bill to give the
City parity with the City of Long Beach by allowing one
25-year renewal.
5)Double referral. This bill is double referred to the Local
Government Committee and will be heard on July 15. Due to
timing constraints any amendments agreed to in this committee
will have to be taken in the Local Government Committee.
REGISTERED SUPPORT / OPPOSITION:
SB 399
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Support
Mayor Eric Garcetti, City of Los Angeles
Opposition
None on file
Analysis Prepared by:Michael Jarred / NAT. RES. / (916)
319-2092