BILL ANALYSIS Ó
SB 399
Page 1
Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, 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 renew a
franchise or permit on, or lease of, specified tidelands and
submerged lands, for unspecified periods of time.
EXISTING LAW:
1)Protects, pursuant to the common law doctrine of the Public
Trust, 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, and specifies
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that SLC has direct 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, to the City, a municipal corporation of the State of
California, and to its successors, all the right, title and
interest of the State of California, held by the state by
virtue of its sovereignty, in and to all tidelands and
submerged lands, whether filled or unfilled, situated below
the line of mean high tide of the Pacific Ocean, within the
present boundaries of the City, or of any harbor, estuary, bay
or inlet whose boundaries, except as specified, to be forever
held by the City, and by its successors, in trust for the
following uses and purposes, and upon the following
conditions:
a) The lands shall be held by the City, and by its
successors, in accordance with the applicable provisions,
for purposes in connection with, or for the promotion and
the accommodation of, commerce, navigation, and fishery,
and for those purposes, as specified;
b) Except as other provided, the City, or its successors,
shall not grant, convey, give or alien the lands, or any
part thereof, to any individual firm or corporation for any
purpose whatsoever; provided that the City, or its
successors, may grant franchises and permits thereon for
limited period, but not to exceed 50 years, for purposes in
connection with, or for the promotion and accommodation of,
commerce, navigation, fishery, and for any purposes, as
specified, and may lease the lands, or any part thereof for
limited period, but not to exceed 50 years, for any and all
purposes which shall not interfere with the trusts upon
which the lands are held by the State of California;
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c) The tide and submerged lands shall be improved by the
City without expense to the state, and any harbor
constructed thereon shall always remain a public harbor for
all purposes of commerce and navigation, and the State of
California shall have, at all times, the right to use,
without charge, all wharves, docks, piers, slips, quays,
and other improvements constructed by the City on the
lands, or any part thereof, for any vessel or other
watercraft, or railroad, owned or operated by the State of
California; and,
d) In the management, conduct or operation of any such
harbor, or any of the utilities, structures or appliances
constructed in connection therewith, no discrimination in
rates, tolls, or charges, or in facilities, for any use or
service in connection therewith shall ever be made,
authorized, or permitted by the City, or by its successors.
4)Declares that there is reserved in the people of the State of
California the absolute right to fish in the waters, with the
right of convenient access to the waters over the lands for
those purposes. The grant herein made shall not include those
tidelands or submerged lands within those certain areas known
as the Westgate addition acquired by the City of Los Angeles
by annexation on June 14, 1916, or the Santa Monica canyon
addition acquired by the City of Los Angeles by annexation on
April 28, 1925, or the Venice addition acquired by the City of
Los Angeles by consolidation on November 25, 1925.
FISCAL EFFECT: None
COMMENTS:
1)Bill Summary. This bill allows the City to renew a franchise
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or permit on, or lease of, specified tidelands and submerged
lands, for unspecified periods of time.
This bill is sponsored by Los Angeles City Councilman Joe
Buscaino.
2)Author's Statement. According to the author, "Historically,
the Port of Los Angeles 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 need 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
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benefits and private development opportunities, restrictions
on lease terms must be addressed.
"SB 399 will allow the City of Los Angeles to grant lease
extensions in the Port of Los Angeles. This will give the
City the ability to promote new waterfront related
enhancements and economic opportunities benefiting underserved
communities while maintaining the integrity of the State
Tidelands Trust."
3)Background. 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.
Currently, 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. The SLC
has oversight authority to ensure those local trustees are
complying with the Public Trust Doctrine and the applicable
granting statutes, even though these trust lands are managed
locally.
The Legislature granted, in trust, three public trust parcels
to the City in 1911, and since that time, there have been many
revisions to the statutes granting the City those lands. The
statute originally allowed 25-year leases, which was later
amended to 30 years, and in 1951, the lease term was
lengthened to 50 years. Because of efforts in the City to
redevelop the Los Angeles Waterfront, including its granted
public trust lands, the 50-year lease length may present an
obstacle for such efforts. The author and sponsors 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 term.
4)State Lands Commission. The SLC, in their letter of concerns
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dates July 10, 2015, writes that the SLC staff "believes it is
poor public policy to lease the State's Public trust lands for
75-year periods under the same lease terms. Based on our own
experience with long-term legacy leases, 75-year leases will
not reflect and keep pace with evolving environmental policies
and practices, contemporary liability, insurance and
indemnification provisions, market rates, modern land and
resource management principles, and current public trust
needs. Additionally, [SLC] believes that allowing 75-year
leases prevents the City from fulfilling its duties as trustee
of public trust land managed on the State's behalf, including
the duties specified in Public Resources Code Section 6009.1,
such as the duty of loyalty, care, and to keep control and to
preserve the trust property?.[SLC] believes that a maximum
lease term of 66 years is sufficient for the City to meet its
trustee responsibilities."
5)Arguments in Support. Mayor Garcetti writes that this bill
will promote tourism, development, and investment in the Port
of Los Angeles, and ensure that the Port remains a prime
commercial destination for decades to come.
6)Arguments in Opposition. None on file.
7)Double-Referral and Amendments. This bill was heard by the
Natural Resources Committee on July 13, 2015, and passed with
a 9-0 vote.
Due to timing, amendments agreed to in the Natural Resources
Committee will be adopted in this Committee. The current
language in the bill would allow for unlimited renewal without
a clear definition of whether the renewals would create an
opportunity to evaluate whether the use is consistent with the
Public Trust Doctrine. Amendments proposed by the Natural
Resources Committee will give the City parity with the City of
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Long Beach by allowing one 25-year renewal. Please see the
Natural Resources Committee analysis for further information
REGISTERED SUPPORT / OPPOSITION:
Support
Council Member Joe Buscaino, City of Los Angeles
Mayor Eric Garcetti, Mayor of Los Angeles
Los Angeles Chamber of Commerce
Los Angeles/Orange Counties Building and Construction Trades
Council
San Pedro Chamber of Commerce
SBCC Thrive LA
Concerns
California State Lands Commission
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Opposition
None on file
Analysis Prepared by:Debbie Michel / L. GOV. / (916)
319-3958