BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 399


                                                                    Page  1





          SENATE THIRD READING


          SB  
          399 (Hall)


          As Amended  July 16, 2015


          Majority vote


          SENATE VOTE:  36-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |9-0  |Williams, Dahle,      |                    |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Hadley, Harper,       |                    |
          |                |     |McCarty, Rendon, Mark |                    |
          |                |     |Stone, Wood           |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Local           |9-0  |Maienschein,          |                    |
          |Government      |     |Gonzalez, Alejo,      |                    |
          |                |     |Chiu, Cooley, Linder, |                    |
          |                |     |Low, Mullin, Waldron  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 









                                                                     SB 399


                                                                    Page  2






          SUMMARY:  Allows the City of Los Angeles (City) to grant one  
          renewal to franchises, permits, and leases of its granted  
          tidelands and submerged lands (public trust lands) for a period  
          not to exceed 25 years. 


          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  
            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  








                                                                     SB 399


                                                                    Page  3





            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.


          FISCAL EFFECT:  Unknown.  This bill is keyed non-fiscal by the  
          Legislative Counsel.


          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 [LA] City  








                                                                     SB 399


                                                                    Page  4





               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 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  








                                                                     SB 399


                                                                    Page  5





            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.  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.  




          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0001329