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