Amended in Assembly August 1, 2016

Amended in Assembly June 15, 2016

Senate BillNo. 1172

Introduced by Senator Hancock

February 18, 2016

An act to repeal Chapter 211 of the Statutes of 1919, relating to tidelands and submerged lands in the Bay of San Francisco, and making an appropriation therefor.


SB 1172, as amended, Hancock. Tidelands and submerged lands: City of Albany.

Existing law grants in trust to the City of Albany certain designated tidelands and submerged lands, both filled and unfilled, for specified uses. The grant, among other things, requires that those lands be used in conformity with the Albany Waterfront Plan and be improved in accordance with the plan on or before January 1, 1988, or title therein shall revert to the state. Existing law imposes various requirements regarding public rights in the granted lands, leasing of lands by the city, management and disposition of revenues from the lands, and the determination of boundaries of the lands granted that are subject to the jurisdiction of the San Francisco Bay Conservation and Development Commission. Existing law requires 85% of excess trust revenues, as specified, to be transmitted to the Treasurer and deposited in the General Fund.

This bill would delete those provisions and instead require that, on and after January 1, 2022, the use of those trust lands, as described, conform to an approved trust lands use plan, prescribed by the bill, and all leases or agreements proposed or entered into by the City of Albany, as trustee of those lands, also be consistent with the public trust doctrine, as defined, and conform to the plan. The bill would require the trustee, on or before September 30, 2022, and on or before September 30 of every succeeding 5th year thereafter, to submit a report to the State Lands Commission. By imposing new duties on a local government with regard to providing for the use and management of those trust lands, the bill would impose a state-mandated local program.

Existing law, the Kapiloff Land Bank Act, creates the Land Bank Fund and continuously appropriates money in the fund, subject to a statutory trust, to the State Lands Commission, acting as the Land Bank Trustee, to acquire real property or any interest in real property for the purposes of public trust settlements.

The bill would require on June 30, 2021, and at the end of every fiscal year thereafter, that 20% of all gross revenue generated from the City of Albany trust lands be transmitted to the commission and, of this amount transmitted, would require the commission to allocate 80% to the Treasurer for deposit in the General Fund and 20% for deposit in the Land Bank Fund for expenditure by the commission pursuant to the act, thereby making an appropriation.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1


Chapter 211 of the Statutes of 1919, as amended
2by Chapter 1223 of the Statutes of 1977, is repealed.


SEC. 2.  

(a) For the purposes of this act, the following
4definitions shall apply:

5(1) “Act” means Sections 2 to 10, inclusive, of the act enacting
6this section.

7(2) “Commission” means the State Lands Commission.

8(3) “Public trust doctrine” means the common law doctrine, as
9enunciated by the court in National Audubon Society v. Superior
10Court (1983) 33 Cal.3d 419 and other relevant judicial decisions,
11specifying the state’s authority as sovereign to exercise a
P3    1continuous supervision and control over the navigable waters of
2the state, the lands underlying those waters, and nonnavigable
3tributaries to navigable waters, including the maritime or water
4dependent commerce, navigation, and fisheries, and the
5preservation of lands in their natural state for scientific study, open
6space, wildlife habitat, and water-oriented recreation.

7(4) “State” means the State of California.

8(5) “Trustee” means the City of Albany, a municipal corporation.

9(6) “Trust lands” means Parcel 1, Parcel 2, and Parcel 3, as
10described in Section 10 of this act, situated in the County of

12(7) “Trust revenues” means all revenues received from trust
13lands and trust assets.

14(8) “Trust lands use plan” or “plan” means the trust lands use
15plan required to be submitted by the trustee to the commission
16pursuant to Section 4 of this act.

17(9) “Trust lands use report” means the report of the trustee’s
18utilization of the trust lands required to be submitted by the trustee
19pursuant to Section 5 of this act.

20(b) There is hereby granted in trust to the City of Albany, and
21to its successors, all of the rights, title, and interest of the state,
22held by the state by virtue of its sovereignty, in and to three parcels
23of land situated in the County of Alameda as described in Section
2410 of this act.

begin insert

(c) The Legislature finds and declares that the City of Albany
26intends that the lands granted in subdivision (b) shall be included
27as part of McLaughlin Eastshore State Park.

end insert

SEC. 3.  

The trust grant specified in subdivision (b) of Section
292 of this act is subject to all of the following express conditions:

30(a) The trust lands shall be held by the trustee in trust for the
31benefit of all the people of the state for purposes consistent with
32the public trust doctrine, including, but not limited to, maritime
33or water-dependent commerce, navigation, and fisheries,begin insert andend insert
34 preservation of the lands in their natural state for scientific study,
35open space, wildlife habitat, and water-oriented recreation.

36(b) On and after January 1, 2022, the use of the trust lands shall
37conform to an approved trust lands use plan, as required by Section
384 of this act.

39(c) The trustee shall not, at any time, grant, convey, give, or
40otherwise alienate or hypothecate the trust lands, or any part of
P4    1the trust lands, to any person, firm, entity, or corporation for any
2purposes whatsoever.

3(d) The trustee may lease the trust lands, or any part of the trust
4lands, for limited periods, not exceeding 49 years, for purposes
5consistent with the trust upon which those lands are held, as
6specified in subdivision (a). The trustee may collect and retain
7rents and other trust revenues from those leases, under rules and
8regulations adopted in accordance with subdivision (d) of Section
94 of this act, and in accordance with all of the following

11(1) On and after January 1, 2022, all leases or agreements
12proposed or entered into by the trustee shall be consistent with the
13trust lands use plan approved by the commission, as required by
14Section 4 of this act. Any leases entered into prior to January 1,
152022, shall be consistent with the public trust doctrine and the
16terms of subdivision (a).

17(2) The lease rental rates shall be for a fair annual rent.

18(3) The lease shall be in the best interest of the state.

19(e) When managing, conducting, operating, or controlling the
20trust lands or an improvement, betterment, or structure on the trust
21lands, the trustee or his or her successor shall not discriminate in
22rates, tolls, or charges for any use or service in connection with
23those actions and shall not discriminate against or unlawfully
24segregate any person or group of persons because of race, religious
25creed, color, national origin, ancestry, physical disability, mental
26disability, medical condition, genetic information, marital status,
27sex, gender, gender identity, gender expression, age, sexual
28orientation, or military and veteran status, in accordance with
29Article 1 (commencing with Section 12940) of Chapter 6 of Part
302.8 of Division 3 of Title 2 of the Government Code and other
31state antidiscrimination laws, for any use or service in connection
32with those actions.

33(f) The state shall have the right to use, without charge, a
34transportation, landing, or storage improvement, betterment, or
35structure constructed upon the trust lands for a vessel or other
36watercraft or railroad owned or operated by, or under contract to,
37the state.

38(g) The trust lands are subject to the express reservation and
39condition that the state may, at any time in the future, use those
40lands or any portion of those lands for highway purposes without
P5    1compensation to the trustee or a person, firm, or public or private
2corporation claiming a right to those lands, except, if improvements
3have been placed with legal authority upon the property taken by
4the state for highway purposes, compensation shall be made to the
5person entitled to the value of the interest in the improvements
6taken or the damages to that interest.

7(h) There is reserved to the people of the state the right to fish
8in the waters over the trust lands, with the right of convenient
9access to those waters over the trust lands for this purpose.

10(i) There is excepted and reserved to the state all remains or
11artifacts of archaeological or historical significance and all deposits
12of minerals in the trust lands, including, but not limited to, all
13substances specified in Section 6407 of the Public Resources Code,
14and the right to prospect for, mine, and remove those deposits from
15the lands.

16(j) Prior to entering into a lease, franchise, or agreement
17concerning the trust lands, the governing body of the trustee shall
18first adopt a resolution declaring its intention to take that action.
19The resolution shall describe the lands or improvements that are
20the subject of the lease, franchise, or agreement in such a manner
21as to identify them accurately and shall specify the minimum rental
22or other consideration and the other terms and conditions of the
23lease, franchise, or agreement. The resolution shall be submitted
24to the commission prior to entering into a lease, franchise, or

26(k) The trustee shall reimburse the commission for all expenses
27incurred in the administration of this act, including periodic audits
28or investigations.


SEC. 4.  

(a) On or before January 1, 2022, the trustee shall
30submit to the commission a trust lands use plan describing any
31proposed development, preservation, or other use of the trust lands.
32The trustee shall thereafter submit to the commission for approval
33all changes or amendments to, or extensions of, the trust lands use
34plan. The trustee may apply to the commission for, and the
35commission may approve, reasonable extensions of time to meet
36this deadline.

37(b) The commission shall review with reasonable promptness
38the trust lands use plan submitted by the trustee and any changes
39or amendments to determine whether they are consistent with the
40public trust doctrine and the requirements of this act. Based upon
P6    1its review, the commission shall either approve or disapprove the
2plan. If the commission disapproves the plan, the commission shall
3notify the trustee and the trustee shall submit a revised plan to the
4commission no later than 180 days after the date of notice of
5disapproval. If the commission determines the revised plan is
6inconsistent with the public trust doctrine or the requirements of
7this act, all rights, title, and interest of the trustee in and to the trust
8lands and improvements on the trust lands shall revert to the state.

9(c) The trust lands use plan shall consist of a plan, program, or
10other document that includes all of the following:

11(1) A general description of the type of uses planned or proposed
12for the trust lands. The location of these land uses shall be shown
13on a map or aerial photograph.

14(2) The projected statewide benefit to be derived from the
15planned or proposed uses of the trust lands, including, but not
16limited to, financial benefit.

17(3) The proposed method of financing the planned or proposed
18uses of the trust lands, including estimated capital costs, annual
19operating costs, and anticipated annual trust revenues.

20(4) An estimated timetable for the implementation of the trust
21lands use plan or each phase of the plan.

22(5) A description of how the trustee proposes to protect and
23preserve natural and manmade resources and facilities located on
24trust lands and operated in connection with the use of the trust
25lands, including, but not limited to, addressing impacts from sea
26level rise.

27(d) The governing body of the trustee shall also submit to the
28 commission, as part of the trust lands use plan, for its approval
29procedures, rules, and regulations to govern the use of or
30development of the trust lands. These rules and regulations shall
31include, but are not limited to, lease rates, the basis upon which
32the rates are established, lease terms and conditions, provisions
33for renegotiation of rates and terms and assignments, and any other
34information as may be required by the commission.

35(e) Upon request, the trustee shall submit to the commission a
36copy of all leases and agreements entered into, renewed, or


SEC. 5.  

(a) On or before September 30, 2022, and on or before
39September 30 of every succeeding fifth year, the trustee shall
40submit a report of its utilization of the trust lands for each
P7    1immediately preceding five-calendar-year period ending with June
230 of the calendar year in which the report is required to be

4(b) The report required by this section shall include all of the

6(1) A general description of the uses to which the trust lands
7have been placed during the period covered by the report.

8(2) A list of the holders of leases or permits that have been
9granted or issued by the trustee. The list shall specify all of the
10following, as to each holder:

11(A) The use to which the trust lands have been placed by the
12owner or holder.

13(B) The consideration provided for in each lease or permit and
14the consideration actually received by the trustee for the lease or
15permit granted or issued.

16(C) An enumeration of the restrictions that the trustee has placed
17on the use of the trust lands, and each area of the trust lands, for
18the period covered by the report.

19(c) A report shall not be required if the utilization of the trust
20lands within the immediately preceding five-calendar-year period
21is identical to the utilization of the trust lands as stated in a
22previously submitted report. If a new report is not submitted, the
23trustee shall submit a letter to the commission stating that its
24utilization of the trust lands has not changed during the immediately
25preceding five-calendar-year period. The letter required in this
26section shall also include the name and date of the utilization report
27that contains the applicable uses of the trust lands.


SEC. 6.  

(a) The trustee shall demonstrate good faith in carrying
29out the provisions of its trust lands use plan and amending it when
30necessary in accordance with subdivision (a) of Section 4 of this

32(b) If the commission determines that the trustee has
33substantially failed to improve, restore, preserve, or maintain the
34trust lands, as required by the trust lands use plan, or has
35unreasonably delayed implementation of the trust lands use plan,
36all rights, title, and interest of the trustee in and to the trust lands
37and improvements on the trust lands shall revert to the state.


SEC. 7.  

(a) (1) The trustee shall establish and maintain
39accounting procedures, in accordance with generally accepted
40accounting principles, providing accurate records of all revenues
P8    1received from the trust lands and trust assets and of all expenditures
2of those revenues.

3(2) All trust revenues received from trust lands and trust assets
4shall be expended only for those uses and purposes consistent with
5this act. The trustee shall provide for the segregation of the
6 revenues derived from the use of the trust lands by the trustee from
7other city municipal funds, so as to ensure that trust revenues are
8only expended to enhance or maintain the trust lands in accordance
9with the uses and purposes for which the trust lands are held.

10(3) Trust revenues may be expended to acquire appropriate
11upland properties to benefit and enhance the trust, subject to a
12determination by the commission that this acquisition is consistent
13with this act and in the best interests of the state. Property acquired
14with these trust revenues shall be considered an asset of the trust
15and subject to the terms and conditions of this act.

16(b) The trustee shall comply with Section 6306 of the Public
17Resources Code.

18(c) (1) Before expending trust revenues for any single capital
19improvement on the trust lands involving an amount in excess of
20two hundred fifty thousand dollars ($250,000) in the aggregate,
21the trustee shall file with the commission a detailed description of
22the capital improvement not less than 120 days prior to the time
23of any disbursement of trust revenues for, or in connection with,
24that capital improvement.

25(2) Within 120 days after the time of a filing specified in
26paragraph (1), the commission shall determine whether the capital
27improvement is in the statewide interest and benefit and, if the
28filing is made on or before December 1, 2021, whether it is
29consistent with subdivision (a) of Section 3 of this act or, if the
30filing is made on or after January 1, 2022, whether it is consistent
31with the trust lands use plan. The commission may request the
32opinion of the Attorney General on the matter, and if the
33commission makes this request, the Attorney General shall deliver
34a copy of the opinion to the trustee with the notice of its

36(3) If the commission notifies the trustee that the capital
37improvement is not authorized, the trustee shall not disburse any
38trust revenues for, or in connection with, the capital improvement,
39unless it is determined to be authorized by a final order or judgment
40of a court of competent jurisdiction.

P9    1(4) The trustee may bring suit against the state to secure an order
2or judgment for purposes of paragraph (3). The suit shall have
3priority over all other civil matters. Service shall be made upon
4the executive officer of the commission and the Attorney General,
5and the Attorney General shall defend the state in that suit. If
6judgment is given against the state in the suit, no costs may be

8(d) On June 30, 2021, and at the end of every fiscal year
9thereafter, 20 percent of all gross revenue generated from the trust
10lands shall be transmitted to the commission. Of this amount
11transmitted, the commission shall allocate 80 percent to the
12Treasurer for deposit in the General Fund and 20 percent to the
13 Treasurer for deposit in the Land Bank Fund, created pursuant to
14Section 8610 of the Public Resources Code, for expenditure
15pursuant to the Kapiloff Land Bank Act (Division 7 (commencing
16with Section 8600) of the Public Resources Code) for management
17of the commission’s granted lands program.

18(e) The commission may, from time to time, institute a formal
19inquiry to determine that the terms and conditions of this act, and
20amendments to this act, have been complied with and that all other
21applicable provisions of law concerning the trust lands are being
22complied with in good faith.

23(f) The commission shall approve in advance of expenditure
24any reimbursement for expenditures of nontrust revenues for
25improvements made to the trust or, if not approved, those
26expenditures shall be deemed a gift to the trust.


SEC. 8.  

(a) If the commission finds that the trustee has violated
28or is about to violate the terms of its trust grant or any other
29principle of law relating to its obligation under the public trust
30doctrine or under this act, the commission shall notify the trustee
31of the violation.

32(b) The trustee shall have 30 days from the receipt of a notice
33of violation to conform to the terms of its grant and the principles
34of law under the public trust doctrine. If the trustee fails or refuses
35to take those actions, the commission may bring an action to
36enforce the rights of the state and people as settlor beneficiary of
37the public trust doctrine.

38(c) The Attorney General shall represent the state in all actions
39or proceedings taken pursuant to this section. If the judgment is
P10   1given against the state in the action or proceeding, no costs shall
2be recovered from the state and people.


SEC. 9.  

The requirements of Section 6359 of the Public
4Resources Code do not apply to the trust lands granted pursuant
5to this act.


SEC. 10.  

The trust lands granted in Section 3 are three parcels
7of tide and submerged lands situated in and adjacent to the bed of
8San Francisco Bay, Alameda County, State of California, more
9particularly described as follows:


11COMMENCING at point “A” as shown on the Map of the Grant
12to the City of Albany, recorded July 24, 1963, in Book 43 of Maps,
13page 12A, Alameda County Records, said point “A” having
14California Zone 2 coordinates of x = 1,469,703.82 feet and y =
15511,851.40 feet, thence along the northerly boundary of said Grant
16S 74° 21’ 53” E, 2573.92 feet to point “B” as shown on said map
17and being the TRUE POINT OF BEGINNING, thence continuing
18along the boundary of said grant the following ten courses:

19(1) N 01° 08’ 07” E, 661.08 feet;

20(2) S 88° 51’ 53” E, 661.58 feet;

21(3) N 01° 08’ 07” E, 876.29 feet;

22(4) N 75° 19’ 34” E, 1636.95 feet;

23(5) S 88° 51’ 53” E, 409.57 feet;

24(6) S 01° 08’ 07” W, 1321.66 feet;

25(7) N 88° 51’ 53” W, 661.05 feet;

26(8) S 01° 08’ 07” W, 1322.17 feet;

27(9) N 88° 51’ 53” W, 1550.05 feet;

28(10) S 32° 12’ 53” E, 1582.80 feet;

29thence N 88° 51’ 53” W, 1305.22 feet; thence N 01° 08’ 07” E,
301983.26 feet to the True Point of Beginning.

31Coordinates, bearings, and distances used in the above
32description are based on the California Coordinate System, Zone


35BEGINNING at Point “J” as shown on said Map of Grant to the
36City of Albany, recorded July 24, 1963, said point “J” having
37California Zone 2 coordinates of x = 1,474,154.14 feet and y =
38510,458.00 feet, thence along the boundary of said grant the
39following two courses:

40(1) N 88° 51’ 53” W, 1550.05 feet;

P11   1(2) S 32° 12’ 53” E, 1582.80 feet;

2thence N 28° 20’ 17” E, 1487.26 feet to the point of beginning.
3Coordinates, bearings, and distances used in the above description
4are based on the California Coordinate System, Zone 2.


6All of that certain parcel of land described as Parcel 1 in deed
7to the City of Albany, recorded January 15, 1942, in Liber 4159,
8page 296, Alameda County Records.


SEC. 11.  

No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district are the result of a program for which legislative authority
13was requested by that local agency or school district, within the
14meaning of Section 17556 of the Government Code and Section
156 of Article XIII B of the California Constitution.