BILL ANALYSIS Ó SB 1172 Page 1 Date of Hearing: June 13, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair SB 1172 (Hancock) - As Introduced February 18, 2016 SENATE VOTE: 38-0 SUBJECT: Tidelands and submerged lands: City of Albany SUMMARY: Repeals the existing granting statute to the City of Albany (City) to eliminate the requirement that the trust lands be used in a manner consistent with the obsolete Waterfront Plan from 1977. Replaces that outdated granting statute with a new grant of public trust lands that is consistent with the City's current waterfront improvement plans. 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 (public trust lands) are to be held in trust by the state for the benefit of the people of California. SB 1172 Page 2 2)Establishes that the State Lands Commission (SLC) is 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 public agencies (granted lands). 3)Grants the City three parcels of submerged tidelands along the San Francisco Bay waterfront for the establishment, improvement, and conduct of a harbor and other structures and utilities necessary for the promotion of commerce and navigation. 4)Require future developments be consistent with the Albany Waterfront Plan of 1977, which permits recreation-oriented development, including a small craft marina and retail complex. 5)Authorizes the City to grant franchises and leases on the granted land for up to 66 years. 6)Allocates, excess revenue from the granted land as follows: 85% to the General Fund, and 15% to the City. THIS BILL: 1)Requires the City to submit a trust lands use plan to SLC for approval on or before January 1, 2022. The plan must describe SB 1172 Page 3 (a) any proposed development, preservation, or other use of the trust lands; (b) the projected statewide benefit; (c) the proposed method of financing any development; (d) an estimated timetable for implementing each phase of the plan; and (e) how the City proposes to protect the resources and facilities on the trust lands, particularly from the impacts of sea level rise. 2)Requires the City to submit a report to SLC on or before September 30, 2022, and every five years thereafter, describing how the trust lands have been used. 3)Requires the City to establish an accounting system to track revenue received from the trust lands and any associated assets. Any revenue received must be kept separate from other City money and can only be spent in a way that is consistent with this bill. 4)Requires the City to get approval from SLC before spending trust revenues for any large capital improvement project ($250,000 or greater). 5)Requires 20% of trust revenue be transmitted to SLC. Of this amount transmitted, 80% will be put in the General Fund and the remaining 20% will be deposited in the Land Bank Fund. Money in the Land Bank Fund is used to manage SLC granted lands program. 6)Permits the City to lease the land under certain conditions SB 1172 Page 4 for less than 50 years. 7)Requires, on or before January 1, 2019, SLC to survey, monument, and record a plat and a metes and bounds description of the trust lands in the office of the county recorder in the County of Alameda. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: 1)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. 2)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 SB 1172 Page 5 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. 3)The Albany Neck and Bulb. In 1919, the state granted the City three parcels of submerged tidelands along the San Francisco Bay waterfront. These lands include what is now known as the Albany Neck and Bulb portion of the waterfront. The Neck and Bulb are located at the base of Buchanan Street and protrude into the bay. That granting statute was later amended (Chapter 1223, Statutes of 1977) to require future development is consistent with the Albany Waterfront Plan. The Albany Waterfront Plan reflected the City's plans at that time for recreation-oriented development, including constructing a small craft marina and retail complex. However, the plan was never implemented. Since 1977, policy at the local, regional, and state levels has shifted away from commercial waterfront development on the publically-owned portion of the Albany waterfront. The City is currently in the process of developing a new plan for improving the Albany Neck and Bulb area and transitioning the area to become part of the McLaughlin Eastshore State Park. The McLaughlin Eastshore State Park includes tidelands and upland property along 8.5 miles of shoreline extending from the City of Richmond in the north to Emeryville and Oakland in the south. McLaughlin Eastshore State Park is operated by the East Bay Regional Park District. The Albany Bulb and Neck is currently open to the public for recreational uses. This bill would allow the City to enter into an agreement with East Bay Regional Park District to manage the Albany Neck and Bulb as part of the McLaughlin Eastshore State Park. SB 1172 Page 6 4)Amendment. This bill requires SLC to conduct a survey to record a metes and bounds description of the trust lands. However, the bill already has a detailed land description and the land has already been surveyed in the past. The author and committee may wish to consider amending the bill to remove the survey requirement. 5)Double Referral. This bill has been double referred to the Assembly Local Government Committee. REGISTERED SUPPORT / OPPOSITION: Support City of Albany State Lands Commission Opposition None on file Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092 SB 1172 Page 7