BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  June 29, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          SB  
          1172 (Hancock) - As Amended June 15, 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 an obsolete Waterfront Plan  
          from 1977, and replaces the outdated granting statute with a new  
          grant of public trust lands that is consistent with the City's  
          current waterfront improvement plans.  Specifically, this bill:


          1)Requires the City to submit a trust lands use plan to State  
            Lands Commission (SLC) for approval on or before January 1,  
            2022.  Requires the plan to include all of the following:

             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  








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               the plan; and, 

             e)   The City's proposal 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, the  
            utilization of the trust lands.



          3)Requires the City to establish an accounting system to track  
            revenue received from the trust lands and any associated  
            assets.  Requires any revenue received to be kept separate  
            from other City money and only expended in a manner consistent  
            with this bill.



          4)Requires the City to obtain 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.   
            Requires, of this amount transmitted, 80% to be put in the  
            General Fund and the remaining 20% to be deposited in the Land  
            Bank Fund.  



          6)Permits the City to lease the land, under specified  
            conditions, for less than 50 years.
          
          EXISTING LAW:   








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          1)Protects, pursuant to the common law public trust doctrine,  
            the public's right to use California's waterways for  
            water-dependent commerce, navigation, fishing, boating,  
            natural habitat protection, and other water-oriented  
            activities.  Establishes, pursuant to the public trust  
            doctrine, 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 SLC to be the steward and manager of the state's  
            public trust lands.  Gives the SLC 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. 

          3)Grants, in trust, state 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)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.



          5)Requires future developments to be consistent with the Albany  
            Waterfront Plan of 1977, which permits recreation-oriented  
            development, including a small craft marina and retail  
            complex.  Authorizes the City to grant franchises and leases  
            on the granted land for up to 










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          66 years.  
          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  


          1)Public Trust and Granted Lands.  The common law doctrine of  
            the public trust (Public Trust Doctrine) protects 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, known as  
            public trust lands, are to be held in trust by the state for  
            the benefit of the people of California.


            Only in rare cases may the public trust be terminated, and  
            only where consistent with the purposes and needs of the  
            trust.  For over 100 years, in more than 300 statutes, the  
            Legislature has granted public trust lands to local trustees  
            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.


          2)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.  This granting statute was later amended  








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            (Chapter 1223, Statutes of 1977) to require that 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.


            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.  


          3)Bill Summary.  This bill repeals the existing granting statute  
            to the City of Albany to eliminate the requirement that the  
            trust lands be used in a manner consistent with the obsolete  
            Waterfront Plan from 1977.  This bill replaces that outdated  
            granting statute with a new grant of public trust lands that  
            is consistent with the city's current waterfront improvement  
            plans.  This bill is sponsored by the City and SLC.  


          4)Author's Statement.  According to the author, "This is a  
            District bill to assist the City of Albany with managing and  
            improving its waterfront.  The City of Albany owns tide and  
            submerged lands along its waterfront that are held in trust  
            for the public.  The City manages the lands under the common  
            law Public Trust Doctrine and its legislative granting  
            statutes.  The lands include a former landfill site and an  








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            area known as the Bulb and Neck portion of the waterfront.  SB  
            1172 amends the City's granting statute to align with the  
            City's current plans for its waterfront."  


          5)Arguments in Support.  Supporters argue that this bill  
            eliminates the requirement that the trust lands are used in a  
            manner that is consistent with the obsolete Waterfront Plan  
            and require the City to submit a new land use plan and sea  
            level rise analysis to the SLC for approval.  Additionally  
            this bill modernizes non-discrimination language in the  
            granting statute to reflect current law, and aligns the City's  
            financial reporting requirement with current law.   


          6)Arguments in Opposition.  None on file.  


          7)Double-Referral.  This bill was heard by the Natural Resources  
            Committee on June 13, 2016, where it passed with a 9-0 vote. 


          REGISTERED SUPPORT / OPPOSITION:




          Support                            Opposition


          California State Lands Commission [SPONSOR]None on file


          City of Albany [SPONSOR]


          East Bay Regional Park District










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          Analysis Prepared by:Misa Lennox / L. GOV. / (916)  
          319-3958