BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1172  

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          Date of Hearing:  August 3, 2016


                               Lorena Gonzalez, Chair

          SB 1172  
          (Hancock) - As Amended August 1, 2016 

          |Policy       |Natural Resources              |Vote:|9 - 0        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |Local Government               |     |9 - 0        |
          |             |                               |     |             |
          |             |                               |     |             |

          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          This bill repeals the granting statute that requires tidelands  
          and submerged lands granted in trust to the City of Albany  
          (City) to be used and improved in accordance with the Albany  
          Waterfront Plan and instead requires the City to create and  
          submit a trust lands use plan to the State Lands Commission  
          (SLC) for approval.  Specifically, this bill:


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          1)Requires the City to submit a trust lands use plan to SLC for  
            approval on or before January 1, 2022.  

          2)Requires the City to submit a report to SLC on or before  
            September 30, 2022, and every five years thereafter, of its  
            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 (GF)  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.
          FISCAL EFFECT:


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          1)Potential minor revenue increase.  Existing law requires 85%  
            of excess trust revenues to be deposited in the GF. This bill  
            requires 20% of annual gross revenue to be transmitted to the  
            state. Of that amount, 20% is deposited into the Land Bank  
            Fund for use by SLC and the remaining 80% is deposited into  
            the GF.  

            Historically, granted lands rarely generate excess revenue.  
            The change from a percentage of excess trust revenues to  
            annual gross revenue could increase revenue to the state, both  
            to the GF and SLC. However, this area is currently used as  
            public open space and does not generate revenue. It is  
            unlikely that this bill will result in a significant change to  
            state revenue.

          2)SLC costs are absorbable within existing resources.


          1)Purpose.  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 area known as the Bulb  
            and Neck portion of the waterfront.  According to the author,  


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            this bill amends the City's granting statute to align with the  
            City's current plans for its waterfront.

          2)Background.   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  
            to be 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.  

          3)Technical Amendments.  The following technical amendment was  
            agreed upon in the Assembly Natural Resources Committee to  
            further clarify the definition of Public trust doctrine.  In  
            order to meet deadlines, this bill was passed without adopting  
            the amendment. The Committee recommends adopting this  

            On Page 2, at line 8, amend paragraph (3) as follows: 

            Public trust doctrine" means the common law doctrine, as  


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            enunciated by the court in  Marks v. Whitney (1971) 6 Cal.3d  
            251 and  National Audubon Society v. Superior Court (1983) 33  
            Cal.3d 419 and other relevant judicial decisions, specifying  
            the state's authority as sovereign to exercise a continuous  
            supervision and control over the navigable waters of the  
            state, the lands underlying those waters, and nonnavigable  
            tributaries to navigable waters, including the  protection of   
            maritime or water dependent commerce, navigation, and  
            fisheries, and the preservation of lands in their natural  
            state for scientific study, open space, wildlife habitat, and  
            water-oriented recreation.

          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)