BILL NUMBER: AB 699	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY   SEPTEMBER 10, 1997
	PASSED THE SENATE   SEPTEMBER 4, 1997
	AMENDED IN SENATE   AUGUST 6, 1997
	AMENDED IN SENATE   JULY 22, 1997
	AMENDED IN SENATE   JULY 10, 1997
	AMENDED IN SENATE   JULY 1, 1997
	AMENDED IN SENATE   JUNE 26, 1997
	AMENDED IN ASSEMBLY   MAY 6, 1997

INTRODUCED BY  Assembly Member Migden

                        FEBRUARY 26, 1997

   An act to amend Section 33492.5 of the Health and Safety Code, and
to add Section 2.1 to Chapter 1333 of the Statutes of 1968, relating
to redevelopment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 699, Migden.  Redevelopment:  Treasure Island Conversion Act of
1997.
   Existing law, known as the Community Redevelopment Law, authorizes
the establishment of redevelopment agencies in communities in order
to address the effects of blight, as defined, in those communities.
Under existing law, in any community in which a military base is
located and the federal Base Closure Commission has voted to close
that military base, and the action of the commission has been
sustained by the President and Congress of the United States, a
project area may be adopted by a city or county pursuant to the
Community Redevelopment Law if the project area is located entirely
within the boundaries of a city, or entirely within the
unincorporated area of a county, respectively.
   This bill would state that these provisions also would be
applicable to a local government that is a city and county where the
military base, closed pursuant to those provisions, is located
entirely within the boundaries of a city and county.
   This bill also would establish the Treasure Island Conversion Act
of 1997, which would authorize the City and County of San Francisco
by resolution, to designate the Treasure Island Development Authority
and any successor entity thereof as the redevelopment agency with
all of the rights, powers, privileges, immunities, authorities, and
duties granted to a redevelopment agency pursuant to the Community
Redevelopment Law for the purpose of acquiring, using, operating,
maintaining, converting, and redeveloping Naval Station Treasure
Island, as described, and to be considered a redevelopment agency for
all purposes under state law.
   The bill would grant the Treasure Island Development Authority the
complete power, among other things, to administer and control the
trust property, as defined, in conformance with the public trust for
commerce, navigation, and fisheries over all affected former and
existing tide and submerged lands, subject to specified restrictions
and subject to specified duties and responsibilities of the State
Lands Commission in connection therewith.  The bill additionally
would state the intent of the Legislature that, among other things,
its provisions provide a means for mitigating the serious economic
effects of the closure of the Naval Station Treasure Island on the
City and County of San Francisco, its surrounding communities, and
the State of California by vesting a single entity with redevelopment
authority over that property and, with respect to that portion of
the affected property subject to the public trust for commerce,
navigation, and fisheries, the power to administer the trust as
specified in its provisions.
   The California Constitution provides that a local or special
statute is invalid in any case if a general statute can be made
applicable.
   This bill would declare that, due to the unique circumstances
within the City and County of San Francisco relating to the closure
of Naval Station Treasure Island, that the bill is intended to
remedy, a general statute within the meaning of specified provisions
of the California Constitution cannot be made applicable and a
special statute is necessary.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  This act shall be known and may be cited as the
Treasure Island Conversion Act of 1997.
  SEC. 2.  Section 33492.5 of the Health and Safety Code is amended
to read:
   33492.5.  (a) In any community in which a military base is
located, the Base Closure Commission has voted to close that military
base, and the action of the Base Closure Commission has been
sustained by the President and Congress of the United States, a
project area may be adopted pursuant to the following requirements:
   (1) If the project area is located entirely within the boundaries
of a city, or city and county, then the redevelopment agency of the
city, or city and county, may adopt the redevelopment project area
pursuant to this part as modified by this chapter.
   (2) If the project area is located entirely within the
unincorporated area of a single county, then the county redevelopment
agency may adopt the redevelopment project area pursuant to this
part as modified by this chapter.
   (3) If the project area includes property within the jurisdictions
of two or more cities, or two or more counties, or a city and a
county, or any combination of the foregoing, then all of the cities
and counties the jurisdictions of which include property within the
boundaries of the military base and any other territory to be
included within the redevelopment project area may enter into a joint
powers agreement, an agreement entered into pursuant to Section
33210, or other appropriate agreement for the purpose of creating a
redevelopment agency and adopting a project area pursuant to this
part as modified by this chapter.
   (b) A redevelopment agency to which this chapter is applicable may
adopt a project area either pursuant to this chapter or pursuant to
other relevant provisions of this part.
  SEC. 3.  (a) The Legislature finds and declares all of the
following:
   (b) It is the intent of the Legislature with the enactment of this
act to provide a means for mitigating the serious economic effects
of the closure of Naval Station Treasure Island on the City and
County of San Francisco, its surrounding communities, and the State
of California by vesting a single entity with redevelopment authority
over the property and, with respect to that portion of the property
subject to the public trust for navigation, commerce, and fisheries,
the power to administer the trust.
   (1) That property known as Naval Station Treasure Island, which
includes Treasure Island and Yerba Buena Island, was selected for
closure and disposition by the Base Realignment and Closure
Commission in 1993, acting under Public Law 101-510 and its
subsequent amendments, and is scheduled for operational closure on
October 1, 1997.  The conversion of Naval Station Treasure Island to
productive civilian reuse presents unique redevelopment issues which
would be best addressed by an agency created specifically for that
purpose.
   (2) All former and existing tide and submerged lands on the Naval
Station, including all of Treasure Island and portions of Yerba Buena
Island, will be subject to the public trust for navigation,
commerce, and fisheries upon their release from federal ownership.
In the absence of legislative action, this property would
automatically be brought under the jurisdiction of the Port of San
Francisco pursuant to, and subject to the terms and requirements of,
the Burton Act (Chapter 1333 of the Statutes of 1968).
   (3) Certain buildings and other structures constructed on Treasure
Island during the period of federal ownership were built for
nontrust purposes and are not adaptable for trust related uses.
These buildings and structures are in various stages of their useful
lives, some having been constructed only a few years prior to the
scheduled closure.  The conversion of the lands underlying these
buildings and structures to trust uses in the future should proceed
in a manner that will enable the people of this state to benefit from
the substantial investments made in these structures without
hindering the overall goal of preserving the public trust.
   (4) Treasure Island also contains hangars that were built for
maritime aviation purposes.  These structures may be utilized for
trust uses in the future, but no trust related use has been
identified for them in the near term.
   (5) The creation of a single public agency that is vested with
both redevelopment authority and the power to administer the trust
will facilitate the conversion of Naval Station Treasure Island to
productive civilian reuse and is in the best interests of the people
of this state.
  SEC. 4.  For the purposes of this act:
   (a) "Property" means that property commonly known as Naval Station
Treasure Island, which includes Treasure Island and Yerba Buena
Island, and is more particularly described as follows:
   All of the land acquired from the City and County of San Francisco
as described in the Judgement of the Declaration of Taking for Civil
Action 22164-W filed in the District Court of the United States in
and for the Northern District of California, Southern Division on
April 17, 1942, and being more particularly described as follows:
   Beginning at a monument established near the westerly end of Yerba
Buena Island by the United States Coast and Geodetic Survey about 75
feet above high tide, known and designated by said survey as Station
Goat, located at latitude 37* 48' 40.387 North, longitude 122* 22'
17.657 West (values as determined by the United States Coast and
Geodetic Survey as of the year 1930) and running thence N 28* W a
distance of 8,000 feet, thence N 62* E a distance of 4,500 feet,
thence S 28* E a distance of 8,000 feet, thence S 62* W a distance of
4,500 feet to the point of beginning; all bearings being referred to
the true meridian through said Station Goat, excepting from said
grant that portion of the lands above particularly described, lying
northerly of Yerba Buena Island and adjacent thereto, extending from
high water mark to 900 feet beyond low water mark, the latter portion
so excepted being a part of the lands  granted and ceded by the
State of California to the United States of America by that certain
Act of the Legislature of the State of California entitled "An Act
relinquishing to the United States of America the title of this State
to certain land", approved March 9, 1897.
   ALONG WITH
   All of the tide and submerged land situated at Naval Station
Treasure Island acquired from the State of California by the United
States of America by the Act of Legislature of the State of
California on March 9, 1897.
   EXCEPTING therefrom that portion of those lands granted by this
act lying southeasterly of a line shown on the Department of the
Navy, Naval Facilities Engineering Command Real Estate Summary Map
having NAVFAC DWG NOs. 1296802 and 1296803, and being the boundary
between the Naval Station Treasure Island and the Lands Owned by the
United States Coast Guard, said line more particularly described as
follows:
   Commencing at a point that bears S 20* 02' W 951 feet from a
granite monument shown on the above described map as point number
102, thence S 03* 50' W 910 feet more or less to a point 300 yards
beyond the low-water mark and being the waterward limits of the tide
and submerged land acquired by the United States of America at Naval
Station Treasure Island by the Act of the Legislature of the State of
California on March 9, 1897, said point being the TRUE POINT OF
BEGINNING of the herein described line; thence along said line the
following courses:  N 03* 50' E 910 feet more or less to a point that
bears S 20* 02' W 951 feet from a monument shown on the above map as
Granite point number 102; thence N 39* 54' E 562.54 feet; thence S
80* 35' 16 E 450.04 feet; thence N 82* 04' 07 E 81.46 feet to a curve
to the left having a radius of 276.66 feet, through a central angle
of 61* 05' 20, along an arc a distance of 294.98 feet; thence N 6* 49'
07 W 101.83 feet; thence N 02* 14' 18 E 21 feet; thence N 0* 37' 33
E 24.72 feet; thence N 02* 42' 24 W 113.30 feet; thence N 89* 02' E
179.26 feet; thence along a curve to the left whose radius bears S
71* 57' W 150 feet, through a central angle of 26* 24', along an arc
a distance of 234.99 feet; thence along a curve to the left whose
radius bears S 45* 33' W 43 feet, through a central angle of 67* 33',
along an arc a distance of 50.70 feet; thence along a curve to the
left having a radius of 91 feet, through a central angle of 83* 09',
and having a chord that bears N 26* 25' 30 E 120.78 feet; thence N
43* 15' 40 E 125.84 feet; thence along a curve to the right having a
radius which bears N 51* 39' E 200 feet, through a central angle of
69* 45', along an arc a distance of 243.47 feet; thence N 51* 29' E
130 feet; thence S 80* 27' 26 E 156.06 feet; thence N 53* 13' 15 E
274.53 feet; thence S 02* 49' 34 W 574.47 feet; thence S 15* 38' 44 E
241.28 feet; thence S 84* 12' W 25 feet; thence S 05* 48 E 40.4
feet; thence N 85* 00' E 900 feet more or less to a point three
hundred yards beyond the low water mark of San Francisco Bay being
the waterward limit of the tide and submerged land acquired by the
United States of America at Naval Station Treasure Island by the Act
of Legislature of the State of California on March 9, 1897.
   ALONG WITH
   Those lands described in the Executive Order dated November 6,
1850, for Yerba Buena Island (Goat Island) situated upland from the
Ordinary High Water Mark of San Francisco Bay;
   EXCEPTING THEREFROM that portion of Yerba Buena Island lying
southeasterly of a line shown on the Department of the Navy, Naval
Facilities Engineering Command Real Estate Summary Map having NAVFAC
DWG NO. 1296803 and being the boundary between the Naval Station
Treasure Island and the Lands Owned by the United States Coast Guard
and more particularly described as follows:  Commencing at a point
that bears S 89* 02' W 403.34 feet and S 39* 53' 48 W 340 feet from a
granite monument shown on the above map as Granite point number 102,
thence S 39* 54' W 562.5 feet more or less to the intersection with
the ORDINARY HIGH WATER MARK of San Francisco Bay, said point being
the TRUE POINT OF BEGINNING of the herein described line; thence
along said line the following courses:  N 39* 54' E 562.54 feet more
or less to a point that bears N 89* 02' E 403.34 feet and S 39* 53'
48 W 340 feet from a monument shown on the above map as Granite point
number 102; thence S 80* 35' 16 E 450.04 feet; thence N 82* 04' 07 E
81.46 feet to a curve to the left having a radius of 276.66 feet,
through a central angle of 61* 05' 20, along an arc a distance of
294.98 feet; thence N 6* 49' 07 E 101.83 feet; thence N 02* 14' 18 E
21 feet; thence N 0* 37' 33 E 24.72 feet; thence N 02* 42' 24 W
113.30 feet; thence N 89* 02' E 179.26 feet; thence along a curve to
the left whose radius bears S 71* 57' W 150 feet, through a central
angle of 26* 24', along an arc a distance of 234.99 feet; thence
along a compound curve whose radius bears S 45* 33' W 43', through a
central angle of 67* 33', along an arc a distance of 50.70 feet;
thence along a curve to the left having a radius of 91 feet, through
a central angle of 83* 09', and having a chord that bears N 26* 25'
30 E 120.78 feet; thence N 43* 15' 40 E 125.84 feet; thence along a
curve to the right having a radius which bears N 51* 39' E 200 feet,
through a central angle of 69* 45', along an arc a distance of 243.47
feet; thence N 51* 29' E 130 feet; thence S 80* 27' 26 E 156.06
feet; thence N 53* 13' 15 E 274.53 feet more or less to the
approximate mean high water line 1965 as shown on the above
referenced map and the end of the herein described line.
   (b) "Trust Property" means that portion of the property consisting
of those existing and former tidelands and submerged lands commonly
known as Treasure Island, together with all existing and former tide
and submerged lands on Yerba Buena Island, all of which are subject
to the public trust for navigation, commerce, and fisheries.  The
Trust Property is more particularly described as follows:
   All of the land acquired from the City and County of San Francisco
as described in the Judgement of the Declaration of Taking for Civil
Action 22164-W filed in the District Court of the United States in
and for the Northern District of California, Southern Division on
April 17, 1942, and being more particularly described as follows:
   BEGINNING at a monument established near the westerly end of Yerba
Buena Island by the United States Coast and Geodetic Survey about 75
feet above high tide, known and designated by said survey as Station
Goat, located at latitude 37* 48' 40.387 North, longitude 122* 22'
17.657 West (values as determined by the United States Coast and
Geodetic Survey as of the year 1930) and running thence N 28* W a
distance of 8,000 feet, thence N 62* E a distance of 4,500 feet,
thence S 28* E a distance of 8,000 feet, thence S 62* W a distance of
4,500 feet to the point of beginning; all bearings being referred to
the true meridian through said Station Goat, excepting from said
grant that portion of the lands above particularly described, lying
northerly of Yerba Buena Island and adjacent thereto, extending from
high water mark to 900 feet beyond low water mark, the latter portion
so excepted being a part of the lands  granted and ceded by the
State of California to the United States of America by that certain
Act of the Legislature of the State of California entitled "An Act
relinquishing to the United States of America the title of this State
to certain land", approved March 9, 1897.
   ALONG WITH
   All of the tide and submerged land situated at Naval Station
Treasure Island acquired from the State of California by the United
States of America by the Act of Legislature of the State of
California on March 9, 1897.
   EXCEPTING therefrom that portion of those lands granted by this
act lying southeasterly of a line shown on the Department of the
Navy, Naval Facilities Engineering Command Real Estate Summary Map
having NAVFAC DWG NOs. 1296802 and 1296803, and being the boundary
between the Naval Station Treasure Island and the Lands Owned by the
United States Coast Guard, said line more particularly described as
follows:
   Commencing at a point that bears S 20* 02' W 951 feet from a
granite monument shown on the above described map as Granite point
number 102, thence S 03* 50' W 910 feet more or less to a point 300
yards beyond the low-water mark and being the waterward limits of the
tide and submerged land acquired by the United States of America at
Naval Station Treasure Island by the Act of the Legislature of the
State of California on March 9, 1897, said point being the TRUE POINT
OF BEGINNING of the herein described line; thence along said line
the following courses:  N 03* 50' E 910 feet more or less to a point
that bears S 20* 02' W 951 feet from a monument shown on the above
map as Granite point number 102; thence N 39* 54' E 562.54 feet;
thence S 80* 35' 16 E 450.04 feet; thence N 82* 04' 07 E 81.46 feet
to a curve to the left having a radius of 276.66 feet, through a
central angle of 61* 05' 20, along an arc a distance of 294.98 feet;
thence N 6* 49' 07 W 101.83 feet; thence N 02* 14' 18 E 21 feet;
thence N 0* 37' 33 E 24.72 feet; thence N 02* 42' 24 W 113.30 feet;
thence N 89* 02' E 179.26 feet; thence along a curve to the left
whose radius bears S 71* 57' W 150 feet, through a central angle of
26* 24', along an arc a distance of 234.99 feet; thence along a curve
to the left whose radius bears S 45* 33' W 43 feet, through a
central angle of 67* 33', along an arc a distance of 50.70 feet;
thence along a curve to the left having a radius of 91 feet, through
a central angle of 83* 09', and having a chord that bears N 26* 25'
30 E 120.78 feet; thence N 43* 15' 40 E 125.84 feet; thence along a
curve to the right having a radius which bears N 51* 39' E 200 feet,
through a central angle of 69* 45', along an arc a distance of 243.47
feet; thence N 51* 29' E 130 feet; thence S 80* 27' 26 E 156.06
feet; thence N 53* 13' 15 E 274.53 feet; thence S 02* 49' 34 W 574.47
feet; thence S 15* 38' 44 E 241.28 feet; thence S 84* 12' W 25 feet;
thence S 05* 48 E 40.4 feet; thence N 85* 00' E 900 feet more or
less to a point three hundred yards beyond the low water mark of San
Francisco Bay being the waterward limit of the tide and submerged
land acquired by the United States of America at Naval Station
Treasure Island by the Act of Legislature of the State of California
on March 9, 1897.
   EXCEPTING THEREFROM those lands described in the Executive Order
dated November 6, 1850, for Yerba Buena Island (Goat Island) situated
upland from the Ordinary High Water Mark of San Francisco Bay.
   (c) "Authority" means the Treasure Island Development Authority, a
nonprofit public benefit corporation established by the legislative
body of the City and County of San Francisco.
   (d) The provisions of this act shall not apply to any portion of
or interest in the Property, including any portion of or interest in
the Trust Property, whether real or personal, that is owned by or
under the jurisdiction or control of the California Department of
Transportation.
  SEC. 5.  (a) Notwithstanding Article 2 (commencing with Section
33110) of Chapter 2 of Part 1 of Division 24 of the Health and Safety
Code, the legislative body of the City and County of San Francisco
may, by resolution, designate the Authority or any successor entity
or agency of the Authority as the redevelopment agency with all of
the rights, powers, privileges, immunities, authorities, and duties
granted to a redevelopment agency pursuant to Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code, for the
purpose of acquiring, using, operating, maintaining, converting, and
redeveloping the property.  Upon adoption of that resolution, the
Authority shall be considered a redevelopment agency for all purposes
under state law, including, but not limited to, the purposes of
Section 21090 of the Public Resources Code.
   (b) Notwithstanding any state or local law, including, without
limitation, Section 33111 of the Health and Safety Code, the Board of
Directors of the Authority may include individuals who are officers
or employees of the City and County of San Francisco or of the San
Francisco Redevelopment Agency and those individuals are not
precluded, solely by virtue of their status as officers or employees
of the City and County of San Francisco or the San Francisco
Redevelopment Agency, from participating in decisions as members of
the Board of Directors.
   (c) Notwithstanding Section 1090 of the Government Code and
Section C8.105 of Appendix C of the San Francisco Charter, officers
and employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency are not precluded, solely by virtue of
their services as members of the Board of Directors, from
participating in any decisions in their capacities as officers or
employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency.
   (d) Notwithstanding any other provision of law, the Authority's
employees are subject to the same civil service provisions as the
employees of the City and County of San Francisco.
   (e) Notwithstanding any other provision of law, the Authority
shall follow the same competitive bidding procedures applicable to
redevelopment agencies in California.
   (f) Prior to the Board of Supervisor's approval of a redevelopment
plan for the property, any contract to which the Authority is a
party worth more than one million dollars ($1,000,000) or with a term
of 10 or more years shall require the approval of the Board of
Supervisors of the City and County of San Francisco.
  SEC. 6.  (a) Chapter 1333 of the Statutes of 1968 shall not apply
to the property commonly known as Treasure Island, nor to those
portions of the property commonly known as Yerba Buena Island
consisting of former or existing tide and submerged lands.  These
properties are more particularly described as follows:
   All of the land acquired from the City and County of San Francisco
as described in the Judgement of the Declaration of Taking for Civil
Action 22164-W filed in the District Court of the United States in
and for the Northern District of California, Southern Division on
April 17, 1942, and being more particularly described as follows:
   BEGINNING at a monument established near the westerly end of Yerba
Buena Island by the United States Coast and Geodetic Survey about 75
feet above high tide, known and designated by said survey as Station
Goat, located at latitude 37* 48' 40.387 North, longitude 122* 22'
17.657 West (values as determined by the United States Coast and
Geodetic Survey as of the year 1930) and running thence N 28* W a
distance of 8,000 feet, thence N 62* E a distance of 4,500 feet,
thence S 28* E a distance of 8,000 feet, thence S 62* W a distance of
4,500 feet to the point of beginning; all bearings being referred to
the true meridian through said Station Goat, excepting from said
grant that portion of the lands above particularly described, lying
northerly of Yerba Buena Island and adjacent thereto, extending from
high water mark to 900 feet beyond low water mark, the latter portion
so excepted being a part of the lands granted and ceded by the State
of California to the United States of America by that certain Act of
the Legislature of the State of California entitled "An Act
relinquishing to the United States of America the title of this State
to certain land", approved March 9, 1897.
   ALONG WITH
   All of the tide and submerged land at Treasure Island Naval
Station acquired from the State of California by the United States of
America by the Act of Legislature of the State of California on
March 9, 1897.
   EXCEPTING therefrom that portion of those lands granted by this
act lying southeasterly of a line shown on the Department of the
Navy, Naval Facilities Engineering Command Real Estate Summary Map
Having NAVFAC DWG NOs. 1296802 and 1296803, and being the boundary
between the Treasure Island Naval Station and the Lands Owned by the
United States Coast Guard, said line more particularly described as
follows:
   Commencing at a point that bears S 20* 02' W 951 feet from a
granite monument shown on the above described map as point number
102, thence S 03* 50' W 910 feet more or less to a point 300 yards
beyond the low-water mark and being the waterward limits of the tide
and submerged land acquired by the United States of America by the
Act of the Legislature of the State of California on March 9, 1897,
said point being the TRUE POINT OF BEGINNING of the herein described
line; thence along said line the following courses:  N 03* 50' E 910
feet; thence N 39* 54' E 562.54 feet; thence S 80* 35' 16 E 450.04
feet; thence N 82* 04' 07 E 81.46 feet to a curve to the left having
a radius of 276.66, through a central angle of 61* 05' 20, along an
arc a distance of 294.98 feet; thence N 6* 49' 07 W 101.83 feet;
thence N 02* 14' 18 E 21 feet; thence N 0* 37' 33 E 24.72 feet;
thence N 02* 42' 24 W 113.30 feet; thence N 89* 02' E 179.26 feet;
thence along a curve to the left whose radius bears S 71* 57' W 150
feet, through a central angle of 26* 24', along an arc a distance of
234.99 feet; thence along a curve whose radius bears S 45* 33' W 43
feet, through a central angle of 67* 33', along an arc a distance of
50.70 feet; thence along a curve to the left having a radius of 91
feet, through a central angle of 83* 09', and having a chord that
bears N 26* 25' 30 E 120.78 feet; thence N 43* 15' 40 E 125.84 feet;
thence along a curve to the right having a radius which bears N 51*
39' E 200 feet, through a central angle of 69* 45', along an arc a
distance of 243.47 feet; thence N 51* 29' E 130 feet; thence S 80* 27'
26 E 156.06 feet; thence N 53* 13' 15 E 274.53 feet; thence S 02* 49'
34 W 574.47 feet; thence S 15* 38' 44 E 241.28 feet; thence S 84* 12'
W 25 feet; thence S 05* 48 E 40.4 feet; thence N 85* 00' E 900 feet
more or less to a point three hundred yards beyond the low water mark
of San Francisco Bay being the waterward limit of the tide and
submerged land acquired by the United States of America by the Act of
Legislature of the State of California on March 9, 1897.
    EXCEPTING THEREFROM those lands described in the Executive Order
dated November 6, 1850, for Yerba Buena Island (Goat Island)
situated upland  from the Ordinary High Water Mark of San Francisco
Bay.
   (b) All of the State of California's right, title, and interest,
acquired by virtue of its sovereignty, in and to the Trust Property,
together with all improvements, facilities, rights, privileges, and
appurtenances connected therewith or in any way appertaining thereto,
is hereby granted in trust to and vested in the Authority, subject
to the terms and conditions specified in this act.  The lands shall
be held by the Authority and its successors in trust for the benefit
of all the people of the state for purposes of commerce, navigation,
and fisheries, and for other public trust purposes, as more
particularly provided in this act.
   (c) There is reserved in the people of the State of California the
right to hunt and fish in and over the waters on the Trust Property,
together with the right of convenient access to the waters over the
Trust Property for those purposes.
   (d) There is excepted from the grant made in subdivision (b) and
reserved to the State of California all subsurface mineral deposits,
including oil and gas deposits, together with the right of ingress
and egress on the Trust Property for exploration, drilling, and
extraction of such mineral, oil, and gas deposits.  Those mineral
rights, including the right of ingress and egress, shall not be
exercised in a manner that would disturb or otherwise interfere with
any lease, franchise, permit, or license of or on the Trust Property;
provided, however, that any lease, franchise, permit, or license of
property contain a provision specifying at least one point from which
and the manner in which the right of ingress or egress to said
subsurface deposits may be exercised, which point or points may be
outside the area of the leasehold, franchise, permit, or license,
provided the point or points are adequate to permit the rights
reserved to the state to be exercised.
   (e) There is also excepted from the grant made in subdivision (b)
any property or interest in property, whether real or personal, owned
by or under the jurisdiction or control of the Department of
Transportation.  The Trust Property shall remain subject to any
requirements of the Department of Transportation for future
rights-of-way, easements, or material for the construction, location,
realignment, expansion, or maintenance of
                 bridges, highways, or other transportation
facilities without compensation, except as follows:
   (1) Compensation shall be made to the Authority for any property
taken that was originally acquired by the Authority for valuable
consideration.
   (2) In the event improvements, betterments, or structures have
been placed upon the Trust Property by the Authority, compensation
shall be made to the Authority for the value of the improvements,
betterments, or structures taken.
   (3) Holders of a lease, franchise, permit, or license to use or
occupy a portion of the Trust Property which has been taken pursuant
to this section shall be given the same compensation that they would
receive under an eminent domain proceeding.
   (f) In the management, conduct, operation, and control of the
Trust Property or any improvements, betterments, or structures
thereon, the Authority or its successors shall make no discrimination
in rates, tolls, or charges for any use or service in connection
therewith.
   (g) The State of California shall have the right to use without
charge any transportation, land, or storage improvements, wharves,
slips, betterments, or structures, constructed upon the Trust
Property, for any vessel or other watercraft, aircraft, or railroad
owned or operated by the State of California.
  SEC. 7.  The Authority shall have complete power to use, conduct,
operate, maintain, manage, administer, regulate, improve, lease, and
control the Trust Property and to do all things necessary in
connection therewith which are in conformance with the terms of this
act and the public trust for commerce, navigation and fisheries upon
which the lands are held, including, without limitation, all of the
following:
   (a) Acquiring, exchanging, and conveying real and personal
property of every kind necessary for the full or convenient exercise
of its powers, consistent with the public trust and subject to the
limitations of this act.
   (b) Constructing, erecting, maintaining, repairing, operating,
developing, and regulating all improvements, utilities, facilities,
equipment, piers, parking areas, streets, highways, bridges,
pedestrian ways, landscaped areas, public buildings, public assembly
and meeting places, convention centers, parks, museums, playgrounds,
and public recreation facilities, including, without limitation,
public golf courses, marinas, restaurants, hotels, commercial
recreation facilities, entertainment facilities and attractions, and
any other works, buildings, facilities, utilities, structures, and
appliances incidental to or necessary or convenient for the promotion
and accommodation of the purposes of the public trust and this act,
or or about the Trust Property.
   (c) Promoting the public use of the Trust Property and encouraging
private investment in the development of the Trust Property for the
foregoing uses in the public interest, through advertising or such
other means as may be reasonable and appropriate.
   (d) Providing services reasonably necessary to the carrying out of
the foregoing uses and purposes.  As to any service which the
Authority is authorized to perform pursuant to the provisions of this
act, the Authority may contract for the performance of such services
by the City and County of San Francisco or any agencies thereof,
including the Port Commission.
  SEC. 8.  (a) The Authority shall not at any time grant, convey,
give, or alienate the Trust Property, or any part thereof, to any
individual, firm, or corporation, except that the Authority may grant
franchises, permits, privileges, licenses, easements, or leasehold
interests (collectively referred to as "leases" hereinafter) thereon
for limited periods, not to exceed 66 years.
   (b) Any leases for use of the Trust Property shall be solely for
uses that are consistent with or ancillary to the purposes of the
public trust for commerce, navigation and fisheries, provided that
leases  may be granted for other uses where the Authority makes the
following determinations:
   (1) There is no immediate trust related need for the property
proposed to be leased.
   (2) The proposed lease is of a duration of no more than five years
and can be terminated in favor of trust uses as they arise; except
that the existing hangars, or portions thereof, may be leased for up
to five years without a right of termination in favor of trust uses.

   (3) The proposed lease prohibits the construction of new
structures or improvements on the subject property that could, as a
practical matter, prevent or inhibit the property from being
converted to any permissible trust use should the property become
necessary therefore.
   (4) The proposed use of the leased property would not interfere
with commerce, navigation, fisheries, or any other existing trust
uses or purposes.
  SEC. 9.  (a) Notwithstanding any other provision of this act,
existing buildings or structures on the Trust Property which are
incapable of being devoted to trust purposes may be used for other
purposes, consistent with the reuse plan for the Trust Property, for
the remaining useful life of such buildings or structures.  Buildings
and structures on the Trust Property that are incapable of being
devoted to trust purposes are those constructed for nontrust purposes
while the Trust Property was under federal ownership, including, but
not limited to, the existing housing units, the brig, the building
proposed for use as a police academy, and the school.
   (b) The Authority and the State Lands Commission shall, by
agreement, establish the remaining useful life of the buildings and
structures described in subdivision (a), either individually or by
category, provided that in no case shall the useful life of any
building or structure be deemed to extend less than 25 years or more
than 40 years from the effective date of this act.
   (c) The maintenance and repair of any of the existing buildings or
structures described in subdivision (a), and any structural or other
alterations necessary to bring such buildings or structures into
compliance with applicable federal, state, and local health and
safety standards, including, but not limited to, seismic upgrading,
shall be permitted, provided such activities will not enlarge the
footprint or the size of the shell of such buildings or structures.
  SEC. 10.  (a) All money received or collected by the Authority from
or arising out of the use or operation of the Trust Property,
including all revenues derived from leases, permits, franchises,
privileges, licenses, easements, and rights to use or occupy the
Trust Property, shall be deposited by the Authority into a special
fund to be maintained by the Authority (the Treasure Island Trust
Fund).  The money in or belonging to the Treasure Island Trust Fund
may be used only for uses and purposes consistent with the public
trust for navigation, commerce, and fisheries.
   (b) An annual statement of financial conditions and operations
shall be prepared by the Authority and submitted to the State Lands
Commission each year on or before October 1.  The statement shall
include a statement of all revenues and expenditures related to trust
lands and trust assets, including obligations incurred but not yet
paid.
  SEC. 11.  (a) The Authority may exchange certain portions of the
Trust Property with any state agency, political subdivision,  person,
entity, or corporation, or the United States or any agency thereof,
for other lands, whenever the Authority determines and the State
Lands Commission adopts a resolution declaring and finding all of the
following:
   (1) The portions of the Trust Property to be exchanged have been
filled and reclaimed, are cut off from access to the waters of San
Francisco Bay, are no longer needed or required for the promotion of
the public trust for commerce, navigation, and fisheries, and
constitute a relatively small portion of the lands originally granted
to the City and County of San Francisco under the Burton Act
(Chapter 1333 of the Statutes of 1968).
   (2) The lands to be acquired by the Authority have a value equal
to or greater than the value of the lands for which they are to be
exchanged and are useful for the particular trust purposes authorized
by this act.
   (3) No substantial interference with trust uses and purposes will
ensue by virtue of the exchange.
   (b) Upon adoption of the resolution by the State Lands Commission,
the lands granted by the Authority shall thereupon be free from the
public trust for commerce, navigation, and fisheries, and the lands
received in exchange shall be held subject to the public trust and to
the terms of this act.
   (c) Exchanges made pursuant to this section are hereby found to be
of statewide significance and importance, and, therefore, any
ordinance, charter provision, or other provision of local law
inconsistent with this section shall not be applicable to the
exchange.
  SEC. 12.  If the Authority is dissolved, by operation of law or
otherwise, the Trust Property, together with any and all improvements
thereon, and the management, conduct, and operation of and
jurisdiction over the Trust Property, shall revert and be conveyed to
and vest in the City and County of San Francisco, acting by and
through its Port Commission, subject to the public trust for
commerce, navigation, and fisheries, and the requirements of the
Burton Act (Chapter 1333 of the Statutes of 1968), and the remainder
of the property shall be conveyed to the City and County of San
Francisco.
  SEC. 13.  (a) The state reserves the right to amend, modify, or
revoke any and all rights to the Trust Property granted to the
Authority under this act.
   (b) For purposes of this section, the term "bonds" includes,
without limitation, lease revenue bonds and other bonds, lease
financing arrangements, and certificates of participation.
   (c) No amendment, modification, or revocation, in whole or in
part, of the transfer of the Trust Property in trust provided for in
this act shall impair or affect the rights or obligations of third
parties, including the holders of bonds or securities, lessees,
lenders for value, holders of contracts, conferring the right to the
use or occupation of, or the right to conduct operations upon or
within, the Trust Property, arising from leases, contracts, or other
instruments lawfully entered into prior to the effective date of such
amendment, modification, or revocation.
   (d) In the event, at the effective date of any such amendment,
modification, or revocation, there are in effect any such leases,
contracts, or other instruments, the state may, at its option
exercised by and through the State Lands Commission, succeed to the
interest in any such instrument of the Authority; otherwise the
interest of the Authority in any instrument then in effect shall
continue during the term or other period of time during which the
instrument shall remain in effect, and provided further that in any
event all bonds or securities issued by the Authority and payable out
of revenues of the Trust Property shall continue to be so payable,
directly or indirectly, and secured in all respects as provided in
the proceedings for their issuance, and the revenues of the property
shall be pledged and applied to the payment of such bonds or
securities in all respects as though no amendment, modification, or
revocation had taken place.
  SEC. 14.  Section 2.1 is added to Chapter 1333 of the Statutes of
1968, to read:
   2.1.  This act shall not apply to the property commonly known as
Treasure Island, nor to those portions of the property commonly known
as Yerba Buena Island consisting of former or existing tide and
submerged lands and more particularly described in Section 6 of
Assembly Bill No. 699 of the 1997-98 Regular Session.
  SEC. 15.  The Legislature finds and declares that, because of the
unique circumstances applicable only to the lands within the City and
County of San Francisco described in this act, relating to the
closure of Naval Base Treasure Island, a statute of general
applicability cannot be enacted within the meaning of subdivision (b)
of Section 16 of Article IV of the California Contitution.
Therefore, this special statute is necessary.