BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 2664                   HEARING DATE: June 9, 2010  
          AUTHOR: Chesbro                    URGENCY: No  
          VERSION: April 14, 2010            CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Public lands: State Lands Commission: violations  
          
          BACKGROUND AND EXISTING LAW
          The State Lands Commission (Commission) is responsible for the  
          management of all ungranted tidelands and submerged lands owned  
          by the State and the beds of navigable waterways. These lands  
          must be managed for the purposes of economic development,  
          protection, preservation, and restoration and in a manner that  
          is consistent with the public trust doctrine. The commission is  
          also responsible for the management of the state's School Lands.

          Article 2 of Chapter 4 of Division 6 of the Public Resources  
          Code (commencing with 6301) authorizes the commission to allow  
          an individual to construct jetties, sea walls, breakwaters, and  
          other such structures on, across, or over state lands if the  
          structures are consistent with the public trust. The commission  
          may collect fees and rent for the use of lands by the  
          structures. Lease revenues are deposited into the General Fund  
          with the exception of revenues generated on the School Lands,  
          which are deposited into the Teachers' Retirement Fund. 

          Under 6224.1, any person found trespassing on commission lands  
          is liable to the state for any damages through a civil action.  
          Additionally, under 6302, the commission can eject trespassers  
          through appropriate action in the state's courts. The commission  
          may recover ejectment costs through legal action. 

          Section 6216.1 allows the commission to remove manmade  
          structures on its lands.

          PROPOSED LAW
          This bill would explicitly prohibit a person from constructing,  
          placing, maintaining, owning, using, or possessing a structure  
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          or facility on commission land without first obtaining all  
          necessary authorizations. Structures and facilities include  
          buildings, boat houses, docks, piers, pilings, jetties, sea  
          walls, and bulkheads. Violations will be subject to fines,  
          seizure, and other remedies. Specifically, this bill would:
           Subject violators to either a penalty not more than $1,000 per  
            day or a use fee that is no more than 160% of the full fair  
            market rental for every day that a violation occurs. This  
            penalty or fee is in addition to any other penalty or sanction  
            provided by law.
           The actual penalty or fee shall be based on factors including  
            the physical extent of the violation, the degree of  
            culpability of the violator, prior violations, the violator's  
            history of correcting violations, and the impact of the  
            violation on the environment or public trust.
           Allow interest to accrue on penalties or fees not paid within  
            the prescribed time frame.
           Authorize the commission to require the removal of the  
            violating structure or facility at the violator's cost.
           Authorize the commission to take ownership of the structure or  
            facility on behalf of the state. 
           Authorize the commission to obtain these remedies through  
            administrative action. A person must be given 30-day notice  
            that the commission intends to impose any of the remedies. A  
            hearing for the violation may be scheduled at a noticed  
            commission meeting.
           Authorize the Attorney General to alternatively obtain these  
            remedies through civil action. 
           Grant any person with existing violations six months to remedy  
            the violation before being subject to a penalty or fee.

          ARGUMENTS IN SUPPORT
          According to the author, "The State Lands Commission is  
          consistently in litigation over cases that involve a person  
          building a structure on state lands without proper authorization  
          or violating an application if they did request permission. The  
          Commission's current recourse in the above situation is  
          generally limited to court action in which the state seeks rent  
          for the use of state lands and/or an order for the structure to  
          be removed. In these cases, litigation can be time consuming and  
          expensive, especially when considering the value of the remedies  
          sought. Additionally, this recourse provides no deterrent  
          against future trespasses because the potential damages against  
          a trespasser are more or less equal to the cost of paying rent  
          under a valid lease."

          ARGUMENTS IN OPPOSITION
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          None received.

          COMMENTS 
           Lowering the cost of enforcing trespassing laws  : The commission,  
          as the sponsor of this bill, submitted to the committee ten  
          examples of past and pending cases illustrating structures  
          inappropriately placed or constructed on commission lands. These  
          examples range from a recreational pier built inconsistent with  
          its authorization, public access to a river being blocked,  
          unauthorized sand berm construction, and unauthorized use of a  
          pier. According to the commission, trespass violations generally  
          are a result of persons either (1) not obtaining proper  
          authorizations, (2) acting beyond commission-issued  
          authorizations, or (3) acting under expired authorizations.

          Under current law, the commission's only recourse against these  
          violations is to bring legal action through the Attorney  
          General's office. Among the sample violations submitted to the  
          committee, many took multiple years to resolve and involved  
          hundreds of hours of the Attorney General office's time. Legal  
          costs of the five closed cases nearly totaled $400,000, not  
          including pre-litigation work by the Attorney General's office  
          or Commission staff time. These litigation costs are especially  
          expensive considering that the remedies are generally  
          approximately equal to the cost of paying rent under a valid  
          license. 

          The committee may wish to consider that by establishing an  
          administrative recourse option to enforce trespassing  
          violations, this bill can potentially lower the enforcement  
          costs to the commission and the state. 

           Creating a better trespassing deterrent?  According to the  
          sponsor, current law provides little deterrent to would-be  
          trespassers because potential damages are usually limited to an  
          amount roughly equal to the cost of compliance (e.g. paying  
          rent). Thus, would-be trespassers therefore have some incentive  
          to take their chances and commit a violation in a reasoned  
          calculation that the state will not enforce the law against  
          them. 

          Arguably, this bill would eliminate this unintentional  
          trespassing incentive by establishing penalties or fees that can  
          be substantially higher (160% or $1,000 per day) than the cost  
          of complying with the law, especially if the trespasser has a  
          history of other violations. An additional deterrent is  
          established because enforcement action can be taken  
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          administratively instead of through the courts.
               
          SUPPORT
          State Lands Commission

          OPPOSITION
          None Received








































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