BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 459
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     SB 459 (Wolk) - As Amended:  July 14, 2009 

          Policy Committee:                               
          JudiciaryVote:10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the State Lands Commission (SLC) to remove  
          and dispose of abandoned vessels without first having received  
          court authorization.  Specifically, this bill: 

          1)Authorizes SLC to remove and dispose of abandoned vessels and  
            equipment located in areas under SLC jurisdiction without  
            first having received court authorization.

          2)Exempts these actions from the requirements of the California  
            Environmental Quality Act (CEQA) and from any other law or  
            regulation that governs the acquisition, disposal, or  
            destruction of property by a state agency.

          3)Requires SLC to make specified efforts to locate and notify  
            the owner of abandoned vessels and equipment before its  
            removal and disposal.

          4)Specifies that SLC can take possession of a vessel solely for  
            abatement purposes and sell, destroy, or otherwise dispose of  
            it in any manner SLC sees fit. 

          5)States that SLC is not obligated to satisfy any lien against  
            vessels or other property it takes possession of pursuant to  
            this bill.

          6)Provides that the SLC's cost of disposing of abandoned  
            property may be recovered by an action in any court or by use  
            of any available administrative remedy.  If the property is  
            sold, the SLC may recover its costs from any proceeds of the  
            sale and any additional funds received shall be deposited into  








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            the General Fund.

           FISCAL EFFECT  

          1)The costs of this bill are unknown and depend upon the number  
            of vessels SLC removes and disposes of each year, as well as  
            logistical, legal and other complicating factors associated  
            with each vessel.  SLC estimates that, generally, it could  
            remove and dispose of about two vessels a year using existing  
            resources and at a cost of less than $100,000.  (General Fund)

          2)Annual revenue recovered from owners of abandoned vessels  
            subject to removal or disposal-no more than $100,000 a year  
            and possibly less.  (SLC anticipates difficulty recovering its  
            costs for abandoned vessel removal and disposal.  This is  
            because the owners of such vessels generally have little  
            financial wherewithal, a condition which led to the vessel's  
            abandonment in the first place.)  



































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           COMMENTS  

           1)Rationale  .  The author acknowledges that SLC currently has the  
            authority to remove or destroy any vessel, boat, watercraft,  
            raft, or other similar obstruction which hinders navigation or  
            otherwise creates a public nuisance in areas under the SLC's  
            jurisdiction.  The author contends, however, that the  
            requirement that SLC first receive authorization from a court  
            frequently hinders SLC from taking action against an  
            abandoned-vessel owner.  This is because the SLC relies on  
            legal representation by the Attorney General's (AG), who, the  
            author contends, oftentimes is occupied with other, more  
            pressing priorities.  The author intends this bill to  
            streamline SLC's response to vessel and equipment abandonment  
            by allowing SLC to decide the final disposition of abandoned  
            vessels, trespassing vessels, and trespassing ground tackle  
            through an its own administrative process.  

           2)Background  .  
           
             a)   State Lands Commission  .  SLC manages lands the state has  
               received from the federal government.  These lands total  
               more than four million acres and include tide and submerged  
               lands, swamp and overflow lands, the beds of navigable  
               waterways, and state school lands.  According to SLC (as  
               cited in the policy committee analysis), lands underlying  
               the state's navigable and tidal waterways (known as  
               "Sovereign Land") include:

               i)      The beds of more than 120 rivers, streams and  
                 sloughs.

               ii)    Nearly 40 non-tidal navigable lakes, such as Lake  
                 Tahoe and Clear Lake. 

               iii)   Tidal navigable bays and lagoons.

               iv)    The tide and submerged lands adjacent to the entire  
                 coast and offshore islands of the state from the mean  
                 high tide line to three nautical miles offshore.

              b)   SLC's Existing Authority  .  Existing law authorizes SLC,  
               generally following court authorization, to remove from  
               areas under its jurisdiction any unattended vessel, boat,  
               raft, or watercraft that obstructs traffic; creates a  








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               hazard to other vessels, to public safety, or to property;  
               or seriously interferes with, or otherwise poses a critical  
               and immediate danger to navigation or to the public health,  
               safety, or welfare. SLC may recover associated costs  
               through the courts.

              c)   A State Awash in Abandoned Watercraft  .  Recent news  
               reports document the problem of vessel abandonment,  
               particularly in the Delta, exacerbated by the deteriorating  
               economy.  According to SLC, the number of abandoned  
               commercial vessels has been growing.  DBW administers the  
               Abandoned Watercraft Removal Program to provide grants to  
               local agencies to help pay the costs of removal, storage,  
               and disposal of abandoned and wrecked vessels that pose  
               navigational hazards on the public waterways.  The  
               governor's budget proposes grants for these purposes  
               totaling $500,000 for 2009-10.




































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           3)Related Legislation.   

              a)   AB 166 (Lieu)  strengthens and expands provisions  
               governing local agencies' efforts to address the  
               environmental and public safety impacts of abandoned  
               vessels.  The bill passed the Assembly on a vote of 79-0  
               and is pending consideration in Senate Appropriations.

              b)   AB 1950 (Lieu, 2008)  would have established a pilot  
               program to authorize the sale of surrendered vessels prior  
               to their potential or eventual abandonment.  The bill was  
               vetoed.
           
          4)Supporters  of this bill include the State Lands Commission  
            (sponsor) and the Recreational Boaters of California.  There  
            is no registered opposition to this bill.
           
          Analysis Prepared by :    Jay Dickenson / APPR. / (916) 319-2081