BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2082
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          Date of Hearing:   April 24, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                    AB 2082 (Atkins) - As Amended:  April 19, 2012

           SUBJECT  :  PUBLIC LANDS: STATE LANDS COMMISSION: VIOLATIONS

           KEY ISSUE  :  IN ORDER TO DETER ENCROACHMENT ON STATE LANDS, 
          SHOULD THE STATE LANDS COMMISSION BE AUTHORIZED TO SEEK 
          INJUNCTIVE RELIEF AND ADMINISTRATIVE OR CIVIL PENALTIES AGAINST 
          A PERSON WHO CONSTRUCTS OR PLACES AN UNAUTHORIZED STRUCTURE ON 
          STATE LANDS?

           FISCAL EFFECT  :   As currently in print this bill is keyed 
          fiscal.

                                      SYNOPSIS

          This non-controversial bill, sponsored by the State Lands 
          Commission, prohibits the construction or placement of an 
          unauthorized structure on state lands under jurisdiction of the 
          Commission without all necessary easements, leases, or permits 
          that would authorize the structure.  Under current law, the 
          Commission's only recourse in trespass cases is to employ the 
          assistance of the Attorney General in filing a civil action 
          against the trespasser seeking compensation for the use of state 
          lands, or an order for a structure to be removed, or both.  
          According to the Commission, litigation is a timely and costly 
          endeavor, is often not cost-effective given the value of the 
          remedy pursued, and does not sufficiently deter would-be 
          trespassers because potential damages are limited to an amount 
          roughly equal to the cost of compliance (e.g., paying rent to 
          the state).  Consequently, this bill allows the Commission to 
          take specified civil and administrative action to enjoin a 
          violation or require removal of the structure, including 
          authority to assess trespassers a penalty of no more than $1,000 
          per day, or, alternatively, a monthly use and occupancy fee, as 
          specified.  By providing additional enforcement tools to the 
          Commission, the author contends this bill would deter new 
          trespassers, provide incentive to persons currently occupying 
          state land to obtain or comply with a lease, and conserve time 
          and resources otherwise spent by the Commission and Attorney 
          General on litigation.  This bill was passed by the Assembly 
          Natural Resources Committee by a 6-2 vote and has no registered 








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          opposition.

           SUMMARY  :  Authorizes the State Lands Commission (Commission) to 
          impose administrative penalties upon persons responsible for 
          unauthorized structures on state-owned land under the 
          Commission's jurisdiction.  Specifically,  this bill  :   

          1)Prohibits a person from constructing, placing, maintaining, 
            owning, using, or possessing a structure or facility on land 
            that is under the Commission's jurisdiction and that is owned 
            by the state without first obtaining all necessary easements, 
            leases, or permits from the Commission.

          2)Authorizes the Commission to impose upon violators a penalty 
            of not more than $1,000 a day or an amount that is not more 
            than 60 percent higher than the full fair market rental for 
            each month that a violation occurs. 

          3)Requires the Commission, in determining the appropriate 
            penalty, to consider specified factors, including among 
            others:

             a)   the physical extent of the violation on the land under 
               the Commission's jurisdiction;
             b)   the degree of culpability of the violator; 
             c)   the degree of cooperation of the violator and whether 
               the structure or facility is susceptible to removal or the 
               violation is susceptible to resolution; 
             d)   the extent to which the violation causes environmental 
               harm or impairs public access to trust lands.

          4)Authorizes the Commission to require violators to remove the 
            structure or facility at the person's own expense, or, if the 
            violator refuses to remove the structure or facility or cannot 
            be located, to remove the structure or facility from the land 
            at the Commission's own expense and pursue legal remedies to 
            recover the removal costs from the violator.

          5)Requires the Attorney General (AG) to be awarded attorney's 
            fees and costs for prevailing in a civil action necessary to 
            enforce an order of the Commission issued pursuant to this 
            act.

          6)Requires the Commission, not less than 30 days before the 
            hearing date, to provide a written notice of hearing to the 








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            person against whom it seeks to impose a penalty.  Provides 
            that a commission member shall serve as a presiding officer at 
            the hearing, which is to be conducted pursuant to the 
            Administrative Procedure Act.

          7)Authorizes an amnesty period from penalties if a person either 
            remedies the violation by July 1, 2013, or submits a notice to 
            the Commission that the structure or facility is potentially 
            in violation of these provisions and then remedies the 
            violation within six months of the notice.

           EXISTING LAW  :  

          1)Establishes the State Lands Commission in the Natural 
            Resources Agency for the purposes of managing state lands, 
            waterways, and resources through economic development, 
            protection, preservation, and restoration.  (Public Resources 
            Code Sections 6101 to 6103.  All further references are to 
            this code unless otherwise stated.)

          2)Authorizes the Commission to remove or cause to be removed any 
            manmade structures or obstructions from ungranted lands under 
            its jurisdiction if the Commission determines that such 
            removal is appropriate and the Attorney General advises that 
            there is no legal recourse to compel other responsible parties 
            to effect such removal.  (Section 6216.1.)

          3)Provides that a person who trespasses on lands under the 
            jurisdiction of the Commission, including tidelands, submerged 
            lands, beds of navigable waters, and school lands, without 
            lawful authority is liable to the state for damages assessed 
            by a court in a civil action.  (Section 6224.1.)

          4)Authorizes the Commission to eject from any tide and submerged 
            lands, beds of navigable channels, streams, rivers, creeks, 
            lakes, bays, and inlets under its jurisdiction, any person, 
            firm, or corporation, trespassing upon any such lands, through 
            appropriate action in the courts of this state.  Further 
            authorizes the Commission to recover the costs of ejection 
            through legal action.  (Section 6302.)

           COMMENTS  :  This non-controversial bill, sponsored by the State 
          Lands Commission, prohibits the construction or placement of an 
          unauthorized structure on state lands under jurisdiction of the 
          Commission without all necessary easements, leases, or permits 








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          that would authorize the structure.  In addition, this bill 
          allows the Commission to take specified civil and administrative 
          action to enjoin a violation or require removal of the 
          structure.

           Author's statement.   According to the author, encroachment and 
          trespass on state land is a problem that is both hard to deter 
          and costly to rectify when it does occur.  The author states, 
          "There are thousands of people and companies in the state that 
          have obtained proper authorization to use state lands.  Without 
          an adequate deterrent to prevent people from using state lands 
          illegally, there will continue to be situations in which people 
          use state lands illegally for their own benefit without 
          compensating the state, unlike their counterparts who have a 
          lease and pay the state rent for occupying its property."

           The Commission's recourse to take action against trespassers is 
          limited and not cost-effective.   According to the Commission, 
          the trespass cases it handles generally involve scenarios in 
          which a person constructs, places, maintains, owns, uses, or 
          possesses a structure on state lands without proper 
          authorization from the Commission.  Typically, these cases fall 
          into one of three categories: (1) a person did not obtain a 
          lease for a structure; (2) the Commission issued a lease, but a 
          structure was built beyond what was authorized; or (3) the 
          Commission issued a lease, but the lease has expired without 
          either being renewed or placed into holdover status.

          The Commission reports that its only recourse under existing law 
          is to file a civil action, with the assistance of the AG, 
          seeking compensation or rent for the use of state lands or an 
          order for a structure to be removed.  Litigation is a timely and 
          costly endeavor and in many instances of trespass, not 
          cost-effective given the value of the remedy pursued.  For 
          example, the Commission reports that in some circumstances a 
          single contested trespass case can cost over $100,000 in AG 
          services.  In these cases, Commission staff also expends 
          significant time and resources conducting fact gathering, 
          discovery work, and conducting legal research and analysis in 
          support of the AG.  

          Moreover, according to the Commission, the threat of litigation 
          does not sufficiently deter would-be trespassers since potential 
          damages are roughly equal to the cost of compliance (e.g., 
          paying rent).  As a result, would-be trespassers may have an 








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          incentive to take their chances and commit a violation in a 
          reasoned calculation that the state will not enforce the law 
          against them.

           This bill enables additional remedies to deter encroachment on 
          state lands.   By providing additional enforcement tools to the 
          Commission, the author contends this bill would not only provide 
          incentive to obtain or comply with a lease (and possibly 
          generate additional lease revenue to the state), it would 
          conserve time and resources otherwise spent by the Commission 
          and AG on litigation.  The bill would authorize the Commission 
          to assess trespassers a penalty of no more than $1,000/day, or, 
          alternatively, a monthly use and occupancy fee no more than 60 
          percent greater than the fair market rent for each month that a 
          trespass occurs.  Although existing law allows the Commission to 
          file a civil action against a trespasser to enjoin encroachment, 
          the ability to assess administrative and civil penalties is a 
          more cost-effective use of limited resources as compared to the 
          costs of civil litigation, and also serves as an additional 
          deterrent.

           Due process considerations and amnesty period.   In the interest 
          of fairness to persons who may be trespassing on state land, 
          this bill contains a number of important due process protections 
          for persons against whom the Commission seeks to impose 
          administrative action, including a hearing and a 30-day notice 
          period.  In addition, this bill requires the Commission, in 
          assessing any penalty, to consider several factors such as the 
          extent of the violation, the violator's degree of culpability 
          and cooperation, any past history of violations, and the impact 
          of the violation on the environment or public interest.  
          Finally, the bill provides a 6-month amnesty period during which 
          a person can remedy the violation or submit a lease application 
          to the Commission without incurring fines or penalties. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          State Lands Commission

           Opposition 
           
          None on file
           








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          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334