BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 152 (Pavley)
          
          Hearing Date: 05/16/2011        Amended: 04/25/2011
          Consultant: Brendan McCarthy    Policy Vote: GO 10-2
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          ____
          BILL SUMMARY: SB 152 requires the State Lands Commission to 
          charge rent for private recreational piers constructed on state 
          lands.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Lease revenues         ($225)     ($450)      ($675)    General

          Lease oversight        $150       $250        $250      General

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          ____

          STAFF COMMENTS: 
          
          Under current law, the public trust doctrine holds that tide and 
          submerged lands and the beds of lakes, streams, and other 
          navigable waterways are "public trust lands" held by the state 
          for the benefit of the people of California.  These lands are 
          held to promote the public's interest in water or 
          water-dependent activities such as commerce, navigation, 
          fisheries, environmental preservation and recreation. The State 
          Lands Commission is the steward of the state's public trust 
          lands. The Commission is authorized to allow individuals to 
          construct structures on state lands, provided that the use of 
          such structures is consistent with the public trust doctrine. 
          The Commission may charge rent for the use of state lands. 
          However, current law specifically prohibits the State Lands 
          Commission from charging rent for private recreational piers 
          constructed on state lands for the use of the adjacent private 
          property owner.

          SB 152 repeals the prohibition on charging rent for private 
          recreational piers on state lands. Under the bill, rents would 








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          be based on market conditions. The bill's requirements would not 
          apply to any existing lease that is in place on January 1, 2012. 


          The State Lands Commission issues ten year leases for private 
          recreational piers. Rent would only be imposed for new leases or 
          renewals of existing leases. The State Lands Commission 
          indicates that initial revenues would be about $225,000 per year 
          and would increase gradually to about $2.25 million per year 
          over a ten year period as all leases are renewed under new 
          terms.

          The State Lands Commission also indicates that it will need one 
          additional position initially and a second additional position 
          as the workload associated with overseeing rent-paying leases 
          increases.