BILL ANALYSIS �
SB 152
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Date of Hearing: June 29, 2011
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
SB 152 (Pavley) - As Amended: May 25, 2011
SENATE VOTE : 24-15
SUBJECT : Public lands: general leasing law: littoral
landowners.
SUMMARY : Requires the State Lands Commission (SLC) to charge
rent for a private recreational pier constructed on state lands.
Specifically, this bill :
1)Repeals the prohibition against charging rent for any private
recreational pier constructed on state lands for the use of a
littoral landowner.
2)Makes findings and declarations that the use of state-owned
lands for a private recreational pier is not a property right
for littoral or riparian landowners, but a privilege granted
by SLC on behalf of the state.
3)Requires SLC to charge rent for a private recreational pier
constructed on state lands. Rent shall be based on local
conditions and local fair annual rental values.
4)Specifies that the provisions of this measure shall not apply
to the following:
a) A lease in effect on July 1, 2011, for the term of that
lease; and,
b) A lease for which the application and application fees
were submitted to SLC prior to March 31, 2011.
5)Defines "recreational pier" to include a fixed facility for
the docking or mooring of boats.
6)Deletes conflicting findings and declarations.
EXISTING LAW :
1)Requires SLC, upon receipt of an application to lease public
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lands, to appraise the lands and fix the annual rent or other
consideration therefor.
2)Prohibits rent from being charged for any private recreational
pier constructed on state lands for the use of a littoral
landowner.
3)Requires a littoral landowner to pay to SLC, in accordance
with its rules and regulations, SLC's expenses in issuing a
lease or permit for the state lands.
4)Defines "littoral landowner" as (a) any natural person or
persons who own littoral land improved with, and used solely
for, a single-family dwelling or (b) any association of, or
any nonprofit corporation consisting of, natural persons who
own parcels of land, each of which is zoned or used solely for
a single-family dwelling, and who are entitled to the use of a
private recreational pier on littoral land that is owned by
the association or nonprofit corporation and is not more than
one mile from any such parcel owned by a member thereof.
5)Defines "recreational pier" to include any fixed facility for
the docking or mooring of boats that is constructed for the
use of the littoral landowner.
FISCAL EFFECT : Unknown
COMMENTS :
1)The state owns tide and submerged lands for the purposes of
commerce, navigation, recreation, fisheries, and the
protection of natural resources. These lands are held in
trust for the benefit of all people of the state. State law
authorizes SLC to lease these state lands for appropriate
purposes in exchange for annual rent with the proceeds being
deposited in the General Fund.
However, existing law prohibits rent from being charged for
some private recreational piers constructed on state lands
even though the structure and the associated improvements
occupy space on a state owned waterway. Recreational piers
include, but are not limited to, fixed piers and floating
docks and any affiliated boat houses and boatlifts and
individual private mooring buoys.
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2)In 1976, the Attorney General (AG) issued a formal opinion
concluding that the issuance of a rent-free lease to certain
landowners for a private recreational pier on state land is an
unconstitutional gift of public property. The AG opined that
the Legislature cannot put state lands under the use and
control of private parties except if it is in the interest of
the public statewide. The AG concluded that there was no such
public benefit provided by rent-free private recreational pier
leases.
3)In response, the Legislature in 1977 adopted findings that
there is a substantial public benefit from the construction
and maintenance of private recreational piers. However,
according to the author it is arguable whether these purported
benefits have materialized. The reality is that these
recreational piers and buoys are generally used exclusively by
the landowner for private purposes. In fact, many of these
piers are fenced and can also block access to public areas,
such as beaches.
4)According to the author the rent free leases for piers provide
a benefit to an arbitrary special class of owners of private
piers located on state property. This benefit is only
conferred on a special class of owners whose recreational
piers are built on state land. The rent-free provisions do not
apply to recreational piers built over certain public trust
lands, known as granted lands, which are state lands managed
on behalf of the state by local government. As a result,
private pier owners on Lake Tahoe receive free rent while
private pier owners on Clear Lake pay market-rate rent despite
the only difference between these situations is Clear Lake is
managed by a local government and Lake Tahoe is managed by
SLC. According to SLC most of the rent-free leases are for
piers located in three general areas: Lake Tahoe/Donner
(almost half of all leases), the Sacramento River Delta, and
Huntington Harbor in Orange County.
5)Support arguments: Supporters argue that rent-free leases for
piers offer no significant public benefit thereby constituting
an unconstitutional gift of public lands. Moreover,
SB 152 fixes an inequity amongst state lands that are managed by
SLC versus those managed in trust by a local government.
Opposition arguments: Opponents of the bill argue that
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property values of littoral landowners that have built docks
will diminish as a result of the bill. They also argue that
the individual homeowners absorbed the cost of constructing
and maintaining the piers under the assumption that they would
be rent-free.
6)This bill is double-referred to the Committees on Natural
Resources and Local Government.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Lands Commission �SPONSOR]
Sierra Club California
Opposition
Individual letters (34)
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958