BILL NUMBER: SB 551	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 7, 2011

INTRODUCED BY   Senator DeSaulnier

                        FEBRUARY 17, 2011

    An act relating to state property.   An act
to add Article 5 (commencing with Section 6362) to, and to repeal and
add Article 4 (commencing with Section 6361) of, Chapter 4 of Part 1
of Division 6 of the Public Resources Co   de, and to amend
Sections 3, 13, and 14 of Chapter 815 of the Statutes of 1976,
relating to tidelands, and making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 551, as amended, DeSaulnier. State property:  tidelands
 transfer:  Marina   City of Pittsburg and
City of  Martinez Marina. 
    (1) Existing law grants tidelands and submerged lands to the City
of Pittsburg, subject to specified conditions, for purposes of
commerce, navigation, and fisheries, and for other public trust
purposes. Existing law grants to the City of Martinez all right,
title, and interest of the state to 3 specified parcels of land in
the Straits of Carquinez. The Kapiloff Land Bank Act creates the Land
Bank Fund and continuously appropriates moneys in the fund, subject
to a statutory trust, to the State Lands Commission, acting as the
Land Bank Trustee, to acquire real property or any interest in real
property for the purposes of public trust title settlements. 

   This bill would repeal the existing legislative grant to the City
of Pittsburg and would enact a new grant of tidelands and submerged
lands, as described, to the City of Pittsburg. The bill would also
revise the existing legislative grant of tidelands and submerged
lands to the City of Martinez to include the Martinez Marina, subject
to similar specified conditions and would make conforming changes
relative to this revision. The bill would require the trust lands to
be held by each city, as trustee, for the benefit of all the people
of the state for purposes consistent with the public trust doctrine,
including the protection of maritime or water dependent commerce,
navigation, and fisheries, and the preservation of the lands in their
natural state for scientific study, open space, wildlife habitat,
and water-oriented recreation.  
   The bill would require, on June 30, 2012, and at the end of every
fiscal year thereafter, that 20% of all gross revenues generated from
the trust lands be transmitted to the commission, for allocation by
the Treasurer, of which 80% would be deposited in the General Fund
and 20% in the Kapiloff Land Bank Fund, thereby making an
appropriation.  
   The bill would require the commission, by January 1, 2014, to
survey, monument, and record a plat and a metes and bounds
description of the trust lands subject to the bill.  
   The bill would impose a state-mandated local program by requiring,
among other things, that the Cities of Pittsburg and Martinez each
submit to the commission for its approval a trust lands use plan, as
prescribed. The bill would require each city to file a report with
the commission by September 30, 2022, and every 5 years thereafter, a
detailed statement of its trust land uses and to annually file a
report of trust revenues and expenditures.  
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   Existing law authorizes the disposition of state property,
including transfer to local agencies, subject to specified criteria.
 
   This bill would express the intent of the Legislature to enact
legislation to provide for the transfer of the Martinez Marina,
currently under the jurisdiction of the State Lands Commission, to
the City of Martinez. 
   Vote:  majority  2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Article 4 (commencing with Section
6361) of Chapter 4 of Part 1 of Division 6 of the   Public
Resources Code   is repealed.  
  SEC. 2.    Article 4 (commencing with Section 6361) is
added to Chapter 4 of Part 1 of Division 6 of the Public Resources
Code, to read:

      Article 4.  Conveyance of Tidelands and Submerged Land to the
City of Pittsburg


   6361.  For purposes of this article, the following definitions
shall apply:
   (a) "Public trust doctrine" means the common law doctrine, as
enunciated by the court in National Audubon Soc. v. Superior Court
(1983) 33 C.3d 419, and other relevant judicial decisions, specifying
the state's authority as sovereign to exercise a continuous
supervision and control over the navigable waters of the state, the
lands underlying those waters, and nonnavigable tributaries to
navigable waters, including the maritime or water dependent commerce,
navigation, and fisheries, and the preservation of lands in their
natural state for scientific study, open space, wildlife habitat, and
water-oriented recreation.
   (b) "State" means the State of California.
   (c) "Trustee" means the City of Pittsburg, a municipal corporation
of the State of California, in Contra Costa County.
   (d) "Trust lands" means all tidelands and submerged lands, whether
filled or unfilled, situated within the boundaries of the City of
Pittsburg including those lands annexed to the City of Pittsburg
pursuant to Section 56740 of the Government Code on December 31,
2009, as surveyed, monumented, and recorded pursuant to Section
6361.9, except as provided in Section 6361.8.
   (e) "Trust revenues" means all revenues received from trust lands
and trust assets.
   (f) "Trust lands use plan" or "plan" means the trust use land plan
required to be submitted by the trustee to the commission pursuant
to Section 6361.3.
   (g) "Trust lands use report" means the trust lands use report of
its utilization of the trust lands required to be submitted by the
trustee pursuant to Section 6361.4.
   6361.1.  There is hereby granted in trust to the City of
Pittsburg, and to its successors, all of the rights, title, and
interest of the state, held by the state by virtue of its sovereignty
in and to all tide and submerged lands, whether filled or unfilled,
situated in the City of Pittsburg, County of Contra Costa, including
those lands annexed to the City of Pittsburg pursuant to Section
56740 of the Government Code on December 31, 2009, as surveyed,
monumented, and recorded pursuant to Section 6361.9, except as
provided in Section 6361.8.
   6361.2.  The trust grant specified in Section 6361.1 is subject to
all of the following express conditions:
   (a) The trust lands shall be held by the trustee in trust for the
benefit of all the people of the state for purposes consistent with
the public trust doctrine, including, but not limited to, maritime or
water dependent commerce, navigation, and fisheries, preservation of
the lands in their natural state for scientific study, open space,
wildlife habitat, and water-oriented recreation.
   (b) On and after January 1, 2012, the use of the trust lands shall
conform to an approved trust lands use plan, as required by
subdivision (e) of Section 6361.3.
   (c) The trustee shall not, at any time, grant, convey, give, or
otherwise alienate or hypothecate the trust lands, or any part of the
trust lands, to any person, firm, entity, or corporation for any
purposes whatsoever.
   (d) The trustee may lease the trust lands, or any part of the
trust lands, for limited periods, not exceeding 49 years, for
purposes consistent with the trust upon which those lands are held,
as specified in subdivision (a). The trustee may collect and retain
rents and other trust revenues from those leases, under rules and
regulations adopted in accordance with subdivision (d) of Section
6361.3, and in accordance with all of the following requirements:
   (1) On and after January 1, 2012, all leases or agreements
proposed or entered into by the trustee shall be consistent with the
trust lands use plan approved by the commission, as required by
subdivision (e) of Section 6361.3.
   (2) The lease rental rates shall be for fair market value.
   (3) The lease terms shall be consistent with the terms of this
article.
   (4) The lease shall be in the best interest of the state.
   (e) When managing, conducting, operating, or controlling the trust
lands or an improvement, betterment, or structure on the trust
lands, the trustee or his or her successor shall not discriminate in
rates, tolls, or charges for any use or service in connection with
those actions and shall not discriminate against or unlawfully
segregate any person or group of persons because of sex, race, color,
creed, national origin, ancestry, or physical disability for any use
or service in connection with those actions.
   (f) The state shall have the right to use without charge, a
transportation, landing, or storage improvement, betterment, or
structure constructed upon the trust lands for a vessel or other
watercraft or railroad owned or operated by, or under contract to,
the state.
   (g) The trust lands are subject to the express reservation and
condition that the state may, at any time in the future, use those
lands, or any portion of those lands, for highway purposes without
compensation to the City of Pittsburg or a person, firm, or public or
private corporation claiming a right to those lands, except if the
improvements have been placed with legal authority upon the property
taken by the state for highway purposes, compensation shall be made
to the person entitled to the value of the interest in the
improvements taken or the damages to that interest.
   (h) There is reserved to the people of the state the right to fish
in the waters over the trust lands, with the right of convenient
access to those waters over the trust lands for this purpose.
   (i) There is excepted and reserved to the state all remains or
artifacts of archeological or historical significance and all
deposits of minerals, including, but not limited to, all substances
specified in Section 6407 in the trust lands, and the right to
prospect for, mine, and remove those deposits from the lands.
   (j) The trustee shall not authorize a capital outlay project,
lease, or agreement for port industrial facilities, including, but
not limited to, a marine terminal, pipeline, or other related energy
facility, on the trust lands without first requesting and receiving
the approval of the commission. Prior to approving a capital outlay
project, lease, or agreement, the commission shall consult with other
governmental agencies, and the commission shall not approve the
project, lease, or agreement, unless the commission determines that
the project is in, and for, the best interest of the people of the
state and consistent with applicable provisions of law.
   (k) The trustee shall reimburse the commission for all expenses
incurred in the administration of this article, including periodic
audits or investigations.
   6361.3.  (a) On or before January 1, 2017, the trustee shall
submit to the commission a trust lands use plan describing any
proposed development, preservation, or other use of the trust lands.
The trustee shall thereafter submit to the commission for approval
all changes of, amendments to, or extensions of, the trust lands use
plan.
   (b) The commission shall review with reasonable promptness the
trust lands use plan submitted by the trustee and any changes or
amendments to determine whether they are consistent with the public
trust and the requirements of this article. Based upon its review,
the commission shall either approve or disapprove the plan. If the
commission disapproves the plan the commission shall notify the
trustee and the trustee shall submit a revised plan to the commission
no later than 180 days after the date of notice of disapproval. If
the commission determines the revised plan is inconsistent with the
common law public trust doctrine and the requirements of this
article, all rights, title, and interest of the trustee in and to the
trust lands and improvements on the trust lands shall revert to the
state.
   (c) The trust lands use plan shall consist of a plan, program, or
other document that includes all of the following:
   (1) A general description of the type of uses planned or proposed
for the trust lands. The location of these land uses shall be shown
on a map or aerial photograph.
   (2) The projected statewide benefit to be derived from the planned
or proposed uses of the trust lands, including, but not limited to,
the financial benefit and the furtherance of those purposes set forth
in Section 6361.2.
   (3) The proposed method of financing the planned or proposed uses
of the trust lands, including estimated capital costs, annual
operating costs, and anticipated annual trust revenues.
   (4) An estimated timetable for implementation of the trust land
use plan or any phase of the plan.
   (5) A description of how the trustee proposes to protect and
preserve natural and manmade resources and facilities located on
trust lands and operated in connection with the use of the trust
lands, including, but not limited to, addressing impacts from sea
level rise.
   (d) The governing body of the trustee shall also submit to the
commission, as part of the trust lands use plan, for its approval,
procedures, rules, and regulations to govern the use of or
development of the trust lands. These rules and regulations shall
include, but are not limited to, lease rates, the basis upon which
the rates are established, lease terms and conditions, provisions for
renegotiation of rates and terms and assignments, and any other
information as may be required by the commission.
   (e) Any use of the trust lands, including, but not limited to, all
leases or agreements proposed, or entered into, by the trustee after
January 1, 2012, shall be consistent with the trust lands use plan
submitted by the trustee and approved by the commission.
   (f) Upon request, the trustee shall submit to the commission a
copy of all leases and agreements entered into, renewed, or
renegotiated.
   6361.4.  (a) On or before September 30, 2022, and on or before
September 30 of every succeeding fifth year, the trustee shall submit
a report of its utilization of the trust lands for each immediately
preceding five-calendar-year period ending with June 30 of the
calendar year in which the report is required to be submitted.
   (b) The report required by this section shall include all of the
following:
   (1) A general description of the uses to which the trust lands
have been placed during the period covered by the report.
   (2) A list of the holders of leases or permits that have been
granted or issued by the trustee, which list shall specify all of the
following, as to each holder:
   (A) The use to which the trust lands have been placed by the owner
or holder.
   (B) The consideration provided for in each lease or permit, and
the consideration actually received by the trustee for the lease or
permit granted or issued.
   (C) An enumeration of the restrictions that the trustee has placed
on the use of the trust lands, and each area of the trust lands, for
the period covered by the report.
   6361.5.  (a) The trustee shall demonstrate good faith in carrying
out the provisions of its trust land use plan and amending it when
necessary in accordance with Section 6361.3.
   (b) If the commission determines that the trustee substantially
failed to improve, restore, preserve, or maintain the trust lands, as
required by the trust land use plan, or has unreasonably delayed
implementation of their trust use plan, all rights, title, and
interest of the trustee in and to the trust lands and improvements on
the trust lands shall revert to the state.
   6361.6.  (a) (1) The trustee shall establish and maintain
accounting procedures, in accordance with generally accepted
accounting principles, providing accurate records of all revenues
received from the trust lands and trust assets and of all
expenditures of those revenues.
   (2) All trust revenues received from trust lands and trust assets
shall be expended only for those uses and purposes consistent with
this article. The trustee shall provide for the segregation of funds
derived from the use of the trust lands by the trustee from other
city municipal funds, so as to ensure that trust revenues are only
expended to enhance or maintain the trust lands in accordance with
the uses and purposes for which the trust lands are held.
   (3) Trust revenues may be expended to acquire appropriate upland
properties to benefit and enhance the trust, subject to a
determination by the commission that this acquisition is consistent
with this article and in the best interests of the state. Property
acquired with these trust revenues shall be considered an asset of
the trust and subject to the terms and conditions of this article.
   (b) On or before October 1 of each year, the trustee shall file
with the commission a detailed statement of all trust revenues and
expenditures relating to its trust lands and trust assets, including
obligations incurred but not yet paid, covering the fiscal year
preceding submission of the statement. The commission may specify the
form and content of this statement. The statement shall meet both of
the following requirements:
   (1) The statement shall be prepared according to generally
accepted accounting principles.
   (2) The statement shall be specific to the trust lands and trust
assets and shall not include city municipal financial or accounting
information unrelated to the trust lands and trust assets.
   (c) (1) Before expending trust revenues for any single capital
improvement on the trust lands involving an amount in excess of two
hundred fifty thousand dollars ($250,000) in the aggregate, the
trustee shall file with the commission a detailed description of the
capital improvement not less than 120 days prior to the time of any
disbursement of trust revenues for, or in connection with, that
capital improvement.
   (2) Within 120 days after the time of a filing specified in
paragraph (1), the commission shall determine, whether the capital
improvement is in the statewide interest and benefit and is
consistent with this article. The commission may request the opinion
of the Attorney General on the matter, and if the commission makes
this request, the Attorney General shall deliver a copy of the
opinion to the trustee with the notice of its determination.
   (3) If the commission notifies the trustee that the capital
improvement is not authorized, the trustee shall not disburse any
trust revenues for, or in connection with, the capital improvement,
unless it is determined to be authorized by a final order or judgment
of a court of competent jurisdiction.
   (4) The trustee may bring suit against the state for the purpose
of securing an order or judgment for purposes of paragraph (3), which
suit shall have priority over all other civil matters. Service shall
be made upon the executive officer of the commission and the
Attorney General, and the Attorney General shall defend the state in
that suit. If judgment is given against the state in the suit, no
costs may be recovered.
   (d) On June 30, 2012, and at the end of every fiscal year
thereafter, 20 percent of all gross revenue generated from the trust
lands shall be transmitted to the commission. Of this amount
transmitted, the commission shall allocate 80 percent to the
Treasurer, for deposit in the General Fund, and 20 percent to the
Treasurer, for deposit in the Kapiloff Land Bank Fund for expenditure
pursuant to Division 7 (commencing with Section 8600) for management
of the commission's grant lands program.
   (e) The commission may, from time to time, institute a formal
inquiry to determine that the terms and conditions of this article,
and amendments to this article, have been complied with, and that all
other applicable provisions of law concerning the trust lands are
being complied with in good faith.
   (f) The commission shall approve in advance of expenditure any
reimbursement for expenditures of nontrust revenues for improvements
made to the trust or, if not approved, those expenditures shall be
deemed a gift to the trust.
   6361.7.  (a) If the commission finds that the trustee has violated
or is about to violate the terms of its trust grant or any other
principle of law relating to its obligation under the public trust
doctrine or under this article, the commission shall notify the
trustee of the violation.
   (b) The trustee shall have 30 days from receipt of a notice of
violation to conform to the terms of its grant and the principles and
laws under the public trust doctrine. If the trustee fails or
refuses to take those actions, the commission may bring an action to
enforce the rights of the state and people as settlor beneficiary of
the public trust doctrine.
   (c) The Attorney General shall represent the state and people in
all actions or proceedings taken pursuant to this section. If the
judgment is given against the state in the action or proceeding, no
costs shall be recovered from the state and people.
   6361.8.  The lands identified as Brown's Island, Commission Lease
Number PRC 4966 CPN Pipeline, and Commission Lease Number PRC 8736
are not included as trust lands for purposes of this article.
   6361.9.  (a) On or before January 1, 2014, the commission shall
survey, monument, and record a plat and a metes and bounds
description of the trust lands in the office of the county recorder
in the county or counties in which the lands are located. Upon
recordation, the survey, monuments, plat and description shall be
binding upon the state, the grantee, and their successors in
interest.
   (b) The cost of the survey and recordation shall be paid by the
trustee.
   (c) The requirements of Section 6359 do not apply to the trust
lands granted pursuant to this article. 
   SEC. 3.    Article 5 (commencing with Section 6362)
is added to Chapter 4 of Part 1 of Division 6 of the  
Public Resources Code   , to read:  

      Article 5.  Conveyance of Tidelands and Submerged Land to the
City of Martinez


   6362.  For purposes of this article, the following definitions
shall apply:
   (a) "Public trust doctrine" means the common law doctrine, as
enunciated by the court in National Audubon Soc. v. Superior Court
(1983) 33 C.3d 419, and other relevant judicial decisions, specifying
the state's authority as sovereign to exercise a continuous
supervision and control over the navigable waters of the state, the
lands underlying those waters, and nonnavigable tributaries to
navigable waters, including the protection of maritime or water
dependent commerce, navigation, and fisheries, and the preservation
of the lands in their natural state for scientific study, open space,
wildlife habitat, and water-oriented recreation.
   (b) "State" means the State of California.
   (c) "Trustee" means the City of Martinez, a municipal corporation
of the State of California, in Contra Costa County.
   (d) "Trust lands" means all tidelands and submerged lands, whether
filled or unfilled, granted pursuant to Chapter 815 of the Statutes
of 1976, as revised pursuant to Section 6362.1, situated in the City
of Martinez, County of Contra Costa, and as surveyed, monumented, and
recorded pursuant to Section 6362.9.
   (e) "Trust revenues" means all revenues received from trust lands
and trust assets.
   (f) "Trust lands use plan" or "plan" means the trust use land plan
required to be submitted by the trustee to the commission pursuant
to Section 6362.3.
   (g) "Trust lands use report" means the trust lands use report of
its utilization of the trust lands required to be submitted by the
trustee pursuant to Section 6362.4.
   6362.1.  (a) The grant made pursuant to Section 3 of Chapter 815
of the Statutes of 1976, as amended by Section 1 of Chapter 387 of
the Statutes of 2002, is hereby amended and recodified.
   (b) There is hereby granted to the City of Martinez, and to its
successors, all right, title, and interest of the state held by
virtue of its sovereignty in and to the Martinez Marina and the three
parcels of land situated in the County of Contra Costa and described
as follows:


   Parcel "A"

   Commencing at the intersection of the north line of Tideland
Survey No. 9 and the east line of North Court Street as shown on Map
of "City of Martinez Waterfront Area" filed March 10, 1955, in Volume
16, Pages 39 to 43, Licensed Surveyor's Maps in the Office of the
Contra Costa County Recorder; thence along said northerly line of
Tideland Survey No. 9 North 76   56� 53? East 488.36 feet;
thence leaving said northerly line North 20   03� 30? West
130.00 feet; thence North 63   50� 00? East 85.00 feet to
the true point of beginning; thence North 03   30� 00? East
110.00 feet; thence North 12   10� 00? East 660.00 feet;
thence North 05   05� 39? West 119.71 feet; thence North 88
  03� 16? East 242.85 feet; thence South 12   10�
00? West 797.24 feet; thence South 63   50� 00? West 233.84
feet to the point of beginning.


   Parcel "B"

   Commencing at the intersection of the north line of Tideland
Survey No. 9 and the east line of North Court Street as shown on Map
of "City of Martinez Waterfront Area" filed March 10, 1955, in Volume
16, Pages 39 to 43, Licensed Surveyor's Maps in the Office of the
Contra Costa County Recorder; thence along said northerly line of
Tideland Survey No. 9 North 76   56� 53? East 488.36 feet;
thence leaving said northerly line North 20   03� 30? West
130.00 feet; thence North 63   50� 00? East 318.84 feet to
the true point of beginning being the southeasterly corner of Parcel
"A" described above; thence North 12   10� 00? East 797.24
feet along the east line of said Parcel "A"; thence leaving said east
line North 88   03� 16? East 156.26 feet; thence South 89
  00� 00? East 100.00 feet; thence South 66   20�
00? East 120.00 feet; thence South 25   45� 00? East 453.00
feet; thence South 68   10� 00? West 385.00 feet; thence
South 63   50� 00? West 416.16 feet to the point of
beginning.


   Parcel "C"

   That parcel of land described in the lease to the Southern Pacific
Transportation Company by the City of Martinez per Resolution No.
111 (1959 series) dated August 5, 1959, and Resolution No. 72-75
dated June 4, 1975.
   The bearings and distances used in the above descriptions of
Parcels "A" and "B" are based on the California Coordinate System
Zone 3 as shown on Map of "City of Martinez Waterfront Area" filed
March 10, 1955, in Volume 16, Pages 39 to 43, Licensed Surveyor's
Maps in the Office of the Contra Costa County Recorder.
   (c) These lands shall be held by the city and its successor in
trust for the following uses, in which there is a general, statewide
interest, and upon the following express conditions:
   (1) The Martinez Marina shall be used only for marina purposes.
                (2) Parcel "A" shall be used only for Marina spoils
and spoil removal, parking, boat storage, chandlery, recreation,
landscaping, and any other use permitted by the Martinez Waterfront
Land Use Plan.
   (3) Parcel "B" shall be used only for Marina spoils and spoil
removal and any other use permitted by the Martinez Waterfront Land
Use Plan.
   (4) Parcel "C" shall be used only in its present use as a railroad
right-of-way.
   (d) Further, all of these uses shall accord with the terms and
conditions of the lease and agreements specified in subdivision (f)
of Section 1 of Chapter 815 of the Statutes of 1976, and the
development and operation of the entire area of these parcels shall
be under the supervision of the City-State Committee, in the same
manner as is presently provided by the lease and agreements with
respect to lands subject to the lease and agreements.
   (e) The grant made by this section shall not become effective
unless and until the city files quitclaim to all previously granted
tidelands that are within the area hereby granted to the district by
Chapter 815 of the Statutes of 1976 and described in Section 15 of
Chapter 815 of the Statutes of 1976.
   6362.2.  The trust grant specified in Section 6362.1 is subject to
all of the following express conditions:
   (a) The trust lands shall be held by the trustee in trust for the
benefit of all the people of the state for purposes consistent with
the public trust doctrine, including, but not limited to, maritime or
water dependent commerce, navigation, and fisheries, preservation of
the lands in their natural state for scientific study, open space,
wildlife habitat, and water-oriented recreation.
   (b) On and after January 1, 2012, the use of the trust lands shall
conform to an approved trust lands use plan, as required by
subdivision (e) of Section 6362.3.
   (c) The trustee shall not, at any time, grant, convey, give, or
otherwise alienate or hypothecate the trust lands, or any part of the
trust lands, to any person, firm, entity, or corporation for any
purposes whatsoever.
   (d) The trustee may lease the trust lands, or any part of the
trust lands, for limited periods, not exceeding 49 years, for
purposes consistent with the trust upon which those lands are held,
as specified in subdivision (a). The trustee may collect and retain
rents and other trust revenues from those leases, under rules and
regulations adopted in accordance with subdivision (d) of Section
6362.3, in accordance with the following requirements:
   (1) All leases or agreements proposed or entered into by the
trustee shall be consistent with the trust lands use plan approved by
the commission, as required by subdivision (e) of Section 6362.3.
   (2) The lease rental rates shall be for fair market value.
   (3) The lease terms shall be consistent with the terms of this
act.
   (4) The lease shall be in the best interest of the state.
   (e) When managing, conducting, operating, or controlling the trust
lands or an improvement, betterment, or structure on the trust
lands, the trustee or his or her successor shall not discriminate in
rates, tolls, or charges for any use or service in connection with
those actions and shall not discriminate against or unlawfully
segregate any person or group of persons because of sex, race, color,
creed, national origin, ancestry, or physical disability for any use
or service in connection with those actions.
   (f) The state shall have the right to use without charge, a
transportation, landing, or storage improvement, betterment, or
structure constructed upon the trust lands for a vessel or other
watercraft or railroad owned or operated by, or under contract to,
the state.
   (g) The trust lands are subject to the express reservation and
condition that the state may, at any time in the future, use those
lands, or any portion of those lands, for highway purposes without
compensation to the City of Martinez or a person, firm, or public or
private corporation claiming a right to those lands, except if
improvements have been placed with legal authority upon the property
taken by the state for highway purposes, compensation shall be made
to the person entitled to the value of the interest in the
improvements taken or the damages to that interest.
   (h) There is reserved to the people of the state the right to fish
in the waters over the trust lands, with the right of convenient
access to such waters over the trust lands for this purpose.
   (i) There is excepted and reserved to the state all remains or
artifacts of archeological or historical significance and all
deposits of minerals, including, but not limited to, all substances
specified in Section 6407 in the trust lands, and the right to
prospect for, mine, and remove those deposits from the lands.
   (j) The trustee shall not authorize a capital outlay project,
lease, or agreement for port industrial facilities, including, but
not limited to, a marine terminal, pipeline, or other related energy
facility, on the trust lands without first requesting and receiving
the approval of the commission. Prior to approving a capital outlay
project, lease, or agreement, the commission shall consult with other
governmental agencies, and the commission shall not approve the
project, lease, or agreement, unless the commission determines that
the project is in, and for, the best interest of the people of the
state and consistent with applicable provisions of law.
   (k) The trustee shall reimburse the commission for all expenses
incurred in the administration of this article, including periodic
audits or investigations.
   6362.3.  (a) On or before January 1, 2017, the trustee shall
submit to the commission a trust lands use plan describing any
proposed development, preservation, or other use of the trust lands.
The trustee shall thereafter submit to the commission for approval
all changes of, amendments to, or extensions of, the trust lands use
plan.
   (b) The commission shall review with reasonable promptness the
trust lands use plan submitted by the trustee and any changes or
amendments to determine that they are consistent with the public
trust and the requirements of this article. Based upon its review,
the commission shall either approve or disapprove the plan. If the
commission disapproves the plan the commission shall notify the
trustee and the trustee shall submit a revised plan to the commission
no later than 180 days after the date of notice of disapproval. If
the commission determines the revised plan is inconsistent with the
common law public trust doctrine and the requirements of this
article, all rights, title, and interest of the trustee in and to the
trust lands and improvements on the trust lands shall revert to the
state.
   (c) The trust lands use plan shall consist of a plan, program, or
other document that includes all of the following:
   (1) A general description of the type of uses planned or proposed
for the trust lands. The location of these land uses shall be shown
on a map or aerial photograph.
   (2) The projected statewide benefit to be derived from the planned
or proposed uses of the trust lands, including, but not limited to,
the financial benefit and the furtherance of those purposes set forth
in Section 6362.2.
   (3) The proposed method of financing the planned or proposed uses
of the trust lands, including estimated capital costs, annual
operating costs, and anticipated annual trust revenues.
   (4) An estimated timetable for implementation of the trust land
use plan or any phase of the plan.
   (5) A description of how the trustee proposes to protect and
preserve natural and manmade resources and facilities located on
trust lands and operated in connection with the use of the trust
lands, including, but not limited to, addressing impacts from sea
level rise.
   (d) The governing body of the trustee shall also submit to the
commission, as part of the trust lands use plan, for its approval,
procedures, rules, and regulations to govern the use of or
development of the trust lands. These rules and regulations shall
include, but not be limited to, lease rates, the basis upon which the
rates are established, lease terms and conditions, provisions for
renegotiation of rates and terms and assignments, and any other
information as may be required by the commission.
   (e) Any use of the trust lands, including, but not limited to, all
leases or agreements proposed, or entered into, by any trustee after
January 1, 2012, shall be consistent with the trust lands use plan
submitted by the trustee and approved by the commission.
   (f) Upon request, the trustee shall submit to the commission a
copy of all leases and agreements entered into, renewed, or
renegotiated.
   6362.4.  (a) On or before September 30, 2022, and on or before
September 30 of every succeeding fifth year, the trustee shall submit
a report of its utilization of the trust lands for each immediately
preceding five-calendar-year period ending with June 30 of the
calendar year in which the report is required to be submitted.
   (b) The report required by this section shall include all of the
following:
   (1) A general description of the uses to which the trust lands
have been placed during the period covered by the report.
   (2) A list of the holders of leases or permits that have been
granted or issued by the trustee, which list shall specify all of the
following, as to each holder:
   (A) The use to which the trust lands have been placed by the owner
or holder.
   (B) The consideration provided for in each lease or permit, and
the consideration actually received by the trustee for the lease or
permit granted or issued.
   (C) An enumeration of the restrictions that the trustee has placed
on the use of the trust lands, and each area of the trust lands, for
the period covered by the report.
   6362.5.  (a) The trustee shall demonstrate good faith in carrying
out the provisions of its trust land use plan and amending it when
necessary in accordance with Section 6362.3.
   (b) If the commission determines that the trustee substantially
failed to improve, restore, preserve, or maintain the trust lands, as
required by the trust land use plan, or has unreasonably delayed
implementation of their trust use plan, all rights, title, and
interest of the trustee in and to the trust lands and improvements on
the trust lands shall revert to the state.
   6362.6.  (a) (1) The trustee shall establish and maintain
accounting procedures, in accordance with generally accepted
accounting principles, providing accurate records of all revenues
received from the trust lands and trust assets and of all
expenditures of those revenues.
   (2) All trust revenues received from trust lands and trust assets
shall be expended only for those uses and purposes consistent with
this article, so as provided for in the segregation of funds derived
from the use of the trust lands by the trustee from other city
municipal funds, and to ensure that trust revenues are only expended
to enhance or maintain the trust lands in accordance with the uses
and purposes for which the trust lands are held.
   (3) Trust revenues may be expended or used to acquire appropriate
upland properties to benefit and enhance the trust, subject to a
determination by the commission that this acquisition is consistent
with this article and in the best interests of the state. Property
acquired with these trust revenues shall be considered an asset of
the trust and subject to the terms and conditions of this article.
   (b) On or before October 1 of each year, the trustee shall file
with the commission a detailed statement of all trust revenues and
expenditures relating to its trust lands and trust assets, including
obligations incurred but not yet paid, covering the fiscal year
preceding submission of the statement. The commission may specify the
form and content of this statement. The statement shall meet both of
the following requirements:
   (1) The statement shall be prepared according to generally
accepted accounting principles.
   (2) The statement shall be specific to the trust lands and trust
assets and shall not include city municipal financial or accounting
information unrelated to the trust lands and trust assets.
   (c) (1) Before expending trust revenues for any single capital
improvement on the trust lands involving an amount in excess of two
hundred fifty thousand dollars ($250,000) in the aggregate, the
trustee shall file with the commission a detailed description of the
capital improvement not less than 120 days prior to the time of any
disbursement of trust revenues for, or in connection with, that
capital improvement.
   (2) Within 120 days after the time of a filing specified in
paragraph (1), the commission shall determine, whether the capital
improvement is in the statewide interest and benefit and is
consistent with this article. The commission may request the opinion
of the Attorney General on the matter; and if it does so, a copy of
the opinion shall be delivered to the trustee with the notice of its
determination.
   (3) If the commission notifies the trustee that the capital
improvement is not authorized, the trustee shall not disburse any
trust revenues for, or in connection with, the capital improvement,
unless it is determined to be authorized by a final order or judgment
of a court of competent jurisdiction.
   (4) The trustee may bring suit against the state for the purpose
of securing an order or judgment for purposes of paragraph (3), which
suit shall have priority over all other civil matters. Service shall
be made upon the executive officer of the commission and the
Attorney General, and the Attorney General shall defend the state in
that suit. If judgment is given against the state in the suit, no
costs may be recovered.
   (d) On June 30, 2012, and at the end of every fiscal year
thereafter, 20 percent of all gross revenue generated from the trust
lands shall be transmitted to the commission. Of this amount
transmitted, 80 percent shall be transferred to the General Fund and
20 percent shall be deposited into the Kapiloff Land Bank Fund
(Division 7 (commencing with Section 8600) for expenditure pursuant
to that division for management of the commission's granted lands
program.
   (e) The commission may, from time to time, institute a formal
inquiry to determine that the terms and conditions of this article,
and amendments to this article, have been complied with, and that all
other applicable provisions of law concerning the trust lands are
being complied with in good faith.
   (f) The commission shall approve in advance of expenditure any
reimbursement for expenditures of nontrust revenues for improvements
made to the trust or, if not approved, those expenditures shall be
deemed a gift to the trust.
   6362.7.  (a) If the commission finds that the trustee has violated
or is about to violate the terms of its trust grant or any other
principle of law relating to its obligation under the public trust
doctrine or under this article, the commission shall notify the
trustee of the violation.
   (b) The trustee shall have 30 days from receipt of a notice of
violation to conform to the terms of its grant and the principles and
laws under the public trust doctrine. If the trustee fails or
refuses to take those actions, the commission may bring an action to
enforce the rights of the state and people as settlor beneficiary of
the public trust doctrine.
   (c) The Attorney General shall represent the  state and people in
all actions or proceedings taken pursuant to this section. If the
judgment is given against the state in the action or proceeding, no
costs shall be recovered from the state and people.
   6362.9.  (a) On or before January 1, 2014, the commission shall
survey, monument, and record a plat and a metes and bounds
description of the trust lands in the office of the county recorder
in the county or counties in which the lands are located. Upon
recordation, the survey, monuments, plat and description shall be
binding upon the state, the grantee, and their successors in
interest.
   (b) The cost of the survey and recordation shall be paid by the
trustee.
   (c) The requirements of Section 6359 do not apply to the trust
lands granted pursuant to this article. 
   SEC. 4.    Section 3 of Chapter 815 of the Statutes
of 1976, as amended by Section 1 of Chapter 387 of the Statutes of
2002, is amended to read: 
   Sec. 3.  (a)  The grant made pursuant to this section is
hereby amended and recodified as Section 6362.1 of the Public
Resources Code and shall be subject to Article 5 (commencing with
Section 6362) of Chapter 4 of Part 1 of Division 6 of the Public
Resources Code. 
    (b)    There is hereby granted to the City of
Martinez, and to its successors, all right, title  ,  and
interest of the state held by virtue of its sovereignty in and to the
 Martinez Marina and the  three parcels of land situated in
the County of Contra Costa and described as follows:


   Parcel "A"

   Commencing at the intersection of the north line of Tideland
Survey No. 9 and the east line of North Court Street as shown on Map
of "City of Martinez Waterfront Area" filed March 10, 1955, in Volume
16, Pages 39 to 43, Licensed Surveyor's Maps in the Office of the
Contra Costa County Recorder; thence along said northerly line of
Tideland Survey No. 9 North 76  56� 53? East 488.36 feet; thence
leaving said northerly line North 20  03� 30? West 130.00 feet;
thence North 63  50� 00? East 85.00 feet to the true point of
beginning; thence North 03  30� 00? East 110.00 feet; thence North 12
  10� 00? East 660.00 feet; thence North 05  05� 39? West 119.71
feet; thence North 88  03� 16? East 242.85 feet; thence South 12  10�
00? West 797.24 feet; thence South 63  50� 00? West 233.84 feet to
the point of beginning.


   Parcel "B"

   Commencing at the intersection of the north line of Tideland
Survey No. 9 and the east line of North Court Street as shown on Map
of "City of Martinez Waterfront Area" filed March 10, 1955, in Volume
16, Pages 39 to 43, Licensed Surveyor's Maps in the Office of the
Contra Costa County Recorder; thence along said northerly line of
Tideland Survey No. 9 North 76  56� 53? East 488.36 feet; thence
leaving said northerly line North 20  03� 30? West 130.00 feet;
thence North 63  50� 00? East 318.84 feet to the true point of
beginning being the southeasterly corner of Parcel "A" described
above; thence North 12  10� 00? East 797.24 feet along the east line
of said Parcel "A"; thence leaving said east line North 88  03� 16?
East 156.26 feet; thence South 89  00� 00? East 100.00 feet; thence
South 66  20� 00? East 120.00 feet; thence South 25  45� 00? East
453.00 feet; thence South 68  10� 00? West 385.00 feet; thence South
63  50� 00? West 416.16 feet to the point of beginning.


   Parcel "C"

   That parcel of land described in the lease to the Southern Pacific
Transportation Company by the City of Martinez per Resolution No.
111 (1959 series) dated August 5, 1959, and Resolution No. 72-75
dated June 4, 1975.
   The bearings and distances used in the above descriptions of
Parcels "A" and "B" are based on the California Coordinate System
Zone 3 as shown on Map of "City of Martinez Waterfront Area" filed
March 10, 1955, in Volume 16, Pages 39 to 43, Licensed Surveyor's
Maps in the Office of the Contra Costa County Recorder. 
   (b) Such
    (c)     These  lands shall be held by
the city and its successor in trust for the following uses, in which
there is a general, statewide interest, and upon the following
express conditions: 
   (1) The Martinez Marina shall be used only for marina purposes.
 
   Parcel 
    (2)     Parcel  "A" shall be used only
for Marina spoils and spoil removal, parking, boat storage,
chandlery, recreation, landscaping, and any other use permitted by
the Martinez Waterfront Land Use Plan. 
   Parcel 
    (3)     Parcel  "B" shall be used only
for Marina spoils and spoil removal and any other use permitted by
the Martinez Waterfront Land Use Plan. 
   Parcel 
    (4)     Parcel  "C" shall be used only
in its present use as a railroad right-of-way. 
   Further 
    (d)     Further  , all  such
  of these  uses shall accord with the terms and
conditions of the lease and agreements specified in subdivision (f)
of Section 1  of Chapter 815 of the Statutes of 1976  , and
the development and operation of the entire area of  such
  these  parcels shall be under the supervision of
the City-State Committee, in the same manner as is presently provided
by  such   the  lease and agreements with
respect to lands subject to  such   the 
lease and agreements. 
   The 
    (e)     The  grant made by this
section shall not become effective unless and until the city files
quitclaim to all previously granted tidelands that are within the
area hereby granted to the district by  this act 
 Chapter 815 of the Statutes of 1976  and described in
Section 15  of Chapter 815 of the Statutes of 1976  .
   SEC. 5.    Section 13 of Chapter 815 of the Statutes
of 1976 is amended to read: 
   Sec. 13.  (a) The State Lands Commission shall, from time to time,
recommend to the Legislature such amendments as it may deem
necessary in the terms and conditions of this act.
   (b) The State Lands Commission shall, from time to time, institute
a formal inquiry to determine that the terms and conditions of this
act, and amendments thereto, have been complied with, and that all
other applicable provisions of law concerning these specific granted
lands are being complied with in good faith.
   (c) The State Lands Commission shall, on or before December 31st
of each year, report to the Chief Clerk of the Assembly and to the
Secretary of the Senate the full details of any transaction or
conditions reported to the commission pursuant to this act which it
deems to be in probable conflict with the requirements of this act or
with any other provision of law. 
   (d) This section applies only to the tidelands and submerged lands
granted to the district pursuant to Section 7 of Chapter 815 of the
Statutes of 1976. 
   SEC. 6.    Section 14 of Chapter 815 of the Statutes
of 1976 is amended to read: 
   Sec. 14.   (a)    The Legislature reserves the
right to amend or modify, in whole or in part, the tidelands and
submerged lands granted and conveyed in trust pursuant to 
this act   Chapter 815 of the Statutes of 1976  ;
provided, however, that the state shall thereupon assume and be bound
by all lawful transactions and obligations related to  such
  those  lands entered into or created by the
district during its holding of  such  those
 lands. 
   (b) Subdivision (a) applies only to the tidelands and submerged
lands granted to the district pursuant to Section 7 of Chapter 815 of
the Statutes of 1976.  
   (c) The trust grant made to the City of Martinez pursuant to
Section 3 of Chapter 815 of the Statutes of 1976, as amended by
Section 1 of Chapter 387 of the Statutes of 2002, is subject to
Article 5 (commencing with Section 6362) of Chapter 4 of Part 1 of
Division 6 of the Public Resources Code. 
   SEC. 7.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to provide for the transfer of that property in
the City of Martinez known as the Martinez Marina, currently under
the jurisdiction of the State Lands Commission, to the City of
Martinez.