BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 551 (DeSaulnier)
Hearing Date: 05/09/2011 Amended: 04/07/2011
Consultant: Brendan McCarthy Policy Vote: NR&W 9-0
_________________________________________________________________
____
BILL SUMMARY: SB 551 grants certain tide lands to the cities of
Pittsburg and Martinez. The bill requires these cities to use
the lands for the benefit of the public. The bill requires the
cities to remit to the state 20 percent of all gross revenues
generated from those lands.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Administrative costs Minor costs, to be reimbursed by
granteesGeneral
Lease revenue losses $166 $331 $331 General
Lease revenue gains Unknown additional revenues over
timeGeneral /
Special
*
* Land Bank Fund.
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Under current law, the State Lands Commission may grant public
trust lands, such as tide lands and submerged lands, to local
governments with legislative permission. Local grantees are
required to manage such public trust lands for the public
benefit. Current law grants certain public trust lands to the
cities of Pittsburg and Martinez, respectively. In addition, the
State Lands Commission directly oversees some leases on tide
lands in Pittsburg and Martinez. Under both the existing grants
and the leases, the state General Fund receives all of the lease
SB 551 (DeSaulnier)
Page 1
revenues generated from these properties.
SB 551 revises the existing grants and authorizes the grant of
additional public trust lands to the cities of Pittsburg and
Martinez. The bill requires both cities to submit a plan for the
public trust lands by 2017 and limits the duration of any lease
on those lands to 49 years. The bill requires both cities to
remit 20 percent of all gross lease revenues generated from the
granted lands to the state. Of these remittances, 80 percent are
to be deposited in the General Fund and 20 percent are to be
deposited in the Land Bank Fund. (The Land Bank Fund is used by
the State Lands Commission to purchase lands for public
benefit.)
Under the bill, any administrative costs incurred by the State
Lands Commission in administering the grants will be covered by
the grantees. Such costs are not expected to be significant.
In the short term, the bill will reduce General Fund revenues by
about $330,000 per year. However, the State Lands Commission
believes that, over time, the bill will lead to increased state
revenues. The Commission indicates that the two cities are
better able to develop these properties in ways that will
generate lease revenues. Under the terms of the bill, the state
will potentially share in the increased revenues (in other
words, the state will get a smaller share of a larger revenue
stream). The extent of future revenues is unknown.
The Land Bank Fund is continuously appropriated to the State
Lands Commission. By requiring the deposit of revenues in the
Land Bank Fund, this bill makes an appropriation.