BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 551|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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THIRD READING
Bill No: SB 551
Author: DeSaulnier (D)
Amended: 5/31/11
Vote: 27
SENATE NATURAL RES. AND WATER COMMITTEE : 9-0, 4/26/11
AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe,
Padilla, Simitian, Wolk
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/26/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SUBJECT : State property: tidelands transfer: City of
Pittsburg
SOURCE : City of Pittsburg
DIGEST : This bill grants certain tide lands to the city
of Pittsburg, requires the city to use the lands for the
benefit of the public, and requires the city to remit to
the state 20 percent of all gross revenues generated from
those lands.
ANALYSIS : Existing law:
1. 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.
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2. Grants to the City of Martinez all right, title, and
interest of the state to three 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 grants additional tide and submerged lands to the
City of Pittsburg. This bill expands the current Pittsburg
grant and makes the following changes to the existing grant
agreement:
1. Pittsburg must submit a trust lands use plan by January
1, 2017.
2. Pittsburg may not lease any of the trust lands for terms
exceeding 49 years.
3. Pittsburg must report to the commission every five
years, beginning in 2022, regarding the utilization of
trust lands for the five preceding years.
4. Require that at the end of every fiscal year beginning
on June 30, 2012, Pittsburg to transmit 20 percent of
all gross revenue generated from the trust lands to the
commission. Of this amount, 80 percent would be
deposited in the General Fund and the remaining 20
percent would be deposited in the LBF.
Background
The State Lands Commission (SLC) is charged with managing
and protecting the state's tide and submerged lands for the
public trust. With legislative approval, the SLC may grant
state tidelands to local governments for their use and
maintenance.
Article 4 of Chapter 4 of Part 1 of Division 6 of the
Public Resources Code (commencing with 6361) grants tide
and submerged lands to City of Pittsburg for the
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development of commerce, navigation, fishing, recreation,
and the other public trust uses. These lands are to be
held by the city for public trust purposes under a number
of conditions, including:
1. Pittsburg must submit its plan to develop and preserve
the granted lands to the SLC for approval by July 1,
2008.
2. Pittsburg may not lease any of the trust lands for terms
exceeding 66 years.
3. At the end of every third fiscal year, 85 percent of the
excess trust revenues that are not being reserved for
future capital expenditures will be transferred to the
Kapiloff Land Bank Fund.
Chapter 815 of the Statutes of 1976 and Chapter 387 of the
Statutes of 2002 grant certain tidelands to the City of
Martinez.
SLC is the trustee of the Land Bank Fund (LBF) created
pursuant to the Kapiloff Land Bank Act of 1982 (commencing
with Section 8600 of the Public Resources Code. The LBF
may receive funds for mitigation or from title settlements.
Additionally, the LBF can receive revenues from any party
for the purpose of providing management and improvement of
real property held by the commission for the public trust.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Administrative costs Minor costs, to be
reimbursed by grantees General
Lease revenue losses $166 $331
$331General
Lease revenue gains Unknown additional revenues
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over time General /
Special
*
* Land Bank Fund
SUPPORT : (Verified 5/27/11)
City of Pittsburg (co-source)
GenOn Energy
ARGUMENTS IN SUPPORT : The City of Pittsburg, co-sponsor
of this bill, states, "This amendment will extend the area
of the grant from the State Lands commission to include the
area to the west that was annexed into the City of
Pittsburg in 2009. The City is very interested in
developing our shoreline which includes old underutilized
industrial properties which we feel can be developed into
productive uses that will benefit the people of Pittsburg
and the region as a whole."
CTW:kc 5/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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