BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 860|
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                              UNFINISHED BUSINESS


          Bill No:  SB 860
          Author:   Senate Natural Resources and Water Committee
          Amended:  8/18/11 
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COM.  :  9-0, 4/26/11
          AYES:  Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe, 
            Padilla, Simitian, Wolk

          SENATE FLOOR  :  38-0, 05/02/11 (Consent)  
          AYES:  Alquist, Anderson, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson, 
            Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, 
            Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete 
            McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, 
            Steinberg, Strickland, Vargas, Walters, Wolk, Wright, 
            Wyland
          NO VOTE RECORDED:  Berryhill, Yee

           ASSEMBLY FLOOR  :  79-0, 9/7/11 - See last page for vote


           SUBJECT  :    Tidelands and submerged lands:  public trust 
          lands:  mineral
                        rights

           SOURCE  :     Author


           DIGEST  :    This bill makes clean-up amendments regarding 
          the states mineral interest, redevelopment agencies 
          successors, and hazardous materials remediation to statutes 
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          authorizing public trust land exchanges and grants for 
          redevelopment projects at Hunters Point Naval Shipyard and 
          Candlestick Point, Treasure Island, and the Naval Air 
          Station Alameda. 

           Assembly Amendments  make technical corrections regarding 
          the reconveyance of trust lands to local entities, the 
          boundary description of trust lands, and a hazardous 
          materials remediation with respect to some trust lands, and 
          correct drafting errors.

           ANALYSIS  :    Existing law:

          1.Protects, pursuant to the common law Public Trust 
            Doctrine, the public's right to use California's 
            waterways for commerce, navigation, fishing, boating, 
            natural habitat protection, and other water oriented 
            activities. The Public Trust Doctrine provides that 
            filled and unfilled tide and submerged lands and the beds 
            of lakes, streams, and other navigable waterways (i.e. 
            public trust lands) are to be held in trust by the state 
            for the benefit of the people of California. 

          2.Establishes that the State Lands Commission (SLC) is the 
            steward and manager of the state's public trust lands. 

          3.Grants, in trust, state public trust lands to over 80 
            local public agencies (a.k.a. local trustees or grantees) 
            to be managed for the benefit of all the people of the 
            state and pursuant to the Public Trust Doctrine and terms 
            of the applicable granting statutes.  SLC has oversight 
            authority over these granted public trust lands to ensure 
            that they are managed pursuant to the Public Trust 
            Doctrine and granting statutes. 

          4.Grants in trust to the Port of San Francisco, pursuant to 
            the "Burton Act" (Chapter 1333, Statutes of 1968), 
            administrative control over the public trust lands in the 
            Harbor of San Francisco for purposes of commerce, 
            navigation, and fisheries and subject to other terms and 
            conditions specified in the act. 

          5.Authorizes, pursuant to SB 792 (Leno), Chapter 203, 
            Statutes of 2009, a public trust land exchange at the 

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            Hunters Point Naval Shipyard and Candlestick Point; 
            requires SLC to ensure that lands are not exchanged into 
            the trust until all necessary hazardous materials 
            remediation for those lands has been completed; grants to 
            the San Francisco Redevelopment Agency administrative 
            control over the public trust lands at the Hunters Point 
            Naval Shipyard. 

          6.Authorizes, pursuant to the "Treasure Island Conversion 
            Act" (AB 699 (Migden), Chapter 898, Statutes of 1997) the 
            City and County of San Francisco to designate the 
            Treasure Island Development Authority (TIDA) as the 
            redevelopment agency for Treasure Island; requires that 
            all money received or collected by TIDA from the use or 
            operation of the trust property be deposited in the 
            Treasure Island Trust Fund to be used only for purposes 
            consistent with the public trust for navigation, 
            commerce, and fisheries; and designates TIDA as the 
            trustee of the trust property. 

          7.Authorizes, pursuant to the "Treasure Island Public Trust 
            Exchange Act" (SB 1873 (Burton), Chapter 543, Statutes of 
            2004; SB 815 (Migden), Chapter 660, Statutes of 2007), a 
            public trust land exchange at Treasure Island and Yerba 
            Buena Island, subject to SLC's approval. 

          8.Authorizes, pursuant to the "Naval Air Station Alameda 
            Public Trust Exchange Act" (SB 2049 (Perata), Chapter 
            734, Statutes of 2000), a public trust land exchange at 
            the former Naval Air Station Alameda; requires SLC to 
            ensure that lands are not exchanged into the trust until 
            all necessary hazardous materials remediation for those 
            lands has been completed; grants to the Alameda Reuse and 
            Redevelopment Agency and the City of Alameda the 
            responsibility of administering the public trust lands 
            within the Naval Air Station Alameda property. 

          This bill:

          1.With regard to the statutes authorizing public trust land 
            exchanges and grants at Hunters Point Naval Shipyard and 
            Candlestick Point, clarifies that: 

             A.   The state reserves the mineral interest in lands 

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               granted to the San Francisco Redevelopment Agency; 

             B.   If the state enters into a public trust land 
               exchange, it may quitclaim all mineral rights in the 
               lands that it is transferring out of the public trust; 
               and, 

             C.   If the San Francisco Redevelopment Agency 
               dissolves, its successor agency is to take its duties 
               and responsibilities for the purposes of administering 
               the granted public trust lands. 

          1.With regard to the statutes authorizing public trust land 
            exchanges and grants at Treasure Island: 

             A.   Clarifies that the state reserves the mineral 
               interest in lands granted to TIDA subject to 
               restrictions regarding exploration; 

             B.   Clarifies that if the state enters into a public 
               trust land exchange, it may quitclaim all mineral 
               rights in the lands that it is transferring out of the 
               public trust; and, 

             C.   Establishes that the City and County of San 
               Francisco, and not the Port of San Francisco, is the 
               successor agency to TIDA if TIDA were to dissolve. 

          1.With regard to the statutes authorizing public trust land 
            exchanges and grants at Naval Air Station Alameda: 

             A.   Establishes that the requirements to complete all 
               necessary hazardous materials remediation pursuant to 
               the Naval Air Station Alameda Public Trust Exchange 
               Act are satisfied if either of the following occurs: 

               1)     All remedial actions necessary to protect human 
                 health and the environment with respect to the 
                 hazardous substances on the land have been completed 
                 as determined in accordance with the Federal 
                 Facility Agreement for Alameda Naval Air Station 
                 between United States Environmental Protection 
                 Agency, the United States Department of the Navy, 
                 and the State of California; or, 

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               2)     The United States has obtained a warranty 
                 deferral, approved by the Governor, and SLC finds 
                 that sufficient liability measures and 
                 implementation measures will be in place upon the 
                 completion of the land exchange. 

             A.   Clarifies that the state reserves the mineral 
               interest in lands granted to the Alameda Reuse and 
               Redevelopment Agency and the City of Alameda subject 
               to restrictions regarding exploration; and, 

             B.   Clarifies that if the state enters into a public 
               trust land exchange pursuant to the Naval Air Station 
               Alameda Public Trust Exchange Act, it may quitclaim 
               all mineral rights in the lands that it is 
               transferring out of the public trust. 

           Background
           
          Tide and submerged lands are held in trust by the state for 
          the benefit of the people of California.  The SLC is the 
          steward and manager of the state's public trust lands.  SLC 
          can grant trust lands to a local agency for management 
          under the public trust (granted lands).  SLC can also 
          negotiate an exchange of public trust lands.

          In 2009, the Legislature approved and the Governor signed, 
          such a land grant and exchange in SB 792 (Leno), Chapter 
          203, Statutes of 2009, with the San Francisco Redevelopment 
          Agency, in order to reconfigure Candlestick Point and 
          Hunters Point Shipyard.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  8/22/11)

          City and County of San Francisco

           ARGUMENTS IN SUPPORT  :    According to 
          Suter-Wallauch-Corbett and Associates on behalf of the City 
          and County of San Francisco, "�T]the City and the State 
          Lands Commission are concerned that the words "any other 
          conveyance" could be construed as including the conveyance 

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          of lands in which the trust is to be terminated.  This 
          would be contrary to the approach generally taken in trust 
          exchanges, in which the State does not reserve mineral 
          rights in lands exchanged out of the trust. SB 860 
          clarifies that the mineral rights reservation applies only 
          to lands impressed with the trust."


           ASSEMBLY FLOOR  :  79-0, 9/7/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Gorell


          CTW:nl  9/8/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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