BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1577
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          Date of Hearing:  June 18, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
               SB 1577 (Committee on Natural Resources and Water) - As 
                               Amended:  May 21, 2012
           
          SENATE VOTE  :  37-0
           
          SUBJECT  :  Resources: vessels: removal: public trust lands: City 
          of Newport Beach

           SUMMARY  :  Authorizes a local peace officer to immediately remove 
          a vessel from a public waterway without notice under certain 
          circumstances; provides resources to the Department of Boating 
          and Waterways (DBW) to remove abandoned vessels; and grants in 
          trust to the City of Newport Beach (City) 10.3 acres of public 
          trust lands.

           EXISTING LAW  :

          1)Vessel Removal

             a)   Classifies any hulk, derelict, wreck, or 
             a)   erty value limit and certain notice requirements.

          1)Public Trust Lands

             a)   Grants in trust to the City all the right, title, and 
               interest of the state in public trust lands located at 
               Marina Park.
                
             b)   Terminates the leases issued from the State Lands 
               Commission to the City for the Marina Park public trust 
               lands.  

             c)   Requires the City to hold, operate, and manage, in trust 
               for the benefit of the statewide public, the Marina Park 
               public trust lands in accordance with the common law public 
               trust doctrine and the terms, trusts, and conditions set 
               forth in Chapter 78 of the Statutes of 1978, as amended by 
               Chapter 728 of the Statutes of 1994, Chapter 317 of the 
               Statutes of 1997, Chapter 745 of the Statutes of 2001, and 
               Chapter 361 of the Statutes of 2004. 









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           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs. 
           

           COMMENTS  :  

              a)   Purpose of the Bill (Vessel Removal).   While the AWAF 
               program has been helpful in removing abandoned vessels, it 
               only benefits waterways where the local government is 
               willing to apply for grants and provide ten percent 
               matching funds.  To address the abandoned vessel problems 
               in other areas of the state, this bill authorizes DBW to 
               use AWAF monies to remove other abandoned vessels and other 
               navigational hazards in the state.  This bill also 
               attempparts of any ship, vessel, or other watercraft sunk, 
               beached, or allowed to remain in an unseaworthy or 
               dilapidated condition for a period longer than 30 days as 
               "abandoned property."  A public agency may take title to 
               and sell, destroy, or dispose the abandoned property for 
               purposes of abatement.

             b)   Authorizes a local peace officer to remove a vessel from 
               a public waterway when (1) the vessel is left unattended 
               and obstructs the normal movement of traffic or in a 
               condition that creates a hazard to other vessels using the 
               waterway, to public safety, or to the property of another; 
               (2) the vessel is either stolen or embezzled; (3) the 
               person in charge of the vessel is incapacitated; (4) an 
               officer arrests any person operating or in control of the 
               vessel; (5) the vessel interferes with, or otherwise poses 
               a danger to, navigation or to the public health, safety, or 
               welfare; (6) the vessel poses a threat to adjacent 
               wetlands, levies, sensitive habitat, any protected wildlife 
               species, or, (7) water quality; the vessel's registration 
               has been expired for more than a year.

             c)   Prohibits a person from abandoning a vessel upon a 
               public waterway or public or private property without the 
               express or implied consent of the owner or person in lawful 
               possession or control of the property.  Such an offense is 
               an infraction punishable by a fine between $1,000 and 
               $3,000. In addition, the court may order the defendant to 
               pay removal and disposal costs.

             d)   Authorizes a public agency to sell or dispose of any 








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               abandoned property as described in subparagraph "a" or any 
               unseaworthy derelict or hulk described in subparagraph "b" 
               if the  property's value is less than $2,000 and notice and 
               an opportunity for a hearing are provided to the owner.

             e)   Creates the Abandoned Watercraft Abatement Fund (AWAF) 
               which is funded by the Harbors and Watercraft Revolving 
               Fund.  AWAF is administered by DBW to provide grants to 
               local agencies to remove, store, and dispose of abandoned, 
               wrecked, or dismantled recreational vessels that pose a 
               substantial hazard to navigation.  Local agencies receiving 
               a grant must provide 10 percent in matching funds.  

          1)Public Trust Lands

             a)   Protects, pursuant to the common law doctrine of the 
               public trust, 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 (public trust 
               lands) are to be held in trust by the state for the benefit 
               of the people of California.  

             b)   Requires SLC to be the steward and manager of the 
               state's public trust lands.  SLC has direct administrative 
               control over the state's public trust lands and oversight 
               authority over public trust lands granted by the 
               Legislature to local public agencies (granted lands).

             c)   Allows SLC to lease public trust lands, enter into 
               boundary line agreements, and in limited circumstances, 
               exchange public trust lands for non-trust lands

             d)   Granted state public trust lands to over 80 local public 
               agencies 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.  The City was 
               granted public trust lands pursuant to Chapter 78 of the 
               Statutes of 1978, as amended by Chapter 728 of the Statutes 
               of 1994, Chapter 317 of the Statutes of 1997, Chapter 745 
               of the Statutes of 2001, and Chapter 361 of the Statutes of 
               2004.









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           THIS BILL  : 

          1)Vessel Removal

             a)   Authorizes a local peace officer to take immediate 
               action, without notice, to remove a vessel under any of the 
               circumstances described in subparagraph "b" of paragraph 
               "1" in "EXISTING LAW."

             b)   In addition to the grant program referenced in 
               subparagraph "e" of paragraph "1" in "EXISTING LAW," 
               authorizes AWAF monies to be used by DBW itself for the 
               removal of abandoned vessels and other navigational 
               hazards.

             c)   Creates liability immunity for the state and any city, 
               county, or special district or any designated agent or 
               employee for any injuries or damages to a person or entity, 
               public or private, connected to or resulting from any of 
               the following: 

               i)     The nonremoval, removal, processing, or disposal of 
                 abandoned property, wrecked or dismantled vessels, or any 
                 other partially submerged object that poses a hazard to 
                 navigation.

               ii)    The nonremoval, removal, processing, or disposal of 
                 a surrendered vessel.

          1)Deletes the conditions to vessel removal described in 
            subparagraph "d" of paragraph "1" in "EXISTING LAW" related to 
            the $2,000 propts to improve the abandoned vessel removal laws 
            by allowing immediate removal of certain vessels, removing 
            limitations on the types of vessels that can be sold or 
            disposed of, and amending certain notice requirements.  

          2)Amendments (Vessel Removal).   The vessel removal provisions of 
            this bill were added on May 21, 2012.  Since then, several 
            parties have expressed concern over the liability and notice 
            provisions.   The author of the bill, which is the Senate 
            Committee on Natural Resources and Water, has indicated that 
            it would like to remove the vessel removal provisions from the 
            bill.  

           3)Background (Public Trust Land).   For over 100 years, the 








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            Legislature has granted public trust lands to local public 
            agencies so the lands can be managed locally for the benefit 
            of the people of California.  Virtually all grants have been 
            made by non-codified statutes.  A granting statute generally 
            explains what lands have been granted and how they are to be 
            managed by the grantee.  Without a tidelands grant, the 
            Commission has direct authority to lease or otherwise manage 
            public trust lands.  

            On September 1, 2011, SLC approved a boundary line agreement 
            with the City.  The purpose of the agreement was to settle a 
            title dispute concerning certain lands located in Marina Park 
            in the Lower Newport Bay.  The agreement confirmed the public 
            trust interest on 10.3 acres of land bayward of the 
            established boundary line and terminated any public trust 
            interest landward of that line.  These 10.3 acres are not 
            subject to the City's previous legislative grant of public 
            trust lands.  As such, SLC has administrative authority over 
            the land.  SLC has leased the public trust lands to the City 
            for a period of 49 years.  The City has plans to use the 
            public trust lands to develop an expanded marina, sailing 
            center, parking lot, public access paths, American Legion 
            facilities, aquatic beachfront park, and open space for 
            water-related recreation.  These uses are all consistent with 
            the public trust doctrine.
            This bill will grant the 10.3 acres of public trust lands to 
            the City, thus bringing these lands into the same management 
            as the rest of the City's granted public trust lands.  With 
            this grant, it is no longer necessary for the City to have 
            leases with the Commission for these lands.

           4)Double Referred.   This bill is dual referred and will be heard 
            in the Local Government Committee should it pass out of 
            Natural Resources.  

           REGISTERED SUPPORT / OPPOSITION  : 

           Support 
           
          California State Sheriffs' Association

           Opposition 
           
          None on file









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          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092