BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 968
                                                                  Page  1

          Date of Hearing:   June 24, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                      SB 968 (Hill) - As Amended:  June 9, 2014

                              As Proposed to be Amended

           SENATE VOTE  :  22-11
           
          SUBJECT  :  MARTINS BEACH PROPERTY: ACCESS ROAD

           KEY ISSUE  :  IN ORDER TO RESTORE PUBLIC ACCESS TO MARTINS BEACH,  
          SHOULD THE STATE LANDS COMMISSION BE DIRECTED TO EXERCISE ITS  
          EXISTING AUTHORITY TO PURSUE ACQUISITION OF A RIGHT-OF-WAY OR  
          EASEMENT TO THE BEACH IF, BY JANUARY 1, 2016, NEGOTIATIONS TO  
          RESTORE PUBLIC ACCESS FAIL TO YIELD AN AGREEMENT BETWEEN THE  
          COMMISSION AND THE OWNER OF THE LAND CONTAINING THE ONLY ACCESS  
          ROAD TO THE BEACH?

                                      SYNOPSIS
          
          According to the author, Martins Beach, located in San Mateo  
          County, is a significant local coastal resource that had been  
          accessible to local residents and visitors for more than 100  
          years.  However, after the sale of the property adjacent to the  
          beach in 2008, Californians are now unable to access Martins  
          Beach by land because the only road leading to the beach has  
          been closed by the new land owner who controls the road and  
          adjacent property. To address the current lack of access to  
          Martins Beach caused by this closure, this bill seeks to  
          reinforce the public's right to access California beaches and  
          coastal resources by taking steps to reestablish an access route  
          to Martins Beach.  First, the bill would direct the State Lands  
          Commission to negotiate with the owner of the property to  
          acquire a right-of-way or easement to ensure public access to  
          and along the shoreline of Martins Beach.  The bill clarifies  
          that this directive in no way prohibits the owners from  
          voluntarily providing public access upon terms acceptable to the  
          Commission. If, by January 1, 2016, the Commission is unable to  
          reach an agreement with the owner to acquire a right-of-way or  
          easement or the owner does not voluntarily provide public  
          access, then  as proposed to be amended  , this bill would simply  
          direct the Commission to acquire a right-of-way or easement  
          pursuant to its existing statutory authority, but without any  








                                                                  SB 968
                                                                  Page  2

          requirement to use eminent domain to do so.  

          Before the author's proposed amendments to address eminent  
          domain issues, the bill was opposed by California Strategies &  
          Advocacy, LLP, on behalf of its client, the owner of the Martins  
          Beach property.  In their opposition letter, the owner's  
          representative objected to the bill's directive to use eminent  
          domain, contending, among other things, that the use of eminent  
          domain in this particular case is not legally justified and  
          would be inappropriate as a matter of public policy.  As a  
          result of the author's proposed amendments, the committee was  
          very recently informed that the owners of the Martins Beach  
          property have agreed to withdraw their opposition.  As a result,  
          at the time of this analysis, there is no known opposition to  
          the bill.

           SUMMARY  :  Directs the State Lands Commission to exercise its  
          existing authority to pursue acquisition of a right-of way or  
          easement that will reestablish a route of public access to  
          Martins Beach.  Specifically,  this bill  :    

          1)Directs the State Lands Commission ("Commission") to consult,  
            and enter into any necessary negotiations, with the owners of  
            two specified parcels of land in San Mateo County ("Martins  
            Beach property") to acquire a right-of-way or easement,  
            pursuant to existing statutory authority, for the creation of  
            a public access route to and along the shoreline, including  
            the sandy beach, at Martins Beach.

          2)Clarifies that nothing in this bill prohibits the owners of  
            the property from voluntarily providing public access to and  
            along the shoreline at Martins Beach upon terms acceptable to  
            the Commission.

          3)Provides that if the Commission is unable to reach an  
            agreement to acquire a right-of-way or easement or the owners  
            do not voluntarily provide public access to the beach by  
            January 1, 2016, then the Commission shall acquire a  
            right-of-way or easement for the creation of a public access  
            route to and along the shoreline, including the sandy beach,  
            at Martins Beach.

          4)Directs the Commission to enter into consultation and  
            negotiation with local stakeholders, including, but not  
            limited to, nonprofit entities, local and regional governments  








                                                                  SB 968
                                                                  Page  3

            and governmental entities, to address the ongoing management  
            and operation of any property acquired pursuant to this bill.

           EXISTING LAW  :  

          1)Provides that no individual, partnership, or corporation,  
            claiming or possessing the frontage or tidal lands of a  
            harbor, bay, inlet, estuary, or other navigable water in this  
            state, shall be permitted to exclude the right of way to such  
            water whenever it is required for any public purpose, nor to  
            destroy or obstruct the free navigation of such water; and the  
            Legislature shall enact such laws as will give the most  
            liberal construction to this provision, so that access to the  
            navigable waters of this state shall be always attainable for  
            the people thereof.  (Cal. Constitution, Article X, Sec. 4.)

          2)Finds and declares that the basic goals of the state for the  
            coastal zone are, among other things, to maximize public  
            access to and along the coast and maximize public recreational  
            opportunities in the coastal zone consistent with sound  
            resource conservation principles and constitutionally  
            protected rights of private property owners.  (Public  
            Resources Code Section 30001.5(c).)

          3)Provides that no lands owned by the state which front upon or  
            are near to any lake, navigable stream or other body of  
            navigable water, convenient access to which is not provided by  
            public road or roads, or otherwise, shall ever be sold, leased  
            or rented, without reserving to the people of the state an  
            easement across the lands for convenient access to such  
            waters.  (Public Resources Code Section 6210.4.)

          4)Declares that the right of eminent domain exists in the state  
            to all frontages on the navigable waters of the state.   
            (California Constitution, Article X, Sec. 1.)

          5)Authorizes the State Lands Commission, in the name of the  
            state, to acquire by purchase, lease, gift, exchange, or, if  
            all negotiations fail, by condemnation, a right-of-way or  
            easement across privately owned land or other land that it  
            deems necessary to provide access to public land, including  
            school land, tide or submerged lands, and lands subject to the  
            public trust for commerce, navigation, and fisheries, to which  
            there is no access available.  (Public Resources Code Section  
            6210.9.)








                                                                  SB 968
                                                                  Page  4


          6)Provides that private property "may be taken or damaged for  
            public use only when just compensation, ascertained by a jury  
            unless waived, has first been paid to, or into court for, the  
            owner."  (Cal. Constitution, Article I, Sec. 19(a).)  Defines  
            "just compensation" as a property's fair market value "as  
            determined by any method of valuation that is just and  
            equitable."  (Code of Civil Procedure Sections 1263.310 and  
            1263.320.)

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

           COMMENTS  :  This bill seeks to direct the State Lands Commission  
          ("Commission") to enter into negotiations with the owner of the  
          Martins Beach property to acquire a right-of-way or easement for  
          the creation of a public access route to the beach.  If by  
          January 1, 2016, the Commission is unable to reach an agreement  
          with the owner to acquire a right-of-way or easement or the  
          owner does not voluntarily provide public access, then as  
          proposed to be amended, this bill would simply direct the  
          Commission to acquire a right-of-way or easement pursuant to its  
          existing statutory authority, but without any requirement to use  
          eminent domain to do so.
           
          Background on the Martins Beach property.   The Martins Beach  
          property consists of approximately 53 acres of beachfront  
          property in San Mateo County, located about 10 miles south of  
          Half Moon Bay, along Cabrillo Highway (also known as Highway 1.)  
           According to the author, the unique geography and tidal regime  
          of Martins Beach make it exceptionally valuable for surfing,  
          fishing, and swimming.  As a practical matter, however, there is  
          no reasonable access to Martins Beach from other beaches to the  
          north or south because the sandy beach is sheltered by high  
          cliffs that stretch out into the Pacific Ocean, forming an  
          isolated cove.  Unless one was to rappel down the cliffs, the  
          only access to the beach is by boat from the off-shore Pacific  
          Ocean tidelands to the west, or by the private Martins Beach  
          Road from the east, leading from the entrance on Highway 1 to  
          the beach.  

          According to the author, from early in the 20th century until  
          2008, public access via Martins Beach Road had been allowed for  
          recreational use.  Martins Beach is a significant local coastal  
          resource that has been accessible to local residents and  
          visitors for more than 100 years.  Under the former owners of  








                                                                  SB 968
                                                                  Page  5

          the property, the Deeney family, Martins Beach was a popular  
          community beach used for picnicking, fishing, and surfing, among  
          other things.  According to reports, the Deeneys opened a  
          general store on the property in the 1950's and charged a small  
          fee to the public for parking and access to the beach ($5 at the  
          time the property was sold in 2008.)  (Surfers Lose Fight to  
          Access Half Moon Bay Beach;  San Francisco Chronicle  (Oct. 25,  
          2013).)

          On July 22, 2008, the Martins Beach property was sold, and  
          ownership transferred to two limited liability companies  
          (hereafter "owner" or "Martins Beach, LLC").  After the  
          purchase, the gate to the access road was closed, cutting off  
          access to the beachfront, and security guards reportedly now  
          monitor the beach property.  According to the author:

             Californians are unable to access Martins Beach because the  
             only road leading to the beach has been closed by the land  
             owner who controls the property adjacent to the beach.   
             Current law allows the State Lands Commission to acquire the  
             road pursuant to Public Resources Code Section 6210.9;  
             however SLC has not indicated that they will exercise their  
             authority absent this legislation.  Two court cases are  
             currently pending regarding Martin's Beach: one on whether  
             the land owner got the right permits for modifications to the  
             road; and one regarding public access at the beach.  It could  
             be years before the public access issue is resolved unless a  
             short term solution is implemented. 

             This bill is necessary to provide a short term solution to  
             the public beach access problem at Martins Beach.  It  
             requires SLC to enter into negotiations with the land owner  
             to try and reach a solution from Jan 1, 2015 to Jan 1, 2016.   
             Ideally the landowner would reopen the road for public access  
             prior to or during the negotiations, but the bill allows for  
             SLC to [acquire an easement or right-of-way] if those  
             negotiations fail, in order to ensure public access as soon  
             as possible.            

           Litigation against the owners of the Martins Beach property.    
          Following the closure of Martin's Beach Road, a group called the  
          Friends of Martins Beach sued the new landowner to re-establish  
          public access via the road.  (See Friends of Martins Beach v.  
          Martins Beach 1, LLC, Civ-517634, San Mateo County Superior  
          Court.)  Plaintiffs claim, under several legal theories, that  








                                                                  SB 968
                                                                  Page  6

          the public has the right to traverse the owner's property to  
          access the beach.  This case is currently on appeal after the  
          trial court ruled in favor of Martins Beach, LLC.  

          The Surfrider Foundation brought a second lawsuit challenging  
          the new owner's compliance with various provisions of the  
          California Coastal Act.  (See Surfrider Foundation v. Martins  
          Beach LLC, et al., Civ-520336, San Mateo County Superior Court.)  
           Surfrider asserts that Martins Beach, LLC violated the Coastal  
          Act by not applying for a coastal development permit when  
          closing the road to the beach, among other things.  This case is  
          currently pending in the trial court in San Mateo County.

          Importantly, however, Committee staff finds that this bill, as  
          proposed to be amended, does not appear to impermissibly  
          interfere with pending litigation.  First, this bill does not  
          seek to revise or amend any law at issue in either lawsuit  
          pending against Martins Beach, LLC, nor to decide an issue or  
          dispute pending before the court.  Furthermore, neither lawsuit  
          challenges the State Land Commission's power to acquire a  
          right-of-way or easement for public use pursuant to its existing  
          authority under the Public Resources Code.  Finally, this bill  
          is not retroactive and would not compromise the independence of  
          the judicial branch, nor circumvent its discretion to interpret  
          California law.  By its terms, the bill pertains only to future  
          actions by the Commission, and does not attempt to attach "new  
          legal consequences to events completed before its enactment."   
          (Landgraf v. USI Film Products (1994), 511 U.S. 244, 269-70  
          (internal citations omitted).)

           Existing law strongly protects the public right of access to  
          California's coast and beaches.   The right of public access to  
          California's rivers, beaches, and waterways is enshrined in  
          Article X, Section 4, of the California Constitution.  Section 4  
          declares that "no individual, partnership, or corporation,  
          claiming or possessing the frontage or tidal lands of a harbor,  
          bay, inlet, estuary, or other navigable water in this state,  
          shall be permitted to exclude the right of way to such water  
          whenever it is required for any public purpose, nor to destroy  
          or obstruct the free navigation of such water."  Section 4 also  
          provides that "the Legislature shall enact such laws as will  
          give the most liberal construction to this provision, so that  
          access to the navigable waters of this state shall be always  
          attainable for the people thereof."  (Cal. Const., Art. X, Sec.  
          4.)  With respect to the state's coastal resources (which  








                                                                  SB 968
                                                                  Page  7

          includes beaches), the California Coastal Act of 1976 declares  
          that "the basic goals of the state for the coastal zone are . .  
          . to maximize public access to and along the coast and maximize  
          public recreational opportunities in the coastal zone consistent  
          with sound resource conservation principles and constitutionally  
          protected rights of private property owners."  (Public Resources  
          Code Section 30001.5(c).)

          To further these stated goals of guaranteeing public access to  
          the state's waterways and coastal areas, current law authorizes  
          the State Lands Commission, in the name of the state, to acquire  
          by purchase, lease, gift, exchange, or, if all negotiations  
          fail, by condemnation, a right-of-way or easement across  
          privately owned land or other land that it deems necessary to  
          provide access to public land, including school land, tide or  
          submerged lands, and lands subject to the public trust for  
          commerce, navigation, and fisheries, to which there is no access  
          available.  (Public Resources Code Section 6210.9.)

          To address the current lack of access to Martins Beach caused by  
          closure of the only access road, this bill seeks to reinforce  
          the public's right to access California beaches and coastal  
          resources by taking steps to reestablish an access route to  
          Martins Beach.  First, the bill would direct the State Lands  
          Commission to negotiate with the owners of the property, Martins  
          Beach, LLC, to acquire a right-of-way or easement to ensure  
          public access to and along the shoreline of Martins Beach.  The  
          bill clarifies that this directive in no way prohibits the  
          property owner from voluntarily providing public access upon  
          terms acceptable to the Commission.  Contemplating that such  
          negotiation may take time to complete, the bill allows until  
          January 1, 2016 before requiring further action by the  
          Commission if the negotiations fail to produce an agreement  
          between the parties to create a public access route.

           Proposed amendments to address concerns about eminent domain  
          have caused the owner of Martins Beach to withdraw opposition.    
          As currently in print, the bill provides that if by January 1,  
          2016, the Commission is unable to reach an agreement to acquire  
          a right-of-way or easement or the owners do not voluntarily  
          provide public access, then the commission must use the tool of  
          eminent domain, pursuant to Section 6210.9, to acquire a  
          right-of-way or easement to create public access.  As noted  
          above, Section 6210.9 currently provides eminent domain powers  
          to the Commission to use, under certain circumstances, if  








                                                                  SB 968
                                                                  Page  8

          negotiations have failed to secure a right-of-way or easement.   
          California's eminent domain law entitles the owner of property  
          to be acquired by eminent domain to just compensation, meaning  
          the fair market value of the property interest taken.

          Prior to the author's proposed amendments to address the use of  
          eminent domain, California Strategies, representing the  
          landowner Martins Beach LLC, submitted a letter registering  
          opposition with the committee, contending, among other things,  
          that the use of eminent domain in this particular case is not  
          legally justified and would be inappropriate as a matter of  
          public policy.  In its letter, the landowner asserts that the  
          State Lands Commission has jurisdiction and management control  
          only over  public  lands of the State that were received by the  
          State from the United States (citing Section 6210.9, providing  
          that if the Commission "has public land . . . to which there is  
          no access available, it may, in the name of the state, acquire .  
          . . a right-of-way or easement across privately owned land or  
          other land that it deems necessary to provide access to such  
          public land"), but that in this case there are no  public  lands  
          at Martins Beach.   The owner states:  

              San Mateo County Superior Court Judge Gerald G. Buchwald  
              recently ruled that there is "no right of public access  
              or easement for the public to use or access the property  
              for any purpose whatsoever." . . . There are no existing  
              "public" lands to which access is needed and therefore  
              no authority to acquire a right-of-way or easement  
              across this private property. Thus, this would be a  
              terrible test case for legislation to require State  
              Lands Commission's first ever application of Eminent  
              Domain.

          In light of these concerns and after discussions with the  
          stakeholders,  the author proposes to amend  the bill to no longer  
          direct the Commission to specifically use eminent domain to  
          acquire a right-of-way or easement to create access to Martins  
          Beach.  Instead, the proposed amendments simply clarify that the  
          Commission shall acquire a right-of-way or easement pursuant to  
          its existing authority under Section 6210.9.  On June 22, the  
          Committee was informed that the proposed amendments have caused  
          the owners of the Martins Beach property to withdraw their  
          opposition.  As a result, at the time of this analysis, there is  
          no known opposition to the bill.









                                                                  SB 968
                                                                  Page  9

           The issue of public land at Martins Beach remains to be decided  
          by the courts, not by this bill.    Committee staff notes that  
          although Judge Buchwald found no right of public access or  
          easement to allow access to Martins Beach in siding with Martins  
          Beach, LLC, the trial court's decision in the Friends of Martins  
          Beach case is in the process of being appealed, and the issue of  
          whether there is public land at Martins Beach to which the  
          public has a right of access remains an open question at this  
          time.  According to the analysis of the Assembly Natural  
          Resources Committee:

            The trial court in the Friends of Martins Beach case based  
            one of its findings on an unprecedented and questionable  
            holding in which it claimed, without supporting authority,  
            that the California Constitution's provision prohibiting  
            an individual from excluding the public's right of way to  
            navigable waters codifies the common law public trust  
            doctrine.  However, the common law public trust  
            doctrine-which protects the public's right to use tide and  
            submerged lands for commerce, navigation, fishing,  
            boating, natural habitat protection, and other water  
            oriented activities-does not confer any right on the  
            public to use non-trust lands to access the water . . .  
            This distinction between the Constitution and the public  
            trust is significant because the trial court mistakenly  
            relied on a 1984 U.S. Supreme Court decision on the public  
            trust doctrine to determine the applicability of the  
            constitutional provision on public access.

            However, the Friends of Martins Beach case is about public  
            access, not whether the tide and submerged lands are  
            subject to the public trust doctrine.  But since the trial  
            court held that the constitutional provision on public  
            access codifies the public trust doctrine, the court  
            mistakenly used the U.S. Supreme Court decision to find  
            that the public access provision has no jurisdiction over  
            Martins Beach.  If the appellate court overturns the trial  
            court's decision on this issue, then the focus will likely  
            be on what kind of impact the public access provision of  
            the Constitution has on the Martins Beach property.

          For the reasons stated earlier, it does not appear that the bill  
                                                                                    impermissibly impacts pending litigation, including appeal of  
          the Friends of Martins Beach case.  California Strategies, on  
          behalf of the owner, notes however, that if the trial court's  








                                                                  SB 968
                                                                  Page  10

          decision is ultimately upheld to establish that the sandy  
          beachfront area at Martins Beach is indeed private and not  
          public, that would likely establish the boundary of the public  
          land to begin at a point offshore, completely submerged  
          underwater rather than at the sandy beachfront area where  
          beachgoers typically intend to picnic, sunbathe, and use the  
          beach.  Although that outcome to the pending litigation would  
          have no bearing on the legality of the changes to law proposed  
          by this bill, the owner's representative contends that, should  
          this bill become law, it could produce the peculiar outcome that  
          the Commission would be required to obtain a right-of-way or  
          easement to a site where the only public "land" to which the  
          public has the right to access is submerged lands starting 10 or  
          20 feet offshore, rather than the beach which is the main  
          attraction of the site to the public.
           
          ARGUMENTS IN SUPPORT  :  The bill is supported by a number of  
          coastal, environmental, and recreation-based advocacy groups,  
          all of whom strongly advocate for unfettered public access to  
          California beaches and coastal resources.  These advocates,  
          including the Sierra Club, Surfrider Foundation, and the  
          California Coastal Protection Network, state in support:

             Martin's Beach, like all other beaches below the mean  
             high tide line, as provided by Public Trust Doctrine, is  
             a public beach held in trust by the State of California  
             for the people of California.  Section 4 of Article X of  
             the California Constitution mandates that no individual  
             shall be permitted to exclude the right of way to coastal  
             waters of the state whenever it is required for any  
             public purpose and, further, that "the Legislature shall  
             enact such laws as will give the most liberal  
             construction to this [beach access] provision, so that  
             access to the navigable waters of this State shall be  
             always attainable for the people thereof."  Therefore,  
             the State has an interest in ensuring public access to  
             Martin's Beach.

             Efforts by other parties to negotiate with the property  
             owner or even discuss the potential for addressing the  
             access closure have not been successful to-date.   This  
             bill would provide further impetus for the property owner  
             to engage in such a discussion and would ensure that a  
             resolution to the beach access closure is reached.
           








                                                                  SB 968
                                                                  Page  11

           ARGUMENTS IN OPPOSITION  :  Before the author's proposed  
          amendments, the bill was opposed by California Strategies &  
          Advocacy, LLP, on behalf of its client, the owner of the Martins  
          Beach property.  In their opposition letter, the owner's  
          representative objected to the bill's directive to use eminent  
          domain for a number of reasons, as reflected below:

             We are writing to express our strong opposition to SB 968  
             as currently drafted.  The current version of the bill  
             includes the unprecedented use of condemnation or Eminent  
             Domain" for a property in active litigation.  Eminent  
             Domain for taking right-of-way or easement across private  
             land for public access has never been exercised by State  
             Lands Commission since receiving the authority in 1975.   
             Martins Beach would be a terrible test case for using  
             Eminent Domain because the beach seaward of mean  
             high-tide line and the submerged lands at Martin's Beach  
             are completely private as the property derives from a  
             Mexican Land Grant, unlike the other 1,100 mile of public  
             lands to access along the California coast.

             In addition, the costs associated with exercising Eminent  
             Domain pursuant to SB 968 would be tens of millions of  
             dollars, not "hundreds of thousands or low millions of  
             dollars," as stated in previous committee analyses. There  
             are no identified funding sources to acquire an easement  
             and/or right-of-way, to improve the property, to operate  
             and maintain the property, or to cover the high liability  
             costs. . . Tens of millions of dollars could exceed  
             currently available funds for State Lands statewide, and  
             would hinder other public land priorities statewide and  
             the shortfall funding would presumably need to come from  
             the General Fund. There is no allocation, however, to  
             cover these high upfront and ongoing costs to the State.

             Furthermore, it is premature for the state lawmaking  
             process to apply Eminent Domain on a unique property in  
             active litigation. This site has complex, site-specific  
             property rights, which are unique to this parcel, are  
             better addressed by the current legal process and genuine  
             negotiations-not forced discussions under the shadow of  
             the unprecedented application of Eminent Domain.

             We respectfully request amending the bill to remove  
             "Eminent Domain" and the unprecedented use of  








                                                                  SB 968
                                                                  Page  12

             condemnation, especially while active litigation is  
             currently underway. The inclusion of Eminent Domain will  
             setback the process and will potentially force legal  
             elevation that will cause delay and likely result in  
             legal precedent that hinders coastal access beyond  
             Martins Beach.

          As stated above, the Committee was informed on June 22 that the  
          proposed amendments have caused the owners of the Martins Beach  
          property to withdraw their opposition.  As a result, at the time  
          of this analysis, there is no known opposition to the bill as  
          proposed to be amended.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Black Surfers Collective
          California Coastal Commission
          California Coastal Protection Network
          California League of Conservation Voters
          Coastside Beach Coalition
          Committee for Green Foothills
          County of San Mateo
          Environment California
          Environmental Action Committee of West Marin
          Ocean Conservancy
          Save the Waves Coalition
          Sierra Club California Coastal Committee
          Surfrider Foundation
          WildCoast
           
            Opposition (to previous version of the bill)
           
          California Strategies & Advocacy, LLP
             (on behalf of Martins Beach, LLC, the owners of the Martins  
          Beach property)

           Opposition (as proposed to be amended)
           
           Analysis Prepared by  :   Anthony Lew / JUD. / (916) 319-2334 












                                                                  SB 968
                                                                  Page  13