BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1424
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          Date of Hearing:  June 16, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                      SB 1424 (Wolk) - As Amended:  May 28, 2014
           
          SENATE VOTE  :  37-0
           
          SUBJECT  :  State property:  tidelands transfer:  City of Martinez

           SUMMARY  :  Grants, in trust, the state's tide and submerged lands  
          (i.e., public trust lands)  located at the Martinez Marina to  
          the City of Martinez (City) subject to the public trust doctrine  
          and other terms, as specified.

           EXISTING LAW  :

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

          2)Requires the State Lands Commission (Commission) to be the  
            steward and manager of the state's public trust lands.  Gives  
            the Commission 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. 

          3)Grants, in trust, state public trust lands to over 80 local  
            public agencies (local trustees) 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 has been granted certain public trust lands within  
            its city boundaries.

           THIS BILL  :

          1)Repeals the 1976 public trust land grant to the City and  
            grants the same lands back to the City with the addition of  
            the public trust lands located at the Martinez Marina.








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          2)Authorizes the City to lease public trust lands under  
            specified conditions.

          3)Requires that the trustee submit to the Commission a trust  
            lands use plan describing any proposed development,  
            preservation, or other use of the trust lands by January 1,  
            2020 and a report of its utilization of trust lands by  
            September 30, 2025 and every five years thereafter.

          4)By December 31of each year, requires that the City file with  
            the Commission a statement of all trust revenues,  
            expenditures, and outstanding obligations.  Requires the  
            statement to include a summary explaining how the trustee is  
            using trust revenues to revitalize the Martinez Marina and  
            prevent its closure.

          5)Before expending trust revenues for a single capital  
            improvement on the trust lands involving an amount in excess  
            of $250,000, requires the City to obtain approval from the  
            Commission, as specified.

          6)Provides a revenue sharing plan between the state and the City  
            on all gross revenues generated from the trust lands.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:

          1)Unknown costs, likely a maximum of $15,000 annually from the  
            General Fund and the Land Bank Fund for forgone  
            revenue-sharing and lease revenue until 2021.

          2)Unknown revenues to the General Fund and the Land Bank Fund  
            after 2021 as a result of the revenue-sharing agreement.

          3)Annual costs, likely minor, to the General Fund to the  
            Commission for administrative and oversight duties.  These  
            costs are to be reimbursed by the City.

           COMMENTS :  For over 100 years, the Legislature has granted  
          public trust lands to local trustees so the lands can be managed  
          locally for the benefit of the people of California.  There are  
          over 80 trustees in the state, including the ports of Los  
          Angeles, Long Beach, San Diego, San Francisco, Oakland,  
          Richmond, Benicia, and Eureka.  While these trust lands are  








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          managed locally, the Commission has oversight authority to  
          ensure those local trustees are complying with the Public Trust  
          Doctrine and the applicable granting statutes.

          In 1976, the Legislature granted, in trust, three public trust  
          parcels to the City.  This bill will repeal the legislative  
          trust grant of these three parcels and enact a new grant to the  
          City that includes the three parcels (on updated grant terms)  
          and an additional fourth parcel, which is generally known as the  
          Martinez Marina.  

          The Martinez Marina consists of ungranted public trust lands  
          that the Commission has leased to the City for the operation and  
          maintenance of the marina.  Presently, silt flowing through the  
          gaps in the marina's dilapidated eastern breakwater wall has  
          rendered the eastern portion of the marina unusable, resulting  
          in a significant decrease in revenue.  The deteriorating  
          conditions at the marina have hampered the City's ability to  
          revitalize the Marina and prevent its closure.  To help address  
          these circumstances and turn the marina into a productive  
          resource, this bill proposes to transfer the marina to the City  
          with terms that will allow the City to use revenues from the  
          land to restore the marina.

          The committee may wish to consider technical cleanup amendments,  
          including an amendment to the non-discrimination clause so that  
          it accurately reflects the state's current non-discrimination  
          policy. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          City of Martinez (sponsor)
          California State Lands Commission

           Opposition 
           
          None on file

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










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