BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1424
                                                                  Page  1

          Date of Hearing:  June 25, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                     SB 1424 (Wolk) - As Amended:  June 18, 2014

           SENATE VOTE  :  37-0
           
          SUBJECT  :  State property: tidelands transfer: City of Martinez.

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

          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)Requires the trustee to comply with existing law that  
            specifies the administration and control generally of  
            tidelands, and requires the annual statement and standardized  
            reporting form required to be filled out pursuant to that  
            section of existing law to also 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.

          7)Provides that no reimbursement is required by this act because  








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            a local agency or school district has the authority to levy  
            service charges, fees, or assessment sufficient to pay for the  
            program or level of service mandated by this act.

           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.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, there are:

          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  :   









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

           2)Background on Martinez Marina  .  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.  

           3)Purpose of this bill  .  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.   
            This bill is sponsored by the City of Martinez.

           4)Author's statement  .  According to the author, "SB 1424 will  
            provide the City of Martinez a new land grant statute  
            encompassing four parcels of land, including the City Marina.   
            Granting these lands to the City will help facilitate the  
            Marina's revitalization and development of those parcels  
            subject to the terms of the grant.  The current lease between  
            the City and the State Lands Commission for the Marina itself  
            preclude the City from pursuing long term opportunities to  
            redevelop the Marina which would improve the revenue stream."









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           5)Arguments in support  .  Supporters argue that the Marina is an  
            integral part of the shoreline experience that many residents  
            of the region enjoy on a regular basis, and that SB 1424 will  
            help maintain and preserve the Marina for the enjoyment and  
            use by residents, businesses, and public service agencies.

           6)Arguments in opposition  .  None on file.

           7)Double-referral  .  This bill was heard by the Natural Resources  
            Committee on June 16, 2014, where it passed with a 9-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          City of Martinez [SPONSOR]
          California State Lands Commission
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958