BILL NUMBER: AB 425	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 21, 2004
	AMENDED IN SENATE  MAY 26, 2004
	AMENDED IN SENATE  JULY 16, 2003
	AMENDED IN SENATE  JULY 3, 2003
	AMENDED IN ASSEMBLY  MAY 29, 2003
	AMENDED IN ASSEMBLY  APRIL 30, 2003

INTRODUCED BY   Assembly Member  Campbell
   (Principal coauthor:  Senator Johnson)

                        FEBRUARY 14, 2003

    An act to amend Section 2 of Chapter 317 of the Statutes of 1997,
 to add Sections 4.5 and 5.5 to Chapter 74 of the Statutes of
1978, and to add Sections 2 and 3 to Chapter 526 of the Statutes of
1919,  relating to public trust lands.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 425, as amended,  Richman   Campbell 
.  City of Newport Beach:  public trust lands.
   Existing law grants in trust to the City of Newport Beach all tide
and submerged lands, whether filled or unfilled, bordering upon and
under the Pacific Ocean or Newport Bay, as described, subject to
specified conditions.  Existing law specifies that, for purposes of
provisions related to the City of Newport Beach establishment of a
Tideland Capital Fund, acquisition or improvement of real property by
the city for purposes of enhancing the public trust lands
administered by the Department of Fish and Game shall be deemed to be
authorized by, and be in furtherance of, the trust created pursuant
to existing law.
   This bill would  instead  provide that, for purposes of
those provisions  , those tide and submerged lands shall be
considered to be public trust lands whether or not those lands are
acquired by the state as sovereign tide and submerged lands, or are
otherwise acquired   acquisition or improvement of real
property by the City of Newport Beach for purposes of enhancing the
Upper Newport Bay Ecological Reserve shall be deemed to be authorized
by, and in furtherance of, the trust created by those specified
provisions  . 
   The bill would authorize, upon formal concurrence of the State
Lands Commission, that specified tide and submerged lands acquired by
the City of Newport Beach and dedicated in trust to the city, be
transferred and conveyed by the city to the County of Orange to be
held in trust by the County pursuant to the terms of a specified
statute.  The bill would further permit the county of Orange, upon
formal concurrence of the State Lands Commission, to transfer and
convey to the City of Newport Beach specified tide and submerged
lands to be held in trust by the city pursuant to the terms of a
specified statute. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Subdivision (h) of Section 1 of Chapter 415 of the Statutes of
1975 directed the County of Orange and the State Lands Commission to
grant certain described lands, which are a portion of the tide and
submerged lands granted in trust to the county by that act, to the
Department of Fish and Game for creation of an ecological reserve in
Upper Newport.
   (b) Subdivision (h) of Section 1 of Chapter 74 of the Statutes of
1978 authorized the City of Newport Beach to transfer portions of its
public trust lands to the State Lands Commission to thereafter be
leased to the Department of Fish and Game for inclusion in the Upper
Newport Bay Ecological Reserve. Subdivision (c) of Section 2 of
Chapter 74 of the Statutes of 1978 further authorized the City of
Newport Beach to acquire real property for purposes of enhancing tide
and submerged lands leased to the Department of Fish and Game by the
State Lands Commission.
   (c) Chapter 715 of the Statutes of 1984 authorizes the County of
Orange and the City of Newport Beach to expend revenues from leases
of the tide and submerged lands surrounding Harbor Island in lower
Newport Bay for purposes of enhancing the Upper Newport Bay
Ecological Reserve.
   (d) Section 2 of Chapter 317 of the Statutes of 1997 authorizes
the expenditure of certain public trust revenues by the City of
Newport Beach on public trust lands administered by the Department of
Fish and Game in Upper Newport Bay.
   (e) In addition to the public trust lands granted by the
Legislature to the County of Orange pursuant to Chapter 415 of the
Statutes of 1975 (Chapter 415), the County has acquired additional
lands adjacent to Upper Newport Bay Ecological Reserve and desires to
make them assets of the public trust and the legislative trust
created by that act.  The State Lands Commission has approved the
inclusion of these lands to be held as assets of those trusts and
desires legislative adoption of the lands as trust assets.
   (f) Certain lands described in Section 2 of Chapter 415 included
lands for which issues of title and boundary were unresolved at the
time of enactment of Chapter 415 and some remain unresolved today.
The state acquired, by purchase, certain interests of the Irvine
Company in and adjacent to those lands subsequent to passage of
Chapter 415.  Those lands are included in the Upper Newport Bay
Ecological Reserve operated by the Department of Fish and Game.  Some
of those lands are subject to the public trust and others are not.
These lands are integral to the operation of the Ecological Reserve
and provide support to the adjacent tide and submerged lands.
   (g) In order to clarify the Legislature's intent and authorize the
trustees, the County of Orange, and the City of Newport Beach to
expend revenues generated from public trust lands that the county and
city hold pursuant to Chapter 317 of the Statutes of 1997, and
Chapter 415 of the Statutes of 1975, those statutes need to be
amended.  
  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Subdivision (h) of Section 1 of Chapter 415 of the Statutes of
1975 directed the County of Orange and the State Lands Commission to
provide certain described lands in Upper Newport Bay to the
Department of Fish and Game for the establishment, improvement and
conduct of an ecological reserve, or wildlife refuge, or both, and
other compatible uses.
   (b) Subdivision (h) of Section 1 of Chapter 74 of the Statutes of
1978 authorized the City of Newport Beach to transfer portions of the
lands conveyed to it by that act to the State Lands Commission for
lease to the Department of Fish and Game for an ecological reserve or
wildlife refuge, or both, and other compatible uses to be undertaken
by the department.  Subdivision (c) of Section 2 of Chapter 74 of
the Statutes of 1978 further authorized the City of Newport Beach to
acquire real property for purposes of enhancing lands administered by
the Department of Fish and Game pursuant to Chapter 415 of the
Statutes of 1975.
   (c) The Upper Newport Bay Ecological Reserve has been established
as an ecological reserve under the provisions of Article 4
(commencing with Section 1580) of Chapter 5 of Division 2 of the Fish
and Game Code.
   (d) Chapter 715 of the Statutes of 1984 authorizes the County of
Orange and the City of Newport Beach to expend revenues from leases
of certain described tide and submerged lands surrounding Harbor
Island in Lower Newport Bay for purposes of enhancing the Upper
Newport Bay Ecological Reserve.
   (e) Section 2 of Chapter 317 of the Statutes of 1997 directed the
City of Newport Beach to establish funds, including a Tideland
Capital Fund and an Upper Newport Bay Restoration Fund, and
authorizes the city to use the money in those funds on certain
described lands administered by the Department of Fish and Game and
other lands made subject to the public trust pursuant to that act and
located in Upper Newport Bay.
   (f) In addition to the lands granted by the Legislature to the
County of Orange pursuant to Chapter 415 of the Statutes of 1975, the
county has acquired additional lands adjacent to the Upper Newport
Bay Ecological Reserve and desires to make these lands assets of the
public trust and the legislative trust created by Chapter 526 of the
statutes of 1919, as amended by Chapter 415 of the Statutes of 1975.
The State Lands Commission has approved the inclusion of these lands
to be held as assets of those trusts and desires legislative
adoption of the lands as trust assets.
   (g) The lands described in Section 2 of Chapter 415 of the
Statutes of 1975 included lands, which were the subject of, and
affected by, the "Upper Newport Bay Settlement Agreement for Transfer
of Certain Real Property to the County of Orange and the City of
Newport Beach, Jointly, and the State of California by the Irvine
Company and for Settlement of Pending Litigation" (hereafter
"agreement"), which was recorded on April 14, 1975, in Book 11376,
Page 1514 of the Official Records of Orange County.  Pursuant to that
agreement, by the Grant Deed recorded on April 22, 1975, in Book
11382, Page 1876 of the Official Records of Orange County, the Irvine
Company granted to the state, and the state acquired, by purchase
from the Irvine Company certain described lands in and adjacent to
Upper Newport Bay.  The lands so acquired from the Irvine Company are
included in the Upper Newport Bay Ecological Reserve.  Some of those
lands are subject to the public trust and others are not.  The
boundaries separating trust lands from non-trust lands in some of the
Upper Newport Bay Ecological Reserve area have not been fixed.
However, all of the lands, including those lands that are not subject
to the public trust, are integral to the operation of the Upper
Newport Bay Ecological Reserve and provide ecological benefits in the
form of habitat that supports adjacent tide and submerged lands.
   (h) It is the Legislature's intent to authorize the trustees, the
County of Orange, and the City of Newport Beach to expend revenues
generated from public trust lands that the county and city hold
pursuant to Chapter 415 of the Statutes of 1975, Chapter 74 of the
Statutes of 1978, and Chapter 317 of the Statutes of 1997, on those
lands described in subdivisions (c), (e), and (g) above. 
  SEC. 2.  Section 2 of Chapter  74 of the Statutes of 1978, as
amended by Chapter  317 of the Statutes of 1997  :  is
amended to read  : 
  Sec. 2.  (a) The City of Newport Beach shall establish a Tideland
Capital Fund as one of the funds required by subdivision (i) of
Section 1 of this act.  The money in the Tideland Capital Fund shall
be used by the city in conformity with the following terms and
conditions:
   (1) Expenditures from the fund may be made for the acquisition of
real property that will further the purposes of the trust created by
this act or for capital improvements for those purposes.
   (2) The city may make acquisitions of real property by purchase,
gift, or other conveyance, including, but not limited to, the
transfer of city-owned property held in a municipal capacity to the
trust created by this act.  All such real property shall be held by
the city in trust pursuant to this act.
   (3) For purposes of this  section, acquisition or improvement of
real property by the city for purposes of enhancing the
public trust lands administered by the Department of Fish and
Game pursuant to Chapter 415 of the Statutes of 1975 shall be deemed
to be authorized by, and to be in furtherance of, the trust created
by this act.  For purposes of this section, all the lands described
in subdivision (a) of Section 2 of Chapter 415 of the Statutes of
1975 shall be considered to be public trust lands whether or not
those lands are acquired by the state as sovereign tide and submerged
lands, or are otherwise acquired.   Upper Newport Bay
Ecological Reserve shall be deemed to be authorized by, and be in
furtherance of, the trust created by this act. 
   (4) The city may expend municipal funds to acquire real property
for purposes specified in this subdivision.  The city may transfer
amounts from the Tideland Capital Fund to reimburse municipal funds
for any such expenditures, together with an appropriate amount of
interest on the municipal funds advanced, if the State Lands
Commission gives advance approval of the transaction.
   (b) The city shall establish a Tideland Operation and Maintenance
Fund as one of the funds required by subdivision (i) of Section 1 of
this act.  The money in the Tideland Operation and Maintenance Fund
shall be used by the city for  the operation and maintenance
of the tide and submerged lands granted by this act and any
additional lands and assets that are made subject to the public trust
pursuant to this act in furtherance of the purposes of the trust
created by this act.   operation and maintenance, as
follows:
   (1) On the tide and submerged lands granted by this act.
   (2) On any additional lands and assets that are made subject to
the public trust pursuant to this act.
   (3) In furtherance of the purposes of the trust created by this
act, including on lands and facilities within the Upper Newport Bay
Ecological Reserve. 
   (c) The city shall establish an Upper Newport Bay Restoration Fund
as one of the funds required by subdivision (i) of Section 1 of this
act.  The money in the Upper Newport Bay Restoration Fund shall be
used by the city for Upper Newport Bay environmental restoration and
improvement on  tide and submerged  lands described
in paragraph (3) of subdivision (a) or otherwise  authorized by,
in furtherance of, or  made subject to the public trust pursuant
to this act and located in Upper Newport Bay, to do both of the
following:
   (1) Construct improvements to, or otherwise physically alter,
those public trust lands if the construction or alteration directly
benefits those lands.
   (2) Fund environmental documents, planning studies, or scientific
analyses, or experiments directly related to the improvement or
enhancement of the habitat values of those lands and the water
quality of the overlying waters.
   (d) (1) Eighty percent of the money received by the city pursuant
to subdivision (g) of Section 1 of this act shall be deposited in the
Tideland Capital Fund described in subdivision (a) and in the
Tideland Operation and Maintenance Fund described in subdivision (b),
the allocation between those funds to be determined by the city.
   (2) Ten percent of the money received by the city pursuant to
subdivision (g) of Section 1 of this act shall be deposited in the
Upper Newport Bay Restoration Fund described in subdivision (c).
   (3) Ten percent of the money received by the city pursuant to
subdivision (g) of Section 1 of this act shall be deposited in the
Land Bank Fund created in the State Treasury pursuant to Section 8610
of the Public Resources Code, available for expenditure by the State
Lands Commission as described in subparagraph (B) of paragraph (1)
of subdivision (f) of Section 4.5 of this act.
   (4) The city may deposit in the city funds established pursuant to
subdivisions (a), (b), and (c) any other income from the tide and
submerged lands granted to the city pursuant to this act or from
lands otherwise held in the public trust pursuant to this act that
the city determines to be appropriate and consistent with this act
and the public trust.   
  SEC. 3.  Section 4.5 is added to Chapter 74 of the Statutes of
1978, to read:
  Sec. 4.5.  The lands acquired by the City of Newport Beach, as
described in instrument #139051436, recorded on January 7, 1981, in
the Official Records of Orange County and dedicated to the trust by
the city, as approved by the State Lands Commission pursuant to the
Commission's Minute Item #27 on May 28, 1981, may, upon formal
concurrence of the State Lands Commission, be transferred and
conveyed by the City of Newport Beach to the County of Orange to be
held in trust by the county pursuant to the terms of Chapter 415 of
the Statutes of 1975.
  SEC. 4.  Section 5.5 is added to Chapter 74 of the Statutes of
1978, to read:
  Sec. 5.5.  The City of Newport Beach may, upon formal concurrence
of the State Lands Commission, transfer and convey trust lands to the
County of Orange to be held in trust by the county pursuant to the
terms of Chapter 526 of the Statutes of 1919, as amended by Chapter
415 of the Statutes of 1975.
  SEC. 5.  Section 2 is added to Chapter 526 of the Statutes of 1919,
to read:
  Sec. 2.  (a) The lands owned by the County of Orange, pursuant to
the instruments recorded in the Official Records of Orange County
listed in subdivisions (b) to (e), inclusive, listed below, and
dedicated by the County to the trust on December 16, 2003, by
Resolution 03-385, and approved by the State Lands Commission
pursuant to the Commission's Minute Item #24 on April 5, 2004, as
assets of the public trust, are hereby accepted as assets of the
public trust and shall be held in trust by the County of Orange,
pursuant to the provisions of this act.
   (b) 85-138036 OR, recorded April 18, 1985.
   (c) 85-138037 OR, recorded April 18, 1985.
   (d) 89-388787 OR, recorded July 24, 1989.
   (e) 90-39555 OR, recorded July 27, 1990.
  SEC. 6.  Section 3 is added to Chapter 526 of the Statutes of 1919,
to read:
  Sec. 3.  The County of Orange may, upon formal concurrence of the
State Lands Commission, transfer and convey trust lands to the City
of Newport Beach to be held in trust by the city pursuant to the
terms of Chapter 74 of the Statutes of 1978, as amended by Chapter
317 of the Statutes of 1997.