BILL ANALYSIS Bill No: AB 425 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Edward Vincent, Chair 2003-2004 Regular Session Staff Analysis AB 425 Author: Campbell As Amended: June 21, 2004 Hearing Date: June 22, 2004 Consultant: Art Terzakis SUBJECT City of Newport Beach: public trust lands DESCRIPTION AB 425 allows for increased flexibility of the management of the Upper Newport Bay Ecological Reserve, as well as, the tide and submerged lands granted to the City of Newport Beach and the County of Orange, respectively, in particular to acquisitions, improvements and the transfer of trust lands between the City and County and vice versa. Specifically, this measure: 1. States legislative 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 existing law on certain described lands. 2. Authorizes the City of Newport Beach to acquire or improve any real property for the purpose of enhancing the Upper Newport Bay Ecological Reserve. 3. Authorizes the expenditure of money from the Upper Newport Bay Restoration Fund for environmental restoration or improvements on any lands within Upper Newport Bay or as otherwise authorized by, or in furtherance of the public trust. 4. Authorizes the City of Newport Beach, upon formal AB 425 (Campbell) continued Page 2 concurrence of the State Lands Commission, to transfer certain lands, dedicated by the City as public trust lands, to the County of Orange, to be held in trust by the County pursuant to the terms of Chapter 415, Statutes of 1975. 5. Provides that certain lands owned and dedicated as public trust lands by the County of Orange are accepted as assets of the public trust and are to be held in trust pursuant to Chapter 415, Statutes of 1975. 6. Authorizes the County of Orange, upon formal concurrence of the State Lands Commission, to transfer trust lands, held pursuant to Chapter 526, Statutes of 1919, to the City of Newport Beach, to be held in trust pursuant to Chapter 74, Statutes of 1978, as amended. 7. Authorizes the City of Newport Beach, upon formal concurrence of the State Lands Commission, to transfer trust lands, held pursuant to Chapter 74, Statutes of 1978, to the County of Orange, to be held in trust pursuant to Chapter 526, Statutes of 1919, as amended. RELATED LEGISLATION SB 1873 (Burton) 2003-04 Session. Would authorize an exchange of public trust lands no longer useful for public trust purposes within Treasure Island to be exchanged for other lands of equal or greater value at Yerba Buena Island. (Pending in Assembly policy committee) SB 1622 (Perata) 2003-04 Session. Would authorize and establish conditions for an exchange of certain tidelands and submerged lands granted to the City of Oakland for other lands not subject to the public trust. (Pending in Assembly policy committee) SB 1435 (Perata) 2003-04 Session. Would authorize an exchange of public trust lands within the Oakland Army Base redevelopment property so that both public and private interests can best be served. (Pending in Assembly policy committee) SB 296 (Chesbro) Chapter 299, Statutes of 2003. Authorized the exchange of sovereign lands within the Kaiser Steel Development Area so that the City of Vallejo and private AB 425 (Campbell) continued Page 3 interests could proceed with land use planning development in the area. AB 768 (Leno) Chapter 435, Statutes of 2003. Approved an exchange of public trust lands within the Hunters Point Shipyard to help facilitate the productive reuse of lands comprising the former shipyard in a manner that furthers the purposes of the public trust. SB 2049 (Perata) Chapter 734, Statutes of 2000. Enacted the Naval Air Station Alameda Public Trust Exchange Act to facilitate the productive reuse of lands comprising the former naval air station in a manner that will further the purpose of the public trust. EXISTING LAW The State Lands Commission (SLC), comprised of the Lieutenant Governor, the State Controller, and the State Director of Finance, was established in 1938 with authority detailed in Division 6 of the California Public Resources Code. The SLC is the state agency that manages and protects the state's tide and submerged lands. The SLC is required to carry out its responsibility consistent with the public trust doctrine which provides that tide and submerged lands are reserved for uses associated with commerce, fishing, navigation, recreation and the environment. Existing law authorizes the SLC to exchange interests in lands no longer needed for public trust purposes for lands of equal value and to extinguish the public trust in those lands. Existing law grants in trust to the City of Newport Beach all tide and submerged lands, filled or unfilled, within the corporate limits of the City. Existing law authorizes the City of Newport Beach to acquire or improve real property to enhance the public trust lands administered by the Department of Fish and Game pursuant to Chapter 415, Statutes of 1975. AB 425 (Campbell) continued Page 4 Existing law authorized the City of Newport Beach to establish the Upper Newport Restoration Fund and expend money from the Fund for Upper Newport Bay environmental restoration and improvement on tide and submerged lands. BACKGROUND Sovereign Lands Since statehood, the Legislature has transferred in trust certain tide and submerged lands, including the beds of navigable waters, to local jurisdictions for specific public trust uses of statewide benefit, such as improvement of navigation and the construction of harbors. The State Lands Commission, having the state's remaining jurisdiction and authority, exercises oversight responsibility over these lands, and is responsible for assuring that these legislative trustees comply with their respective granting statutes and the legal principles under the Public Trust Doctrine. Quite often, the improvement of these granted tide and submerged lands results in the generation of tidelands trust revenues, which are also subject to the use restrictions of the Public Trust Doctrine and the granting statutes. Legislative History City of Newport Beach: Pursuant to Chapter 74, Statutes of 1978, as amended by Chapter 317, Statutes of 1997, the Legislature granted, in trust, to the City of Newport Beach (City) all tide and submerged lands, filled or unfilled, within the corporate limits of the City. Chapter 74, Statutes of 1978 authorized the City to transfer portions of lands conveyed by that act to the State Lands Commission (SLC), which in turn leases those lands to the Department of Fish and Game (DFG) for the Upper Newport Bay Ecological Reserve. Chapter 317, Statutes of 1997, further authorized the City to acquire or improve real property for the purpose of enhancing public trust lands administered by the DFG pursuant to Chapter 415, Statutes of 1975. In addition, Chapter 317, Statutes of 1997 authorized the City to establish the Upper Newport Bay Restoration Fund. This act allowed for money within the fund to be used by the City for environmental restoration and improvement on tide and submerged lands within Upper Newport Bay. AB 425 (Campbell) continued Page 5 County of Orange: Pursuant to Chapter 526, Statutes of 1919, as amended by Chapter 415, Statutes of 1975, the Legislature granted, in trust, to the County of Orange (County) all tide and submerged lands, filled or unfilled, within the County but outside the corporate limits of the City of Newport Beach. Chapter 415, Statutes of 1975, requires that the SLC and the County provide certain described lands to the DFG for the establishment of the Upper Newport Bay Ecological Reserve. Department of Fish and Game: The Upper Newport Bay Ecological Reserve has been established as an ecological reserve under the provisions of Article 4 of Chapter 5 of Division 2 of the Fish and Game Code. Purpose of AB 425 This measure is intended to provide the City of Newport Beach and the County of Orange increased flexibility in the management of granted tide and submerged lands, which in turn would benefit the management of the Upper Newport Bay Ecological Reserve by providing more resources for acquisition, restoration and improvement. This measure would maintain approval discretion over conveyances of trust lands with the State Lands Commission. SUPPORT: As of June 18, 2004: City of Newport Beach County of Orange OPPOSE: None on file as of June 18, 2004 FISCAL COMMITTEE: No.