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  




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            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  




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          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.





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          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.   
           




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          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.