BILL ANALYSIS Ó SB 1172 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1172 (Hancock) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Local Government | |9 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill repeals the granting statute that requires tidelands and submerged lands granted in trust to the City of Albany (City) to be used and improved in accordance with the Albany Waterfront Plan and instead requires the City to create and submit a trust lands use plan to the State Lands Commission (SLC) for approval. Specifically, this bill: SB 1172 Page 2 1)Requires the City to submit a trust lands use plan to SLC for approval on or before January 1, 2022. 2)Requires the City to submit a report to SLC on or before September 30, 2022, and every five years thereafter, of its utilization of the trust lands. 3)Requires the City to establish an accounting system to track revenue received from the trust lands and any associated assets. Requires any revenue received to be kept separate from other City money and only expended in a manner consistent with this bill. 4)Requires the City to obtain approval from SLC before spending trust revenues for any large capital improvement project ($250,000 or greater). 5)Requires 20% of trust revenue be transmitted to SLC. Requires, of this amount transmitted, 80% to be put in the General Fund (GF) and the remaining 20% to be deposited in the Land Bank Fund. 6)Permits the City to lease the land, under specified conditions, for less than 50 years. FISCAL EFFECT: SB 1172 Page 3 1)Potential minor revenue increase. Existing law requires 85% of excess trust revenues to be deposited in the GF. This bill requires 20% of annual gross revenue to be transmitted to the state. Of that amount, 20% is deposited into the Land Bank Fund for use by SLC and the remaining 80% is deposited into the GF. Historically, granted lands rarely generate excess revenue. The change from a percentage of excess trust revenues to annual gross revenue could increase revenue to the state, both to the GF and SLC. However, this area is currently used as public open space and does not generate revenue. It is unlikely that this bill will result in a significant change to state revenue. 2)SLC costs are absorbable within existing resources. COMMENTS: 1)Purpose. The City of Albany owns tide and submerged lands along its waterfront that are held in trust for the public. The City manages the lands under the common law Public Trust Doctrine and its legislative granting statutes. The lands include a former landfill site and an area known as the Bulb and Neck portion of the waterfront. According to the author, SB 1172 Page 4 this bill amends the City's granting statute to align with the City's current plans for its waterfront. 2)Background. In 1919, the state granted the City three parcels of submerged tidelands along the San Francisco Bay waterfront. These lands include what is now known as the Albany Neck and Bulb portion of the waterfront. The Neck and Bulb are located at the base of Buchanan Street and protrude into the bay. That granting statute was later amended (Chapter 1223, Statutes of 1977) to require future development to be consistent with the Albany Waterfront Plan. The Albany Waterfront Plan reflected the City's plans at that time for recreation-oriented development, including constructing a small craft marina and retail complex. However, the plan was never implemented. Since 1977, policy at the local, regional, and state levels has shifted away from commercial waterfront development on the publically-owned portion of the Albany waterfront. The City is currently in the process of developing a new plan for improving the Albany Neck and Bulb area and transitioning the area to become part of the McLaughlin Eastshore State Park. 3)Technical Amendments. The following technical amendment was agreed upon in the Assembly Natural Resources Committee to further clarify the definition of Public trust doctrine. In order to meet deadlines, this bill was passed without adopting the amendment. The Committee recommends adopting this clarification. On Page 2, at line 8, amend paragraph (3) as follows: Public trust doctrine" means the common law doctrine, as SB 1172 Page 5 enunciated by the court in Marks v. Whitney (1971) 6 Cal.3d 251 and National Audubon Society v. Superior Court (1983) 33 Cal.3d 419 and other relevant judicial decisions, specifying the state's authority as sovereign to exercise a continuous supervision and control over the navigable waters of the state, the lands underlying those waters, and nonnavigable tributaries to navigable waters, including the protection of maritime or water dependent commerce, navigation, and fisheries, and the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081