Bill Text: CA SB501 | 2011-2012 | Regular Session | Introduced
Bill Title: Tidelands and submerged lands: City of Newport Beach.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB501 Detail]
Download: California-2011-SB501-Introduced.html
BILL NUMBER: SB 501 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Harman
(Coauthor: Assembly Member Wagner)
FEBRUARY 17, 2011
An act to amend Section 1 of Chapter 74 of the Statutes of 1978,
as amended by Chapter 317 of the Statutes of 1997, relating to
tidelands and submerged lands.
LEGISLATIVE COUNSEL'S DIGEST
SB 501, as introduced, Harman. Tidelands and submerged lands: City
of Newport Beach.
Existing law grants to the City of Newport Beach the right, title,
and interest of the State of California in and to certain tidelands
and submerged lands in trust for specified purposes. Under existing
law, the City of Newport Beach is authorized to lease certain lots,
as described, for specified purposes as provided in the grant to the
city and for terms not to exceed 50 years.
This bill would revise that grant to the City of Newport Beach to
authorize the city to lease those certain lots for those specified
purposes for terms not to exceed 50 years, or until January 1, 2060,
whichever comes later.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1 of Chapter 74 of the Statutes of 1978, as
amended by Section 1 of Chapter 317 of the Statutes of 1997, is
amended to read:
Section 1. There is hereby granted to the City of Newport Beach
and its successors all of the right, title, and interest of the State
of California held by the state by virtue of its sovereignty in and
to all that portion of the tidelands and submerged lands, whether
filled or unfilled, bordering upon and under the Pacific Ocean or
Newport Bay in the County of Orange, which were within the corporate
limits of the City of Newport Beach, a municipal corporation, on July
25, 1919; the same to be forever held by the city and its successors
in trust for the uses and purposes and upon the following express
conditions:
(a) The lands shall be used by the city and its successors for
purposes in which there is a general statewide interest, as follows:
(1) For the establishment, improvement, and conduct of a public
harbor; and for the construction, maintenance, and operation thereon
of wharves, docks, piers, slips, quays, ways, and streets, and other
utilities, structures, and appliances necessary or convenient for the
promotion or accommodation of commerce and navigation.
(2) For the establishment, improvement, and conduct of public
bathing beaches, public marinas, public aquatic playgrounds, and
similar recreational facilities open to the general public; and for
the construction, reconstruction, repair, maintenance, and operation
of all works, buildings, facilities, utilities, structures, and
appliances incidental, necessary, or convenient for the promotion and
accommodation of any such uses.
(3) For the preservation, maintenance, and enhancement of the
lands in their natural state and the reestablishment of the natural
state of the lands so that they may serve as ecological units for
scientific study, as open space, and as environments which provide
food and habitat for birds and marine life, and which favorably
affect the scenery and climate of the area.
(b) Except as otherwise provided in this section, the city or its
successors shall not, at any time, grant, convey, give, or alienate
the lands, or any part thereof, to any individual, firm, public or
private entity, or corporation for any purposes whatever; except that
the city or its successors may grant franchises thereon for a period
not exceeding 50 years for wharves and other public uses and
purposes and may lease the lands, or any part thereof, for terms not
exceeding 50 years for purposes consistent with the trust upon which
the lands are held by the state and with the uses specified in this
section.
(c) The lands shall be improved without expense to the state;
provided, however, that nothing contained in this act shall preclude
expenditures for the development of the lands for the purposes
authorized by this act, by the state, or any board, agency, or
commission thereof, or expenditures by the city of any funds received
for such purpose from the state or any board, agency, or commission
thereof.
(d) In the management, conduct, operation, and control of the
lands or any improvements, betterments, or structures thereon, the
city or its successors shall make no discrimination in rates, tolls,
or charges for any use or service in connection therewith.
(e) The state shall have the right to use without charge any
transportation, landing, or storage improvements, betterments, or
structures constructed upon the lands for any vessel or other
watercraft or railroad owned or operated by the state.
(f) There is hereby reserved to the people of the state the right
to fish in the waters on the lands with the right of convenient
access to the waters over the lands for such purpose, which rights
shall be subject, however, to such rules and regulations as are
necessary for the accomplishment of the purposes specified in
subdivision (a).
(g) Notwithstanding any provision of this section to the contrary,
the city may lease the lots located within Parcels A, B, and C
described in Section 6 of this act for the purposes set forth in this
act and for terms not to exceed 50 years , or until January 1,
2060, whichever comes later . The consideration to be received
by the city for such leases shall be the fair market rental value of
such lots as finished subdivided lots with streets constructed and
all utilities installed. The form of such leases and the range of
consideration to be received by the city shall be approved by the
State Lands Commission prior to the issuance of any such lease. All
money received by the city from existing and future leases of those
lots shall be deposited in the city tideland trust funds as provided
in Section 2.
(h) With the approval of the State Lands Commission, the city may
transfer portions of the lands granted by this act, or held pursuant
to this act, to the state acting by and through 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; provided, however, that, if
at any time the Department of Fish and Game no longer uses those
portions of the lands so transferred by the city to the state for
those purposes, the lands so transferred shall revert to the city to
be held pursuant to the provisions of this act. Upon approving such a
transfer from the city to the state, the State Lands Commission
shall lease the lands so transferred to the Department of Fish and
Game. The public benefits shall be the sole consideration to be
received by the State Lands Commission from the Department of Fish
and Game for that lease. Any and all income received by the
Department of Fish and Game from the lands so leased shall be used
only in connection with the department's improvement and
administration of the leased lands.
(i) The city shall establish a separate tidelands trust fund or
funds in such a manner as may be approved by the State Lands
Commission, and the city shall deposit in the fund or funds all money
received directly from, or indirectly attributable to, the granted
tidelands in the city.
(j) In accordance with this act, the city, acting either alone or
jointly with another local or state agency, may use revenues accruing
from or out of the use of the granted tidelands or from any
additional trust assets, for any or all of the purposes set forth in
this act on public trust lands within the City of Newport Beach.
Those revenues may be deposited in one or more reserve funds for use
in accordance with the terms and conditions set forth in this act.
(k) As to the accumulation and expenditure of revenues for any
single capital improvement on the public trust lands within the city
involving an amount in excess of two hundred fifty thousand dollars
($250,000) in the aggregate, the city shall file with the State Lands
Commission a detailed description of such capital improvement not
less than 30 days prior to the time of any disbursement therefor or
in connection therewith. The executive officer of the commission
shall notify the city within 30 days from the date of the filing, if
the proposed expenditure raises significant issues. Upon receipt of
the notification, the city shall not make any disbursement in
connection with the proposed expenditure for 60 days or until the
commission has acted on the proposed expenditure, whichever is the
shorter period. Within 60 days of the notification by the executive
officer, the State Lands Commission may determine and notify the city
that the capital improvement is not in the statewide interest and
benefit or is not authorized by the provisions of subdivision (j).
The State Lands Commission may request the opinion of the Attorney
General on the matter; and, if it does so, a copy of the opinion
shall be delivered to the city with the notice of its determination.
If the State Lands Commission notifies the city that the capital
improvement is not authorized, the city shall not disburse any
revenue for or in connection with the capital improvement unless and
until it is determined to be authorized by a final order or judgment
of a court of competent jurisdiction. The city is authorized to bring
suit against the state for the purpose of securing such an order or
adjudication, which suit shall have priority over all other civil
matters. Service of process shall be made upon the Executive Officer
of the State Lands Commission and the Attorney General, and the
Attorney General shall defend the state in such suit. If judgment be
given against the state in the suit, no costs shall be recovered
against it.
( l ) On June 30, 1978, and on June 30 of every third
fiscal year thereafter, that portion of the city tideland trust
revenues in excess of two hundred fifty thousand dollars ($250,000)
remaining after deducting current and accrued operating costs and
expenditures directly related to the operation or maintenance of
tideland trust activities shall be deemed excess revenues. However,
any funds deposited in a reserve fund for future capital expenditures
or any funds used to retire bond issues for the improvement or
operation of the granted lands shall not be deemed excess revenue.
Capital improvements of the granted lands for purposes authorized by
this act, including improvements on lands transferred to the state
pursuant to subdivision (h) and paid for by the city, may be
considered as expenditures for the purpose of determining excess
revenues; provided, however, that if made after the effective date of
this act they may be so considered only if made in accordance with
subdivision (k). The excess revenue, as determined pursuant to this
subdivision, shall be allocated as follows: 85 percent shall be
transmitted to the Treasurer for deposit in the General Fund in the
State Treasury, and 15 percent shall be retained by the city for
deposit in the trust fund for use in any purpose authorized by
subdivision (j) of this section.
(m) At the request of the city, the State Lands Commission shall
grant an extension of time, not to exceed 90 calendar days, for
filing any report or statement required by this act, that was not
filed due to mistake or inadvertence.
(n) If the city fails or refuse to file with the State Lands
Commission any report, statement, or document required by any
provision of this act, or any extension period granted pursuant to
this act, or fails or refuses to carry out the terms of this act, the
Attorney General shall, upon the request of the State Lands
Commission, bring such judicial proceedings for correction and
enforcement as are appropriate and shall act to protect any
improvements to, or assets situated upon, the granted lands or
diverted therefrom. The State Lands Commission shall notify the Chief
Clerk of the Assembly and the Secretary of the Senate within 30 days
from the date of the occurrence of the failure or refusal and of
actions taken as a result thereof.
(o) The State Lands Commission shall, from time to time, recommend
to the Legislature such amendments as it may determine to be
necessary in the terms and conditions of this act.
(p) The State Lands Commission shall, from time to time, institute
a formal inquiry to determine that the terms and conditions of this
act, and amendments thereto, have been complied with in good faith.
(q) On or before December 31 of each year, the State Lands
Commission shall report to the Chief Clerk of the Assembly and to the
Secretary of the Senate the full details of any transaction or
condition reported to the commission pursuant to this act which it
determines to be in probable conflict with this act or with any other
provision of law. Upon request by resolution of either house of the
Legislature, or upon formal request of the State Lands Commission
made only after a noticed public hearing at which the city has been
given an opportunity to express fully any disagreement with the
commission's findings or to describe any extenuating circumstances
causing the violation, the Attorney General shall bring an action in
the Superior Court in the County of Orange to declare that the grant
under which the city holds the tidelands and submerged lands is
revoked for gross and willful violation of this act or any other
provision of law or to compel compliance with the requirements of
this act and any other provision of law.
(r) The city shall cause to be made and filed annually with the
State Lands Commission a detailed statement of receipts and
expenditures by it of all rents, revenues, issues, and profits in any
manner arising after the effective date of this act from the granted
lands or any improvements, betterments, or structures thereon.
(s) The Department of Fish and Game shall establish the funds and
make the deposits required by subdivision (i) of this section and
shall prepare and file statements required by subdivision (r) as to
any lands transferred to the state pursuant to subdivision (h).
(t) The provisions of Chapter 2 (commencing with Section 6701) of
Part 2 of Division 6 of the Public Resources Code shall be applicable
to this section. The provisions of Section 6359 of the Public
Resources Code shall not be applicable to this section.
(u) Notwithstanding any other provision of this act, the city
shall pay to the state all revenues received from the production of
oil, gas, and other minerals derived from or attributable to the real
property described in Section 6 of this act and the real property
acquired by the city pursuant to subdivision (a) of Section 2 of this
act. Whenever practicable, the city shall obtain the mineral rights
in real property acquired pursuant to subdivision (a) of Section 2 of
this act.
