California 2019 2019-2020 Regular Session

California Assembly Bill AB342 Amended / Bill

Filed 03/07/2019

                    Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 342Introduced by Assembly Member MuratsuchiFebruary 04, 2019 An act to amend Section 6009.1 of add Section 6827.5 to the Public Resources Code, relating to public lands. LEGISLATIVE COUNSEL'S DIGESTAB 342, as amended, Muratsuchi. State Lands Commission: public trust lands: legislative findings and declarations. Public lands: leasing: oil and gas: prohibition.Existing law authorizes the State Lands Commission to let leases for the extraction and removal of oil and gas deposits from state lands, including tidelands or submerged lands, in accordance with specified provisions of law. Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.This bill would prohibit any state agency, department, or commission, or any local trustee, as defined, with leasing authority over public lands within the state from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments. The bill would provide that these provisions do not prevent specified activities, including, among others, any activity undertaken to convey oil or natural gas produced from state lands or waters. Existing law vests with the State Lands Commission administration and control of state lands, and makes various legislative findings and declarations regarding the states role with respect to the supervision of granted public trust lands. This bill would make nonsubstantive changes in those legislative findings and declarations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6827.5 is added to the Public Resources Code, to read:6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.SECTION 1.Section 6009.1 of the Public Resources Code is amended to read:6009.1.The Legislature finds and declares all of the following:(a)Granted public trust lands remain subject to the supervision of the state and the state retains its duty to protect the public interest in granted public trust lands.(b)The state acts both as the trustor and the representative of the beneficiaries, who are all of the people of this state, with respect to public trust lands, and a grantee of public trust lands, including tidelands and submerged lands, acts as a trustee, with the granted tidelands and submerged lands as the corpus of the trust.(c)A grantee may fulfill its fiduciary duties as trustee by determining the application of each of the following duties, all of which are applicable under common trust principles:(1)The duty of loyalty.(2)The duty of care.(3)The duty of full disclosure.(4)The duty to keep clear and adequate records and accounts.(5)The duty to administer the trust solely in the interest of the beneficiaries.(6)The duty to act impartially in managing the trust property.(7)The duty to not use or deal with trust property for the trustees own profit or for any other purpose not connected with the trust, and to not take part in a transaction in which the trustee has an interest adverse to the beneficiaries.(8)The duty to take reasonable steps under the circumstances to take and keep control of and to preserve the trust property.(9)The duty to make the trust property productive under the circumstances and in furtherance of the purposes of the trust.(10)The duty to keep the trust property separate from other property not subject to the trust and to see that the trust property is designated as property of the trust.(11)The duty to take reasonable steps to enforce claims that are part of the trust property.(12)The duty to take reasonable steps to defend actions that may result in a loss to the trust.(13)The duty to not delegate to others the performance of acts that the trustee can reasonably be required to perform and to not transfer the administration of the trust to a cotrustee. If a trustee has properly delegated a matter to an agent, the trustee has a duty to exercise direct supervision over the performance of the delegated matter.(d)All duties endowed upon a trustee of state lands shall depend upon the terms of the trust, and if there is no provision, express or implied, within the terms of the trust, a statute, or a grant, the trustees duties shall be interpreted and determined by principles and rules evolved by courts of equity with respect to common trust principles.(e)Notwithstanding any other law, and in addition to any other rights and capacities of a trustee to act under law, a trustee of public trust lands shall have the right to bring any action related to its granted public trust lands, including an action to abate a public nuisance, as a representative of the beneficiaries.(f)Common trust principles do not nullify an act of the Legislature or modify its duty under the California Constitution to do all things necessary to execute and administer the public trust.

 Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 342Introduced by Assembly Member MuratsuchiFebruary 04, 2019 An act to amend Section 6009.1 of add Section 6827.5 to the Public Resources Code, relating to public lands. LEGISLATIVE COUNSEL'S DIGESTAB 342, as amended, Muratsuchi. State Lands Commission: public trust lands: legislative findings and declarations. Public lands: leasing: oil and gas: prohibition.Existing law authorizes the State Lands Commission to let leases for the extraction and removal of oil and gas deposits from state lands, including tidelands or submerged lands, in accordance with specified provisions of law. Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.This bill would prohibit any state agency, department, or commission, or any local trustee, as defined, with leasing authority over public lands within the state from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments. The bill would provide that these provisions do not prevent specified activities, including, among others, any activity undertaken to convey oil or natural gas produced from state lands or waters. Existing law vests with the State Lands Commission administration and control of state lands, and makes various legislative findings and declarations regarding the states role with respect to the supervision of granted public trust lands. This bill would make nonsubstantive changes in those legislative findings and declarations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 07, 2019

Amended IN  Assembly  March 07, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 342

Introduced by Assembly Member MuratsuchiFebruary 04, 2019

Introduced by Assembly Member Muratsuchi
February 04, 2019

 An act to amend Section 6009.1 of add Section 6827.5 to the Public Resources Code, relating to public lands. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 342, as amended, Muratsuchi. State Lands Commission: public trust lands: legislative findings and declarations. Public lands: leasing: oil and gas: prohibition.

Existing law authorizes the State Lands Commission to let leases for the extraction and removal of oil and gas deposits from state lands, including tidelands or submerged lands, in accordance with specified provisions of law. Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.This bill would prohibit any state agency, department, or commission, or any local trustee, as defined, with leasing authority over public lands within the state from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments. The bill would provide that these provisions do not prevent specified activities, including, among others, any activity undertaken to convey oil or natural gas produced from state lands or waters. Existing law vests with the State Lands Commission administration and control of state lands, and makes various legislative findings and declarations regarding the states role with respect to the supervision of granted public trust lands. This bill would make nonsubstantive changes in those legislative findings and declarations.

Existing law authorizes the State Lands Commission to let leases for the extraction and removal of oil and gas deposits from state lands, including tidelands or submerged lands, in accordance with specified provisions of law. Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.

This bill would prohibit any state agency, department, or commission, or any local trustee, as defined, with leasing authority over public lands within the state from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments. The bill would provide that these provisions do not prevent specified activities, including, among others, any activity undertaken to convey oil or natural gas produced from state lands or waters. 

Existing law vests with the State Lands Commission administration and control of state lands, and makes various legislative findings and declarations regarding the states role with respect to the supervision of granted public trust lands. 



This bill would make nonsubstantive changes in those legislative findings and declarations.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 6827.5 is added to the Public Resources Code, to read:6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.SECTION 1.Section 6009.1 of the Public Resources Code is amended to read:6009.1.The Legislature finds and declares all of the following:(a)Granted public trust lands remain subject to the supervision of the state and the state retains its duty to protect the public interest in granted public trust lands.(b)The state acts both as the trustor and the representative of the beneficiaries, who are all of the people of this state, with respect to public trust lands, and a grantee of public trust lands, including tidelands and submerged lands, acts as a trustee, with the granted tidelands and submerged lands as the corpus of the trust.(c)A grantee may fulfill its fiduciary duties as trustee by determining the application of each of the following duties, all of which are applicable under common trust principles:(1)The duty of loyalty.(2)The duty of care.(3)The duty of full disclosure.(4)The duty to keep clear and adequate records and accounts.(5)The duty to administer the trust solely in the interest of the beneficiaries.(6)The duty to act impartially in managing the trust property.(7)The duty to not use or deal with trust property for the trustees own profit or for any other purpose not connected with the trust, and to not take part in a transaction in which the trustee has an interest adverse to the beneficiaries.(8)The duty to take reasonable steps under the circumstances to take and keep control of and to preserve the trust property.(9)The duty to make the trust property productive under the circumstances and in furtherance of the purposes of the trust.(10)The duty to keep the trust property separate from other property not subject to the trust and to see that the trust property is designated as property of the trust.(11)The duty to take reasonable steps to enforce claims that are part of the trust property.(12)The duty to take reasonable steps to defend actions that may result in a loss to the trust.(13)The duty to not delegate to others the performance of acts that the trustee can reasonably be required to perform and to not transfer the administration of the trust to a cotrustee. If a trustee has properly delegated a matter to an agent, the trustee has a duty to exercise direct supervision over the performance of the delegated matter.(d)All duties endowed upon a trustee of state lands shall depend upon the terms of the trust, and if there is no provision, express or implied, within the terms of the trust, a statute, or a grant, the trustees duties shall be interpreted and determined by principles and rules evolved by courts of equity with respect to common trust principles.(e)Notwithstanding any other law, and in addition to any other rights and capacities of a trustee to act under law, a trustee of public trust lands shall have the right to bring any action related to its granted public trust lands, including an action to abate a public nuisance, as a representative of the beneficiaries.(f)Common trust principles do not nullify an act of the Legislature or modify its duty under the California Constitution to do all things necessary to execute and administer the public trust.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 6827.5 is added to the Public Resources Code, to read:6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.

SECTION 1. Section 6827.5 is added to the Public Resources Code, to read:

### SECTION 1.

6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.

6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.

6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.(b) Nothing in this section shall prohibit either of the following:(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.



6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected, including, but not limited to, federal lands designated as national monuments.

(b) Nothing in this section shall prohibit either of the following:

(1) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.

(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.

(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.

(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.

(e) For purposes of this section, local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.





The Legislature finds and declares all of the following:



(a)Granted public trust lands remain subject to the supervision of the state and the state retains its duty to protect the public interest in granted public trust lands.



(b)The state acts both as the trustor and the representative of the beneficiaries, who are all of the people of this state, with respect to public trust lands, and a grantee of public trust lands, including tidelands and submerged lands, acts as a trustee, with the granted tidelands and submerged lands as the corpus of the trust.



(c)A grantee may fulfill its fiduciary duties as trustee by determining the application of each of the following duties, all of which are applicable under common trust principles:



(1)The duty of loyalty.



(2)The duty of care.



(3)The duty of full disclosure.



(4)The duty to keep clear and adequate records and accounts.



(5)The duty to administer the trust solely in the interest of the beneficiaries.



(6)The duty to act impartially in managing the trust property.



(7)The duty to not use or deal with trust property for the trustees own profit or for any other purpose not connected with the trust, and to not take part in a transaction in which the trustee has an interest adverse to the beneficiaries.



(8)The duty to take reasonable steps under the circumstances to take and keep control of and to preserve the trust property.



(9)The duty to make the trust property productive under the circumstances and in furtherance of the purposes of the trust.



(10)The duty to keep the trust property separate from other property not subject to the trust and to see that the trust property is designated as property of the trust.



(11)The duty to take reasonable steps to enforce claims that are part of the trust property.



(12)The duty to take reasonable steps to defend actions that may result in a loss to the trust.



(13)The duty to not delegate to others the performance of acts that the trustee can reasonably be required to perform and to not transfer the administration of the trust to a cotrustee. If a trustee has properly delegated a matter to an agent, the trustee has a duty to exercise direct supervision over the performance of the delegated matter.



(d)All duties endowed upon a trustee of state lands shall depend upon the terms of the trust, and if there is no provision, express or implied, within the terms of the trust, a statute, or a grant, the trustees duties shall be interpreted and determined by principles and rules evolved by courts of equity with respect to common trust principles.



(e)Notwithstanding any other law, and in addition to any other rights and capacities of a trustee to act under law, a trustee of public trust lands shall have the right to bring any action related to its granted public trust lands, including an action to abate a public nuisance, as a representative of the beneficiaries.



(f)Common trust principles do not nullify an act of the Legislature or modify its duty under the California Constitution to do all things necessary to execute and administer the public trust.