Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Rent or other consideration for the
various categories of uses shall be in the best interest of the State and may
be based on one or more of the following methods:
(1) 9% of the appraised value of the leased
land;
(2) A percentage of annual
gross income (the percentage being based on an analysis of the market for like
uses and other relevant factors);
(3) Comparison to rents for other similar
land or facilities;
(4) $0.05 per
diameter inch per lineal foot of pipeline, conduit, or fiber optic
cable;
(5) Benchmarks for regions
where there are large concentrations of similar facilities (benchmark rental
rate to be based on analysis of similar or substitute facilities in the local
area);
(6) For salvage permit
operations, the Commission shall agree to a division of the net value of
State-owned objects recovered by the permittee, after a deduction of reasonable
salvage cost. The percentage of the net value of State-owned objects retained
by the Commission shall be based on the complexity of the project and may be
negotiated. The State retains ownership of all items recovered until released
and has a first right to select objects and may retain any or all of the
objects recovered. If the State elects to retain objects with a value greater
than its agreed percentage share, it shall reimburse the permittee to the
extent of the agreed division of value;
(7) For archaeological permits, artifacts
collected shall remain State property, except that the Commission may authorize
the transfer of title to artifacts for the purposes of research or display to
museums, educational institutions, or other appropriate locations available to
the public, or to a culturally affiliated Native American tribe;
(8) For Forest Management Agreements: Rent
may constitute enhancement of the land's value resulting from the
use;
(9) Other such methods or
information that are based on commonly-accepted appraisal practices and
principles;
(10) For leases for a
recreational pier or buoy, rent shall be based on local conditions and local
fair annual rental values;
(b) Notwithstanding section (a) above,
minimum annual rents for the various lease/permit categories shall be as
follows:
(1) Commercial Use: $600;
(2) Industrial Use: $600;
(3) Right of Way Use: $450;
(4) Grazing: $600;
(5) Agricultural: $600;
(6) Recreational: $125;
(7) Public Agency: $125;
(8) Protective Structure: $125;
(9) Dredging: $125; and
(10) All other General Lease or Permits:
$125.
(c) Effective July
1, 2014, the minimum annual rents for the various lease/permit categories will
be recalculated every five (5) years, at the end of June, using the adjustment
formula identified in section
1900(m).
Regardless of whether the application of the Adjustment Formula results in an
adjusted minimum annual rent that is greater or lesser value than the previous
year's rent, the adjusted minimum annual rent will never be lower than the
minimum annual rents set in section
2003(b).
(d) The following may be considered by the
Commission in determining which rent method should apply:
(1) The amount of rent the State would
receive under various rental methods;
(2) Whether relevant, reliable and comparable
data is available concerning the value of the land proposed to be
leased;
(3) Whether a particular
method or amount of rent would effectively cause an applicant to use more
competitive substitute land or to abandon its project altogether;
(4) Whether the land proposed to be leased
has been classified as having significant environmental value pursuant to
Public Resources Code Section
6370.2
and Title 2, California Code of Regulations, Section
2952;
(5) The monetary value of actual or potential
environmental damage anticipated from an applicant's proposed use to the extent
such damage is quantifiable;
(6)
The appropriateness of the proposed rental method.
(e) Other factors in determining rent or
other consideration:
(1) Authority for rent
adjustment during the lease term shall be provided and may include application
of the California Consumer Price Index.
(2) Lease areas may include a reasonable
impact area beyond the footprint of the actual facilities or improvements
occupying State land, based on local conditions. Rent may be charged only for
those impact areas directly associated with the docking and mooring of vessels,
such as catwalks, boat hoists, and cleats, or where public access or use is
clearly restricted by the facilities. The Commission may consider the seasonal
use and other local conditions when establishing the impact area and rent for
that impact area.
(3) In addition
to the annual rent or other consideration, for General Lease -- Commercial Use,
Industrial Use, and Right-of-Way Use, the Commission may require the
lessee/permittee to pay an annual administrative fee for the reimbursement of
staff costs associated with, but not limited to, lease/permit compliance;
enforcement; periodic rent reviews, insurance or surety review; or other such
activities as may be reasonably required over the term of the lease/permit. The
annual administrative fee may be charged as either a flat rate or as a
percentage of the rent.
(4) Rent
may be discounted or waived for use of sovereign lands if the Commission, at
its sole discretion, determines that a significant regional or statewide public
benefit is provided or accrues from such use.
1. Editorial
correction of printing error in subsection (a) (Register 92, No.
22).
2. Amendment of section heading, section and NOTE filed
3-10-2014; operative 7-1-2014 (Register 2014, No.
11).
Note: Authority cited: Sections
6105,
6108,
6218,
6309,
6321.2,
6503
and
6503.5,
Public Resources Code. Reference: Sections
6218,
6321.2,
6503
and
6503.5,
Public Resources Code.
