Pub. Resources Code, § 6303

(a) The commission may grant the privilege of depositing material upon or removing or extracting material from swamp, overflowed, marsh, tide or submerged lands, beds of navigable streams, channels, rivers, creeks, bays, or inlets owned by the state, for improvement of navigation, reclamation, flood control, or, for purposes connected with the erection or maintenance of structures authorized pursuant to Article 2 (commencing at Section 6321), upon those terms and conditions and for that consideration as will be in the best interests of this state.

(b) When a contractor or permittee has a contract with or a permit from the federal government or any authorized public agency to dredge swamp, overflowed, marsh, tide or submerged lands, beds of navigable streams, channels, rivers, creeks, bays, or inlets for the improvement of navigation, reclamation, or flood control, the commission may, if it is in the best interests of the state, allow the contractor or permittee to have sand, gravel, or other spoils dredged from the sovereign lands of the state located within the areas specified in the contract or permit upon those terms and conditions and for such consideration as will be in the best interests of the state, notwithstanding Section 6992 with respect to competitive bidding. The amounts of sand, gravel, or other spoils so removed from sovereign lands shall not exceed those specified in the contract or permit.