BILL NUMBER: AB 1701 CHAPTERED 09/23/04 CHAPTER 708 FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2004 APPROVED BY GOVERNOR SEPTEMBER 23, 2004 PASSED THE ASSEMBLY AUGUST 25, 2004 PASSED THE SENATE AUGUST 24, 2004 AMENDED IN SENATE AUGUST 23, 2004 AMENDED IN SENATE JULY 1, 2004 AMENDED IN SENATE MARCH 8, 2004 INTRODUCED BY Assembly Member Laird (Principal coauthor: Senator Sher) FEBRUARY 25, 2003 An act to add Chapter 1.695 (commencing with Section 5096.500) to Division 5 of the Public Resources Code, relating to state lands. LEGISLATIVE COUNSEL'S DIGEST AB 1701, Laird. State lands: acquisition. Existing law authorizes various agencies to acquire land for purposes related to conservation. This bill would require an acquisition agency, as defined, prior to approving the acquisition of conservation land, as defined, where an agency proposes to spend more than $25,000,000 of state funds, to contract for at least one independent appraisal of the fair market value of the land. The bill would require the independent appraisal to be conducted by a qualified member of the Appraisal Institute and reviewed by a qualified independent appraiser retained by the acquisition agency for this purpose. The bill would require the acquisition agency to make available for public review, among other things, the independent appraisal review, a summary of the basis for the recommendation of approval for the acquisition of the land, and any relevant environmental studies, documents, or other information. The bill would provide that its procedures and requirements are in addition to, and do not amend, modify, or supplant, any procedures or requirements in specified bond acts for the acquisition of conservation lands. The bill would prohibit, with a specified exception, conservation lands from being sold to another owner or having possession and control transferred to another agency, unless specified actions occur. The bill would require proceeds from the sale or transfer of conservation lands to be used solely for acquisition of conservation lands to achieve the same or equivalent objectives as the original acquisition of the property that was sold or transferred, or to further the purposes of the State Coastal Conservancy, the Wildlife Conservation Law of 1947, or another specific conservation program, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 1.695 (commencing with Section 5096.500) is added to Division 5 of the Public Resources Code, to read: CHAPTER 1.695. PUBLIC REVIEW OF STATE AGENCY ACQUISITION OF CONSERVATION LANDS Article 1. General Provisions 5096.500. The Legislature finds and declares as follows: (a) It is vital to ensure public confidence in amounts paid, and procedures used, for the acquisition of property by state agencies that spend taxpayer or bond funds. (b) It is important to ensure that an acquisition agency act expeditiously to purchase critically needed conservation lands for their preservation and protection. (c) The purpose of this chapter is to ensure that information on the acquisition of conservation lands by state agencies is made available to the public, while ensuring that these lands continue to be acquired in an efficient and expeditious manner. 5096.501. For purposes of this chapter, the following terms have the following meanings: (a) "Acquisition agency" means the Wildlife Conservation Board or the State Coastal Conservancy. (b) "Conservation lands" means any land or interest therein to be acquired by an acquisition agency, or that is owned by the state and under the jurisdiction of the Wildlife Conservation Board, the State Coastal Conservancy, the Department of Fish and Game, or the Department of Parks and Recreation. (c) "Major acquisition" means an acquisition where an agency proposes to spend more than twenty-five million dollars ($25,000,000) of state funds. Article 2. Conservation Lands Acquisition Procedures 5096.511. Prior to any action by an acquisition agency to approve a major acquisition of conservation lands, the acquisition agency shall contract for at least one independent appraisal of the fair market value of the land. The appraisal shall be conducted by a qualified member of the Appraisal Institute who is licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code. The appraisal shall be prepared pursuant to the Uniform Standards of Professional Appraisal Practice. 5096.512. (a) In addition to the review by the Department of General Services pursuant to Section 1348.2 of the Fish and Game Code, the appraisal prepared pursuant to Section 5096.511 shall be reviewed by a qualified independent appraiser retained by the acquisition agency for this purpose, and who meets the following conditions: (1) The review appraiser did not conduct the appraisal pursuant to Section 5096.511 and has no financial interest in the major acquisition. (2) The review appraiser is licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code. (b) The review appraiser shall review the appraisal and prepare an appraisal review report that does all of the following: (1) Summarizes the appraisal. (2) States the basis on which the value of the land was established. (3) Describes the standards used to prepare the appraisal. (4) Determines whether or not the appraisal meets the standards established under the Uniform Standards of Professional Appraisal Practice. (c) The appraisal review report need not include any proprietary information provided by or on behalf of the seller or that is otherwise exempt from public disclosure pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). (d) (1) If a major acquisition of conservation lands will be approved by more than one acquisition agency and each acquisition agency complies with paragraph (2), not more than one independent appraisal is required pursuant to Section 5096.511, and not more than one appraisal review report is required pursuant to this section. (2) Paragraph (1) is applicable if each acquisition agency does all of the following: (A) Utilizes the independent appraisal and appraisal review report, as required by this chapter. (B) Makes an independent determination of whether to approve the major acquisition of conservation lands. (C) Complies with all of the public disclosure and independent review requirements of this chapter. 5096.513. Not less than 30 calendar days prior to holding a public hearing for the purpose of authorizing a major acquisition of conservation lands, an acquisition agency shall make available for public review information, except information that is exempt from being disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) all of, that includes, but is not limited to, the following: (a) A copy of the independent appraisal review prepared pursuant to Section 5096.512. (b) A summary of the basis for the recommendation of approval for the major acquisition of the land made by the acquisition agency. (c) Any relevant environmental studies, documents, or other information. 5096.514. Not more than 10 working days after the close of escrow for a major acquisition of conservation land by an acquisition agency, the acquisition agency shall make available to the public all of the following information, unless it is exempted from being disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code): (a) A copy of the appraisal for the conservation land approved by the Department of General Services, and from which fair market value was determined. (b) A copy of all other documents relevant to the purchase of the conservation land, including, but not limited to, environmental assessments or other documents not already disclosed pursuant to Section 5096.513. 5096.515. The procedures and requirements established pursuant to this chapter are in addition to, and do not amend, modify, or supplant, any procedures or requirements established pursuant to the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Division 26.5 (commencing with Section 79500) of the Water Code) or the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 (Chapter 1.696 (commencing with Section 5096.600)), for the acquisition of conservation lands. 5096.516. (a) Except as provided in subdivision (c), conservation lands may not be sold to another owner, or have possession and control transferred to another agency, unless all of the following occur: (1) The selling or transferring agency prepares and makes available to the public a detailed report that identifies why the conservation lands no longer serve a needed conservation purpose. (2) The selling or transferring agency holds a duly noticed public hearing to accept public comment on the proposed sale or transfer of conservation lands. (3) After compliance with paragraphs (1) and (2), the selling or transferring agency finds, based on substantial evidence, that the property no longer serves a needed conservation purpose. (4) The sale or transfer of the land is authorized or approved as part of the annual Budget Act or pursuant to specific legislation authorizing the sale or transfer. (b) Proceeds from the sale or transfer of conservation lands shall be used solely for one or more of the following purposes: (1) The acquisition of conservation lands to achieve the same or equivalent objectives as the original acquisition of the property that was sold or transferred. (2) To further the purposes of Division 21 (commencing with Section 31000). (3) The acquisition of wildlife habitat to further the purposes of the Wildlife Conservation Law of 1947 (Chapter 4 (commencing with Section 1300) of Division 2 of the Fish and Game Code). (4) The acquisition of wildlife habitat to further the purposes of Article 2 (commencing with Section 1410) of Chapter 4.3 of Division 2 of the Fish and Game Code. (c) This section does not apply to any of the following: (1) The sale or transfer of conservation lands solely for the purpose of boundary adjustments or consolidation of property ownership. (2) The sale or transfer of lands subject to a conservation easement to keep lands in agricultural production. (3) The sale or transfer to other public agencies or nonprofit organizations to improve conservation management, public access, historic preservation, or to protect or enhance the biological value of conservation lands. (4) The sale or transfer of conservation lands by the State Coastal Conservancy when the sale or transfer of interests in land is provided for, consistent with Division 21 (commencing with Section 31000), at the time of acquisition of real property. (5) The exchange of conservation lands for land of greater biological value as wildlife habitat. (6) The sale or transfer of conservation lands that have a fair market value of less than one million dollars ($1,000,000). (d) The requirements imposed by this section are in addition to any other requirements imposed by law or regulation.