BILL NUMBER: SB 49 CHAPTERED
BILL TEXT
CHAPTER 245
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2005
APPROVED BY GOVERNOR SEPTEMBER 22, 2005
PASSED THE SENATE AUGUST 25, 2005
PASSED THE ASSEMBLY AUGUST 18, 2005
AMENDED IN ASSEMBLY JUNE 27, 2005
AMENDED IN ASSEMBLY JUNE 13, 2005
AMENDED IN SENATE FEBRUARY 17, 2005
INTRODUCED BY Senator Machado
JANUARY 10, 2005
An act to amend Sections 51203, 51283, 51283.4, and 51283.5 of the
Government Code, relating to land conservation, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 49, Machado Land conservation contracts.
Existing law makes the current fair market valuations required to
determine the cancellation fee for removing land from a Williamson
Act conservation contract subject to appeal to the county board of
equalization. Existing law requires the county assessor to send a
notice to the assessee that indicates the current fair market value
of the land as though it were free of the contractual restriction and
to notify the landowner and the Department of Conservation of the
opportunity to request formal review from the assessor. Existing law
permits the Department of Conservation or the landowner, if either
believes that the current fair market valuations are inaccurate, to
request formal review from the county assessor in the county
considering the cancellation petition. Existing law permits the
assessor to formally review the valuation pursuant to specified
procedures and to recompute the cancellation fee, as specified.
This bill would require the county assessor to formally review the
valuation upon receiving a request for formal review if he or she
determines that additional information submitted by the requesting
party may have a material effect on the valuation of the property,
thereby imposing a state-mandated local program. It would also make
other related changes.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would declare that it is to take effect immediately as an
urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51203 of the Government Code is amended to
read:
51203. (a) The assessor shall determine the current fair market
value of the land as if it were free of the contractual restriction
pursuant to Section 51283. The Department of Conservation or the
landowner, also referred to in this section as "parties," may provide
information to assist the assessor to determine the value. Any
information provided to the assessor shall be served on the other
party, unless the information was provided at the request of the
assessor, and would be confidential under law if required of an
assessee.
(b) Within 45 days of receiving the assessor's notice pursuant to
subdivision (a) of Section 51283 or 51283.4, if the Department of
Conservation or the landowner believes that the current fair market
valuation certified pursuant to subdivision (b) of Section 51283 or
Section 51283.4 is not accurate, the department or the landowner may
request formal review from the county assessor in the county
considering the petition to cancel the contract. The department or
the landowner shall submit to the assessor and the other party the
reasons for believing the valuation is not accurate and the
additional information the requesting party believes may substantiate
a recalculation of the property valuation. The assessor may recover
his or her reasonable costs of the formal review from the party
requesting the review, and may provide an estimate of those costs to
the requesting party. The recovery of these costs from the department
may be deducted by the city or county from the cancellation fees
received pursuant to this chapter prior to transmittal to the
Controller for deposit in the Soil Conservation Fund.
(1) If no request is made within 45 days of receiving notice by
certified mail of the valuation, the assessor's valuation shall be
used to calculate the fee.
(2) Upon receiving a request for formal review, the assessor shall
formally review his or her valuation if, based on the determination
of the assessor, the information may have a material effect on
valuation of the property. The assessor shall notify the parties that
the formal review is being undertaken and that information to aid
the assessor's review shall be submitted within 30 days of the date
of the notice to the parties. Any information submitted to the
assessor shall be served on the other party who shall have 30 days to
respond to that information to the assessor. If the response to the
assessor contains new information, the party receiving that response
shall have 20 days to respond to the assessor as to the new
information. All submittals and responses to the assessor shall be
served on the other party by personal service or an affidavit of
mailing. The assessor shall avoid ex parte contacts during the formal
review and shall report any such contacts to the department and the
landowner at the same time the review is complete. The assessor
shall complete the review no later than 120 days of receiving the
request.
(3) At the conclusion of the formal review, the assessor shall
either revise the cancellation valuation or determine that the
original cancellation valuation is accurate. The assessor shall send
the revised valuation or notice of the determination that the
valuation is accurate to the department, the landowner, and the board
or council considering the petition to cancel the contract. The
assessor shall include a brief narrative of what consideration was
given to the items of information and responses directly relating to
the cancellation value submitted by the parties. The assessor shall
give no consideration to a party's information or response that was
not served on the other party. If the assessor denies a formal
review, a brief narrative shall be provided to the parties indicating
the basis for the denial, if requested.
(c) For purposes of this section, the valuation date of any
revised valuation pursuant to formal review or following judicial
challenge shall remain the date of the assessor's initial valuation,
or his or her initial recomputation pursuant to Section 51283.4. For
purposes of cancellation fee calculation in a tentative cancellation
as provided in Section 51283, or in a recomputation for final
cancellation as provided in Section 51283.4, a cancellation value
shall be considered current for one year after its determination and
certification by the assessor.
(d) Notwithstanding any other provision of this section, the
department and the landowner may agree on a cancellation valuation of
the land. The agreed valuation shall serve as the cancellation
valuation pursuant to Section 51283 or Section 51283.4. The agreement
shall be transmitted to the board or council considering the
petition to cancel the contract.
(e) This section represents the exclusive administrative procedure
for appealing a cancellation valuation calculated pursuant to this
section. The Department of Conservation shall represent the interests
of the state in the administrative and judicial remedies for
challenging the determination of a cancellation valuation or
cancellation fee.
SEC. 2. Section 51283 of the Government Code is amended to read:
51283. (a) Prior to any action by the board or council giving
tentative approval to the cancellation of any contract, the county
assessor of the county in which the land is located shall determine
the current fair market value of the land as though it were free of
the contractual restriction. The assessor shall certify to the board
or council the cancellation valuation of the land for the purpose of
determining the cancellation fee. At the same time, the assessor
shall send a notice to the landowner and the Department of
Conservation indicating the current fair market value of the land as
though it were free of the contractual restriction and advise the
parties, that upon their request, the assessor shall provide all
information relevant to the valuation, excluding third-party
information. If any information is confidential or otherwise
protected from release, the department and the landowner shall hold
it as confidential and return or destroy any protected information
upon termination of all actions relating to valuation or cancellation
of the contract on the property. The notice shall also advise the
landowner and the department of the opportunity to request formal
review from the assessor.
(b) Prior to giving tentative approval to the cancellation of any
contract, the board or council shall determine and certify to the
county auditor the amount of the cancellation fee that the landowner
shall pay the county treasurer upon cancellation. That fee shall be
an amount equal to 121/2 percent of the cancellation valuation of the
property.
(c) If it finds that it is in the public interest to do so, the
board or council may waive any payment or any portion of a payment by
the landowner, or may extend the time for making the payment or a
portion of the payment contingent upon the future use made of the
land and its economic return to the landowner for a period of time
not to exceed the unexpired period of the contract, had it not been
canceled, if all of the following occur:
(1) The cancellation is caused by an involuntary transfer or
change in the use which may be made of the land and the land is not
immediately suitable, nor will be immediately used, for a purpose
which produces a greater economic return to the owner.
(2) The board or council has determined that it is in the best
interests of the program to conserve agricultural land use that the
payment be either deferred or is not required.
(3) The waiver or extension of time is approved by the Secretary
of the Resources Agency. The secretary shall approve a waiver or
extension of time if the secretary finds that the granting of the
waiver or extension of time by the board or council is consistent
with the policies of this chapter and that the board or council
complied with this article. In evaluating a request for a waiver or
extension of time, the secretary shall review the findings of the
board or council, the evidence in the record of the board or council,
and any other evidence the secretary may receive concerning the
cancellation, waiver, or extension of time.
(d) The first two million thirty-six thousand dollars ($2,036,000)
of revenue paid to the Controller pursuant to subdivision (e) in the
2004-05 fiscal year, and any other amount as approved in the final
Budget Act for each fiscal year thereafter, shall be deposited in the
Soil Conservation Fund, which is continued in existence. The money
in the fund is available, when appropriated by the Legislature, for
the support of all of the following:
(1) The cost of the farmlands mapping and monitoring program of
the Department of Conservation pursuant to Section 65570.
(2) The soil conservation program identified in Section 614 of the
Public Resources Code.
(3) Program support costs of this chapter as administered by the
Department of Conservation.
(4) Program support costs incurred by the Department of
Conservation in administering the open-space subvention program
(Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of
Title 2).
(e) When cancellation fees required by this section are collected,
they shall be transmitted by the county treasurer to the Controller
and deposited in the General Fund, except as provided in subdivision
(d) of this section and subdivision (b) of Section 51203. The funds
collected by the county treasurer with respect to each cancellation
of a contract shall be transmitted to the Controller within 30 days
of the execution of a certificate of cancellation of contract by the
board or council, as specified in subdivision (b) of Section 51283.4.
(f) It is the intent of the Legislature that fees paid to cancel a
contract do not constitute taxes but are payments that, when made,
provide a private benefit that tends to increase the value of the
property.
SEC. 3. Section 51283.4 of the Government Code is amended to read:
51283.4. (a) Upon tentative approval of a petition accompanied by
a proposal for a specified alternative use of the land, the clerk of
the board or council shall record in the office of the county
recorder of the county in which is located the land as to which the
contract is applicable a certificate of tentative cancellation, which
shall set forth the name of the landowner requesting the
cancellation, the fact that a certificate of cancellation of contract
will be issued and recorded at the time that specified conditions
and contingencies are satisfied, a description of the conditions and
contingencies which must be satisfied, and a legal description of the
property. Conditions to be satisfied shall include payment in full
of the amount of the fee computed under the provisions of Section
51283, together with a statement that unless the fee is paid, or a
certificate of cancellation of contract is issued within one year
from the date of the recording of the certificate of tentative
cancellation, the fee shall be recomputed as of the date of notice
described in subdivision (b) or the date the landowner requests a
recomputation. A landowner may request a recomputation when he or she
believes that he or she will be able to satisfy the conditions and
contingencies of the certificate of cancellation within 180 days. The
board or council shall request the assessor to recompute the
cancellation valuation. The assessor shall recompute the valuation,
certify it to the board or council, and provide notice to the
Department of Conservation and landowner as provided in subdivision
(a) of Section 51283, and the board or council shall certify the fee
to the county auditor. Any provisions related to the waiver of the
fee or portion thereof shall be treated in the manner provided for in
the certificate of tentative cancellation. Contingencies to be
satisfied shall include a requirement that the landowner obtain all
permits necessary to commence the project. The board or council may,
at the request of the landowner, amend a tentatively approved
specified alternative use if it finds that the amendment is
consistent with the findings made pursuant to subdivision (a) of
Section 51282.
(b) The landowner shall notify the board or council when he or she
has satisfied the conditions and contingencies enumerated in the
certificate of tentative cancellation. Within 30 days of receipt of
the notice, and upon a determination that the conditions and
contingencies have been satisfied, the board or council shall execute
a certificate of cancellation of contract, cause the certificate to
be recorded, and send a copy to the Director of Conservation.
(c) If the landowner has been unable to satisfy the conditions and
contingencies enumerated in the certificate of tentative
cancellation, the landowner shall notify the board or council of the
particular conditions or contingencies he or she is unable to
satisfy. Within 30 days of receipt of the notice, and upon a
determination that the landowner is unable to satisfy the conditions
and contingencies listed, the board or council shall execute a
certificate of withdrawal of tentative approval of a cancellation of
contract and cause the same to be recorded. However, the landowner
shall not be entitled to the refund of any cancellation fee paid.
SEC. 4. Section 51283.5 of the Government Code is amended to read:
51283.5. (a) The Legislature finds and declares that cancellation
fees should be calculated in a timely manner and disputes over
cancellation fees should be resolved before a city or county approves
a tentative cancellation. However, the city or county may approve a
tentative cancellation notwithstanding an assessor's formal review or
judicial challenge to the cancellation value or fee.
(b) If the valuation changes after the approval of a tentative
cancellation, the certificate of tentative cancellation shall be
amended to reflect the correct valuation and cancellation fee.
(c) If the landowner wishes to pay a cancellation fee when a
formal review has been requested, he or she may pay the fee required
in the current certificate of cancellation and provide security
determined to be adequate by the Department of Conservation for 20
percent of the cancellation fee based on the assessor's valuation.
The board or council shall hold the security and release it
immediately upon full payment of the cancellation fee determined
pursuant to Section 51203.
(d) The city or county may approve a final cancellation
notwithstanding a pending formal review or judicial challenge to the
cancellation valuation or fee. The certificate of final cancellation
shall include the following statements:
(1) That formal review or judicial challenge of the cancellation
valuation or fee is pending.
(2) That the fee may be adjusted, based upon the outcome of the
review or challenge.
(3) The identity of the party who will be responsible for paying
any additional fee or will receive any refund.
(4) The form and amount of security provided by the landowner or
other responsible party and approved by the Department of
Conservation.
(e) Upon resolution, the landowner or the party identified in the
certificate shall either pay the balance owed to the county
treasurer, or receive from the county treasurer or the controller any
amount of overpayment, and shall also be entitled to the immediate
release of any security.
(f) (1) If a party does not receive the notice required pursuant
to Section 51203, 51283, 51283.4, or 51284, a judicial challenge to
the cancellation valuation may be filed within three years of the
latest of the applicable following events:
(A) The board or council certification of the fee pursuant to
subdivision (b) of Section 51283, or for fees recomputed pursuant to
Section 51283.4, the execution of a certificate of cancellation under
that section.
(B) The date of the assessor's determination pursuant to paragraph
(3) of subdivision (b) of Section 51203.
(C) The service of notice to the Director of Conservation of the
board or council's recorded certificate of final cancellation.
(2) If a party did receive the required notice pursuant to Section
51203, 51283, 51283.4, or 51284, a judicial challenge to the
cancellation valuation may be filed only after the party has
exhausted his or her administrative remedies through the formal
review process specified in Section 51203, and only within 180 days
of the latest of the applicable following events:
(A) The board or council certification of the fee pursuant to
subdivision (b) of Section 51283 or for fees recomputed pursuant to
Section 51283.4, the execution of a certificate of cancellation under
that section.
(B) The date of the assessor's determination pursuant to paragraph
(3) of subdivision (b) of Section 51203.
(C) The service of notice to the Director of Conservation or the
board or council's recorded certificate of final cancellation.
SEC. 5. The Legislature finds and declares that the amendments
made by Chapter 794 of the Statutes of 2004 or by this act shall not
apply to petitions that have been accepted as complete pursuant to
Section 51284.1 of the Government Code prior to January 1, 2005.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
SEC. 7. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
This act contains amendments that were inadvertently omitted from
the measure enacting Chapter 794 of the Statutes of 2004. In order
for the formal review process of land conservation contract
cancellation to work properly and to ensure certainty in the results
for local agencies, landowners, and the Department of Conservation,
it is necessary that this act take effect immediately.