BILL NUMBER: SB 671 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 2, 2009
INTRODUCED BY Senator Runner
FEBRUARY 27, 2009
An act to amend Section Sections
51203 and 51283.5 of the Government Code, relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 671, as amended, Runner. Agricultural land: valuation.
Existing law requires the county assessor to assess current fair
market valuations to determine the cancellation fee for removing land
from a Williamson Act contract. 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 requires 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.
This bill would instead require the Department of Conservation to
obtain a fee appraisal to determine the current fair market value of
the land, and would authorize the county assessor, upon request of
the department or the landowner, to provide information to the
department to assist in the determination of value. The bill would
require the fee appraiser to, upon request, formally review the
valuation, and at the conclusion of the formal review, send the
valuation to the department, the landowner, and the board or council
considering the petition to cancel the contract.
This bill would instead authorize the department or the landowner
to hire an independent fee appraiser to obtain an independent fee
appraisal within 45 days of receipt of the assessor's appraisal. The
bill would also require the board or council, if the department and
the landowner cannot agree on which valuation is correct, to hire or
appoint a mediator to make the final determination. The bill would
make other conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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
hire a fee appraiser to complete an independent fee appraisal, and
notify the assessor in writing that the department or landowner has
hired the fee appraiser .
(1) If no request is made notice of a
challenge of the initial valuation is submitted to the assessor
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.
(2) If a challenge to the valuation is made, the challenging party
shall, within 30 days of notifying the assessor of the challenge,
provide the independent valuation to the assessor.
(3) If the department and the landowner cannot agree on which
valuation is correct, the board or council considering the petition
to cancel the contract shall hire or appoint a mediator to make the
final determination. At least 30 calendar days prior to consideration
by the board or council, the assessor shall provide the board or
council a copy of the original valuation and any independent
valuations the assessor has received. The mediator's final
determination of value shall control.
(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 51283.5 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 notification of an independent fee appraisal
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 an
independent fee appraisal is pending , 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
independent fee appraisal or judicial challenge to the
cancellation valuation or fee. The certificate of final cancellation
shall include the following statements:
(1) That formal review independent fee
appraisal 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 results of the independent fee
appraisal 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 independent fee appraisal 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.
SECTION 1. Section 51203 of the Government Code
is amended to read:
51203. (a) The Department of Conservation shall obtain a fee
appraisal to determine the current fair market value of the land as
if it were free of the contractual restriction pursuant to Section
51283. The county assessor, upon request of the department or the
landowner, may provide information to the department to assist in the
determination of value.
(b) Within 45 days of receiving the fee appraisal, 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 fee appraiser. The
department or the landowner shall submit to the fee appraiser 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.
(1) If no request is made within 45 days of receiving notice by
certified mail of the valuation, the fee appraiser's valuation shall
be used to calculate the fee.
(2) Upon receiving a request for formal review, the fee appraiser
shall formally review the valuation if, based on the determination of
the fee appraiser, the information may have a material effect on the
valuation of the property. The fee appraiser shall notify the
department and the landowner that the formal review is being
undertaken and that information to aid the fee appraiser's review
shall be submitted within 30 days of the date of the notice to the
department and the landowner. Any information submitted to the fee
appraiser shall be served on the other party who shall have 30 days
to respond to that information to the fee appraiser. If the response
to the fee appraiser contains new information, the party receiving
that response shall have 20 days to respond to the fee appraiser as
to the new information. All submittals and responses to the fee
appraiser shall be served on the other party by personal service or
an affidavit of mailing. The fee appraiser shall avoid ex parte
contacts during the formal review and shall report any contacts to
the department and the landowner at the same time the review is
complete. The fee appraiser shall complete the review no later than
120 days of receiving the request.
(3) At the conclusion of the formal review, the fee appraiser
shall either revise the cancellation valuation or determine that the
original cancellation valuation is accurate. The fee appraiser 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 fee
appraiser 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 department and the landowner.
The fee appraiser shall give no consideration to a party's
information or response that was not served on the other party. If
the fee appraiser denies a formal review, a brief narrative shall be
provided to the department and the landowner 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 fee appraiser'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 fee appraiser.
(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.