BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Dave Cox, Chair BILL NO: SB 1142 HEARING: 4/19/10 AUTHOR: Wiggins FISCAL: Yes VERSION: 2/18/10 CONSULTANT: Detwiler AGRICULTURAL CONSERVATION EASEMENTS Background and Existing Law The California Farmland Conservancy Act allows the State Department of Conservation to give grants to acquire agricultural conservation easements and fee title interests to preserve farmland (SB 1864, Costa, 2002). These perpetual easements keep agricultural land in private ownership while the owners voluntarily avoid development for anything but agricultural production. The Department has provided more than $62 million in grants through the California Farmland Conservancy Program Fund (CFCPF) for more than 125 agricultural conservation easements covering over 41,000 acres. Among the many requirements that apply to these grants, state law prohibits grants funded through the CFCPF from imposing any restrictions on commercial agricultural activities. Some observers say that farm and ranch properties could be used for multiple purposes, including flood corridors or habitat preservation, but the statutory limits on agricultural conservation easements makes the property ineligible for CFCPF money. They want state officials to have more flexibility in the rules that govern the agricultural conservation easements that the Department of Conservation funds. Proposed Law Senate Bill 1142 authorizes the Director of the California Department of Conservation to make grants, from a source other than the California Farmland Conservancy Program Fund (CFCPF), for the acquisition of agricultural conservation easements, upon legislative appropriation. SB 1142 requires the Director to determine that those grants are consistent with the purposes of the California SB 1142 -- 2/18/10 -- Page 2 Farmland Conservancy Act and requires that agricultural conservation easements funded by those grants meet the following requirements: The easement's primary purpose must be consistent with the property's continuing agricultural use. The easement cannot substantially prevent agricultural uses on the property. Any restriction on the property's current or foreseeable agricultural use must only be imposed to restrict the property's uncultivated areas. If the property's characteristics or qualities meet the original purpose of the funding source as cultivated land, the property may continue to be commercially cultivated with the minimum restrictions necessary to meet the original funding source requirements. The nonagricultural qualities that will be protected by the easement must be inherent to the property. The easement must require that a subsequent easement or deed restriction will be subordinate to the agricultural conservation easement and require the Director's approval. The bill creates the Farm, Ranch, and Watershed Account in the Soil and Conservation Fund to make grants that implement its provisions. Comment More flexible farmland protection . Agricultural conservation easements can't restrict commercial agricultural activities. As a result, the Department of Conservation cannot use CFCPF money to protect other resource values on agricultural land if that protection limits the property's agricultural use. By contrast, SB 1142 allows the Department to use non-CFCPF funds as grants to protect riparian zones, wildlife habitat, or flood corridors while simultaneously keeping the farmed portions in agricultural use. This more flexible approach to agricultural conservation easements is similar to AB 1180 (Blakeslee, 2007) and AB 929 (Blakeslee, 2010), both of which passed the Senate Local Government Committee, but died on the Senate Appropriations Committee's suspense file. SB 1142 -- 2/18/10 -- Page 3 SB 1142 -- 2/18/10 -- Page 4 Support and Opposition (4/15/10) Support : California Council of Land Trusts, American Land Conservancy, Amigo de los Rios, Audubon California, Bay Area Open Space Council, Big Sur Land Trust, Bolsa Chica Land Trust, California Coastal Coalition, California League of Conservation Voters, California Rangelands Trust, Catalina Island Conservancy, Central Valley Land Trust Council, Defenders of Wildlife, Eastern Sierra Land Trust, Feather River Land Trust, General Valley Land Trust Council, Lake County Land Trust, Land Conservancy of San Luis Obispo County, Land Trust of Napa County, Land Trust for Santa Barbara County, Land Trust of Santa Cruz County, Lassen Land & Trails Trust, Marin Agricultural Land Trust, Mendocino Land Trust, Mountain Meadows Conservancy, Muir Heritage Land Trust, Natural Resources Defense Council, Pacific Forest Trust, Peninsula Open Space Trust, Placer Land Trust, Preserve Calavera, Save Mt. Diablo, Planning and Conservation League, Sacramento Area Flood Control Agency, Sanctuary Forest, Inc., San Diego River Park Foundation, San Joaquin River Parkway and Conservation Trust, Sempirvirens Fund, Sequoia Riverlands Trust, Shasta Land Trust, Sierra-Cascade Land Trust Council, Sierra Foothills Conservancy, Solano Land Trust, Sonoma Land Trust, Tri-Valley Conservancy, Truckee Donner Land Trust, Trust for Public Land, Tulare Basin Wildlife Partners. Opposition : Unknown.