BILL NUMBER: AB 654	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 4, 2011
	AMENDED IN ASSEMBLY  MARCH 29, 2011

INTRODUCED BY   Assembly Member Hueso

                        FEBRUARY 16, 2011

   An act to amend Sections 50281, 50281.1,  and 50282
  50   282, 50284, and 50287  of the
Government Code, relating to local government.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 654, as amended, Hueso. Local government: historical property.
   (1) Existing law authorizes an owner of any qualified historical
property, as defined, to contract with the legislative body of a
city, county, or city and county, to restrict the use of the property
in exchange for lowered assessment values. Existing law requires
contracts under these provisions to include, among other things,
where applicable, a provision for the periodic examination of the
interior and exterior of the premises by the assessor, the Department
of Parks and Recreation, and the State Board of Equalization
whenever necessary.
   This bill would instead require these contracts, where applicable,
to include an inspection of the interior and exterior of the
premises by the assessor prior to a new agreement, and every 5 years
thereafter, and that periodic examinations may also be conducted by
the Department of Parks and Recreation and the State Board of
Equalization whenever necessary.
   (2) Existing law authorizes the legislative body to, upon entering
into a contract, require that the property owner, as a condition to
entering into the contract, pay a fee not to exceed the reasonable
cost of administering this program.
   This bill would require the legislative body to require the
property owner, as a condition of entering into the contract, to pay
a fee sufficient to cover, but not to exceed the reasonable cost of
administering the contract program, and would specify that those
costs include, but are not limited to, processing of designation
requests, contracts, monitoring, inspections, and enforcement, as
needed.
   (3) Existing law specifies that the initial contract term is 10
years and provides that on the anniversary date of the contract, a
year is automatically added to the initial term of the contract
unless notice of nonrenewal is given, as specified.
   This bill would also require each contract to provide that after 5
years, and every 5 years thereafter, the assessor shall conduct an
inspection to determine the owner's continued compliance with the
contract. 
   (4) Existing law authorizes the legislative body to cancel a
contract if the legislative body determines that the owner has
breached any of the conditions of the contract or has allowed the
property to deteriorate to the point that it no longer meets the
standards for a qualified historical property, and authorizes the
legislative body to, as an alternative to canceling the contract,
bring any action in court necessary to enforce a contract, including,
but not limited to, an action to enforce the contract by specific
performance or injunction.  
   This bill would require the legislative body to either cancel the
contract or bring an action in court to enforce the contract, if the
legislative body determines that the owner has breached any of the
conditions of the contract or has allowed the property to deteriorate
to the point that it no longer meets the standards for a qualified
historical property. 
   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 50281 of the Government Code is amended to
read:
   50281.  Any contract entered into under this article shall contain
the following provisions:
   (a) The term of the contract shall be for a minimum period of 10
years.
   (b) Where applicable, the contract shall provide the following:
   (1) For the preservation of the qualified historical property and,
when necessary, to restore and rehabilitate the property to conform
to the rules and regulations of the Office of Historic Preservation
of the Department of Parks and Recreation, the United States
Secretary of the Interior's Standards for Rehabilitation, and the
State Historical Building Code.
   (2) For an inspection of the interior and exterior of the premises
by the assessor prior to a new agreement, and every five years
thereafter, to determine the owner's compliance with the contract,
and that periodic examinations may also be conducted by the
Department of Parks and Recreation and the State Board of
Equalization as may be necessary.
   (3) For it to be binding upon, and inure to the benefit of, all
successors in interest of the owner. A successor in interest shall
have the same rights and obligations under the contract as the
original owner who entered into the contract.
   (c) The owner or agent of an owner shall provide written notice of
the contract to the Office of Historic Preservation and record the
contract with the county in which the property is located within six
months of entering into the contract.
  SEC. 2.  Section 50281.1 of the Government Code is amended to read:

   50281.1.  The legislative body entering into a contract described
in this article shall require that the property owner, as a condition
to entering into the contract, pay a fee sufficient to cover but not
to exceed the reasonable cost of administering this program,
including, but not limited to, the processing of designation
requests, contracts, monitoring, inspections, and enforcement, as
needed.
  SEC. 3.  Section 50282 of the Government Code is amended to read:
   50282.  (a) Each contract shall provide that on the anniversary
date of the contract or such other annual date as is specified in the
contract, a year shall be added automatically to the initial term of
the contract unless notice of nonrenewal is given as provided in
this section. Each contract shall also provide that after five years,
and every five years thereafter, the assessor shall conduct an
inspection to determine the owner's continued compliance with the
contract. If the property owner or the legislative body desires in
any year not to renew the contract, that party shall serve written
notice of nonrenewal of the contract on the other party in advance of
the annual renewal date of the contract. Unless the notice is served
by the owner at least 90 days prior to the renewal date or by the
legislative body at least 60 days prior to the renewal date, one year
shall automatically be added to the term of the contract.
   (b) Upon receipt by the owner of a notice from the legislative
body of nonrenewal, the owner may make a written protest of the
notice of nonrenewal. The legislative body may, at any time prior to
the renewal date, withdraw the notice of nonrenewal.
   (c) If the legislative body or the owner serves notice of intent
in any year not to renew the contract, the existing contract shall
remain in effect for the balance of the period remaining since the
original execution or the last renewal of the contract, as the case
may be.
   (d) The owner shall furnish the legislative body with any
information the legislative body shall require in order to enable it
to determine the eligibility of the property involved.
   (e) No later than 20 days after a city or county enters into a
contract with an owner pursuant to this article, the clerk of the
legislative body shall record with the county recorder a copy of the
contract, which shall describe the property subject thereto. From and
after the time of the recordation, this contract shall impart a
notice thereof to all persons as is afforded by the recording laws of
this state.
   SEC. 4.    Section 50284 of the   Government
Code   is amended to read: 
   50284.   The   (a)     If
the  legislative body  may cancel a contract if it
 determines that the owner has breached any of the
conditions of the contract provided for in this article or has
allowed the property to deteriorate to the point that it no longer
meets the standards for a qualified historical property  .
The   ,   the legislative body shall do one of
the following:  
   (1) Cancel the contract by following the procedures specified in
Sections 50285 and 50286.  
   (2) Bring any action in court necessary to enforce a contract,
including, but not limited to, an action to enforce the contract by
specific performance or injunction. 
    (b)     The  legislative body may also
cancel a contract if it determines that the owner has failed to
restore or rehabilitate the property in the manner specified in the
contract.
   SEC. 5.    Section 50287 of the   Government
Code   is amended to read: 
   50287.  As an alternative to cancellation of the contract for
breach of any condition,  the county, city, or any 
 a  landowner  that is party to the contract  may
bring any action in court necessary to enforce a contract including,
but not limited to, an action to enforce the contract by specific
performance or injunction.