BILL NUMBER: AB 1265 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2011
INTRODUCED BY Assembly Member Nielsen
FEBRUARY 18, 2011
An act to add Section 51244.4 to amend,
repeal, and add Sections 16142, 16142.1, and 51244 of, and to add and
repeal Section 51244.3 of, the Government Code, relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 1265, as amended, Nielsen. Local government: Williamson Act.
Existing law, the Williamson Act, authorizes a city or county to
enter into 10-year contracts with owners of land devoted to
agricultural use, whereby the owners agree to continue using the
property for that purpose, and the city or county agrees to value the
land accordingly for purposes of property taxation. Existing law
sets forth procedures for reimbursing cities and counties for
property tax revenues not received as a result of these contracts.
This bill would, beginning January 1, 2012, and until January 1,
2015, authorize a county, in any fiscal year in which payments
authorized for reimbursement to a county for lost revenue are less
than 1/2of the participating county's actual foregone general fund
property tax revenue, to revise the term for newly renewed and new
contracts and require the assessor to value the property, as
specified, based on the revised contract term. The bill would provide
that a landowner may choose to nonrenew and begin the cancellation
process. The bill would also provide that any increased revenues
generated by properties under a new contract shall be paid to the
county.
Existing law, the Williamson Act, authorizes a city or county to
enter into 10-year contracts with owners of land devoted to
agricultural use, whereby the owners agree to continue using the
property for that purpose, and the city or county agrees to value the
land accordingly for purposes of property taxation. Beginning
January 1, 2011, and until January 1, 2015, existing law authorizes a
county, in any fiscal year in which payments authorized for
reimbursement to a county for lost revenue are less than 1/2 of the
participating county's actual foregone general fund property tax
revenue, to revise the term for newly renewed and new contracts for a
term of 9 years or 18 years, as the case may be, and require the
assessor to value the property, as specified, based on the revised
contract term. Existing law requires a city or county that has
elected to adopt a shorter contract term, to provide notice, of among
other things, the landowner's right to prevent the reduction in the
term of his or her contract by serving notice of nonrenewal, as
specified.
This bill would specify that payments under the contracts that are
authorized until January 1, 2015, may be collected after January 1,
2015.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16142 of the
Government Code is amended to read:
16142. (a) The Secretary of the Natural Resources Agency shall
direct the Controller to pay annually out of the funds appropriated
by Section 16140, to each eligible county, city, or city and county,
the following amounts for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423, 423.3, 423.4,
or 423.5, or 426 if it was previously assessed under Section 423.4,
of the Revenue and Taxation Code:
(1) Five dollars ($5) for prime agricultural land, as defined in
Section 51201.
(2) One dollar ($1) for all land, other than prime agricultural
land, which is devoted to open-space uses of statewide significance,
as defined in Section 16143.
(b) The amount per acre in paragraph (1) of subdivision (a) may be
increased by the Secretary of the Natural Resources Agency to a
figure which would offset any savings due to a more restrictive
determination by the secretary as to what land is devoted to
open-space use of statewide significance.
(c) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code.
(d) Notwithstanding any other provision of law, for the 2008-09
fiscal year and each fiscal year thereafter, the Controller shall
reduce, by 10 percent, any payment made pursuant to this section.
(e) Effective January 1, 2012, if the payment pursuant to this
section for the previous fiscal year is less than one-half of the
participating county's actual foregone general fund property tax
revenue, the county may make a determination to implement subdivision
(b) of Section 51244 and Section 51244.3. The implementation of
these sections shall be suspended for any subsequent fiscal year in
which the payment for the previous fiscal year exceeds one-half of
the foregone general fund property tax revenue.
For purposes of this subdivision, a county's actual foregone
property tax revenue shall be based on the county's respective share
of the general property tax dollars as reflected in the most recent
annual report issued by the State Board of Equalization or 20
percent, whichever is higher.
(f) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 2. Section 16142 is added to the
Government Code , to read:
16142. (a) The Secretary of the Natural Resources Agency shall
direct the Controller to pay annually out of the funds appropriated
by Section 16140, to each eligible county, city, or city and county,
the following amounts for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423, 423.3, 423.4,
or 423.5, or 426 if it was previously assessed under Section 423.4,
of the Revenue and Taxation Code:
(1) Five dollars ($5) for prime agricultural land, as defined in
Section 51201.
(2) One dollar ($1) for all land, other than prime agricultural
land, which is devoted to open-space uses of statewide significance,
as defined in Section 16143.
(b) The amount per acre in paragraph (1) of subdivision (a) may be
increased by the Secretary of the Natural Resources Agency to a
figure which would offset any savings due to a more restrictive
determination by the secretary as to what land is devoted to
open-space use of statewide significance.
(c) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code.
(d) Notwithstanding any other law, for the 2008-09 fiscal year and
each fiscal year thereafter, the Controller shall reduce, by 10
percent, any payment made pursuant to this section.
(e) This section shall become operative on January 1, 2015.
SEC. 3. Section 16142.1 of the
Government Code is amended to read:
16142.1. (a) In lieu of the payments made pursuant to Section
16142, in a county that has adopted farmland security zones pursuant
to Section 51296, the Secretary of the Natural Resources Agency shall
direct the Controller to pay annually out of the funds appropriated
by Section 16140, to each eligible county, city, or city and county,
the following amount for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423.4 or 426 of the
Revenue and Taxation Code, if it was previously assessed under
Section 423.4 of that code:
Eight dollars ($8) for land that is within, or within three miles
of the boundaries of the sphere of influence of, each incorporated
city.
(b) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code. The appropriation
authorized by this subdivision shall not exceed one hundred thousand
dollars ($100,000) per year until 2005.
(c) Notwithstanding any other provision of law, for the 2008-09
fiscal year and each fiscal year thereafter, the Controller shall
reduce, by 10 percent, any payments made pursuant to this section.
(d) Effective January 1, 2012, if the payment pursuant to this
section for the previous fiscal year is less than one-half of the
participating county's actual foregone general fund property tax
revenue, the county may make a determination to implement subdivision
(b) of Section 51244 and Section 51244.3. The implementation of
these sections shall be suspended for any subsequent fiscal year in
which the payment for the previous fiscal year exceeds one-half of
the foregone general fund property tax revenue.
For purposes of this subdivision, a county's actual foregone
property tax revenue shall be based on the county's respective share
of the general property tax dollars as reflected in the most recent
annual report issued by the State Board of Equalization or 20
percent, whichever is higher.
(e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 4. Section 16142.1 is added to the
Government Code , to read:
16142.1. (a) In lieu of the payments made pursuant to Section
16142, in a county that has adopted farmland security zones pursuant
to Section 51296, the Secretary of the Natural Resources Agency shall
direct the Controller to pay annually out of the funds appropriated
by Section 16140, to each eligible county, city, or city and county,
the following amount for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423.4 or 426 of the
Revenue and Taxation Code, if it was previously assessed under
Section 423.4 of that code:
Eight dollars ($8) for land that is within, or within three miles
of the boundaries of the sphere of influence of, each incorporated
city.
(b) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code. The appropriation
authorized by this subdivision shall not exceed one hundred thousand
dollars ($100,000) per year until 2005.
(c) Notwithstanding any other of law, for the 2008-09 fiscal year
and each fiscal year thereafter, the Controller shall reduce, by 10
percent, any payments made pursuant to this section.
(d) This section shall become operative on January 1, 2015.
SEC. 5. Section 51244 of the Government
Code is amended to read:
51244. (a) Each contract shall be for an
initial term of no less than 10 years. Each contract shall provide
that on the anniversary date of the contract or such other annual
date as specified by the contract a year shall be added automatically
to the initial term unless notice of nonrenewal is given as provided
in Section 51245.
(b) (1) If the county makes a determination pursuant to
subdivision (e) of Section 16142 or subdivision (d) of Section
16142.1, contracts shall be for a term of no less than nine years for
contracts currently 10 years in length or 18 years for contracts
currently 20 years in length, as the case may be. For new contracts
entered into during a year in which this subdivision is in effect,
the initial contract length shall be either 9 or 18 years. Each
contract shall provide, except in the initial year of the
determination, that on the anniversary date of the contract or such
other annual date as specified by the contract, a year shall be added
automatically to the initial term unless notice of nonrenewal is
given as provided in Section 51245.
In any subsequent year during the reduced term of contract in
which increased revenue is not realized by the county pursuant to
Section 51244.3, two or three additional years shall be added to the
contract on the next anniversary date, as necessary, to restore the
contract to its full 10-year or 20-year contract length.
(2) In any year in which this subdivision is implemented, the
county shall record a notice that states the affected parcel number
or numbers and current owner's names, or, alternatively, the same
information for those parcels that are not affected.
(3) An addition to the assessed value shall be conveyed to the
auditor, consistent with the 10-percent reduction in the length of
the restriction, equal to 10 percent of the difference between the
valuation pursuant to Section 423, 423.3, or 423.5 of the Revenue and
Taxation Code, as applicable, and the valuation under subdivision
(b) of Section 51 or Section 110.1 of the Revenue and Taxation Code
whichever is lower. If the valuation under subdivision (b) of Section
51 or Section 110.1 of the Revenue and Taxation Code is lower, the
addition to the assessed value shall be zero. The increased amount of
tax revenue that results from the decrease in restriction shall be
separately displayed on the taxpayer's annual bill.
(4) A landowner may elect to serve notice of nonrenewal instead of
accepting a 9-year or 18-year contract, as the case may be. In that
case, the additional assessed value shall not be added to the
property as provided for in paragraph (3).
For purposes of this subdivision, a landowner may serve notice of
nonrenewal at any time. However, a landowner who withdraws that
notice prior to the effective date shall be subject to term
modification and additional assessed value. Once served and
effective, a landowner nonrenewal notice may not be withdrawn except
for cause and with the consent of the county. A county may adopt
amendments to its uniform rules to facilitate implementation of this
subdivision during the 2011-12 fiscal year, and thereafter as
necessary.
(5) In addition to any other notice requirements, a county shall
provide a landowner under contract with timely written notice of all
of the following:
(A) Any initial hearing by the county on a proposal to adopt or
rescind the implementation of this subdivision.
(B) Any final decision regarding the adoption or rescission of
implementation of this subdivision.
(C) The landowner's right to prevent the reduction in the term of
his or her contract pursuant to this subdivision by serving notice of
nonrenewal as specified by Section 51245. This nonrenewal notice may
be combined with the nonrenewal notice in subparagraph (B).
(6) A county shall not modify or revalue a landowner's contract
pursuant to this subdivision unless the landowner is given at least
90 days' notice of the opportunity to prevent the modification and
revaluation by serving notice of nonrenewal and the landowner fails
to serve notice of nonrenewal. The county may use the primary owner
of record from the assessment roll to identify landowners entitled to
receive notice under this subdivision. A landowner shall be advised
of the landowner's right to avoid continued imposition of this
subdivision in any future year and thereafter by serving a notice of
nonrenewal for that contract year. Failure of the landowner to serve
timely notice of nonrenewal in any year shall be considered implied
consent to the implementation of this subdivision for that year.
Until February 1, 2012, the 90-day notice requirement may be
reduced to 60 days if the county adopts a procedure to allow
landowners to serve a notice of nonrenewal.
(7) This subdivision shall not apply to any of the following:
(A) Contracts that have been nonrenewed.
(B) Contracts with cities.
(C) Open-space or agricultural easements.
(D) Scenic restrictions.
(E) Wildlife habitat contracts.
(F) Atypical term contracts, including, but not limited to,
20-year initial term contracts declining to 10 years, or
reencumbrances pursuant to Section 51295, if the county's board of
supervisors determines the application of this subdivision to them
would be inequitable or administratively infeasible.
(c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 6. Section 51244 is added to the
Government Code , to read:
51244. (a) Each contract shall be for an initial term of no less
than 10 years. Each contract shall provide that on the anniversary
date of the contract or such other annual date as specified by the
contract a year shall be added automatically to the initial term
unless notice of nonrenewal is given as provided in Section 51245.
(b) This section shall become operative on January 1, 2015.
SEC. 7. Section 51244.3 is added to the
Government Code , to read:
51244.3. (a) This section shall apply to properties under a
9-year or 18-year contract, as the case may be, pursuant to
subdivision (b) of Section 51244. Notwithstanding any other provision
to the contrary, increased revenues generated by those properties
shall be allocated exclusively to the respective counties in which
those properties are located.
(b) This section shall only apply if the county makes a
determination pursuant to either Section 16142 or Section 16142.1.
(c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SECTION 1. Section 51244.4 is added to the
Government Code, to read:
51244.4. Notwithstanding subdivision (c) of Section 51244.3,
payments authorized until January 1, 2015, pursuant to Sections
16142, 16142.1, 51244, or 51244.3, may be collected after January 1,
2015.