BILL NUMBER: SB 1266	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 23, 2012

INTRODUCED BY   Senator Corbett

                        FEBRUARY 23, 2012

   An act to  amend Sections 5096.501 and 5096.511 of, to add
Section 5096.510 to, and to  repeal and add Section 5096.517 of
 ,  the Public Resources Code, relating to state lands.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1266, as amended, Corbett. Resource conservation lands:
appraisal process.
   Existing law authorizes various state agencies to acquire land for
purposes related to conservation, and requires an acquisition
agency, as defined,  where an agency proposes to spend more
than $25,000,000 of state funds, to contract for at least one
independent appraisal of the fair market value of the land. Existing
law requires the Department of General Services,  prior to
any action by  an   the  acquisition agency
to approve a major acquisition of conservation lands, to contract
for at least one independent appraisal of the fair market value of
the land.  Existing law further   A "major
acquisition" is defined as an acquisition for which an agency
proposes to spend more than $25,000,000 of state funds.  
   This bill would redefine major acquisition as an acquisition for
which an agency proposes to spend more than $15,000,000 of state
funds. The bill would also require that, if more than $1,000,000 of
state funds are proposed for expenditure or grant by an acquisition
agency of conservation lands, the acquisition agency or the project
partner, as defined, shall contract for an appraisal. 
    Existing law    requires the 
department   Department of General Services  to
convene a workgroup to develop and adopt standards, subject to the
approval of the Natural Resources Agency, with respect to the
acquisition of conservation lands concerning the appraisal process,
availability of appraisal information, and valuation for purposes of
a charitable contribution, as prescribed.
   This bill would repeal those provisions requiring the department
to convene a workgroup and would instead require that, in addition to
any other requirements or standards prescribed by law, appraisal
reports prepared for the acquisition of any land or interest therein
by or with funding from an acquisition agency, as defined, include
specified information, and meet specified requirements to be
considered for appraisal review by the state.
   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.    Sect   ion 5096.501 of the
  Public Resources Code   is amended to read: 

   5096.501.  For purposes of this chapter, the following terms have
the following meanings:
   (a) "Acquisition agency" means the Wildlife Conservation Board,
the Department of Parks and Recreation, or a state conservancy.
   (b) "Conservation lands" means any land or interest therein to be
acquired by an acquisition agency, or that is owned by the state.
   (c) "Major acquisition" means an acquisition  where
  for which  an agency proposes to spend more than
 twenty-five   fifteen  million dollars
 ($25,000,000)   ($15,000,000)  of state
funds. 
   (d) "Project partner" means a public agency or nonprofit
organization that is seeking state funding from an acquisition agency
for the acquisition of conservation lands. 
   SEC. 2.    Section 5096.510 is added to the 
 Public Resources Code   , to read:  
   5096.510.  If more than one million dollars ($1,000,000) of state
funds are proposed for expenditure or grant by an acquisition agency
of conservation lands, the acquisition agency or the project partner
shall contract for an appraisal. 
   SEC. 3.    Section 5096.511 of the   Public
Resources Code   is amended to read: 
   5096.511.  Prior to any action by an acquisition agency to approve
a major acquisition of conservation lands, the acquisition agency
 or project partner  shall contract for at least one
independent appraisal of the fair market value of the land. The
appraisal shall be conducted by a qualified member of the Appraisal
Institute who is licensed pursuant to Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code. The
appraisal shall be prepared pursuant to the Uniform Standards of
Professional Appraisal Practice.
   SECTION 1.   SEC. 4.   Section 5096.517
of the Public Resources Code is repealed.
   SEC. 2.   SEC. 5.   Section 5096.517 is
added to the Public Resources Code, to read:
   5096.517.  (a) In addition to any other requirements or standards
prescribed by law, appraisal reports prepared for the acquisition of
any land or interest therein by or with funding from an 
"acquisition agency",   "acquisition agency,  "
 as defined in subdivision (a) of Section 5096.501, shall
include all of the following to be considered for appraisal review by
the state:
   (1) A collection of descriptive photographs and maps of sufficient
quality and detail to clearly depict the subject property and any
market data relied upon, including the relationship between the
location of the subject property and the market data.
   (2) A complete description of the subject property land, site
characteristics, and improvements. Valuations based on a property's
development potential shall include:
   (A) Verifiable data on the development potential of the land.
   (B) A description of what would be required for a development
project to proceed, such as legal entitlements, and infrastructure
needs.
   (C) Presentation of evidence that sufficient demand exists, or is
likely to exist in the future, to provide market support for the
development.
   (3) A statement by the appraiser indicating to what extent land
title conditions were investigated and considered in the analysis and
value conclusion. The appraisal shall also include a preliminary
appraisal report when such a report is available.
   (4) A discussion of implied dedication, prescriptive rights, or
other unrecorded rights as described in Sections 801 to 813,
inclusive, and Sections 1006 to 1009, inclusive, of the Civil Code,
that may affect value, indicating the extent of investigation and any
knowledge or observation of conditions that might indicate evidence
of public use. If the appraiser has no knowledge of, or has not
observed, those conditions, a statement to that effect shall be
included in the appraisal report.
   (5) An appraisal report that includes more than nominal value for
specialty interests, including, but not limited to, timber, water,
minerals, or carbon credits, shall include a separate valuation
prepared and signed by a certified or registered professional
qualified in the field of specialty interest. This valuation shall be
reviewed and approved by a second qualified, certified or registered
professional, considered by the appraiser, and appended to the
appraisal report.
   (b) Each appraisal report shall be prepared by, and include a
signature by an appropriately licensed or certified real estate
appraiser in good standing pursuant to Part 3 (commencing with
Section 11300) of Division 4 of the Business and Professions Code,
and  its  implementing regulations.