BILL NUMBER: SB 1266	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2012
	PASSED THE ASSEMBLY  AUGUST 27, 2012
	AMENDED IN ASSEMBLY  AUGUST 23, 2012
	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN SENATE  MAY 25, 2012
	AMENDED IN SENATE  APRIL 23, 2012

INTRODUCED BY   Senator Corbett

                        FEBRUARY 23, 2012

   An act to amend Sections 5096.501 and 5096.512 of, to add Section
5096.510 to, to repeal Section 5096.511 of, and to repeal and add
Section 5096.517 of, the Public Resources Code, relating to state
lands.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1266, 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, prior to any action by 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. 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 one or more agencies propose to spend more than $15,000,000 of
state funds. The bill would revise the provisions requiring an
appraisal to instead require that, if more than $150,000 of state
funds are proposed for expenditure or grant by an acquisition agency
of any conservation lands, the acquisition agency or the project
partner, as defined, shall contract for an independent appraisal, as
provided. The bill would require that the appraisal, appraiser, and
contract meet specified requirements. The bill would also allow the
project partner or landowner to contribute to the costs of the
appraisal, be identified as a user of the appraisal, and be named as
the coclient of the appraiser or firm preparing the appraisal except,
on and after January 1, 2015, the bill would prohibit the landowner
from being named as a coclient of the appraiser or firm preparing the
appraisal.
   Existing law requires the 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 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 for which one or more
agencies propose to spend more than fifteen million dollars
($15,000,000) of state funds.
   (d) "Project partner" means a public agency or nonprofit
organization that is seeking state funding for itself or for another
public agency or nonprofit organization, from an acquisition agency
for the acquisition of conservation lands.
   (e) "Specialty interests" means those partial property interests
that may exist on a property and that can require specialized
knowledge and experience to value, including, but not limited to,
timber, water, minerals, or carbon credits.
  SEC. 2.  Section 5096.510 is added to the Public Resources Code, to
read:
   5096.510.  (a) (1) If more than one hundred fifty thousand dollars
($150,000) 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 independent appraisal of
the land in compliance with this section.
   (2) The project partner or landowner may contribute to the costs
of the appraisal, be identified as an intended user of the appraisal,
and be named as the coclient of the appraiser or firm preparing the
appraisal. However, on and after January 1, 2015, a landowner shall
not be named as a coclient of the appraiser or firm preparing the
appraisal.
   (b) The appraisal shall meet all of the following requirements:
   (1) The appraisal shall meet all applicable requirements of this
chapter and any other applicable state laws and policies, and shall
conform to Uniform Standards of Professional Appraisal Practice.
   (2) The appraisal shall not involve a fee based on a percentage of
the property's appraised value or the allowed deduction.
   (3) The appraisal shall not be prepared by an appraiser that has a
financial interest in the property being appraised, including, but
not limited to, being the seller or donor, a party to the seller's
acquisition of the property, or employed by or related to any of the
above.
   (c) The acquisition agency or project partner that contracts for
the appraisal shall select an appraiser that is qualified to appraise
the specific property based upon verifiable education, experience,
and knowledge of appropriate methodologies, techniques, and the real
estate market relevant to the specific property. The following
requirements shall also apply:
   (1) If the project to be appraised is a conservation easement, the
appraiser's education shall include advanced-level educational
courses or certifications in the valuation of conservation easements.

   (2) If the project to be appraised includes more than nominal
value for specialty interests, the acquisition agency or project
partner that contracts for the appraisal shall include provisions in
the contract that effectuate the following, as applicable:
   (A) The professional valuing the specialty interest shall comply
with the requirements of paragraph (5) of subdivision (a) of Section
5096.517.
   (B) The professional valuing the specialty interests shall be
qualified to appraise the specific specialty interests based upon
verifiable education, experience, and knowledge of appropriate
methodologies, techniques, and the markets relevant to the specific
specialty interests.
  SEC. 3.  Section 5096.511 of the Public Resources Code is repealed.

  SEC. 4.  Section 5096.512 of the Public Resources Code is amended
to read:
   5096.512.  (a) In addition to the review by the Department of
General Services pursuant to Section 1348.2 of the Fish and Game
Code, the appraisal prepared for a major acquisition of land shall be
reviewed by a qualified independent appraiser retained by the
acquisition agency for this purpose, and who meets the following
conditions:
   (1) The review appraiser did not conduct the appraisal pursuant to
Section 5096.510 and has no financial interest in the major
acquisition.
   (2) The review appraiser is licensed pursuant to Part 3
(commencing with Section 11300) of Division 4 of the Business and
Professions Code.
   (b) The review appraiser shall review the appraisal and prepare an
appraisal review report, in a narrative format, that does all of the
following:
   (1) Summarizes the appraisal.
   (2) States the basis on which the value of the land was
established.
   (3) Describes the standards used to prepare the appraisal.
   (4) Determines whether or not the appraisal meets the standards
established under the Uniform Standards of Professional Appraisal
Practice.
   (c) The appraisal review report need not include any proprietary
information provided by or on behalf of the seller or that is
otherwise exempt from public disclosure pursuant to the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code).
   (d) (1) If a major acquisition of conservation lands will be
approved by more than one acquisition agency and each acquisition
agency complies with paragraph (2), not more than one independent
appraisal is required pursuant to Section 5096.510, and not more than
one appraisal review report is required pursuant to this section.
   (2) Paragraph (1) is applicable if each acquisition agency does
all of the following:
   (A) Utilizes the independent appraisal and appraisal review
report, as required by this chapter.
   (B) Makes an independent determination of whether to approve the
major acquisition of conservation lands.
   (C) Complies with all of the public disclosure and independent
review requirements of this chapter.
   (e) An acquisition agency shall not utilize property acreage as a
categorical threshold to impose an independent review of an appraisal
pursuant to this section. However, this prohibition does not
prohibit an agency from otherwise considering possible impacts from
the acquisition of a large acreage property.
  SEC. 5.  Section 5096.517 of the Public Resources Code is repealed.

  SEC. 6.  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," 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
title 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.