AB 551, as amended, Ting. Local government: urban agriculture incentive zones.
(1) 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 authorizes the parties to a Williamson Act contract to mutually agree to rescind a contract under the act in order to simultaneously enter into an open-space easement for a certain period of years.
This bill would enact the Urban Agriculture Incentive Zones Act and would authorize, under specified conditions, a county
begin delete aend delete city and county and a landowner to enter into a contract to enforceably restrict the use of vacant, unimproved, or otherwise blighted lands for small-scale production of agricultural crops. The bill would require a contract entered into pursuant to these provisions to, among other things, be for a term of no less than 5 years and to enforceably restrict property that is at least 0.10 acres in size.
(2) Existing law requires the county assessor to consider, when valuing real property for property taxation purposes, the effect of any enforceable restrictions to which the use of the land may be subjected. Under existing law these restrictions include, but are not limited to, zoning, recorded contracts with governmental agencies, and various other restrictions imposed by governments.
This bill would
begin delete alsoend delete require the county assessor to begin delete consider, when valuing real property for property taxation purposes,end delete property that is enforceably restricted by a contract entered into pursuant to the Urban Agriculture Incentive Zones Act.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 6.3 (commencing with Section 51040)
2is added to Part 1 of Division 1 of Title 5 of the Government Code,
This chapter shall be known, and may be cited, as the
4Urban Agriculture Incentive Zones Act.
The Legislature finds and declares that it is in the
6public interest to promote sustainable urban farm enterprise sectors
7in urban centers.
8The Legislature further finds and declares the small-scale, active
9production of marketable crops, including,
10but not limited to, foods, flowers, and seedlings, in urban centers
11is consistent with, and furthers, the purposes of this act.
For purposes of this chapter, the following terms have
13the following meanings:
14(a) “Urban” means an area within the boundaries of an urbanized
15area, as that term is used by the United States Census Bureau, that
16includes at least 50,000 people.
17(b) “Urban Agriculture Incentive Zone” means an area within
18a county or a city and county that is comprised of individual
19properties designated as urban agriculture preserves by the county
20or the city and county for farming purposes.
(a) (1) A county or
begin delete aend delete city and county may, after
34a public hearing, establish by ordinance an Urban Agriculture
35Incentive Zone within its boundaries for the purpose of entering
36into enforceable contracts with landowners, on a voluntary basis,
37for the use of vacant, unimproved, or blighted lands for small-scale
begin delete production ofend delete agricultural begin delete cropsend delete.
begin deleteA end deletecounty
or begin delete aend delete city and county that has
8established an Urban Agriculture Incentive Zone within its
9boundaries may adopt rules and regulations for
11the implementation and administration of the Urban Agriculture
12Incentive Zone and of contracts related to that Urban Agriculture
14(A) The county or city and county may impose a fee upon
15contracting landowners for the reasonable costs of implementing
16and administering contracts.
17(B) The county or city and county
begin delete mayend delete impose a fee
18 upon landowners for cancellation of
begin delete as to all or any part of the subject landend delete.
25(b) Following the adoption of the ordinance as required by
26subdivision (a), a county or a city and county may enter into
27a contract with a landowner to enforceably restrict the use of the
28land subject to the contract to uses consistent with urban
29agriculture. Any contract entered into pursuant to this chapter shall
30include, but is not limited to, all of the following provisions:
31(1) An initial term of not less than five years.
32(2) A restriction on property that is at least 0.10 acres.
33(3) A requirement that the entire property subject to the contract
34shall be dedicated toward
35 agricultural use.
36(4) A prohibition against
begin delete commercial uses, except as those uses on the
37comply with the terms of the contract,end delete
begin delete subject to theend delete contract.
39(5) A notification that if a landowner cancels a contract, a
40 county or city and county
begin delete mayend delete assess a cancellation
P5 1fee, pursuant to subparagraph (B) of paragraph (2) of subdivision
3(c) A contract entered into pursuant to this chapter shall not
4prohibit the use of structures that support agricultural activity,
5including, but not limited to, toolsheds, greenhouses, produce
6stands, and instructional space.
7(d) A contract entered into pursuant to this chapter that includes
8a prohibition on the use of pesticide or fertilizers on properties
9under contract shall permit those pesticides or fertilizers allowed
10by the United States Department of Agriculture’s National Organic
12(e) Property subject to a contract entered into pursuant to this
13chapter shall be assessed pursuant to Section
begin delete 423end delete of the
14Revenue and Taxation Code during the term of the contract.
15(f) A county shall not establish an Urban
16Agriculture Incentive Zone within any portion of
begin delete a city or the city’s
of influence unless
begin delete thatend delete city has begin delete adopted an ordinance that authorizes anend delete
19 Urban Agriculture Incentive
begin delete Zone within the city’s boundaries or spheres of influence.end delete
Section 402.1 of the Revenue and Taxation Code is
28amended to read:
(a) In the assessment of land, the assessor shall consider
30the effect upon value of any enforceable restrictions to which the
31use of the land may be subjected. These restrictions shall include,
32but are not limited to, all of the following:
34(2) Recorded contracts with governmental agencies other than
35those provided in Sections 422, 422.5, and 422.7.
36(3) Permit authority of, and permits issued by, governmental
37agencies exercising land use powers concurrently with local
38governments, including the California Coastal Commission and
39regional coastal commissions, the San Francisco Bay Conservation
P6 1and Development Commission, and the Tahoe Regional Planning
3(4) Development controls of a local government in accordance
4with any local coastal program certified pursuant to Division 20
5(commencing with Section 30000) of the Public Resources Code.
6(5) Development controls of a local government in accordance
7with a local protection program, or any component thereof, certified
8pursuant to Division 19 (commencing with Section 29000) of the
9Public Resources Code.
10(6) Environmental constraints applied to the use of land pursuant
11to provisions of statutes.
12(7) Hazardous waste land use restriction pursuant to Section
1325240 of the Health and Safety Code.
14(8) A recorded conservation, trail, or scenic easement, as
15described in Section 815.1 of the Civil Code, that is granted in
16favor of a public agency, or in favor of a nonprofit corporation
17organized pursuant to Section 501(c)(3) of the Internal Revenue
18Code that has as its primary purpose the preservation, protection,
19or enhancement of land in its natural, scenic, historical, agricultural,
20forested, or open-space condition or use.
21(9) A solar-use easement pursuant to Chapter 6.9 (commencing
22with Section 51190) of Part 1 of Division 1 of Title 5 of the
24(b) There is a rebuttable presumption that restrictions will not
25be removed or substantially modified in the predictable future and
26that they will substantially equate the value of the land to the value
27attributable to the legally permissible use or uses.
28(c) Grounds for rebutting the presumption may include, but are
29not necessarily limited to, the past history of like use restrictions
30in the jurisdiction in question and the similarity of sales prices for
31restricted and unrestricted land. The possible expiration of a
32restriction at a time certain shall not be conclusive evidence of the
33future removal or modification of the restriction unless there is no
34opportunity or likelihood of the continuation or renewal of the
35restriction, or unless a necessary party to the restriction has
36indicated an intent to permit its expiration at that time.
37(d) In assessing land with respect to which the presumption is
38unrebutted, the assessor shall not consider sales of otherwise
39comparable land not similarly restricted as to use as indicative of
P7 1value of land under restriction, unless the restrictions have a
2demonstrably minimal effect upon value.
3(e) In assessing land under an enforceable use restriction wherein
4the presumption of no predictable removal or substantial
5modification of the restriction has been rebutted, but where the
6restriction nevertheless retains some future life and has some effect
7on present value, the assessor may consider, in addition to all other
8legally permissible information, representative sales of comparable
9lands that are not under restriction but upon which natural
10limitations have substantially the same effect as restrictions.
11(f) For the purposes of this section the following
13(1) “Comparable lands” are lands that are similar to the land
14being valued in respect to legally permissible uses and physical
16(2) “Representative sales information” is information from sales
17of a sufficient number of comparable lands to give an accurate
18indication of the full cash value of the land being valued.
19(g) It is hereby declared that the purpose and intent of the
20Legislature in enacting this section is to provide for a method of
21determining whether a sufficient amount of representative sales
22information is available for land under use restriction in order to
23ensure the accurate assessment of that land. It is also hereby
24declared that the further purpose and intent of the Legislature in
25enacting this section and Section 1630 is to avoid an assessment
26policy which, in the absence of special circumstances, considers
27uses for land that legally are not available to the owner and not
28contemplated by government, and that these sections are necessary
29to implement the public policy of encouraging and maintaining
30effective land use planning.
begin delete Nothing in thisend delete statute shall
31 be construed as requiring the assessment of any land at a value
32less than as required by Section 401 or as prohibiting the use of
33representative comparable sales information on land under similar
34restrictions when this information is available.
Section 422.7 is added to the Revenue and Taxation
36Code, to read:
For purposes of this
begin delete articleend delete, the term
38“open-space land” includes land subject to contract for an urban
39agricultural incentive zone, as defined in subdivision (b) of Section
4051040.3 of the Government Code. For purposes of this
begin delete articleend delete
P8 1, open-space land is enforceably restricted within the
2meaning of Section 8 of Article XIII of the California Constitution
3if it is subject to an urban agriculture incentive zone contract.