BILL ANALYSIS Ó
AB 2241
Page 1
Date of Hearing: March 26, 2014
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
AB 2241 (Eggman) - As Introduced: February 21, 2014
SUBJECT : Local government: agricultural land.
SUMMARY : This bill changes the rescission fee (fee) charged by
a city or county when land under Williamson Act (WA) contract or
land designated as a farmland security zone (FSZ) enters into a
solar-use easement, to 10% of the fair market value of the
property. Requires 50% of the recession fees collected to be
deposited in the General Fund (GF), as specified. Specifically,
this bill :
1. Raises the rescission fee for land exiting a WA contract
to enter into a solar-use easement from 6.25 % to 10%.
2. Lowers the rescission fee for land designated FSZ
exiting a WA contract to enter into a solar-use easement
from 12.5 % to 10%.
3. Changes from 100% to 50% the amount of a rescission fee
for exiting a WA or FSZ contract to enter into a solar-use
easement the county transmits to the state GF.
EXISTING LAW:
1. Allows the parties to a WA contract to mutually agree to
rescind the contract in order to simultaneously enter into
a solar-use easement, as specified.
2. Requires the city or county to charge the property owner
a rescission fee of 6.25% of the fair market value of the
property at the time of the rescission, if the property was
under a WA contract, and 12.5% of the fair market value of
the property at the time of the recession if the land was
held under a contract designating the property FSZ.
3. Requires the rescission fees to be deposited in the GF,
as specified.
FISCAL EFFECT : Unknown. This bill has been keyed fiscal by
Legislative Counsel.
AB 2241
Page 2
COMMENTS : Current law allows marginally productive or
physically impaired land, restricted by a WA contract, to be
converted to a solar use easement agreement for the sole purpose
of siting large-scale solar facilities provided certain
conditions are met.
SB 618 (Wolk), Chapter 596, Statutes of 2011, provided both
perpetual and term easement as an alternative for nonprime
farmland that could be reclaimed to its previous agricultural
condition after the useful life of the power facility. The use
of marginally productive or physically impaired land for solar
facilities could help California meet its Renewables Portfolio
Standard goals without jeopardizing more valuable food producing
prime farmland. The intent of solar use easements was to
provide an alternative mechanism for counties to exit a contract
under WA, as well as provide statewide uniformity with respect
to financial assurances for subsequent reclamation of the site.
Supporters state to date, the implementation of solar use
easements has not been widely embraced. WA contract
cancellations continue on prime farmland.
This bill proposal, to change the rescission fee for solar use
easements to 10% for both WA and FSZ contracts and allow the
counties to retain half of the fee, could provide a significant
financial incentive for counties to implement the solar use
easement program.
REGISTERED SUPPORT / OPPOSITION :
Support
California Farm Bureau Federation
Rural County Representative of California
Opposition
None on file
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
AB 2241
Page 3