Amended in Assembly May 15, 2014

Senate BillNo. 1353


Introduced by Senator Nielsen

February 21, 2014


An act to amend Section 51244.3 of, to amend and repeal Sections 16142, 16142.1, and 51244 of, and to repeal Section 51244.4 of, the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

SB 1353, as amended, Nielsen. Local government: Williamson Act.

Existing law, the Williamson Act, authorizes a city or county to enter into 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. Existing law sets forth the term of these contracts at 10 or 20 years, except that until January 1, 2016, a county may, in any fiscal year in which payments authorized for reimbursement to a county for lost revenue are less than 12 of the participating county’s actual foregone general fund property tax revenue, revise the term for newly renewed and new contracts to either 9 or 18 years. Existing law provides for an addition to the assessed value of properties subject to contracts with a reduced term.

This bill would delete the January 1, 2016, date and thereby authorize a county to utilize the process for revising or entering into contracts so as to specifybegin delete 9end deletebegin insert 9-yearend insert orbegin delete 18 yearend deletebegin insert 18-yearend insert terms indefinitely.begin insert The bill would additionally authorize a county to utilize that process for revising or entering into contracts for land subject to a farmland security zone contract.end insert The bill would also make conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 16142 of the Government Code, as
2amended by Section 1 of Chapter 90 of the Statutes of 2011, is
3amended to read:

4

16142.  

(a) The Secretary of the Natural Resources Agency
5shall direct the Controller to pay annually out of the funds
6appropriated by Section 16140, to each eligible county, city, or
7city and county, the following amounts for each acre of land within
8its regulatory jurisdiction that is assessed pursuant to Section 423,
9423.3, 423.4, or 423.5, orbegin insert Sectionend insert 426 if it was previously assessed
10under Section 423.4, of the Revenue and Taxation Code:

11(1) Five dollars ($5) for prime agricultural land, as defined in
12Section 51201.

13(2) One dollar ($1) for all land, other than prime agricultural
14land, which is devoted to open-space uses of statewide significance,
15as defined in Section 16143.

16(b) The amount per acre in paragraph (1) of subdivision (a) may
17be increased by the Secretary of the Natural Resources Agency to
18a figure which would offset any savings due to a more restrictive
19determination by the secretary as to what land is devoted to
20open-space use of statewide significance.

21(c) The amount per acre in subdivision (a) shall only be paid
22for 10 years from the date that the land was first assessed pursuant
23to Section 426 of the Revenue and Taxation Code, if it was
24previously assessed under Section 423.4 of that code.

25(d) Notwithstanding any other provision of law, for the 2008-09
26fiscal year and each fiscal year thereafter, the Controller shall
27reduce, by 10 percent, any payment made pursuant to this section.

28(e) Effective January 1, 2011, if the payment pursuant to this
29section for the previous fiscal year is less than one-half of the
30participating county’s actual foregone general fund property tax
31revenue, the county may make a determination to implement
32subdivision (b) of Section 51244 and Section 51244.3. The
33implementation of these sections shall be suspended for any
P3    1subsequent fiscal year in which the payment for the previous fiscal
2year exceeds one-half of the foregone general fund property tax
3revenue.

4For purposes of this subdivision, a county’s actual foregone
5property tax revenue shall be based on the county’s respective
6share of the general property tax dollars as reflected in the most
7recent annual report issued by the State Board of Equalization or
820 percent, whichever is higher.

9

SEC. 2.  

Section 16142 of the Government Code, as added by
10Section 2 of Chapter 90 of the Statutes of 2011, is repealed.

11

SEC. 3.  

Section 16142.1 of the Government Code, as amended
12by Section 3 of Chapter 90 of the Statutes of 2011, is amended to
13read:

14

16142.1.  

(a) In lieu of the payments made pursuant to Section
1516142, in a county that has adopted farmland security zones
16pursuant to Section 51296, the Secretary of the Natural Resources
17Agency shall direct the Controller to pay annually out of the funds
18appropriated by Section 16140, to each eligible county, city, or
19city and county, the following amount for each acre of land within
20its regulatory jurisdiction that is assessed pursuant to Section 423.4
21or 426 of the Revenue and Taxation Code, if it was previously
22assessed under Section 423.4 of that code:

23Eight dollars ($8) for land that is within, or within three miles
24of the boundaries of the sphere of influence of, each incorporated
25city.

26(b) The amount per acre in subdivision (a) shall only be paid
27for 10 years from the date that the land was first assessed pursuant
28to Section 426 of the Revenue and Taxation Code, if it was
29previously assessed under Section 423.4 of that code. The
30appropriation authorized by this subdivision shall not exceed one
31hundred thousand dollars ($100,000) per year until 2005.

32(c) Notwithstanding any other provision of law, for the 2008-09
33fiscal year and each fiscal year thereafter, the Controller shall
34reduce, by 10 percent, any payments made pursuant to this section.

35(d) Effective January 1, 2011, if the payment pursuant to this
36section for the previous fiscal year is less than one-half of the
37participating county’s actual foregone general fund property tax
38revenue, the county may make a determination to implement
39subdivision (b) of Section 51244 and Section 51244.3. The
40implementation of these sections shall be suspended for any
P4    1subsequent fiscal year in which the payment for the previous fiscal
2year exceeds one-half of the foregone general fund property tax
3revenue.

4For purposes of this subdivision, a county’s actual foregone
5property tax revenue shall be based on the county’s respective
6share of the general property tax dollars as reflected in the most
7recent annual report issued by the State Board of Equalization or
820 percent, whichever is higher.

9

SEC. 4.  

Section 16142.1 of the Government Code, as added
10by Section 4 of Chapter 90 of the Statutes of 2011, is repealed.

11

SEC. 5.  

Section 51244 of the Government Code, as amended
12by Section 5 of Chapter 90 of the Statutes of 2011, is amended to
13read:

14

51244.  

(a) Each contract shall be for an initial term of no less
15than 10 years. Each contract shall provide that on the anniversary
16date of the contract or such other annual date as specified by the
17contract a year shall be added automatically to the initial term
18unless notice of nonrenewal is given as provided in Section 51245.

19(b) (1) If the county makes a determination pursuant to
20subdivision (e) of Section 16142 or subdivision (d) of Section
2116142.1, contracts shall be for a term of no less than 9 years for
22contracts currently 10 years in length or 18 years for contracts
23currently 20 years in length, as the case may be. For new contracts
24entered into during a year in which this subdivision is in effect,
25the initial contract length shall be either 9 or 18 years. Each
26contract shall provide, except in the initial year of the
27determination, that on the anniversary date of the contract or such
28other annual date as specified by the contract, a year shall be added
29automatically to the initial term unless notice of nonrenewal is
30given as provided in Section 51245.

31In any subsequent year during the reduced term of contract in
32which increased revenue is not realized by the county pursuant to
33Section 51244.3, 2 or 3 additional years shall be added to the
34contract on the next anniversary date, as necessary, to restore the
35contract to its full 10-year or 20-year contract length.

36(2) In any year in which this subdivision is implemented, the
37county shall record a notice that states the affected parcel number
38or numbers and current owner’s names, or, alternatively, the same
39information for those parcels that are not affected.

P5    1(3) An addition to the assessed value shall be conveyed to the
2auditor, consistent with the 10-percent reduction in the length of
3the restriction, equal to 10 percent of the difference between the
4valuation pursuant to Section 423, 423.3,begin insert 423.4end insert or 423.5 of the
5Revenue and Taxation Code, as applicable, and the valuation under
6subdivision (b) of Section 51 or Section 110.1 of the Revenue and
7Taxation Code, whichever is lower. If the valuation under
8subdivision (b) of Section 51 or Section 110.1 of the Revenue and
9Taxation Code is lower, the addition to the assessed value shall
10be zero. The increased amount of tax revenue that results from the
11decrease in restriction shall be separately displayed on the
12taxpayer’s annual bill.

13(4) A landowner may elect to serve notice of nonrenewal instead
14of accepting a 9-year or 18-year contract, as the case may be. In
15that case, the additional assessed value shall not be added to the
16property as provided for in paragraph (3).

17For purposes of this subdivision, a landowner may serve notice
18of nonrenewal at any time. However, a landowner who withdraws
19that notice prior to the effective date shall be subject to term
20modification and additional assessed value. Once served and
21effective, a landowner nonrenewal notice may not be withdrawn
22except for cause and with the consent of the county. A county may
23adopt amendments to its uniform rules to facilitate implementation
24of this subdivision during the 2011-12 fiscal year, and thereafter
25as necessary.

26(5) In addition to any other notice requirements, a county shall
27provide a landowner under contract with timely written notice of
28all of the following:

29(A) Any initial hearing by the county on a proposal to adopt or
30rescind the implementation of this subdivision.

31(B) Any final decision regarding the adoption or rescission of
32implementation of this subdivision.

33(C) The landowner’s right to prevent the reduction in the term
34of his or her contract pursuant to this subdivision by serving notice
35of nonrenewal as specified by Section 51245. This notice may be
36combined with the county’s notice in subparagraph (B).

37(6) A county shall not modify or revalue a landowner’s contract
38pursuant to this subdivision unless the landowner is given at least
3990 days’ notice of the opportunity to prevent the modification and
40revaluation by serving notice of nonrenewal and the landowner
P6    1fails to serve notice of nonrenewal. The county may use the primary
2owner of record from the assessment roll to identify landowners
3entitled to receive notice under this subdivision. A landowner shall
4be advised of the landowner’s right to avoid continued imposition
5of this subdivision in any future year and thereafter by serving a
6notice of nonrenewal for that contract year. Failure of the
7landowner to serve timely notice of nonrenewal in any year shall
8be considered implied consent to the implementation of this
9subdivision for that year.

10The 90-day notice requirement may be reduced to 60 days if the
11county adopts a procedure to allow landowners to serve a notice
12of nonrenewal until February 1, 2012.

13(7) This subdivision shall not apply to any of the following:

14(A) Contracts that have been nonrenewed.

15(B) Contracts with cities.

16(C) Open-space or agricultural easements.

17(D) Scenic restrictions.

18(E) Wildlife habitat contracts.

19(F) Atypical term contracts, including, but not limited to, 20-year
20initial term contracts declining to 10 years, or reencumbrances
21pursuant to Section 51295, if the county’s board of supervisors
22determines the application of this subdivision to them would be
23inequitable or administratively infeasible.

24

SEC. 6.  

Section 51244 of the Government Code, as added by
25Section 6 of Chapter 90 of the Statutes of 2011, is repealed.

26

SEC. 7.  

Section 51244.3 of the Government Code is amended
27to read:

28

51244.3.  

(a) This section shall apply to properties under a
299-year or 18-year contract, as the case may be, pursuant to
30subdivision (b) of Section 51244. Notwithstanding any other
31provision to the contrary, increased revenues generated by those
32properties shall be allocated exclusively to the respective counties
33in which those properties are located.

34(b) This section shall only apply if the county makes a
35determination pursuant to either Section 16142 or 16142.1.

36

SEC. 8.  

Section 51244.4 of the Government Code is repealed.



O

    98