Amended in Senate August 24, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 707

Introduced by Assembly Member Wood

February 25, 2015

An act to amend Section 51203 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 707, as amended, Wood. Agricultural land: Williamson Act contracts: cancellation.

Existing law establishes the California Land Conservation Act of 1965, otherwise known as the Williamson Act, and 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, as specified. Existing law provides for the procedure to cancel a contract entered into under these provisions, and provides that the landowner and the Department of Conservation may agree on the cancellation value of the land.

This bill would begin delete provide that the authority for the landowner and the department to agree on the cancellation value of the land does not apply to a contract between a landowner and a city or county if that end delete begin insert require the department to provide a preliminary valuation of the land to the county assessor and the city council or board of supervisors at least 60 days prior to the effective date of the agreed upon cancellation valuation if the end insert contract includes an additional cancellation fee, as specified.

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.  

Section 51203 of the Government Code is
amended to read:

51203.  

(a) The assessor shall determine the current fair market
value of the land as if it were free of the contractual restriction
pursuant to Section 51283. The Department of Conservation or
the landowner, also referred to in this section as “parties,” may
provide information to assist the assessor to determine the value.
Any information provided to the assessor shall be served on the
other party, unless the information was provided at the request of
the assessor, and would be confidential under law if required of
an assessee.

(b) Within 45 days of receiving the assessor’s notice pursuant
to subdivision (a) of Section 51283 or Section 51283.4, if the
Department of Conservation or the landowner believes that the
current fair market valuation certified pursuant to subdivision (b)
of Section 51283 or Section 51283.4 is not accurate, the department
or the landowner may request formal review from the county
assessor in the county considering the petition to cancel the
contract. The department or the landowner shall submit to the
assessor and the other party the reasons for believing the valuation
is not accurate and the additional information the requesting party
believes may substantiate a recalculation of the property valuation.
The assessor may recover his or her reasonable costs of the formal
review from the party requesting the review, and may provide an
estimate of those costs to the requesting party. The recovery of
these costs from the department may be deducted by the city or
county from cancellation fees received pursuant to this chapter
prior to transmittal to the Controller for deposit in the Soil
Conservation Fund. The assessor may require a deposit from the
landowner to cover the contingency that payment of a cancellation
fee will not necessarily result from the completion of a formal
review. This subdivision shall not be construed as a limitation on
the authority provided in Section 51287 for cities or counties to
recover their costs in the cancellation process, except that the
assessor’s costs of conducting a formal review shall not be borne
by the nonrequesting party.

(1) If no request is made within 45 days of receiving notice by
certified mail of the valuation, the assessor’s valuation shall be
used to calculate the fee.

(2) Upon receiving a request for formal review, the assessor
shall formally review his or her valuation if, based on the
determination of the assessor, the information may have a material
effect on valuation of the property. The assessor shall notify the
parties that the formal review is being undertaken and that
information to aid the assessor’s review shall be submitted within
30 days of the date of the notice to the parties. Any information
submitted to the assessor shall be served on the other party who
shall have 30 days to respond to that information to the assessor.
If the response to the assessor contains new information, the party
receiving that response shall have 20 days to respond to the
assessor as to the new information. All submittals and responses
to the assessor shall be served on the other party by personal service
or an affidavit of mailing. The assessor shall avoid ex parte contacts
during the formal review and shall report any such contacts to the
department and the landowner at the same time the review is
complete. The assessor shall complete the review no later than 120
days of receiving the request.

(3) At the conclusion of the formal review, the assessor shall
either revise the cancellation valuation or determine that the
original cancellation valuation is accurate. The assessor shall send
the revised valuation or notice of the determination that the
valuation is accurate to the department, the landowner, and the
board or council considering the petition to cancel the contract.
The assessor shall include a brief narrative of what consideration
was given to the items of information and responses directly
relating to the cancellation value submitted by the parties. The
assessor shall give no consideration to a party’s information or
response that was not served on the other party. If the assessor
denies a formal review, a brief narrative shall be provided to the
parties indicating the basis for the denial, if requested.

(c) For purposes of this section, the valuation date of any revised
valuation pursuant to formal review or following judicial challenge
shall remain the date of the assessor’s initial valuation, or his or
her initial recomputation pursuant to Section 51283.4. For purposes
of cancellation fee calculation in a tentative cancellation as
provided in Section 51283, or in a recomputation for final
cancellation as provided in Section 51283.4, a cancellation value
shall be considered current for one year after its determination and
certification by the assessor.

(d) Notwithstanding any other provision of this section, the
department and the landowner may agree on a cancellation
valuation of the land. The agreed valuation shall serve as the
cancellation valuation pursuant to Section 51283 or Section
51283.4. The agreement shall be transmitted to the board or council
considering the petition to cancel the contract. begin delete This subdivision
does not apply to the cancellation of a contract between a
landowner and a city or county if that contract includes an
additional cancellation fee included pursuant to Section 51240. end delete

begin insert

(e) If a contract with a city or county includes an additional
cancellation fee pursuant to Section 51240, the department shall
provide a preliminary valuation to the county assessor of the county
in which the land is located and the board of supervisors or the
city council at least 60 days prior to the effective date of the final
cancellation valuation pursuant to subdivision (d). The preliminary
valuation shall include a description of the rationale and facts
considered by the department in determining the cancellation
value. The assessor may provide comments on the preliminary
valuation to the board of supervisors or city council. The board
of supervisors or city council may provide comments on the
preliminary valuation and cancellation value, if submitted, to the
department. Prior to determining the final cancellation valuation,
the department shall consider the comments of the board or council
concerning the preliminary valuation and cancellation valuation,
if submitted.

end insert begin delete

(e)

end delete

begin insert (f) end insert  This section represents the exclusive administrative procedure
for appealing a cancellation valuation calculated pursuant to this
section. The Department of Conservation shall represent the
interests of the state in the administrative and judicial remedies
for challenging the determination of a cancellation valuation or
cancellation fee.