BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 707


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          707 (Wood)


          As Amended  August 24, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |ASSEMBLY:  | 74-0 | (May 22,      |SENATE: |40-0  |(August 31,      |
          |           |      |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
           -------------------------------------------------------------------- 


          Original Committee Reference:  AGRI.


          SUMMARY:  Requires the Department of Conservation (DOC) to  
          provide a preliminary valuation of the Williamson Act (Act)  
          contract land to the county assessor and the city council or  
          board of supervisors (local government) at least 60 days prior  
          to the effective date of the agreed upon cancellation valuation  
          if the contract includes additional local cancellation fees.


          The Senate amendments:


          1)Delete the provision that removes the ability of a land owner  
            and DOC to negotiate Act cancellation fees, if the land in an  
            Act contract is within a county that has a local cancellation  
            assessment for Act contract lands.   


          2)Require the DOC, if an Act contract has additional local  








                                                                     AB 707


                                                                    Page  2


            government cancellation fees, to provide to the county  
            assessor and local government preliminary valuation of the  
            land with the reason for the cancellation value, as specified.  



          3)Allow the county assessor to provide information on the  
            preliminary valuation to the local government and allow the  
            local government to provide comments to DOC on the preliminary  
            valuation and cancellation value.


          EXISTING LAW:  


          1)Creates the Act, also known as the California Land  
            Conservation Act of 1965, which authorizes local governments  
            to enter into agricultural land preservation contracts with  
            landowners who agree to restrict the use of their land for a  
            minimum of 10 years in exchange for lower assessed valuations  
            for property tax purposes.  The Division of Land Resource  
            Protection in DOC administers the Act.


          2)Provides for a 12.5% cancellation fee, based on the value of  
            the land, for canceling a Williamson Act contract, as  
            specified.  


          3)Allows DOC and the landowner to agree on a cancellation  
            valuation of the land.


          4)Allows a city or county to pass an ordinance that requires an  
            additional cancellation fee that goes to the local  
            jurisdiction.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.










                                                                     AB 707


                                                                    Page  3


          COMMENTS:  The Act conserves agricultural and open space land by  
          allowing private property owners to sign voluntary contracts  
          with counties and cities, restricting their land to agriculture,  
          open space, and other compatible uses.  In return, county  
          assessors must lower the assessed value of the contracted lands  
          to reflect their use as agricultural or open space instead of  
          the market value.  Making sure that private property owners use  
          their Act land appropriately is essential to maintaining the  
          statute's constitutional integrity.


          Due to the elimination of state subvention payments to the  
          counties, some local jurisdictions passed ordinances that impose  
          an additional cancellation penalty fee.  If a property owner  
          wanted to cancel an Act contract before the ten-year period, the  
          landowner must petition the local board or council to terminate  
          a contract.  The board/council may grant cancellation if certain  
          statutory findings are met.  If the local government approves  
          the cancellation, the landowner is required to pay a  
          cancellation fee equal to 12.5% of the cancellation valuation of  
          the property to the state.  Merced County and Humboldt County  
          (Humboldt) are the only counties to have local cancellation  
          fees, in addition to the state cancellation fee.  Humboldt's  
          local cancellation fee is 12.5%.


          According to the author, this bill is needed to address  
          situations where a local government has imposed an Act  
          cancellation fee in addition to the state Act cancellation fee.   
          The need was demonstrated by the following incident:  On August  
          21, 2011, the Ambrosini Dairy Property (Riverside Ranch), in  
          Humboldt, requested to cancel their Act contract.  The  
          cancellation was initiated by the Western Rivers Conservancy  
          (WRC), who purchased the land.  The request for cancellation  
          triggered the Humboldt County Assessor's Office to begin to  
          determine the fair market value of the land, which determines  
          the Act cancellation fee.  The WRC requested a waiver to the  
          Humboldt's fee.  The Humboldt's Act Advisory Committee  
          recommended to the Board of Supervisors that the local  
          cancellation fee not be waived.  On April 23, 2012, the DOC sent  
          a letter to Humboldt informing the local jurisdiction that WRC  
          and the DOC had reached an agreement on a cancellation  








                                                                     AB 707


                                                                    Page  4


          valuation, as allowed by current law.  This negotiation between  
          the DOC and WRC took place without Humboldt's input.  This bill  
          addresses this issue by allowing the county, if it has a local  
          cancellation fee, to be part of the discussion of land  
          valuation.


          This bill is substantially similar to the version passed by the  
          Assembly. 


          Analysis Prepared by:                                             
                          Victor Francovich / AGRI. / (916) 319-2084  FN:  
          0001576