BILL ANALYSIS
AB 2530
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2530 (Nielsen)
As Amended August 25, 2010
Majority vote
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|ASSEMBLY: | |(May 6, 2010) |SENATE: |37-0 |(August 30, |
| | | | | |2010) |
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(vote not relevant)
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|COMMITTEE VOTE: |9-0 |(August 30, 2010) |RECOMMENDATION: |concur |
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Original Committee Reference: L. GOV.
SUMMARY : Authorizes a county, until January 1, 2015, in any fiscal
year in which payments authorized for reimbursement to a county for
lost revenue from Williamson Act contracts is less than one-half of
the county's actual foregone general fund property tax revenue, to
revise the terms for new contracts.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Provide that if, a county determines that the state's open space
subventions are less than one-half of the county's actual
foregone general fund property tax revenue, then a county shall
revise the term for new contracts.
2)Provide that if the county makes such a determination, contracts
shall be for a term of no less than nine years for contracts
currently 10 years in length or 18 years for contracts currently
20 years in length, as the case may be.
3)Specify that for new contracts entered into during a year in
which a county has made a determination pursuant to #1, the
initial contract length shall be either nine or 18 years.
4)Require each contract to provide, except in the initial year of
the determination, that on the anniversary date of the contract
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or such other annual date as specified by the contract, a year
shall be added automatically to the initial term unless notice of
nonrenewal is given.
5)Specify that, if additional revenues do not occur, two additional
years must be added to the contracts on their next anniversary
date to restore them to their full 10-year and 20-year terms.
6)Require, in any year in which the provisions of this measure are
implemented, a county to record a notice that states the affected
parcel number(s).
7)Require the assessor to value the property, consistent with the
restrictions on the property, based on the new contract.
8)Require the additional amount of tax revenue that results from
the decrease in restriction to be separately displayed on the
taxpayer's annual bill.
9)State that a landowner may elect to serve a notice of nonrenewal
instead of accepting a shortened contact.
10)Require a county to give timely written notice to Williamson Act
landowners regarding:
a) Hearings to adopt or rescind the contract and revaluation
provisions;
b) Decisions regarding the contract and revaluation
provisions; and,
c) The right to prevent contract amendments through
nonrenewal.
11)Prohibit the increased valuation of the property from exceeding
10% of the difference between the value that reflects the
property's restricted use and the property's fair market value.
12)State that if a property's fair market value is lower than its
restricted value, there is no revaluation.
13)Specify that the provisions of this measure do not apply to:
a) Contracts that have been nonrenewed;
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b) Contracts with cities;
c) Open space or agricultural easements;
d) Scenic restrictions; and,
e) Wildlife habitat contracts.
14)Specify that a county cannot modify or revalue a contract unless
the landowner gets 90 days notice of the opportunity for
nonrenewal and the landowner fails to nonrenew.
15)State that a landowner's failure to provide notice of nonrenewal
is implied consent to the contract and revaluation provisions for
that year.
16)Require that the increased revenues generated by properties that
are subject to the contract and revaluation provisions
established in this measure be allocated exclusively to the
county.
17)Add a sunset provision, terminating the provisions of this
measure on January 1, 2015.
EXISTING LAW :
1)Authorizes, pursuant to Article 13, section 8 of the California
Constitution, the Legislature to promote the conservation,
preservation and continued existence of open space lands and
provides that when these lands are enforceably restricted to
recreation, enjoyment of scenic beauty, use or conservation of
natural resources, or production of food or fiber, they must be
valued for property tax purposes only on a basis that is
consistent with these restrictions and uses.
2)Creates the Williamson Act, also known as the California Land
Conservation Act of 1965, which authorizes cities and counties 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 the Department of Conservation administers the Act.
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AS PASSED BY THE ASSEMBLY , this bill:
1)Authorized an advisory board, in addition to advising on the
administration of the agricultural preserves in the county or
city, to advise the city or county on any matters relating to
Williamson Act contracts, including, but not limited to, the
following:
a) Program benefits;
b) Costs;
c) Amendments; and,
d) Landowner participation.
2)Stated that the advisory board process is not the only means by
which a board of supervisors (board) or city council (council)
may address agricultural preserve matters or receive advice
regarding agricultural preserve matters.
FISCAL EFFECT : None
COMMENTS : The Williamson Act conserves agricultural and open space
land by allowing private property owners to sign voluntary
contracts with counties and cities, enforceably restricting their
land to agriculture, open space, and compatible uses. In return,
county assessors must lower the assessed value of the contracted
lands to reflect their use as agriculture or open space instead of
the market value. Making sure that private property owners use
their Williamson Act land appropriately is essential to maintaining
the statute's constitutional integrity.
Approximately 16.6 million acres are under Williamson Act
contracts. When the Governor's proposed 2003-04 Budget wanted to
save approximately $39 million by ending the state subventions, the
Legislative Analyst's Office recommended a 10-year phase-out. The
first cuts came in 2008-09 when a budget trailer bill reduced the
state subventions by 10%. The Legislature's 2009-10 Budget reduced
the subventions to $27.8 million. However, the Governor
essentially eliminated the subventions by cutting the appropriation
to $1,000.
Under a Williamson Act contract a property is valued on its
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"restrictions and uses." A property in a Williamson Act contract
has a specific agriculture use and the value of the property is
based on the property's agricultural income. The restriction is
the length of time of the contract. If a landowner agrees to enter
into a contract that is 10% shorter than a standard Williamson Act
contract, under the provisions of this measure, they would forego
10% of their property tax relief and those monies would go back to
the county.
Support arguments: Supporters argue that with the potential loss
of state funding for the Williamson Act program for the second
straight year, many counties can no longer afford to continue to
offer Williamson Act contracts to farmers and ranchers. This
measure offers the opportunity to renegotiate the terms of a
contract in order to preserve the program and still provide
counties with the ability to recoup some of their lost revenues.
Opposition arguments: Opposition may argue that the provisions of
this bill are not enough to save the Williamson Act. Even if all
53 participating counties use the bill's temporary program, even if
Williamson Act landowners continue with their contracts, and even
if county assessors can quickly revalue millions of acres of
contracted lands, the resulting revenues will not replace the state
subventions.
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916) 319-3958
FN: 0006870