BILL ANALYSIS
AB 2530
Page 1
Date of Hearing: August 30, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2530 (Nielsen) - As Amended: August 25, 2010
SUBJECT : Local government: Williamson Act: contracts.
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 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).
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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;
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
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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)Pursuant to Article 13, section 8 of the California
Constitution, authorizes 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.
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.
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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
"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.
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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.
REGISTERED SUPPORT / OPPOSITION :
Support
CA Farm Bureau Federation [CO-SPONSOR]
Resource Land Owners Coalition [CO-SPONSOR]
Audubon CA
Sierra Club CA
The Nature Conservancy
Wine Institute
Opposition
None on file
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958