BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1142
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          SENATE THIRD READING
          SB 1142 (Wiggins)
          As Amended  August 2, 2010
          Majority vote 

           SENATE VOTE  :23-11  
           
           NATURAL RESOURCES   7-0         AGRICULTURE         8-0         
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Gilmore,         |Ayes:|Galgiani, Tom Berryhill,  |
          |     |Brownley,                 |     |Conway, Fuller, Hill, Ma, |
          |     |De Leon, Hill, Huffman,   |     |Mendoza, Yamada           |
          |     |Logue                     |     |                          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      17-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Conway,          |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Huffman, Coto, Davis, De  |     |                          |
          |     |Leon, Gatto, Hall,        |     |                          |
          |     |Harkey, Miller, Nielsen,  |     |                          |
          |     |Norby, Skinner, Solorio,  |     |                          |
          |     |Torlakson, Torrico        |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the Director of the Department of  
          Conservation (DOC) to make grants for the acquisition of an  
          agricultural conservation easement from a source other than the  
          California Farmland Conservancy Program (CFCP) Fund under certain  
          conditions including:  
           
          1)The primary purpose for which the easement is being sought is  
            consistent with continuing agricultural use of the easement  
            property.

          2)The easement does not, and will not, substantially prevent  
            agricultural use of the easement property.

          3)Any restrictions on the current or reasonably foreseeable  
            agricultural use of the easement property would only be imposed  
            to restrict those areas of the easement property that are not in  







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            cultivation.

          4)If the easement property has characteristics or qualities that  
            meet the original purpose of the funding source as cultivated  
            land, the easement property may continue to be commercially  
            cultivated with the minimum restrictions necessary to meet with  
            original funding source requirements.

          5)The nonagricultural qualities that will be protected by the  
            easement are inherent to the easement property.

          6)The easement will require that a subsequent easement or deed  
            restriction placed on the easement property will be subordinate  
            to the agricultural conservation easement and require approval  
            of DOC.
           
          EXISTING LAW  :  Enacts the CFCP Act (Public Resources Code Section  
          10200, et seq.).  The CFCP, in part, authorizes the director of  
          DOC to issue grants to local governments, districts, and nonprofit  
          organizations to acquire agricultural conservation easements and  
          fee title interests to preserve farmland.

           FISCAL EFFECT  :  According to an Assembly Appropriations Committee,  
          this bill could potentially substantial cost pressures, in the  
          millions of dollars annually, primarily to proceeds of bonds  
          proceeds and to any future funding made available for the uses  
          described in this bill.

           COMMENTS  :  The Legislature established the CFCP in 1996 to  
          encourage the permanent conservation of productive agricultural  
          lands.  In doing so, the Legislature recognized the important  
          contribution that farmland makes to the state, national and world  
          food supply, as well as the additional benefits that farmland  
          provides in the form of wildlife habitat conservation, wetland  
          protection, and scenic open space preservation.  Unfortunately,  
          much of the land area needed to support the state's growing  
          population increase continues to be from conversion of the state's  
          farmland, particular in urbanizing areas that are situated within  
          historically agricultural landscapes.  More than 50,000 acres of  
          farmland are converted to urban uses each year, and thousands more  
          are transformed into low density, unincorporated rural  
          developments.

          The CFCP supports local efforts to conserve farmland by providing  
          grant funds (currently, from Propositions 12 and 40) for the  







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          purchase of agricultural conservation easements.  Agricultural  
          conservation easements are deed restrictions that ensure that land  
          can never be used for purposes that will interfere with farming,  
          while leaving farmers free to make agricultural management  
          decisions on their land.  Grant funds are made available through a  
          competitive process to qualified applicants.  To date, DOC has  
          provided grants for the purchase of more than 100 agricultural  
          conservation easements on more than 33,000 acres of farmland in  
          the state.

          Existing law prohibits the DOC from making CFCP grants to acquire  
          easements which restrict agricultural practices in any way.   
          However, some funding sources (e.g., Propositions 84 and 1E) not  
          currently available to the DOC are structured to protect multiple  
          uses or values such as agriculture and wildlife habitat.   
          Accordingly, these sources, in essence, seek a compromise between  
          exclusive land uses in order to protect the fundamental attributes  
          that make the land valuable for both uses.  For example, if a  
          river runs through agricultural lands, it may make sense to  
          restrict activity in or near a riparian zone, through an easement,  
          in order to protect riparian habitat or water quality.   
          Non-cultivated portions of farmland could also be restricted  
          because it does not provide ideal farming conditions but could  
          provide habitat or flood protection.

          This bill will allow DOC to maximize agricultural land  
          conservation opportunities by permitting the CFCP to draw from  
          more diverse funding sources, such as Propositions 84 and 1E,  
          which recognize the importance of multiple resource protection.   
          Proposition 84 provides $90 million in grants and incentives for,  
          among other things, the development of regional local land use  
          plans designed to protect natural resources  and  agricultural  
          lands.  Proposition 1E provides $290 million for the protection,  
          creation, and enhancement of flood protection corridors and  
          bypasses through acquisition of easements to protect or enhance  
          flood protection corridors while preserving agricultural use or  
          wildlife values.

          If this bill were to become law, DOC would continue to pursue  
          easements on properties that exclusively protect agricultural  
          uses.  This authority would only be used if DOC is awarded or  
          becomes eligible for funds designed to protect multiple resources,  
          including agricultural resources.

           Analysis Prepared by  :  Jessica Westbrook / NAT. RES. / (916)  







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          319-2092 

                                                                  FN: 0005957