BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1142
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          SENATE THIRD READING
          SB 1142 (Wiggins)
          As Amended  August 18, 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  








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            are not in 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)  








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          for the 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:  
          0006210