BILL ANALYSIS �
AB 654
Page 1
Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 654 (Hueso) - As Amended: April 25, 2011
Policy Committee: Water, Parks and
Wildlife Vote: 10-1
Local Government 7-2
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires inspections of historic properties at
specified times and changes language regarding fees charged to
owners of such properties by local governments. Specifically,
this bill:
1)Adds to the provisions that must be included in a contract
designating a private property as a historical property and
subject to reduce property tax rates:
a) Inspection of the property prior to a new agreement and
every five years thereafter to determine property-owner
compliance.
b) Periodic, discretionary examination of the property, as
necessary.
2)Authorizes the legislative body of the local government to
determine the party to conduct the inspection, which may be
the Department of Parks and Recreation or the Board of
Equalization.
3)Authorizes the local government to charge the property owner a
fee sufficient to cover, but not exceed, the reasonable cost
of administering this program.
4)Requires the property owner to record the historic
preservation contract with the county in which the property is
located.
AB 654
Page 2
FISCAL EFFECT
Negligible state costs, if any, fully reimbursed by the local
government to which the property owner pays the historic
preservation fee.
COMMENTS
1)Rationale. The author intends this bill ensure that historic
preservation property tax breaks are not being awarded to
property owners who fail to maintain their property as agreed,
and to provide local governments with the fee revenue needed
to administer their historic preservation programs.
2)Background. The Mills Act is an economic incentive program
for the restoration and preservation of qualified historic
buildings by private property owners. Enacted in 1972, the
Mills Act legislation grants participating local governments
the authority to enter into contracts with owners of qualified
historic properties who actively participate in the
rehabilitation, restoration, preservation, and maintenance of
their historic properties. Since restoration costs can be
prohibitive, property tax relief can offset these costs. A
historic property qualifying for a lower property tax must be
subject to a 10-year contract between the local jurisdiction
and the property owner.
3)The Local Government Committee received no formal support or
opposition to this bill however; some have expressed concern
that adding requirements to Mill's Act participation may
discourage participation in the program, thereby reducing the
incentive to private owners to maintain their historically
significant properties.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081