BILL ANALYSIS �
SB 668
Page 1
Date of Hearing: June 15, 2011
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
SB 668 (Evans) - As Amended: May 10, 2011
SENATE VOTE : 39-0
SUBJECT : Local government: Williamson Act.
SUMMARY : Allows a city or county, in order to compensate for a
reduction in state subvention payments for the Williamson Act,
to accept contributions from a nonprofit, a land-trust
organization, a nonprofit entity, or a public agency for
specific land that is under a Williamson Act contract to
supplement the city or county's foregone property tax revenues.
Specifically,
this bill :
1)Allows a city or county to accept contributions from a
nonprofit, a land-trust organization, a nonprofit entity, or a
public agency for specific land that is under a Williamson Act
contract to supplement the city or county's foregone property
tax revenues.
2)Specifies that this authority applies if the state fails to
make all or part of its subvention payments to the city or
county.
3)Allows the contributor to contract with the owner of
Williamson Act land, with the approval of the city or county,
to keep the property under the Williamson Act contract in
exchange for the contributor's payment to the city or county.
4)Requires that a contract between the contributor and the
landowner be subject to any limitation in the contributor's
power.
5)Prohibits the contract from allowing or requiring the land's
conversion into a mitigation bank site.
6)Provisions of the measure sunset on January 1, 2016, unless
the Legislature extends or repeals that date.
7)Specifies that the contract between the contributor and the
SB 668
Page 2
landowner remains in effect until it terminates, for up to 10
years.
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.
FISCAL EFFECT : None
COMMENTS :
1)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.
2)Approximately 16.6 million acres are under Williamson Act
contracts. When Governor Schwarzenegger'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
SB 668
Page 3
the subventions to $27.8 million. However, Governor
Schwarzenegger essentially eliminated the subventions by
cutting the appropriation to $1,000. This funding was removed
from the 2010-11 budget.
3)Last year the Legislature passed AB 2530 (Nielsen), Chapter
391, Statutes of 2010, which contained an alternative funding
mechanism for the Williamson Act. In October 2010 during the
budget negotiations the Legislature passed SB 863 (Budget and
Fiscal Review Committee), Chapter 722, Statutes of 2010, which
made minor changes to the provisions of AB 2530. The budget
actions in October 2010 also appropriated $10 million from the
General Fund for Williamson Act open space subventions to
counties in 2010-11. However, in March of this year the
Legislature passed SB 80 (Budget and Fiscal Review Committee),
Chapter 11, Statutes of 2011, which deleted the statutory
appropriation of $10 million from the General Fund for
Williamson Act open space subventions to counties in 2010-11
and repealed the alternative Williamson Act program.
4)According to the author's office the loss of General Fund
subventions to backfill local government property tax revenue
losses on land under Williamson Act contract threatens the
continuation of those contracts. SB 668 clarifies that local
governments may accept contributions from non-profits and land
trusts to help offset the reduction in state subventions.
5)Support arguments: Supporters argue that by authorizing
greater funding flexibility at the local government level,
this bill helps achieve several primary objectives necessary
for the long-term conservation of our agricultural and
open-space lands.
Opposition arguments: None at this time.
6)This bill is double-referred to the Committee on Agriculture.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
SB 668
Page 4
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958