BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 668
                                                                  Page  1

          Date of Hearing:   June 29, 2011

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                     SB 668 (Evans) - As Amended:  June 22, 2011

           SENATE VOTE  :   39-0

           SUBJECT  :  Local government: Williamson Act.

           SUMMARY  :  Allows a city or county, to offset a reduction in 
          state subvention payments for the Williamson Act (Act), to 
          accept contributions from a nonprofit land-trust organization, a 
          nonprofit entity, or a public agency, for specific land that is 
          under an 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 land-trust organization, a nonprofit entity, or a 
            public agency for specific land that is under an Act contract 
            to supplement the city or county's foregone property tax 
            revenues, if the state fails to make all or part of its 
            subvention payments to the city or county.

          2)Allows the contributor to contract with the owner of Act land, 
            with the approval of the city or county, to keep the property 
            under the Act contract in exchange for the contributor's 
            payment to the city or county, for up to 10 years or equal to 
            the contract. 

          3)Requires that a contract between the contributor and the 
            landowner be subject to any limitation in the contributor's 
            power.  

          4)Requires that a contract between the contributor and the 
            landowner not authorize or require the conversion of contract 
            land into a mitigation bank site.

          5)Prohibits a city or county from requiring additional 
            conditions or restriction on the land or the land owner for 
            existing or future contracts, in executing the authority of 
            this chapter.

          6)Specifies that this chapter does not limit the rights of 
            landowners to engage in other lawful contracts or transactions 








                                                                  SB 668
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            relating to their land or Act contracts.

          7)Defines a "non-profit land-trust organization to mean a 
            501(c)(3) nonprofit tax exempt organization, that has among 
            its purposes the conservation of natural or cultural 
            resources, as specified.

          8)Specifies that the measure sunset on January 1, 2016, unless 
            the Legislature extends or repeals that date

           EXISTING LAW:  

          1)Creates the 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.  �Government Code Section (GOV) 
            51200-51207]

          2)Authorizes a county, until January 1, 2015, in any fiscal year 
            in which payments authorized for reimbursement to a county for 
            lost revenue from Act contracts are less than one-half of the 
            county's actual foregone General Fund (GF) property tax 
            revenue, to revise the terms for new contracts. �GOV 16142, 
            51244]

           FISCAL EFFECT  :   Legislative counsel has keyed this bill 
          non-fiscal.

           COMMENTS  :   

          The Act conserves agricultural and open space land by allowing 
          private property owners to sign voluntary contracts with 
          counties and cities, 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 agricultural or open space instead of the market 
          value.  Making sure that private property owners use their Act 
          land appropriately is essential to maintaining the statute's 
          constitutional integrity.  Approximately 16.6 million acres are 
          under Act contracts.  GF for Act subvention funding has been 
          eliminated from the state budget for the last few years.

          According to the author's office the loss of GF subventions to 








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          backfill local government property tax revenue losses on land 
          under Williamson Act contracts threatens the continuation of 
          those contracts.  This bill clarifies that local governments may 
          accept contributions from non-profits and land trusts to help 
          offset the reduction in state subventions.  The author states 
          that this bill can be a tool for public agencies and non-profits 
          to protect agricultural lands vital to their interests.

          This bill was heard in the Assembly Committee on Local 
          Government on June 15, 2011, where it passed out on a 9-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file. 
           
            Opposition 
           
          None on File.

           Analysis Prepared by  :    Victor Francovich / AGRI. / (916) 
          319-2084