BILL NUMBER: SB 1266	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Corbett

                        FEBRUARY 23, 2012

   An act to repeal and add Section 5096.517 of the Public Resources
Code, relating to state lands.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1266, as introduced, Corbett. Resource conservation lands:
appraisal process.
   Existing law authorizes various state agencies to acquire land for
purposes related to conservation, and requires an acquisition
agency, as defined, where an agency proposes to spend more than
$25,000,000 of state funds, to contract for at least one independent
appraisal of the fair market value of the land. Existing law requires
the Department of General Services, prior to any action by an
acquisition agency to approve a major acquisition of conservation
lands, to contract for at least one independent appraisal of the fair
market value of the land. Existing law further requires the
department to convene a workgroup to develop and adopt standards,
subject to the approval of the Natural Resources Agency, with respect
to the acquisition of conservation lands concerning the appraisal
process, availability of appraisal information, and valuation for
purposes of a charitable contribution, as prescribed.
   This bill would repeal those provisions requiring the department
to convene a workgroup and would instead require that, in addition to
any other requirements or standards prescribed by law, appraisal
reports prepared for the acquisition of any land or interest therein
by or with funding from an acquisition agency, as defined, include
specified information, and meet specified requirements to be
considered for appraisal review by the state.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5096.517 of the Public Resources Code is
repealed. 
   5096.517.  (a) The Department of General Services shall convene a
workgroup to develop and adopt standards, subject to the approval of
the Resources Agency, with respect to the acquisition of conservation
lands. The workgroup shall not exceed six members and shall include,
but not be limited to, representatives from all of the following:
   (1) The Department of Parks and Recreation.
   (2) The Wildlife Conservation Board.
   (3) The State Coastal Conservancy and one or more other state
conservancies with land acquisition responsibilities.
   (b) The workgroup shall hold a public hearing to solicit public
comments prior to the adoption of standards pursuant to subdivision
(a).
   (c) In developing standards for the appraisal of resource
conservation acquisitions, including both direct and state-funded
grant acquisitions, the Department of General Services and the
workgroup shall consider, by January 1, 2010, all of the following:
   (1) Qualifications of the appraiser, including, but not limited
to, all of the following:
   (A) The appraiser shall not engage in any appraisal activity in
connection with the purchase, sale, transfer, financing, or
development of real property if his or her compensation is dependent
on or affected by the value determined by the appraisal.
   (B) The appraiser shall be appropriately licensed by the Office of
Real Estate Appraisers pursuant to Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code.
   (C) The appraisal shall be performed pursuant to the Uniform
Standards of Professional Appraisal Practice.
   (D) Any additional qualifications regarding education,
certification, and years of experience deemed to be necessary by the
Department of General Services and the workgroup.
   (E) This paragraph does not limit the ability of a public agency
to award a contract based on appraiser qualifications, including
designations, experience, and other factors deemed necessary to
perform an appraisal on a specific assignment, that exceed the
qualifications of this paragraph.
   (2) Appraisal methodology to be used.
   (3) Scope of the analysis and level of information provided in the
appraisal report, including, but not limited to, both of the
following:
   (A) Verifiable data on the development potential of the land, such
as what would be required for a development project to proceed.
   (B) Reports documenting suspected environmental contamination.
   (4) Reference to comparable government and conservation
transactions when available.
   (5) Age of the appraisal or appraisal update to be reviewed by the
department to keep an appraisal from being over one and one-half
years old.
   (6) Appraisal of conservation easements, using the information
from the "Valuation of Conservation Easements Certificate Program"
created by members of the Appraisal Foundation and the Land Trust
Alliance as guidelines.
   (7) Standards for the release of the appraisal review, including,
but not limited to, both of the following:
   (A) Guidelines to state resource agencies for public disclosure
requirements.
   (B) Improvement of the legislative notification process for better
oversight, including, when requested by the Legislature, provision
of a copy of the appraisal review for a major acquisition before the
close of escrow. 
  SEC. 2.  Section 5096.517 is added to the Public Resources Code, to
read:
   5096.517.  (a) In addition to any other requirements or standards
prescribed by law, appraisal reports prepared for the acquisition of
any land or interest therein by or with funding from an "acquisition
agency", as defined in subdivision (a) of Section 5096.501, shall
include all of the following to be considered for appraisal review by
the state:
   (1) A collection of descriptive photographs and maps of sufficient
quality and detail to clearly depict the subject property and any
market data relied upon, including the relationship between the
location of the subject property and the market data.
   (2) A complete description of the subject property land, site
characteristics, and improvements. Valuations based on a property's
development potential shall include:
   (A) Verifiable data on the development potential of the land.
   (B) A description of what would be required for a development
project to proceed, such as legal entitlements, and infrastructure
needs.
   (C) Presentation of evidence that sufficient demand exists, or is
likely to exist in the future, to provide market support for the
development.
   (3) A statement by the appraiser indicating to what extent land
title conditions were investigated and considered in the analysis and
value conclusion. The appraisal shall also include a preliminary
appraisal report when such a report is available.
   (4) A discussion of implied dedication, prescriptive rights, or
other unrecorded rights as described in Sections 801 to 813,
inclusive, and Sections 1006 to 1009, inclusive, of the Civil Code,
that may affect value, indicating the extent of investigation and any
knowledge or observation of conditions that might indicate evidence
of public use. If the appraiser has no knowledge of, or has not
observed, those conditions, a statement to that effect shall be
included in the appraisal report.
   (5) An appraisal report that includes more than nominal value for
specialty interests, including, but not limited to, timber, water,
minerals, or carbon credits, shall include a separate valuation
prepared and signed by a certified or registered professional
qualified in the field of specialty interest. This valuation shall be
reviewed and approved by a second qualified, certified or registered
professional, considered by the appraiser, and appended to the
appraisal report.
   (b) Each appraisal report shall be prepared by, and include a
signature by an appropriately Licensed or Certified Real Estate
Appraiser in good standing pursuant to Part 3 (commencing with
Section 11300) of Division 4 of the Business and Professions Code,
and implementing regulations.