BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1266|
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THIRD READING
Bill No: SB 1266
Author: Corbett (D)
Amended: 5/25/12
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMM : 6-2, 4/10/12
AYES: Pavley, Cannella, Kehoe, Padilla, Simitian, Wolk
NOES: La Malfa, Fuller
NO VOTE RECORDED: Evans
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/24/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
SUBJECT : Resource conservation lands: appraisal process
SOURCE : California Council of Land Trusts
DIGEST : This bill requires that all acquisitions
proposed to use more than $1 million of state dollars have
an appraisal conducted by the acquisition agency or project
partner, reduce the threshold at which an acquisition is
considered "major" and thereby triggering specific
requirements, and establish additional criteria for any
appraisal prepared for the purchase of land by an
acquisition agency.
ANALYSIS : Existing law:
1.Authorizes various state agencies to acquire land for
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purposes related to conservation, and requires an
acquisition agency, as defined, prior to any action by
the 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. A "major acquisition" is defined as an acquisition
for which an agency proposes to spend more than
$25,000,000 of state funds.
2.Requires the Department of General Services (DGS) 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:
1.Lowers the threshold for the definition of a "major
acquisition" from $25 million to $15 million.
2.Requires that the appraisal for any acquisition proposing
to involve more than $1 million of state funds be
conducted at the request of the agency or the project
partner.
3.Requires that the appraisal meet all applicable
requirements and any other applicable state laws and
policies, and conform to Uniform Standards of
Professional Appraisal Practice. The project partner or
landowner may contribute to the costs of the appraisal,
be identified as an intended used of the appraisal, and
be named as the coclient of the appraiser or firm
preparing the appraisal. However, on and after January
1, 2015, a landowner will not be named as a coclient of
the appraiser or firm preparing the appraisal.
4.Defines "project partner" as a public agency or nonprofit
seeking state funding from an acquisition agency for an
acquisition of conservation lands.
5.Codifies recent regulations regarding the content of all
appraisals - including that the review must contain a
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thorough description of the property including maps and
pictures, verifiable data on the development potential of
the land, and a statement indicating land title
conditions investigated and considered in the appraisal.
Background
The state has an interest in acquiring and maintaining
lands for conservation purposes in order to support
wildlife, maintain and restore habitat, and provide public
access, recreation, and other purposes. From 2000 - 2009,
the state spent $2.7 billion to purchase 1.5 million acres
of conservation lands in fee title and easements. Existing
law requires an "acquisition agency," defined as the
Wildlife Conservation Board (WCB), the Department of Parks
and Recreation, and all state conservancies, to take
certain actions before approving a "major acquisition,"
including contracting for at least one independent
appraisal, subjecting that appraisal to review for
particular criteria, and disclosing specific information to
the public. A "major acquisition" is defined as an
acquisition proposing to use more than $25 million of state
funds. The appraisal must be conducted by a qualified
licensed member of the Appraisal Institute in a manner
consistent with the Uniform Standards of Professional
Appraisal Practice. Additionally, all acquisitions
considered by the WCB must be reviewed by DGS.
SB 1285 (Corbett, Chapter 711, Statutes of 2008), in
response to public concern and a report from the
Legislative Analyst's Office, required DGS to convene a
workgroup to develop and adopt standards for appraisals of
conservation acquisitions, subject to the approval of the
Natural Resources Agency. The workgroup was directed to
consider elements of the appraisal where additional
requirements and supporting information were likely to
improve the justification of the valuation, as well as
facilitate oversight. On February 22, 2012, DGS
incorporated the workgroup's recommendations into
regulation (Title 2, California Code of Regulations 1880).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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According to the Senate Appropriations Committee:
Ongoing costs of $20,000 to $30,000, most likely from
various bond funds (General Fund) for agencies to
commission an independent appraisal and appraisal review
required for major acquisitions.
Ongoing costs approximately $30,000 most likely from
various bond funds (General Fund) for agencies to
commission an appraisal to replace a landowner
commissioned appraisal.
SUPPORT : (Verified 4/10/12 - unable to reverify at time
of writing)
California Council of Land Trusts (source)
Big Sur Land Trust
Bodega Land Trust
California Waterfowl Association
Land Trust of Santa Cruz County
Mendocino Land Trust
Ojai Valley Land Conservancy
Peninsula Open Space Trust
Planning and Conservation League
Redwood Coast Land Conservancy
Rocky Mountain Elk Foundation
Sierra Foothill Conservancy
Solano Land Trust
The Nature Conservancy
The Trust for Public Land
Wildlife Heritage Foundation
ARGUMENTS IN SUPPORT : According to the author, this bill
"ensures appraisals contain all the necessary information
for the state to conduct a comprehensive review of the
potential purchase and determine as accurately as possible
the value of the project. By raising the standards and
putting them in statute, SB 1266 protects taxpayers' money
and makes sure the state undertakes conservation land
purchases only when it makes the most sense."
The California Council of Land Trusts concurs and adds that
this bill "further strengthens best practices for state
expenditures for lands for conservation purposes."
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CTW:nl 5/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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