BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1266|
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UNFINISHED BUSINESS
Bill No: SB 1266
Author: Corbett (D)
Amended: 8/23/12
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
SENATE FLOOR : 31-8, 5/29/12
AYES: Alquist, Berryhill, Blakeslee, Calderon, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson,
Evans, Hancock, Harman, Hernandez, Kehoe, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Rubio, Simitian, Steinberg, Vargas, Wolk, Wright, Yee
NOES: Anderson, Fuller, Gaines, Huff, La Malfa,
Strickland, Walters, Wyland
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 69-10, 8/27/12 - See last page for vote
SUBJECT : Resource conservation lands: appraisal process
SOURCE : California Council of Land Trusts
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DIGEST : This bill expands the scope of proposed state
resource land acquisitions for which an independent
appraisal and review is required, and specifies
requirements for what must be included in an appraisal
report.
Assembly Amendments clarify which agencies spend state
funds, and revise provisions regarding appraisals.
ANALYSIS : Existing law:
1.Authorizes various state agencies to acquire land for
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.Modifies the definition of a major acquisition thereby
lowering the threshold for when an independent appraisal
review, and public disclosure of the review, is required
to include an acquisition for which one or more agencies
propose to spend more than $15 million of state funds.
Current law requires an independent appraisal review for
expenditures of more than $25 million in state funds.
This bill also clarifies that the appraisal review report
shall be in a narrative format.
2.Prohibits the Wildlife Conservation Board (WCB),
Department of Parks and Recreation (DPR), or a state
conservancy from utilizing property acreage as a
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categorical threshold to impose an independent review of
an appraisal, but allows an agency to otherwise consider
possible impacts from the acquisition of large acreages.
3.Requires for any proposed expenditure or grant of more
than $150,000 in state funds by the WCB, DPR or a state
conservancy for acquisition of conservation lands, that
the acquisition agency or project partner contract for an
independent appraisal. Defines a project partner to
include a public agency or nonprofit organization that is
seeking state funds for conservation lands. Requires the
appraisal to meet specified statutory requirements and to
conform to Uniform Standards of Professional Appraisal
Practice. Permits the landowner or project partner to
contribute to the costs of the appraisal and to be
identified as the intended user of the appraisal, and,
until January 1, 2015, to be named as the co-client of
the appraiser.
4.Requires the independent appraisal to meet specified
requirements including that it conform to all applicable
laws and Uniform Standards of Professional Appraisal
Practice. Prohibits appraisal fees based on a percentage
of the appraised value or allowed deduction, and
prohibits the appraisal from being prepared by an
appraiser with a financial interest in the property.
Requires the appraiser to meet certain qualifications or
education, experience and knowledge, as specified.
5.Requires, for properties involving specialty interests
such as timber, water, minerals or carbon credits, that
the professional valuing the specialty interest possess
additional qualifications, as specified.
6.Requires appraisal reports for conservation land
acquisitions to include specified information, including
photographs and maps of the property, market data relied
on, verifiable data on development potential for any
valuations, a description of any development
requirements, evidence of market demand, land title
conditions, other rights that may affect value, any
specialty valuations, and a preliminary title report when
such a report is available. Requires the appraisal
report to be prepared by an appropriately licensed or
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certified real estate appraiser in good standing.
7.Deletes obsolete requirements in existing law for DGS to
convene a working group to make recommendations on
standards for the acquisition of conservation lands.
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 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 Assembly Appropriations Committee:
Unknown costs, potentially ranging in the low to high
hundreds of thousands of dollars, to WCB, Department of
Fish and Game (DFG) and the state conservancies, to
commission appraisals beyond the number agencies would
commission under current law (General Fund (GF), bond
funds and special funds).
Unknown savings, of less than the costs identified above,
to acquisition agencies resulting from decreased review
of appraisals submitted following a prior appraisal
rejected by DGS (GF, bond funds and special funds).
SUPPORT : (Verified 8/28/12)
California Council of Land Trusts (source)
Big Sur Land Trust
Bodega Land Trust
California Waterfowl Association
Land Trust of Santa Cruz County
Marin Agricultural Land Trust
McKingleyville Land Trust
Mendocino Land Trust
Ojai Valley Land Conservancy
Pacific Forest Trust
Peninsula Open Space Trust
Planning and Conservation League
Redwood Coast Land Conservancy
Rocky Mountain Elk Foundation
Save Mount Diablo
Save the Redwoods League
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
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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."
ASSEMBLY FLOOR : 69-10, 08/27/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Beth Gaines,
Galgiani, Gatto, Gordon, Gorell, Grove, Hagman, Hall,
Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman,
Knight, Lara, Bonnie Lowenthal, Ma, Mendoza, Miller,
Mitchell, Monning, Nestande, Nielsen, Olsen, Pan, Perea,
V. Manuel P�rez, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NOES: Donnelly, Garrick, Halderman, Harkey, Jeffries,
Jones, Logue, Mansoor, Morrell, Norby
NO VOTE RECORDED: Furutani
CTW:n 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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