California Legislature—2013–14 Regular Session

Assembly BillNo. 2241


Introduced by Assembly Member Eggman

February 21, 2014


An act to amend Section 51255.1 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2241, as introduced, Eggman. Local government: agricultural land.

Existing law authorizes the parties to a Williamson Act contract, after approval by the Department of Conservation, to mutually agree to rescind the contract in order to simultaneously enter into a solar-use easement that would require that the land be used for solar photovoltaic facilities for a term no less than 20 years, except as specified. Existing law requires the city or county to charge the property owner a rescission fee of 614% of the fair market value of the property at the time of the rescission if the property was under a Williamson Act contract, and 1212% of the fair market value of the property at the time of the recession if the land was held under a contract designating the property a farmland security zone.

This bill would instead require a city or county to charge the property owner a recession fee of 10% of the fair market value of the property at the time of the recession for both land under a Williamson Act contract and land designated as a farmland security zone.

Existing law requires the rescission fees to be deposited in the General Fund, as specified.

This bill would instead require 50% of the recession fees collected to be deposited in the General Fund, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 51255.1 of the Government Code is
2amended to read:

3

51255.1.  

(a) Notwithstanding any other provision of this
4chapter, the parties may upon their mutual agreement rescind a
5contract for a parcel or parcels of land that, upon review and
6approval, are determined by the Department of Conservation to
7be eligible to be placed into a solar-use easement pursuant to
8Section 51191, in order to simultaneously enter into a solar-use
9easement pursuant to Chapter 6.9 (commencing with Section
1051190). This action may be taken notwithstanding the prior serving
11of a notice of nonrenewal.

12(b) Nothing in this section limits the ability of the parties to a
13contract to seek nonrenewal, or petition for cancellation or
14termination of a contract pursuant to this chapter. This section is
15provided in addition to, not in replacement of, other methods for
16contract termination, Williamson Act compliance, or a county
17finding that a solar facility is a compatible use pursuant to this
18chapter.

19(c) (1) Prior to the board or council agreeing to mutually rescind
20a contract pursuant to this section, the county assessor of the county
21in which the land is located shall determine the current fair market
22value of the land as though it were free of the contractual
23restriction. The assessor shall certify to the board or council the
24fair market valuation of the land for the purpose of determining
25the rescission fee. At the same time, the assessor shall send a notice
26to the landowner and the Department of Conservation indicating
27the current fair market value of the land as though it were free of
28the contractual restriction and advise the parties, that upon their
29request, the assessor shall provide all information relevant to the
30valuation, excluding third-party information. If any information
31is confidential or otherwise protected from release, the department
32and the landowner shall hold it as confidential and return or destroy
33any protected information upon termination of all actions relating
34to valuation or rescission of the contract on the property. The notice
P3    1shall also advise the landowner and the department of the
2opportunity to request formal review from the assessor.

3(2) Prior to agreeing to mutually rescind a contract pursuant to
4this section, the board or council shall determine and certify to the
5county auditor the amount of the rescission fee that the landowner
6shall pay the county treasurer upon rescission. That fee shall be
7an amount equal tobegin delete 6 end deletebegin delete14end deletebegin insert 10end insert percent of the fair market valuation of
8the propertybegin delete if theend deletebegin insert forend insert landbegin insert thatend insert was held under a contract pursuant
9to Section 51240begin delete, and 12end deletebegin delete12end deletebegin delete percent if the land was held in a
10contract designatingend delete
begin insert or ifend insert the propertybegin insert was designatedend insert as a farmland
11security zone.

12(3) When rescission fees required by this subdivision are
13collected,begin delete theyend deletebegin insert 50 percent of the feeend insert shallbegin insert, within 30 days of the
14execution of the mutual rescission of the contract by the parties,end insert

15 be transmitted by the county treasurer to the Controller and
16deposited in the General Fund, except as provided in subdivision
17(b) of Section 51203 or subdivision (d) of Section 51283.begin delete The
18funds collected by the county treasurer with respect to each
19rescission of a contract shall be transmitted to the Controller within
2030 days of the execution of the mutual rescission of the contract
21by the parties.end delete

22(4) It is the intent of the Legislature that fees paid to rescind a
23contract do not constitute taxes but are payments that, when made,
24provide a private benefit that tends to increase the value of the
25property.



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