Senate Bill No. 1353

Introduced by Senator Nielsen

February 21, 2014

An act to amend Section 51244.3 of, to amend and repeal Sections 16142, 16142.1, and 51244 of, and to repeal Section 51244.4 of, the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

SB 1353, as introduced, Nielsen. Local government: Williamson Act.

Existing law, the Williamson Act, authorizes a city or county to enter into contracts with owners of land devoted to agricultural use, whereby the owners agree to continue using the property for that purpose, and the city or county agrees to value the land accordingly for purposes of property taxation. Existing law sets forth procedures for reimbursing cities and counties for property tax revenues not received as a result of these contracts. Existing law sets forth the term of these contracts at 10 or 20 years, except that until January 1, 2016, a county may, in any fiscal year in which payments authorized for reimbursement to a county for lost revenue are less than 1⁄2 of the participating county’s actual foregone general fund property tax revenue, revise the term for newly renewed and new contracts to either 9 or 18 years. Existing law provides for an addition to the assessed value of properties subject to contracts with a reduced term.

This bill would delete the January 1, 2016, date and thereby authorize a county to utilize the process for revising or entering into contracts so as to specify 9 or 18 year terms indefinitely. The bill would also make conforming changes.

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 16142 of the Government Code, as
amended by Section 1 of Chapter 90 of the Statutes of 2011, is
amended to read:

16142.  

(a) The Secretary of the Natural Resources Agency
shall direct the Controller to pay annually out of the funds
appropriated by Section 16140, to each eligible county, city, or
city and county, the following amounts for each acre of land within
its regulatory jurisdiction that is assessed pursuant to Section 423,
423.3, 423.4, or 423.5, or 426 if it was previously assessed under
Section 423.4, of the Revenue and Taxation Code:

(1) Five dollars ($5) for prime agricultural land, as defined in
Section 51201.

(2) One dollar ($1) for all land, other than prime agricultural
land, which is devoted to open-space uses of statewide significance,
as defined in Section 16143.

(b) The amount per acre in paragraph (1) of subdivision (a) may
be increased by the Secretary of the Natural Resources Agency to
a figure which would offset any savings due to a more restrictive
determination by the secretary as to what land is devoted to
open-space use of statewide significance.

(c) The amount per acre in subdivision (a) shall only be paid
for 10 years from the date that the land was first assessed pursuant
to Section 426 of the Revenue and Taxation Code, if it was
previously assessed under Section 423.4 of that code.

(d) Notwithstanding any other provision of law, for the 2008-09
fiscal year and each fiscal year thereafter, the Controller shall
reduce, by 10 percent, any payment made pursuant to this section.

(e) Effective January 1, 2011, if the payment pursuant to this
section for the previous fiscal year is less than one-half of the
participating county’s actual foregone general fund property tax
revenue, the county may make a determination to implement
subdivision (b) of Section 51244 and Section 51244.3. The
implementation of these sections shall be suspended for any
subsequent fiscal year in which the payment for the previous fiscal
year exceeds one-half of the foregone general fund property tax
revenue.

For purposes of this subdivision, a county’s actual foregone
property tax revenue shall be based on the county’s respective
share of the general property tax dollars as reflected in the most
recent annual report issued by the State Board of Equalization or
20 percent, whichever is higher.

begin delete

(f) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 2.  

Section 16142 of the Government Code, as added by
Section 2 of Chapter 90 of the Statutes of 2011, is repealed.

begin delete

16142.  

(a) The Secretary of the Natural Resources Agency
shall direct the Controller to pay annually out of the funds
appropriated by Section 16140, to each eligible county, city, or
city and county, the following amounts for each acre of land within
its regulatory jurisdiction that is assessed pursuant to Section 423,
423.3, 423.4, or 423.5, or 426 if it was previously assessed under
Section 423.4, of the Revenue and Taxation Code:

(1) Five dollars ($5) for prime agricultural land, as defined in
Section 51201.

(2) One dollar ($1) for all land, other than prime agricultural
land, which is devoted to open-space uses of statewide significance,
as defined in Section 16143.

(b) The amount per acre in paragraph (1) of subdivision (a) may
be increased by the Secretary of the Natural Resources Agency to
a figure which would offset any savings due to a more restrictive
determination by the secretary as to what land is devoted to
open-space use of statewide significance.

(c) The amount per acre in subdivision (a) shall only be paid
for 10 years from the date that the land was first assessed pursuant
to Section 426 of the Revenue and Taxation Code, if it was
previously assessed under Section 423.4 of that code.

(d) Notwithstanding any other law, for the 2008-09 fiscal year
and each fiscal year thereafter, the Controller shall reduce, by 10
percent, any payment made pursuant to this section.

(e) This section shall become operative on January 1, 2016.

end delete

SEC. 3.  

Section 16142.1 of the Government Code, as amended
by Section 3 of Chapter 90 of the Statutes of 2011, is amended to
read:

16142.1.  

(a) In lieu of the payments made pursuant to Section
16142, in a county that has adopted farmland security zones
pursuant to Section 51296, the Secretary of the Natural Resources
Agency shall direct the Controller to pay annually out of the funds
appropriated by Section 16140, to each eligible county, city, or
city and county, the following amount for each acre of land within
its regulatory jurisdiction that is assessed pursuant to Section 423.4
or 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code:

Eight dollars ($8) for land that is within, or within three miles
of the boundaries of the sphere of influence of, each incorporated
city.

(b) The amount per acre in subdivision (a) shall only be paid
for 10 years from the date that the land was first assessed pursuant
to Section 426 of the Revenue and Taxation Code, if it was
previously assessed under Section 423.4 of that code. The
appropriation authorized by this subdivision shall not exceed one
hundred thousand dollars ($100,000) per year until 2005.

(c) Notwithstanding any other provision of law, for the 2008-09
fiscal year and each fiscal year thereafter, the Controller shall
reduce, by 10 percent, any payments made pursuant to this section.

(d) Effective January 1, 2011, if the payment pursuant to this
section for the previous fiscal year is less than one-half of the
participating county’s actual foregone general fund property tax
revenue, the county may make a determination to implement
subdivision (b) of Section 51244 and Section 51244.3. The
implementation of these sections shall be suspended for any
subsequent fiscal year in which the payment for the previous fiscal
year exceeds one-half of the foregone general fund property tax
revenue.

For purposes of this subdivision, a county’s actual foregone
property tax revenue shall be based on the county’s respective
share of the general property tax dollars as reflected in the most
recent annual report issued by the State Board of Equalization or
20 percent, whichever is higher.

begin delete

(e) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 4.  

Section 16142.1 of the Government Code, as added
by Section 4 of Chapter 90 of the Statutes of 2011, is repealed.

begin delete

16142.1.  

(a) In lieu of the payments made pursuant to Section
16142, in a county that has adopted farmland security zones
pursuant to Section 51296, the Secretary of the Natural Resources
Agency shall direct the Controller to pay annually out of the funds
appropriated by Section 16140, to each eligible county, city, or
city and county, the following amount for each acre of land within
its regulatory jurisdiction that is assessed pursuant to Section 423.4
or 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code:

Eight dollars ($8) for land that is within, or within three miles
of the boundaries of the sphere of influence of, each incorporated
city.

(b) The amount per acre in subdivision (a) shall only be paid
for 10 years from the date that the land was first assessed pursuant
to Section 426 of the Revenue and Taxation Code, if it was
previously assessed under Section 423.4 of that code. The
appropriation authorized by this subdivision shall not exceed one
hundred thousand dollars ($100,000) per year until 2005.

(c) Notwithstanding any other law, for the 2008-09 fiscal year
and each fiscal year thereafter, the Controller shall reduce, by 10
percent, any payments made pursuant to this section.

(d) This section shall become operative on January 1, 2016.

end delete

SEC. 5.  

Section 51244 of the Government Code, as amended
by Section 5 of Chapter 90 of the Statutes of 2011, is amended to
read:

51244.  

(a) Each contract shall be for an initial term of no less
than 10 years. Each contract shall provide that on the anniversary
date of the contract or such other annual date as specified by the
contract a year shall be added automatically to the initial term
unless notice of nonrenewal is given as provided in Section 51245.

(b) (1) If the county makes a determination pursuant to
subdivision (e) of Section 16142 or subdivision (d) of Section
16142.1, contracts shall be for a term of no less than nine years
for contracts currently 10 years in length or 18 years for contracts
currently 20 years in length, as the case may be. For new contracts
entered into during a year in which this subdivision is in effect,
the initial contract length shall be either 9 or 18 years. Each
contract shall provide, except in the initial year of the
determination, that on the anniversary date of the contract or such
other annual date as specified by the contract, a year shall be added
automatically to the initial term unless notice of nonrenewal is
given as provided in Section 51245.

In any subsequent year during the reduced term of contract in
which increased revenue is not realized by the county pursuant to
Section 51244.3, two or three additional years shall be added to
the contract on the next anniversary date, as necessary, to restore
the contract to its full 10-year or 20-year contract length.

(2) In any year in which this subdivision is implemented, the
county shall record a notice that states the affected parcel number
or numbers and current owner’s names, or, alternatively, the same
information for those parcels that are not affected.

(3) An addition to the assessed value shall be conveyed to the
auditor, consistent with the 10-percent reduction in the length of
the restriction, equal to 10 percent of the difference between the
valuation pursuant to Section 423, 423.3, or 423.5 of the Revenue
and Taxation Code, as applicable, and the valuation under
subdivision (b) of Section 51 or Section 110.1 of the Revenue and
Taxation Code, whichever is lower. If the valuation under
subdivision (b) of Section 51 or Section 110.1 of the Revenue and
Taxation Code is lower, the addition to the assessed value shall
be zero. The increased amount of tax revenue that results from the
decrease in restriction shall be separately displayed on the
taxpayer’s annual bill.

(4) A landowner may elect to serve notice of nonrenewal instead
of accepting a 9-year or 18-year contract, as the case may be. In
that case, the additional assessed value shall not be added to the
property as provided for in paragraph (3).

For purposes of this subdivision, a landowner may serve notice
of nonrenewal at any time. However, a landowner who withdraws
that notice prior to the effective date shall be subject to term
modification and additional assessed value. Once served and
effective, a landowner nonrenewal notice may not be withdrawn
except for cause and with the consent of the county. A county may
adopt amendments to its uniform rules to facilitate implementation
of this subdivision during the 2011-12 fiscal year, and thereafter
as necessary.

(5) In addition to any other notice requirements, a county shall
provide a landowner under contract with timely written notice of
all of the following:

(A) Any initial hearing by the county on a proposal to adopt or
rescind the implementation of this subdivision.

(B) Any final decision regarding the adoption or rescission of
implementation of this subdivision.

(C) The landowner’s right to prevent the reduction in the term
of his or her contract pursuant to this subdivision by serving notice
of nonrenewal as specified by Section 51245. This notice may be
combined with the county’s notice in subparagraph (B).

(6) A county shall not modify or revalue a landowner’s contract
pursuant to this subdivision unless the landowner is given at least
90 days’ notice of the opportunity to prevent the modification and
revaluation by serving notice of nonrenewal and the landowner
fails to serve notice of nonrenewal. The county may use the primary
owner of record from the assessment roll to identify landowners
entitled to receive notice under this subdivision. A landowner shall
be advised of the landowner’s right to avoid continued imposition
of this subdivision in any future year and thereafter by serving a
notice of nonrenewal for that contract year. Failure of the
landowner to serve timely notice of nonrenewal in any year shall
be considered implied consent to the implementation of this
subdivision for that year.

The 90-day notice requirement may be reduced to 60 days if the
county adopts a procedure to allow landowners to serve a notice
of nonrenewal until February 1, 2012.

(7) This subdivision shall not apply to any of the following:

(A) Contracts that have been nonrenewed.

(B) Contracts with cities.

(C) Open-space or agricultural easements.

(D) Scenic restrictions.

(E) Wildlife habitat contracts.

(F) Atypical term contracts, including, but not limited to, 20-year
initial term contracts declining to 10 years, or reencumbrances
pursuant to Section 51295, if the county’s board of supervisors
determines the application of this subdivision to them would be
inequitable or administratively infeasible.

begin delete

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 6.  

Section 51244 of the Government Code, as added by
Section 6 of Chapter 90 of the Statutes of 2011, is repealed.

begin delete

51244.  

(a) Each contract shall be for an initial term of no less
than 10 years. Each contract shall provide that on the anniversary
date of the contract or such other annual date as specified by the
contract a year shall be added automatically to the initial term
unless notice of nonrenewal is given as provided in Section 51245.

(b) This section shall become operative on January 1, 2016.

end delete

SEC. 7.  

Section 51244.3 of the Government Code is amended
to read:

51244.3.  

(a) This section shall apply to properties under a
9-year or 18-year contract, as the case may be, pursuant to
subdivision (b) of Section 51244. Notwithstanding any other
provision to the contrary, increased revenues generated by those
properties shall be allocated exclusively to the respective counties
in which those properties are located.

(b) This section shall only apply if the county makes a
determination pursuant to either Section 16142 or 16142.1.

begin delete

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 8.  

Section 51244.4 of the Government Code is repealed.

begin delete

51244.4.  

Notwithstanding subdivision (c) of Section 51244.3,
payments authorized until January 1, 2016, pursuant to Section
16142, 16142.1, 51244, or 51244.3 may be collected after January
1, 2016.

end delete