BILL ANALYSIS �
SB 1353
Page 1
Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
SB 1353 (Nielsen) - As Amended: May 15, 2014
SENATE VOTE : 35-0
SUBJECT : Local government: Williamson Act.
SUMMARY : This bill repeals the January 1, 2016, sunset date in
statutes that allow counties to increase the assessed values of
Williamson Act (Act) land, and divert the resulting property tax
revenues to counties.
EXISTING LAW :
1)Creates the Act, also known as the California Land
Conservation Act of 1965, which authorizes cities and counties
to enter into agricultural land preservation contracts with
landowners who agree to restrict the use of their land for a
minimum of 10 years in exchange for lower-assessed valuations
for property tax purposes.
1)Creates Farmland Security Zones (FSZ) which authorizes cities
and counties to allow agricultural land preservation contracts
with landowners who agree to restrict the use of their land
for a minimum of 20 years in exchange for lower-assessed
valuations for property tax purposes. The lowered assessed
value, under FSZ, is greater than under the Act.
2)Authorizes a county, until January 1, 2016, in any fiscal year
in which payments authorized for reimbursement to a county for
lost revenue from Act contracts, is less than one-half of the
county's actual foregone general fund property tax revenue, to
revise the terms for new contracts.
FISCAL EFFECT : Unknown.
COMMENTS : The Act conserves agricultural and open space land by
allowing private property owners to sign voluntary contracts
with counties and cities, restricting their land to agriculture,
open space, and compatible uses. In return, county assessors
must lower the assessed value of the contracted lands to reflect
their use as agricultural or open space instead of the market
SB 1353
Page 2
value. Making sure that private property owners use their Act
land appropriately is essential to maintaining the statute's
constitutional integrity.
Approximately 16.6 million acres are under Act contracts. When
the proposed 2003-04 budget wanted to save approximately $39
million by ending the state subventions, the Legislative
Analyst's Office recommended a 10-year phase-out. The
Legislature's 2009-10 Budget reduced the subventions to $27.8
million. However, Governor Schwarzenegger essentially
eliminated the subventions in the 2009-10 budget by cutting the
appropriation to $1,000. There were several attempts to restore
this funding in the Legislature in 2010.
Prior to 2011, Act contracts were restricted to lengths of 10 or
20 years. AB 1265 (Nielsen), Chapter 90, Statutes of 2011,
allows for certain Act contracts to last either nine or 18
years. As a result of the 10% reduction in the term of the
contracts, participating landowners are required to return 10%
of their property tax benefits to the county as a direct charge
on their property tax bill.
This portion of AB 1265 sunsets January 1, 2016. This bill
deletes this sunset clause and amends the law permanently to
allow for these modified contract lengths. The shorter term
contracts automatically repeal if the county receives at least
half of its foregone revenue in subventions from the state.
According to supporters, removing the sunset will eliminate
uncertainty and encourage more counties to remain in Act
program.
REGISTERED SUPPORT / OPPOSITION :
Support
California Farm Bureau Federation (Sponsor)
American Planning Association, California Chapter
California Assessors' Association
California State Association of Counties
Family Winemakers of California
Rural County Representatives of California
Yolo County Board of Supervisors
Opposition
SB 1353
Page 3
None on file
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084