SB 435: Williamson Act: payments to local governments.

The Williamson Act, also known as the California Land Conservation Act of 1965, 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 and continuously appropriates General Fund moneys for that purpose. Existing law requires the Secretary of the Natural Resources Agency to direct the Controller to make annual payments out of these moneys to an eligible city, county, or city and county for each acre of land that is within its regulatory jurisdiction and assessed under specified provisions of the Revenue and Taxation Code. The amount of payment is $5 per acre of prime agricultural land and $1 per acre of all other land devoted to open-space uses of statewide significance, as defined, or, in counties which have adopted farmland security zones, as provided, $8 per acre of land that is within, or within 3 miles of the sphere of influence of, each incorporated city.

This bill would reduce the amount per acre paid to a city, county, or city and county under these provisions to $2.50 for prime agricultural land, $0.50 for all other land devoted to open-space uses of statewide significance, and, for counties that have adopted farmland security zones, $4 for land that is within, or within 3 miles of the sphere of influence of, each incorporated city. This bill, commencing July 1, 2017, would require the Secretary of the Natural Resources Agency to direct the Controller to pay an additional subvention of funds to a county, city, or city and county that meets specified criteria upon determination by the Strategic Growth Council that the county, city, or city and county has adopted measures to protect and conserve resource lands and farmland that further the implementation of the applicable regional sustainable communities strategy, as provided. The bill would provide that the amount of the additional subventions would be $2.50 for prime agricultural land, $0.50 for all other land devoted to open-space uses of statewide significance, and $4 for land enrolled in a farmland security zone that is within, or within 3 miles of the sphere of influence of, each incorporated city.

Existing law, for the 200809 fiscal year and each fiscal year thereafter, requires the Controller to reduce the amount paid to a city, county, or city and county by 10%.

This bill would delete that requirement. The bill would also require a county, city, or city and county, in order to be eligible to receive subvention payments from the Controller, to adopt procedures to accept new contract applications and to consider proposed rescission of contracts for parcels eligible for a solar-use easement pursuant to specified law.

Existing law prohibits an increase or reduction in the amount paid to a city or county which was paid in the prior fiscal year, beginning with the 197778 fiscal year, as provided, in excess of an amount which is equal to the property tax derived from a levy at the rate of $0.03 per hundred dollars of assessed value for the fiscal year, except as affected by an increase or a reduction in the acreage assessed under specified provisions of the Revenue and Taxation Code.

This bill would repeal this prohibition.

By increasing the amount of continuously appropriated general fund moneys authorized to be used for subvention payments, this bill would make an appropriation.