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SB-1323 Public resources: land conservation acquisition: appraisal.(2007-2008)

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SB1323:v98#DOCUMENT

Amended  IN  Senate  April 15, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Senate Bill
No. 1323

Introduced  by  Senator Cogdill

February 20, 2008

An act to amend Sections 5096.501 and 5096.513, and to repeal and add Sections 5096.511 and 5096.512 of the Public Resources Code, relating to public resources, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1323, as amended, Cogdill. Public resources: land conservation acquisition: appraisal.
Existing law requires an acquisition agency, prior to approving the acquisition of conservation land, where an agency proposes to spend more than $25,000,000 of state funds, to contract for at least one independent appraisal of the fair market value of the land. The independent appraisal is required to be conducted by a qualified member of the Appraisal Institute and reviewed by a qualified independent appraiser retained by the acquisition agency for this purpose. Existing law also requires the appraisal to be reviewed by a qualified independent appraiser meeting specified qualifications and the review is required to be made available to the public for public review.
This bill would repeal those provisions and would instead require the Department of General Services to conduct, or to contract with an independent appraiser to conduct, an independent appraisal of any land proposed to be acquired by the state for resource conservation purposes prior to the acquisition that meets specified standards. The Department of General Services would be required to review an appraisal that is prepared by an independent appraiser. The require the Department of General Services would be required, on or before By January 1, 2010, to contract with a qualified organization, to develop and implement appraisal standards for conservation lands containing specified factors that would regulate the appraisal on and after January 1, 2010. The bill would provide an unspecified amount appropriated to the Department of General Services in the annual Budget Act for the 2008–09 fiscal year to be used by the department to develop the appraisal standards, thereby making an appropriation.
This bill would include, as conservation land, land that is acquired through a state-funded grant from an acquisition agency.
Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 5096.501 of the Public Resources Code is amended to read:

5096.501.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Acquisition agency” means the Wildlife Conservation Board or the State Coastal Conservancy.
(b) “Conservation land” means land or an interest in land to be acquired by an acquisition agency, or that is owned by the state and under the jurisdiction of the Wildlife Conservation Board, the State Coastal Conservancy, the Department of Fish and Game, or the Department of Parks and Recreation. “Conservation land” includes, but is not limited to, land or an interest in land that is acquired through a state-funded grant from an acquisition agency.
(c) “Major acquisition” means an acquisition where an agency proposes to spend more than twenty-five million dollars ($25,000,000) of state funds.

SEC. 2.Section 5096.511 of the Public Resources Code is repealed.
SEC. 3.Section 5096.511 is added to the Public Resources Code, to read:
5096.511.

Prior to the acquisition of land, the Department of General Services shall conduct, or contract with an independent appraiser to conduct, an independent appraisal of land proposed to be acquired by the state for resource conservation purposes pursuant to this chapter.

(a)On or before December 31, 2009, the appraisal shall be conducted by a qualified member of the Appraisal Institute who is licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code. The appraisal shall be prepared pursuant to the Uniform Standards of Professional Appraisal Practice.

(b)On and after January 1, 2010, the appraisal shall be conducted in compliance with the standards developed pursuant to Section 5096.512.

(c)The Department of General Services shall conduct a review of an appraisal prepared by an independent appraiser.

SEC. 4.Section 5096.512 of the Public Resources Code is repealed.
SEC. 5.Section 5096.512 is added to the Public Resources Code, to read:
5096.512.

(a)On or before January 1, 2010, the Department of General Services shall, pursuant to a contract with a qualified organization, develop and implement a set of appraisal standards for conservation lands that includes standards for all of the following:

(1)Commissioning an appraisal.

(2)Qualification of the appraiser.

(3)The scope of the analysis and the level of information provided in the appraisal report.

(4)The timing of the appraisal in the transaction process.

(5)The use of government and conservation transactions as comparable sales.

(6)The information that is required to be provided to the appraiser.

(7)The valuation of the conservation easements.

(8)The independence of the appraiser.

(b)An amount of _________ that is appropriated to the Department of General Services in the annual Budget Act for the 2008–09 fiscal year shall be used by the department to develop the standards pursuant to subdivision (a).

SEC. 6.Section 5096.513 of the Public Resources Code is amended to read:
5096.513.

Not less than 30 calendar days prior to holding a public hearing for the purpose of authorizing a major acquisition of conservation lands, an acquisition agency shall make available for public review information, except information that is exempt from being disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) all of, that includes, but is not limited to, the following:

(a)A summary of the basis for the recommendation of approval for the major acquisition of the land made by the acquisition agency.

(b)Any relevant environmental studies, documents, or other information.

SEC. 2.

 Section 5096.512 of the Public Resources Code is amended to read:

5096.512.
 (a) In addition to the review by the Department of General Services pursuant to Section 1348.2 of the Fish and Game Code, the appraisal prepared pursuant to Section 5096.511 shall be reviewed by a qualified independent appraiser retained by the acquisition agency for this purpose, and who meets the following conditions:
(1) The review appraiser did not conduct the appraisal pursuant to Section 5096.511 and has no financial interest in the major acquisition.
(2) The review appraiser is licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code.
(b) The review appraiser shall review the appraisal and prepare an appraisal review report that does all of the following:
(1) Summarizes the appraisal.
(2) States the basis on which the value of the land was established.
(3) Describes the standards used to prepare the appraisal.
(4) Determines whether or not the appraisal meets the standards established under the Uniform Standards of Professional Appraisal Practice.
(c) The appraisal review report need not include any proprietary information provided by or on behalf of the seller or that is otherwise exempt from public disclosure pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(d) (1) If a major acquisition of conservation lands will be approved by more than one acquisition agency and each acquisition agency complies with paragraph (2), not more than one independent appraisal is required pursuant to Section 5096.511, and not more than one appraisal review report is required pursuant to this section.
(2) Paragraph (1) is applicable if each acquisition agency does all of the following:
(A) Utilizes the independent appraisal and appraisal review report, as required by this chapter.
(B) Makes an independent determination of whether to approve the major acquisition of conservation lands.
(C) Complies with all of the public disclosure and independent review requirements of this chapter.
(e) By January 1, 2010, the Department of General Services shall, pursuant to a contract with a qualified organization, develop and a set of appraisal standards for conservation lands that includes standards for all of the following:
(1) Commissioning an appraisal.
(2) Qualification of the appraiser.
(3) The scope of the analysis and the level of information provided in the appraisal report.
(4) The timing of the appraisal in the transaction process.
(5) The use of government and conservation transactions as comparable sales.
(6) The information that is required to be provided to the appraiser.
(7) The valuation of the conservation easements.
(8) The independence of the appraiser.