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AB-2662 Sale of agricultural land: tribal first right of refusal.(2023-2024)

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Date Published: 03/21/2024 09:00 PM
AB2662:v98#DOCUMENT

Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2662

Introduced by Assembly Member Mathis

February 14, 2024

An act to amend Section 12012.85 of the Government Code, add Article 1.9 (commencing with Section 1103.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, relating to gaming. Native American tribes.


LEGISLATIVE COUNSEL'S DIGEST


AB 2662, as amended, Mathis. Tribal gaming. Sale of agricultural land: tribal first right of refusal.
Existing law prescribes various requirements upon the transfer of real property, including requiring certain disclosures to be made upon the transfer of residential property and the manner and form of those disclosures.
This bill would require a property owner selling agricultural land within an area of cultural and traditionally significant land to send, before selling or participating in negotiations to sell that agricultural land to a prospective buyer, a notice of first right of refusal for the agricultural land to a California Native American tribe affiliated with the cultural and traditionally significant land within the area of the agricultural land. The bill would require a California Native American tribe desiring to purchase the agricultural land to notify, in writing, the property owner of its interest in purchasing the agricultural land within 30 days after the notice of first right of refusal is provided. The bill would, after the property owner receives a notice of interest from a California Native American tribe, require the property owner and tribe to enter into good faith negotiations to determine mutually satisfactory terms of the sale except for the price, as specified. The bill would require the price to be the appraised fair market value of the agricultural land, unless otherwise mutually agreed upon by all parties to the sale. The bill would authorize the property owner to transfer the agricultural land without regard for these provisions, if the property owner does not receive a notice of interest from a California Native American tribe 30 days after the notice of first right of refusal is provided, or if the terms, besides price, cannot be agreed upon after a good faith negotiation period of not less than 90 days.
This bill would provide that if a California Native American tribe purchases agricultural land in accordance with this bill, the tribe shall continue to use the agricultural land for agricultural purposes.

Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature.

Existing law ratifies a number of tribal-state gaming compacts between the State of California and specified Indian tribes. Existing law creates in the State Treasury the Indian Gaming Special Distribution Fund for the receipt and deposit of moneys received by the state from Indian tribes pursuant to the terms of gaming compacts entered into with the state. Existing law authorizes moneys in that fund to be used for certain purposes, including compensation for regulatory costs incurred in connection with implementing and administering tribal-state gaming compacts.

This bill would make technical, nonsubstantive changes to these provisions governing the fund.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Article 1.9 (commencing with Section 1103.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read:
Article  1.9. Tribal First Right of Refusal

1103.50.
 For purposes of this article, the following definitions apply:
(a) “Agricultural land” means land currently used for the purpose of producing an agricultural commodity for commercial purposes, land left fallow under a crop rotational program, or land enrolled in an agricultural subsidy or set-aside program.
(b) “California Native American tribe” means a Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004.
(c) “Cultural and traditionally significant land” means land traditionally and culturally affiliated with a California Native American tribe, as determined by the Native American Heritage Commission.
(d) “First right of refusal” means the first right to purchase agricultural land, before the property owner seeks a third party for the transfer of the agricultural land.
(e) “Participating in negotiations” does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials

1103.51.
 (a) Notwithstanding any other law, a property owner selling agricultural land within an area of cultural and traditionally significant land shall send, before selling or participating in negotiations to sell that agricultural land to a prospective buyer, a notice of first right of refusal for the agricultural land to a California Native American tribe affiliated with the cultural and traditionally significant land within the area of the agricultural land.
(b) A California Native American tribe desiring to purchase the agricultural land shall notify, in writing, the property owner of its interest in purchasing the agricultural land within 30 days after the notice of first right of refusal is provided.
(c) If the property owner does not receive a notice of interest from the California Native American tribe 30 days after the notice of first right of refusal is provided, the agricultural land may be transferred without further regard to this article.
(d) (1) After the property owner has received a written notice of interest from a California Native American tribe desiring to purchase the agricultural land, the property owner and Native American tribe shall enter into good faith negotiations to determine mutually satisfactory terms of the sale, except for the price. If the terms, besides price, cannot be agreed upon after a good faith negotiation period of not less than 90 days, the property may be transferred without further regard to this article.
(2) The price shall be the appraised fair market value of the agricultural land, unless otherwise mutually agreed upon by all parties to the sale.

1103.52.
 If a California Native American tribe purchases agricultural land in accordance with this article, the tribe shall continue to use the agricultural land for agricultural purposes.

SECTION 1.Section 12012.85 of the Government Code is amended to read:
12012.85.

(a)There is hereby created in the State Treasury a fund called the “Indian Gaming Special Distribution Fund” for the receipt and deposit of moneys received by the state from Indian tribes pursuant to the terms of tribal-state gaming compacts. These moneys shall be available for appropriation by the Legislature for the following purposes:

(1)Grants, including any administrative costs, for programs designed to address gambling addiction.

(2)Grants, including any administrative costs, for the support of state and local government agencies impacted by tribal government gaming.

(3)Compensation for regulatory costs incurred by the state gaming agency and the Department of Justice in connection with implementing and administering tribal-state gaming compacts.

(4)Payment of shortfalls that may occur in the Indian Gaming Revenue Sharing Trust Fund. This shall be the priority use of moneys in the Indian Gaming Special Distribution Fund.

(5)Disbursements for the purpose of implementing the terms of tribal labor relations ordinances promulgated in accordance with the terms of tribal-state gaming compacts ratified pursuant to Chapter 874 of the Statutes of 1999. No more than 10 percent of the funds appropriated in the Budget Act of 2000 for implementation of tribal labor relations ordinances promulgated in accordance with those compacts shall be expended in the selection of the Tribal Labor Panel. The Department of Human Resources shall consult with and seek input from the parties prior to any expenditure for purposes of selecting the Tribal Labor Panel. Other than the cost of selecting the Tribal Labor Panel, there shall be no further disbursements until the Tribal Labor Panel, which is selected by mutual agreement of the parties, is in place.

(6)Any other purpose specified by law.

(b)Priority for funding from the Indian Gaming Special Distribution Fund is in the following descending order:

(1)An appropriation to the Indian Gaming Revenue Sharing Trust Fund in an aggregate amount sufficient to make payments of any shortfalls that may occur in the Indian Gaming Revenue Sharing Trust Fund.

(2)An appropriation to the Office of Problem Gambling within the State Department of Public Health for problem gambling prevention programs.

(3)The amount appropriated in the annual Budget Act for allocation between the Department of Justice and the California Gambling Control Commission for regulatory functions that directly relate to Indian gaming.

(4)An appropriation for the support of local government agencies impacted by Indian gaming.