CA AB1265

Authorizes counties to reduce Williamson Act contract terms from 10 years to 9 years (or 20 years to 18 years) for newly renewed and new contracts when state reimbursement payments fall below half the county's actual foregone general fund property tax revenue, effective January 1, 2011 through January 1, 2016.

Allows landowners to elect nonrenewal instead of accepting reduced contract terms, avoiding additional assessed value that would otherwise be added to their property.

Directs counties to add 10 percent of the difference between agricultural assessment and market value to assessed value for properties under reduced-term contracts, with the resulting tax increase separately displayed on taxpayer bills.

Allocates all increased tax revenues generated by properties under reduced-term contracts exclusively to the respective counties where those properties are located.

Requires counties to provide landowners with at least 90 days' notice (reducible to 60 days under certain conditions) before modifying or revaluing contracts, and to notify landowners of their right to prevent modification by serving nonrenewal notice.