BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                                2015 - 2016  Regular 

          SB 234 (Wolk) - Wildlife management areas:  payments
          
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          |Version: February 13, 2015      |Policy Vote: N.R. & W. 9 - 0    |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: April 13, 2015    |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 1410 would make a one-time appropriation of $19  
          million from the General Fund to the Department of Fish and  
          Wildlife (DFW) to pay for outstanding obligations for "payments  
          in-lieu of taxes" to counties. 


          Fiscal  
          Impact:  One-time cost of $19 million (General Fund) for past  
          PILT obligations.


          Background:  State lands, including wildlife management areas, are exempt  
          from property tax under the state constitution. However,  
          existing law (FGC §1504) requires DFW to compensate counties for  
          loss property taxes and assessments as a result of the  
          establishment of a wildlife management area. These "payments  
          in-lieu of taxes" (PILT) are equal to the county taxes levied  
          upon the property at the time the state acquired the property  
          plus any assessments levied upon the property by any irrigation,  







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          drainage, or reclamation district. State PILT payments have been  
          completely suspended since FY 2002-03 and were only partially  
          paid since FY 1998-99.


          Proposed Law:  
            This bill would make a one-time appropriation of $19 million  
          to fulfill the state's outstanding obligations of PILT to  
          counties. This bill is an urgency measure.


          Related  
          Legislation:  SB 1410 (Wolk, 2014) would have appropriated $19  
          million to pay the PILT arrears and continuously appropriated $2  
          million annually for future PILT payments (held in the Senate  
          Appropriations Committee).
          AB 1452 (Wolk, 2007) would have appropriated $7,415,000 to pay  
          PILT arrears (bill was subsequently amended to a different  
          subject area)




          Staff  
          Comments: The PILT arrears to the counties also has been a  
          discussion topic through the budget. According to the LAO, the  
          actual PILT arrears is approximately $8 million. The arrears  
          amount was reduced because there has been overlap in PILT  
          payments and Proposition 98 payments made to counties for school  
          funding that is not covered by property tax revenues.  
          Essentially, in the past, when the state was receiving a PILT  
          and Proposition 98 payments, the lost tax revenue from wildlife  
          management areas for education was being paid twice. If the  
          Proposition 98 payments are accounted for, the amount due to  
          counties is approximately $8 million. 
          At its April 9, 2015 hearing, the Senate Budget subcommittee #2  
          passed a motion that added an $8 million appropriation to the  
          2015-16 budget to pay PILT arrears. Should this budget action  
          stand in the final budget, this bill would provide an  
          unnecessary payment. 












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