BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular SB 234 (Wolk) - Wildlife management areas: payments ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 13, 2015 |Policy Vote: N.R. & W. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 13, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- 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, SB 234 (Wolk) Page 1 of ? 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. SB 234 (Wolk) Page 2 of ? -- END --