BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          SB 1188 (McGuire) - Wildlife management areas:  payment of taxes  
          and assessments
          
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          |Version: February 18, 2016      |Policy Vote: N.R. & W. 9 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 25, 2016    |Consultant: Narisha Bonakdar    |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 1188 requires, instead of authorizes, the  
          Department of Fish and Wildlife (department) to pay annual in  
          lieu payments and specified assessments to counties in which  
          wildlife management areas are located. 


          Fiscal  
          Impact:   
              Ongoing annual cost pressures of $644,000 (General Fund)  
              for annual obligations to counties for "payments in lieu of  
              taxes" (PILT).

          Background:   State lands, including wildlife management areas,  
          are exempt from property taxes under the State Constitution.  
          However, existing law (Fish and Game Code §1504) requires the  
          department to compensate counties for lost property taxes and  
          certain assessments resulting from the establishment of a  
          wildlife management area. These PILT payments are equal to the  
          county taxes levied upon the property at the time the state  







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          acquired the property, plus any assessments levied upon the  
          property by any irrigation, drainage, or reclamation district.  
          State PILT payments were only partially paid from FY 1998-99  
          until FY 2002-03, when they were completely suspended.
          The PILT arrears and ongoing payments to counties have been a  
          topic in budget discussions in recent years.  According to the  
          LAO, the PILT arrears equal 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.  This appropriation was later  
          removed, and replaced with a $644,000 appropriation to pay  
          current year PILT payments.  Budget trailer bill language also  
          made the payments permissive.  The FY 2016-17 budget currently  
          includes $644,000 for the state's PILT Program.  




          Proposed Law:  
             SB 1188 requires, instead of authorizes, the department to  
          pay annual in lieu payments to counties in which wildlife  
          management areas are located.  It also requires, instead of  
          authorizes, the department to pay assessments levied upon the  
          property by any irrigation, drainage, or reclamation district.   
          Under current statute, payments may only be made if funds are  
          appropriated for this purpose.
          Related Legislation:   


          SB 83 (Committee on Budgets) made in lieu payment permissive,  
          and prohibited the allocation of in lieu payments to a school  
          district, a community college district, or a county  
          superintendent of schools. 


          SB 234 (Wolk, 2015) would have made a one-time appropriation of  
          $19 million from the General Fund to the department to pay for  
          outstanding PILT obligations to counties (held in the Senate  
          Appropriations Committee).


           SB 1410 (Wolk, 2014) would have appropriated $19 million to pay  
          the PILT arrears and would have continuously appropriated $2  
          million annually for future PILT payments (held in the Senate  








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          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:   Staff notes that the cost pressures associated with  
          this bill could equate to an annual appropriation of $644,000.   
          Staff also notes the $8 million in PILT arrears.  If enacted,  
          this bill would become effective in 2017, and any resulting  
          obligations for PILT arrears would begin at that time.  This  
          bill does not impact any arrears that may have accrued prior to  
          enactment of the bill. 


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