BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1188  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1188  
          (McGuire) - As Introduced February 18, 2016


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          |Policy       |Water, Parks and Wildlife      |Vote:|15 - 0       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires, rather than permits, the Department of Fish  
          and Wildlife (DFW) to pay annual in lieu payments and specified  
          assessments to counties in which state wildlife management areas  
          are located. 


          


          FISCAL EFFECT:










                                                                    SB 1188  


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          Ongoing annual cost pressures of $644,000 (General Fund) for  
          annual obligations to counties for payments in lieu of taxes  
          (PILT).  Payments are required to be made from funds  
          appropriated to DFW by the Legislature for this purpose.
          
          COMMENTS:





          1)Purpose.  According to the author, payments in lieu of taxes  
            help small and rural counties fund a variety of programs and  
            services that benefit county residents.  The in lieu program  
            was established with the intention of mitigating the effects  
            of the state's land acquisition on county revenue sources.   
            This bill is intended to ensure that counties in the future  
            are not left without recourse due to the now permissive nature  
            of the law.


          2)Background.  State-owned lands, including wildlife management  
            areas, are exempt from property taxes under the State  
            Constitution.   However, existing law requires DFW to  
            compensate counties for lost property taxes and certain  
            assessments resulting from the establishment of a wildlife  
            management area. No other state department makes PILT payments  
            to local jurisdictions for state-owned lands.
            These PILT payments 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,  
            drainage, or reclamation district. State PILT payments were  
            only partially paid from FY 1998-99 until FY 2002-03, when  
            they were suspended.










                                                                    SB 1188  


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            In the budget for FY 2015-16, DFW received $644,000 from the  
            General Fund to resume PILT payments in 2015-16.  The funding  
            was allocated to 36 counties containing wildlife management  
            areas with an average payment of just under $17,900.


            Last year's resources trailer bill, SB 83 (Committee on  
            Budgets) made in lieu payments permissive, and prohibited the  
            allocation of in lieu payments to a school district, a  
            community college district, or a county superintendent of  
            schools.  This bill requires payments, upon appropriation by  
            the Legislature, but retains the prohibition of in lieu  
            payments to schools.


            According to the LAO, the PILT arrears equal approximately $8  
            million.  This bill does not impact any arrears accrued prior  
            to enactment. 


          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081