BILL ANALYSIS Ó
SB 1188
Page 1
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