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 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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