BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 94|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 94
Author: Evans (D), et al
Amended: 9/1/09 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE : 7-3, 6/23/09
AYES: Pavley, Kehoe, Leno, Padilla, Simitian, Wiggins,
Wolk
NOES: Cogdill, Benoit, Huff
NO VOTE RECORDED: Hollingsworth
SENATE REVENUE & TAXATION COMMITTEE : 5-3, 7/08/09
AYES: Wolk, Alquist, Florez, Padilla, Wiggins
NOES: Walters, Ashburn, Runner
SENATE APPROPRIATIONS COMMITTEE : 8-5, 8/27/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
ASSEMBLY FLOOR : 70-7, 6/1/09 - See last page for vote
SUBJECT : Natural Heritage Preservation Tax Credit Act of
2000
SOURCE : Author
DIGEST : This bill reauthorizes the awarding of tax
credits under the Natural Heritage Preservation Tax Credit
Program through fiscal year 2014-15. This bill: (1)
CONTINUED
AB 94
Page
2
reinstates the Natural Heritage Preservation Tax Credit Act
by extending the sunset date from June 30, 2008 to June 30,
2015; (2) removes the $100 -million cap on the amount of
tax credits that can be approved by the WCB; (3) allows
certain fund sources other than bond fund to reimburse the
General Fund for the revenue loss resulting from the award
of tax credits; (4) clarifies the process by which local
governments can participate in the tax credit program; (5)
exempts state agencies under this Act from the relocation
assistance requirement.
ANALYSIS :
Existing law:
1.Establishes the Wildlife Conservation Board (WCB). The
WCB is charged with authorizing and allocating funds for
the purchase of property suitable for recreation and the
preservation, protection and restoration of wildlife
habitat.
2.Requires the WCB to implement the Natural Heritage
Preservation Tax Credit Program (Program). Under the
Program, upon the WCB's approval, a "donor" may
contribute qualified property to a "donee" and receive a
nonrefundable tax credit equal to 55 percent of the fair
market value of any qualified contribution of property
made on or before June 30, 2008.
3.Limits the total amount of tax credits that can be
awarded under the Act to $100 million and prohibits tax
credits from being awarded after fiscal year (FY)
2007-08 without further statutory authorization.
This bill:
1. Reinstates the Natural Heritage Preservation Tax Credit
(NHPTC) program through June 30, 2019. Specifically,
this bill:
A. Authorizes the WCB to award NHPTC tax credits from
January 1, 2010 through the 2018-19 fiscal year.
B. Eliminates the $100 million limit on the total
CONTINUED
AB 94
Page
3
amount of tax credits authorized.
C. Authorizes local governments to submit completed
applications for tax credits directly to the WCB for
approval.
D. Requires reimbursement of tax revenue losses to
the General Fund from any of the following sources:
state bond funds, other authorized state funds, court
settlements, public or private donations, local
government funds, or available federal funds.
(1) Local government applicants would be
required to transfer funds in the full amount of
the approved tax credit to WCB prior to final
approval of the credit.
(2) State departments within the Resources
Agency would be required to reimburse the
General Fund on an accrued basis, as specified.
E. Relieve a donee from paying relocation assistance
if the land is donated voluntarily and the source of
funds cannot be used to acquire property by eminent
domain.
Background
The Natural Heritage Preservation Tax Credit Act of 2000
(Section 37000 of the Public Resources Code et seq.) aimed
to foster public/private partnerships to resolve land use
and water disputes, assisting habitat stewardship, and
demonstrating the state's commitment to protect natural
resources by rewarding landowners who perceive habitat as
an asset rather than a liability. To this end, the Natural
Heritage Preservation Tax Credit Program (tax credit
program) provided a state tax credit for donations of water
rights or qualified land (fee title or easement) equal to
55 percent of the appraised market value. The donation had
to protect wildlife habitat, parks and open space,
archaeological resources, agricultural land, or water. The
donation could have been to any department within the
Resources Agency, a local government, or a qualified
non-profit. The donation had to receive approval from the
CONTINUED
AB 94
Page
4
Wildlife Conservation Board in order to be eligible for the
tax credit. There was a $100 million cap on total tax
credits granted under this program.
The tax credit program was first implemented in 2001 but
was suspended in 2002 because of pressures on the General
Fund. In 2005, an amended version of the program was
reinstated. Under the amended program, a donation was only
be eligible for a tax credit if all the lost revenue
resulting from the tax credit could have been reimbursed to
the General Fund from another source, such as state bond
funds including Proposition 40 and Proposition 50.
The tax credit program was sunset on June 30, 2008.
Section 7260 of the Government Code requires that
relocation benefits be given to individuals that are
displaced by the sale of private land to a public entity
for public use.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Tax credit revenue approximately
$7,000 annual GF Bond*
impact loss
offset by transfers of local, bond
Local/
federal, special and other funds
Special
Bond fund impact potential
extension of life of bond Bond*
programs. Also substantial
reallocation of bond funds
CONTINUED
AB 94
Page
5
WCB program admin absorbable costs to
administer Bond/
program Special**
* Specified Proposition 84 bond funds (see staff comments);
various state special funds such as the Environmental
License Plate Fund, Habitat Conservation Fund, or the
Wildlife Restoration Fund; federal funds; local funds;
settlements; and donations.
** Wildlife Restoration Fund
SUPPORT : (Verified 9/1/09)
Agricultural-Natural Resources Trust of Contra Costa County
Alameda County Resource Conservation District
American Farmland Trust
American Land Conservancy
Audubon California
Butte County Resource Conservation District
California Association of Recreation and Park Districts
California Cattle Women's Association
California Cattlemen's Association
California Council for Environmental and Economic Balance
California Council of Land Trusts
California League of Conservation voters
California Outdoor Heritage Alliance
California Rangeland Trust
California Sate Parks Foundation
California Special Districts Association
Central Valley Land Trust Council
Central Valley Program Director Trust for Public Land
Chevron
Colusa County resource Conservation District
Defenders of Wildlife
Land Trust for Santa Barbara County
Middle Mountain Foundation
Natural Resource Defense Council
Nevada County Resource Conservation District
Planning and Conservation League
Rocky Mountain Elk Foundation
Rocky Mountain Elk Foundation
Sacramento Valley Conservancy
San Benito Cattlemen's Association
Sempervirens Fund
CONTINUED
AB 94
Page
6
Sierra Club California
Sierra Foothills Audubon Society
Southern California Edison
Sustainable Conservation
The Nature Conservancy
The Trust for Public Land
The Xerces Society for Invertebrate Conservation
ARGUMENTS IN SUPPORT : According to the author's office,
"[T]his voluntary program allows California to acquire $18
million of land for every $10 million of bond funding,
while providing fair value to the landowner, and keeping
the GF whole. During its previous authorization period,
the Natural Heritage Preservation Tax Credit saved
California approximately $40 million in the acquisition of
more than 8,000 acres of land in Calaveras, Lake, Los
Angeles, Madera, Marin, Monterey, Sacramento, San Luis
Obispo, Santa Barbara, Tehama, and Ventura Counties. This
bill allows the state to once again work with interested
landowners to provide a legacy for future generations of
Californians."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Beall, Bill Berryhill,
Blakeslee, Blumenfield, Brownley, Buchanan, Caballero,
Charles Calderon, Carter, Chesbro, Cook, Coto, Davis, De
La Torre, De Leon, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Galgiani, Gilmore, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Nielsen, John A. Perez, V. Manuel Perez, Portantino,
Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada, Bass
NOES: Anderson, Tom Berryhill, Conway, DeVore, Gaines,
Hagman, Niello
NO VOTE RECORDED: Block, Duvall, Garrick
CTW:DLW:do 9/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
CONTINUED
AB 94
Page
7
**** END ****
CONTINUED