BILL ANALYSIS
AB 444
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 444 (Caballero) - As Amended: April 15, 2009
Policy Committee: Water, Parks, and
Wildlife Vote: 13-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill clarifies that state and local agencies can allow
nonprofit organizations and special districts to hold and manage
funds dedicated for the long-term management of lands or
easements that are also held by the same nonprofit organization
or special district.
FISCAL EFFECT
1)Potentially significant shift in the formal management and
disposition of funds from the State Treasury to individual
nonprofit organizations, to the extent that state agencies
convey such funds in response to this bill.
2)One-time costs (GF or bond fund) to the Department of Fish and
Game (DFG) of about $570,000 during 2009-10 through 2010-11.
3)Ongoing annual costs (GF or bond funds) to DFG of about
$450,000, beginning in 2011-12, to process requests, review
proposals, establish and manage contracts, and establish a
state-wide tracking system.
COMMENTS
1)Rationale. Existing law clearly allows a state or local
agency to transfer land or conservation easements to a
nonprofit agency for management of the land or easement.
Existing law however, does not explicitly state that a state
or local agency also may transfer to the nonprofit funds,
known as endowment funds that are dedicated for the management
of the property or easement. According to the author, because
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of this statutory silence, some state and local agencies are
reluctant to transfer endowment funds to a nonprofit, even
though doing so would simplify and streamline management of
the land or easement. The author and the California Council
of Land Trusts-the sponsor of this bill-contend that this bill
would clarify state and local government authority, thereby
resulting in greater transfer of endowments to nonprofits.
2)Background. State and local governments have the authority to
issue permits to allow the development of land within their
respective jurisdictions. In some cases, the state or local
agency issuing the land development permit requires the
applicant to transfer to the agency an interest in real
property to mitigate any adverse impact upon natural resources
caused by permitting the development. In many cases, the
state or local agency does not want to hold or manage the
mitigation property. State law expressly allows such a state
or local agency to authorize certain categories of nonprofit
organizations to hold title to and manage those mitigation
properties.
State law, however, does not explicitly state that a state or
local agency may transfer to a nonprofit agency endowment
funds for the management of mitigation property, even if the
state or local agency has transferred to the nonprofit the
mitigation lands to which the endowment funds are dedicated.
Despite this lack of explicit statutory authorization,
Legislative Counsel concluded in 2006 that existing statute
allows a state agency to authorize nonprofit organizations to
hold and manage funds set aside for the purpose of long-term
management of mitigation lands. Indeed, the bill's sponsor
reports that it is common practice among some public agencies
to transfer endowment funds to nonprofit agencies for the
management of mitigation properties.
3)Fish and Game Mitigation Accounts. Existing law requires
funds received by the Department of Fish and Game (DFG) for
management of mitigation lands to be deposited in the Fish and
Game Mitigation and Protection Endowment Account or the Fish
and Game Mitigation Expendable Funds Account, which are held
in the State Special Deposit Fund. Interest generated on
endowment funds deposited in the former account is to be made
available to DFG, upon appropriation by the Legislature, to
fund long-term management of habitat lands. Funds other than
endowment funds received by DFG and deposited in the latter
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account are continuously appropriated to DFG for expenditure
for management of lands set aside for mitigation.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081