ARIZONA HOUSE OF REPRESENTATIVES

HB 2557: public lands; federal government; study

PRIME SPONSOR: Representative Finchem, LD 11

BILL STATUS: Federal Relations

Overview

Establishes the  Joint Study Committee on Forgone Tax Revenue From Public Lands Held by the Federal Government (Committee) and appropriates $1,000,000 to the Committee in FY 2020.  

History

The United States Department of the Interior (DOI) oversees the payment in lieu of taxes (PILT) Program that pays local governments due to the inability to collect property taxes on federally owned land that lies within the local government's boundaries. Payments are made annually for tax-exempt Federal lands administered by the Bureau of Land Management, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service (part of the U.S. Department of Agriculture), Federal water projects and some military installations.  Eligibility requires the local governments provide support for national parks, wildlife refuges and recreation areas.  According to DOI, payments may be used for any governmental purpose and are usually made directly to the eligible local government, unless the state has chosen to enact legislation to receive the payments.  Currently, Wisconsin is the only state that enacted such legislation.

In 2004, the responsibility for operating the PILT Program was transferred from the Bureau of Land Management to the Office of the secretary, DOI (43 CFR Part 44).  PILT Program Payments are calculated using a formula and is based on population, revenue sharing payments and the total Federal land in the county.  Since payments began in 1977, DOI has paid nearly $8.5 billion dollars in PILT payments to 49 states (all but Rhode Island), the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.  PILT Program payments to Arizona in FY 2018 equal $39,929,266.

Provisions

1. Establishes the eight-member Committee.  Appointed members include:

a. Three members appointed by the President of the Senate, one of whom is appointed co-chair;

b. Three members appointed by the Speaker of the House of Representatives, one of whom is appointed co-chair;

c. One person representing the cities and towns appointed by the Speaker of the House; and

d. One person representing a county association who is appointed by the President of the Senate. (Sec. 1)

2. Reimburses members of the Committee for their expenses while serving. (Sec. 1)

3. Stipulates the members meet at the call of the co-chairs to examine the fiscal impact to Arizona by the federal government's failure to make PILT payments equivalent to property tax revenues the state would generate except for federal control of our public lands.  (Sec. 1)

4. Requires the Committee to:

a. Provide a forum for people to express their concerns regarding the federal government's failure to make PILT payments and how it affects Arizona's ability to fund education and protect the health, safety and welfare of all citizens;

b. Subject to legislative appropriation, authorize a complete inventory and appraisal of the noted public lands;

c. Make recommendations regarding the public lands held by the federal government and future PILT payments;

d. Submit a report of the findings and recommendations to the Governor, President of the Senate and Speaker of the House of Representatives by January 1, 2022; and

e. Submit a copy of the final report to the Secretary of State. (Sec. 1)

5. Authorizes the Committee to hire a qualified appraiser and utilize the legislative staff.

6. Sunsets the Committee on October 1, 2022.  (Sec. 1)

7. Exempts the Committee from the state procurement code.  (Sec. 2)

8. Appropriates $1 million from the state General Fund in FY 2020 to the Committee for the purposes in the bill, including the inventory and appraisal of the public lands held by the federal government in Arizona.  (Sec. 3)

9. Exempts the appropriated monies from lapsing.  (Sec. 3)

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13. Fifty-fourth Legislature                       HB 2557

14. First Regular Session                            Version 1: Federal Relations

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