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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
public lands; federal government; study
Purpose
Establishes the Joint Study Committee on Forgone Tax Revenue from Public Lands Held by the Federal Government (Study Committee) and appropriates $1,000,000 in FY 2020 from the state General Fund (GF) to the Study Committee. Outlines the membership requirements and duties of the Study Committee.
Background
Payments in lieu of taxes (PILT) are payments made annually by the federal government to local governments to help offset losses in property taxes due to nontaxable federal lands within the boundaries of the county (31 U.S.C. Chapter 69). PILT payments are calculated based on population, revenue sharing payments and the amount of nontaxable federal land within the county (U.S. Department of the Interior).
H.B. 2557 appropriates $1,000,000 in FY 2020 from the state GF to the Study Committee.
Provisions
1. Establishes the Study Committee consisting of eight members.
2. Requires the Study Committee to consist of:
a) three members of the Senate appointed by the President of the Senate (President) with no more than two members from the same political party and one member appointed as cochairperson;
b) three members of the House of Representatives appointed by the Speaker of the House of Representatives (Speaker) with no more than two members from the same political party and one member appointed as cochairperson;
c) a representative of an association of cities and towns appointed by the Speaker; and
d) a representative of an association of counties appointed by the President.
3. Appropriates $1,000,000 in FY 2020 from the state GF to the Study Committee.
4. Requires the Study Committee to meet on the call of the cochairpersons to review the fiscal impact to Arizona by the federal government's failure to make PILT payments that are equivalent to property tax revenue if the lands were not federally controlled and to make administrative and legislative recommendations about public lands held by the federal government in Arizona and possible future PILT payments.
5. Requires the Study Committee to provide a forum for persons to express their concerns about public lands held by the federal government in Arizona and the federal government's failure to make PILT payments to the state, including the impact of the federal government's failure to make PILT payments on the state's ability to fund education and protect and promote the health, safety and welfare of its residents.
6. Directs the Study Committee to issue a request for proposal for a comprehensive inventory and appraisal of public lands held by the federal government by a qualified licensed appraiser.
7. Requires the Study Committee to make the initial appraisal payment at the time of the award of the proposal equal to 25 percent of the total proposal amount, after the request for proposal is awarded; and to make remaining payments in 25 percent increments according to determined performance milestones.
8. Prohibits the total cost of the comprehensive inventory and appraisal from exceeding $1,000,000.
9. Reverts unused monies to the state GF.
10. Exempts the Study Committee from the statutory requirements of the Arizona Procurement Code.
11. Specifies that Study Committee members are not eligible to receive compensation but are eligible for reimbursement of expenses.
12. Directs the Study Committee to prepare and electronically submit a written report on its findings and recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives on or before December 31, 2021, and provide a copy of the report to the Secretary of State.
13. Allows the Study Committee to use the services of the legislative staff.
14. Repeals the Study Committee on October 1, 2022.
15. Becomes effective on the general effective date.
House Action
FR 2/6/19 DP 4-3-0-0
APPROP 2/13/19 DPA 7-4-0-0
3rd Read 2/25/19 31-29-0
Prepared by Senate Research
March 25, 2019
KN/LD/gs