[Federal Register Volume 65, Number 79 (Monday, April 24, 2000)]
[Proposed Rules]
[Pages 21688-21694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10149]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 1880

[WO-880-9500-PF-24-1A]
RIN 1004-AD23


Financial Assistance, Local Governments

AGENCY: Bureau of Land Management, Interior

ACTION: Proposed rule.

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SUMMARY: The Bureau of Land Management (BLM) proposes to revise its 
regulations governing procedures for disbursing Payments in Lieu of 
Taxes (PILT) to units of general local government for entitlement lands 
within their boundaries. This proposed rule would incorporate statutory 
changes to the authorizing legislation.

DATES: You should submit your comments on or before June 23, 2000. BLM 
may not necessarily consider comments postmarked or received by 
electronic mail after the above date in the decision making process on 
the final rule.

ADDRESSES: You may mail comments to the Bureau of Land Management, 
Administrative Record, Room 401 LS, 1849 C Street, NW, Washington, DC 
20240. You may also hand deliver comments to Bureau of Land Management, 
Room 401, 1620 L Street, NW, Washington, DC 20036. For information 
about filing comments electronically, see the SUPPLEMENTARY INFORMATION 
section under ``Public Comment Procedures.''

FOR FURTHER INFORMATION CONTACT: Bill Howell, Budget Group, (202) 452-
7721 (Commercial or FTS). Persons who use a telecommunications device 
for the deaf (TDD) may call the Federal Information Relay Service at 1-
800-877-8339, 24 hours a day, seven days a week, to contact Mr. Howell 
about the proposed rule.

SUPPLEMENTARY INFORMATION:
I. Public Comment Procedures
II. Background
III. Discussion of Proposed Rule
IV. Procedural Matters

I. Public Comment Procedures

How Can I Electronically File Comments?

    You may comment via the Internet to [email protected]. Please also 
include ``Attention: RIN 1004-AD23'' and your name and return address 
in your Internet message. If you do not receive a confirmation from the 
system that we have received your Internet message, contact us directly 
at (202) 452-5030.

Can BLM Keep My Identity Confidential?

    For BLM to keep your personal information confidential, you must 
request confidentially and prominently state your request at the 
beginning of your comment. BLM will consider withholding your name, 
street address, and other identifying information on a case-by-case 
basis to the extent allowed by law. BLM will make available for public 
inspection in their entirety all submissions from organizations or 
businesses, and from individuals identifying themselves as 
representatives or officials of organizations or businesses.

[[Page 21689]]

II. Background

What Law Authorizes PILT Payments?

    The Act of October 20, 1976, as amended (31 U.S.C. 6901-6907), 
commonly known as the Payments in Lieu of Taxes Act (PILT), authorizes 
the Secretary of the Interior, through the Bureau of Land Management, 
to disburse Federal payments annually to counties and other units of 
general local government to compensate for the exemption of real estate 
taxes on entitlement lands within their boundaries.

Why Is BLM Issuing These Regulations?

    BLM proposes to update the existing regulations to incorporate 
statutory changes to the PILT Act in the 103rd, 104th, and 105th 
Congresses (Pub. L. 103-397, October 22, 1994; Pub. L. 104-333, 
November 12, 1996; and Pub. L. 105-83, November 14, 1997).

III. Discussion of Proposed Rule

What Will the Proposed Rule Do?

    The proposed rule would:
     Conform the existing regulations to plain language format; 
and
     Update the existing regulations to incorporate statutory 
changes to the PILT Act in the 103rd, 104th, and 105th Congresses (Pub. 
L. 103-397, October 22, 1994; Pub. L. 104-333, November 12, 1996; and 
Pub. L. 105-83, November 14, 1997); and

What Are the Statutory Changes Made to the Authorizing Legislation?

    Congress made the following statutory changes to the authorizing 
legislation:
    1. Public Law 103-397 amends the PILT Act to indicate increases to 
the per acre values used to compute ``6902 payments'' and to the 
population table used to determine each unit of general local 
government's population ceiling. The public law also indexes payments 
for inflation, increases payments for entitlement lands based on the 
Consumer Price Index, and authorizes payments for certain land 
exchanges and acquisitions.
    2. Public Law 104-333 further amends the Act to redefine the 
meaning of ``unit of general local government'' and also stipulates 
which units of general local government are eligible to receive a PILT 
payment.
    3. Public Law 105-83 amends the Act to exclude cities in Alaska 
from the definition of unit of general local government eligible to 
receive PILT payments.
    The following Section Conversion Table amends the existing 
regulations to redesignate the sections as follows:

                        Section Conversion Table
------------------------------------------------------------------------
              Old section                          New section
------------------------------------------------------------------------
1881.0-1...............................  1881.10
1881.0-3...............................  1881.11
1881.0-5...............................  1881.12
1881.1--1881.1-1.......................  1881.13
1881.1-2...............................  1881.20
1881.1-3...............................  1881.30, 1881.40
1881.1-4...............................  1881.51
1881.1-5...............................  1881.52
1881.2.................................  1881.50
1881.3.................................  1881.56
1881.4.................................  1881.57
------------------------------------------------------------------------

Section-by-Section Analysis

Section 1881.10  What is the purpose of this subpart?

    BLM proposes to remove and renumber Sec. 1881.0-1 of the existing 
regulations. The purpose of this subpart is to set forth the governing 
procedures BLM uses for disbursing PILT payments to units of general 
local government for entitlement lands within their boundaries.

Section 1881.11  What is the authority for this subpart?

    BLM proposes to remove and renumber Sec. 1881.0-3 of the existing 
regulations. The references to the authority for promulgating these 
regulations continue to be the same.

Section 1881.12  How does BLM define terms used in this subpart?

    BLM proposes to remove and renumber Sec. 1881.0-5 of the existing 
regulations, alphabetize the remaining definitions, and add definitions 
of:

Unit of general local government (to conform to a statutory change to 
the authorizing legislation)
Section 6902 (31 U.S.C. 6902) payments (Section 1 of Sec. 1881.1-2 in 
existing regulations)
Section 6904 (31 U.S.C. 6904) payments (Section 3 of Sec. 1881.1-3 in 
existing regulations)
Section 6905 (31 U.S.C. 6905) payments (Section 3 of Sec. 1881.1-3 in 
existing regulations)

    BLM proposes to remove from the existing regulations the 
definitions for the terms listed below because the definitions are 
explained in the regulatory text or are no longer needed.
Authorized officer
Government
Money transfer

Section 1881.13  Who is eligible to receive PILT payments?

    BLM proposes to remove and renumber Sec. 1881.1-1881.1-1 of the 
existing regulations. This proposed section would include a statutory 
change made to the authorizing legislation which affects the units of 
general local government eligible to receive PILT payments.

Section 1881.20  How does BLM process section 6902 payments?

    BLM proposes to remove and renumber Sec. 1881.1-2 of the existing 
regulations. This proposed section would include a statutory change 
made to the authorizing legislation which would change Section 1 
payments in Sec. 1881.1-2 of the existing regulations to Section 6902 
(31 U.S.C. 6902) payments. The proposed section also explains how BLM 
would process section 6902 payments.

Section 1881.21  What information does BLM need to calculate these 
payments?

    This proposed section would describe what information BLM needs to 
calculate PILT payments. After BLM receives the required information, 
BLM uses the formula in 31 U.S.C. 6903(b)(1) to calculate the actual 
payments.

Section 1881.22  Are there any special circumstances that affect the 
way BLM calculates PILT payments?

    This proposed section would explain how BLM calculates PILT 
payments if a unit of general local government reorganizes. BLM will 
calculate payments for the fiscal year of the reorganization as if the 
reorganization did not occur.

Section 1881.23  How does BLM certify payment computations?

    This proposed section would explain how BLM certifies payment 
computations after receiving the required information from the State in 
which the unit of general local government is located.

Section 1881.30  How does BLM process section 6904 payments?

    BLM proposes to remove and renumber Sec. 1881.1-3 of the existing 
regulations. This proposed section would include a statutory change 
made to the authorizing legislation which would change Section 3 
payments in Sec. 1881.1-3 of the existing regulations to Section 6904 
(31 U.S.C. 6904) payments. The proposed section also explains how BLM 
would process section 6904 payments.

Section 1881.31  How does BLM calculate section 6904 payments?

    This proposed section would explain how BLM calculates Section 6904 
payments after receiving required information from the State in which 
the

[[Page 21690]]

units of general local government are located.

Section 1881.40  How does BLM process section 6905 payments?

    BLM proposes to remove and renumber Sec. 1881.1-3 of the existing 
regulations. This proposed section would include a statutory change 
made to the authorizing legislation which would change Section 3 
payments in Sec. 1881.1-3 of the existing regulations to Section 6905 
(31 U.S.C. 6905) payments. The proposed section also explains how BLM 
would process section 6905 payments.

Section 1881.41  How does BLM calculate section 6905 payments?

    This proposed section would explain how BLM calculates section 6905 
payments after receiving required information from the State in which 
the units of general local government are located.

Section 1881.50  What are the local governments' responsibilities after 
receiving sections 6902, 6904, and 6905 PILT payments?

    BLM proposes to remove and renumber Sec. 1881.1-4, 1881-1-5, 
1881.2, and 1881.3 of the existing regulations. This proposed section 
would explain the local governments' responsibilities after receiving 
PILT payments from BLM which include distributing the payments and 
certifying to BLM that it made the distribution.

Section 1881.51  Are there general procedures applicable to all PILT 
payments?

    This proposed section would explain BLM's procedures applicable to 
all PILT payments including minimum payments to units of general local 
government and how BLM pro rates payments.

Section 1881.52  May a State enact legislation to reallocate or 
redistribute PILT payments?

    This proposed section would explain that a State may enact 
legislation to reallocate or redistribute PILT payments but must follow 
certain procedures after the legislation is enacted.

Section 1881.53  What is BLM's procedure on PILT payments to a State 
that enacts distribution legislation?

    This proposed section would explain that BLM will not change its 
PILT payment if a State enacts distribution legislation procedures 
until the following Federal fiscal year.

Section 1881.54  What happens if a State repeals or amends distribution 
legislation?

    This proposed section would explain the process for starting 
payments if a State repeals or amends distribution legislation. It 
would require States to notify BLM of the changes. BLM would determine 
compliance with 31 U.S.C. 6907 and if in compliance, BLM would begin 
payments the following fiscal year.

Section 1881.55  Can a unit of general local government protest the 
results of payment computations?

    This proposed section would state that a unit of general local 
government can protest the results of payment computations.

Section 1881.56  How does a unit of general local government file a 
protest?

    This proposed section would explain the process of filing a protest 
including the time within which the unit of general local government 
must file.

Section 1881.57  Can a unit of general local government appeal a 
rejection of a protest?

    This proposed section would explain that a unit of general local 
government can appeal a rejection of a protest to the Interior Board of 
Land Appeals.

IV. Procedural Matters

Executive order 12866, Regulatory Planning and Review

    This proposed regulation is not a significant regulatory action and 
is not subject to review by the Office of Management and Budget (OMB) 
under Executive Order 12866. We have determined that this proposed 
regulation: Does not have an annual economic impact of $100 million or 
more; will not have an adverse impact in a material way on the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities; does not 
pose a serious inconsistency or interfere with an action taken or 
planned by another agency; does not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs or the right or 
obligations of their recipients; and will not have novel legal or 
policy implications. Therefore, we do not have to assess the potential 
costs and benefits of the rule under section 6(a)(3) of this order.
    Executive Order 12866 also requires each agency to write 
regulations that are easy to understand. We invite your comments on how 
to make this proposed rule easier to understand, including answers to 
the following questions:
     Are the requirements in the proposed rule clearly stated?
     Does the proposed rule contain unclear technical language 
or jargon?
     Does the format of the proposed rule aid or reduce its 
clarity?
     Would the rule be easier to understand if it were divided 
into more sections?
     Is the description of the proposed rule in the 
``Supplementary Information'' section helpful in understanding the 
proposed rule.
    Send comments that concern how we could make this proposed rule 
easier to understand to: Office of Regulatory Affairs, Department of 
the Interior, Room 7229, 1849 C Street, NW, Washington, DC 20240. You 
may also email the comments to: [email protected].

National Environmental Policy Act (NEPA)

    This proposed rule is subject to a categorical exclusion under 
NEPA. The proposed rule would incorporate statutory changes to the PILT 
Act. The PILT Act authorizes BLM to disburse PILT payments annually to 
counties and other units of general local government to compensate for 
the exemption of real estate taxes on entitlement lands within their 
boundaries. BLM has determined that this action to update existing 
regulations to incorporate statutory changes to the authorizing 
legislation is a regulation of financial, technical, and legal nature 
under section 101(2)(C) of the National Environmental Policy Act, 
pursuant to 516 Departmental Manual, Chapter 2, Appendix 1, Item 1.10. 
The environmental effects of the regulation are too broad, speculative, 
or conjectural to lend themselves to meaningful analysis. Therefore, 
pursuant to the Council on Environmental Quality regulations (40 CFR 
1508.4) and the environmental policies and procedures of the Department 
of the Interior, BLM has found that neither an environmental assessment 
nor an environmental impact statement is required.

Regulatory Flexibility Act

    This proposed rule does not require a regulatory flexibility 
analysis. Congress enacted the Regulatory Flexibility Act of 1980 
(RFA), as amended (5 U.S.C. 601-612), to ensure that Government 
regulations do not necessarily or disproportionately burden small 
entities. The RFA requires a regulatory flexibility analysis if a rule 
has a significant economic impact, either detrimental or beneficial, on 
a substantial number of small entities.

[[Page 21691]]

This proposed rule would not have significant economic impacts on small 
entities under the RFA (5 U.S.C. 601 et seq.). The proposed rule would 
merely update existing regulations to incorporate statutory changes to 
the authorizing legislation. The Acts do not affect small entities as 
they address transfer of funds from BLM to States. Accordingly, a 
regulatory flexibility analysis is not required.

Small Business Regulatory Enforcement Fairness Act

    This proposed rule is not a ``major rule'' as defined by the Small 
Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). This 
proposed rule will not have a significant impact on the economy or on 
small businesses in particular. As discussed above, this proposed rule 
would merely update existing regulations to incorporate statutory 
changes to the authorizing legislation and do not affect small 
businesses.

Unfunded Mandates Reform Act

    This proposed rule does not impose an unfunded mandate on State, 
local or tribal governments or the private sector of more than $100 
million per year. This proposed rule does not have a significant or 
unique effect on State, local or tribal governments or the private 
sector. Therefore, we are not required to prepare a statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1502 et seq.). This proposed rule would explain how BLM 
disburses PILT payments to States and units of general local government 
and update the existing regulations to incorporate statutory changes to 
the authorizing legislation.

Executive Order 12630, Governmental Actions and Interference With 
Constitutionally Protected Property Rights (Takings)

    This proposed rule does not represent a government action capable 
of interfering with constitutionally protected property rights. 
Therefore, we have determined that the regulation would not cause a 
taking of private property. No further discussion of takings 
implications are required under this Executive Order.

Executive Order 13132, Federalism

    We have considered the effect of the proposed rule in accordance 
with Executive Order 13132 and have determined that it does not have 
sufficient Federalism implications to warrant the preparation of a 
Federalism summary impact statement. The proposed rule does not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. The rule 
does not preempt State law. However, we consulted with the National 
Association of Counties staff to discuss the general framework of this 
rule making.

Paperwork Reduction Act

    A 60-day notice was provided in the Federal Register (61 FR 11649) 
which solicited public comments on its announcement to request renewal 
of approval to collect certain information relating to PILT. We did not 
receive any comments.
    The OMB has approved the information collection requirements in 
this proposed rule under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), and has assigned clearance number 1004-0109. BLM 
estimates the public reporting burden of this section to average 50 
respondents reporting one time per year at 20 hours per response or 
1,000 total annual hours. This estimate includes the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.

Executive Order 12988, Civil Justice Reform

    The Office of the Solicitor has determined that this proposed 
regulation will not unduly burden the judicial system and that it meets 
the requirements of sections 3(a) and 3(b)(2) of Executive Order 12988.

Author

    The principal author of this proposed rule is Bill Howell, Budget 
Group, assisted by Shirlean Beshir, Regulatory Affairs Group.

List of Subjects in 43 CFR Part 1880

    Financial assistance--local governments, Land Management Bureau, 
Payment in lieu of taxes, Public lands, Public lands--mineral 
resources.

    April 4, 2000.
Kathy Karpan,
Acting Principal Deputy Assistant Secretary, Land and Minerals 
Management.
    Accordingly, for the reasons stated in the preamble and under the 
authority of 43 U.S.C. 1740, BLM proposes to revise 43 CFR part 1880, 
subpart 1881, to read as follows:

PART 1880--FINANCIAL ASSISTANCE, LOCAL GOVERNMENTS

Subpart 1881--Payments in Lieu of Taxes

Sec.

General information

1881.10   What is the purpose of this subpart?
1881.11   What is the authority for this subpart?
1881.12   How does BLM define terms used in this subpart?
1881.13   Who is eligible to receive PILT payments?

Payments to Local Governments Containing Entitlement Lands (31 U.S.C. 
6902)

1881.20   How does BLM process section 6902 payments?
1881.21   What information does BLM need to calculate these 
payments?
1881.22   Are there special circumstances that affect the way BLM 
calculates PILT payments?
1881.23   How does BLM certify payment computations?

Payments to Local Governments for Acquisitions or Interest in Lands 
Acquired for Addition to the National Park System or National Forest 
Wilderness Areas (31 U.S.C. 6904)

1881.30   How does BLM process section 6904 payments?
1881.31   How does BLM calculate section 6904 payments?

Payments to Local Governments for Interest in Lands in the Redwood 
National Park or Lake Tahoe Basin (31 U.S.C. 6905)

1881.40   How does BLM process section 6905 payments?
1881.41   How does BLM calculate section 6905 payments?

State and Local Governments' Responsibilities After BLM Distributes 
Pilt Payments

1881.50   What are the local governments' responsibilities after 
receiving sections 6902, 6904, and 6905 PILT payments?
1881.51   Are there general procedures applicable to all PILT 
payments?
1881.52   May a State enact legislation to reallocate or 
redistribute PILT payments?
1881.53   What is BLM's procedure on PILT payments to a State that 
enacts distribution legislation?
1881.54   What happens if a State repeals or amends distribution 
legislation?
1881.55   Can a unit of general local government protest the results 
of payment computations?
1881.56   How does a unit of general local government file a 
protest?
1881.57   Can a unit of general local government appeal a rejection 
of a protest?
Subpart 1881--Payments in Lieu of Taxes

    Authority: Public Law 94-565, 90 Stat. 2662, as amended, 31 
U.S.C. 6901-6907.

[[Page 21692]]

General Information


Sec. 1881.10  What is the purpose of this subpart?

    This subpart sets forth procedures the Bureau of Land Management 
uses in disbursing Federal payments in lieu of taxes to units of 
general local government for entitlement lands within their boundaries.


Sec. 1881.11  What is the authority for this subpart?

    Public Law 94-565, 90 Stat. 2662, as amended, 31 U.S.C. 6901-6907 
continues as authority for this subpart.


Sec. 1881.12  How does BLM define terms used in this subpart?

    Entitlement land means land owned by the United States:
    (1) That is in the National Park System or the National Forest 
System, including wilderness areas, and national forest lands in 
northern Minnesota described in 16 U.S.C. 577d-577d-1;
    (2) That is administered by the Secretary of the Interior through 
the Bureau of Land Management;
    (3) That is dedicated to the use of the Government for water 
resource development projects;
    (4) On which there are semi-active or inactive installations, 
excluding industrial installations, that the Department of Army keeps 
for mobilization and reserve component training;
    (5) That is a dredge disposal area under the jurisdiction of the 
Army Corps of Engineers;
    (6) That is located in the vicinity of Purgatory River Canyon and 
Pinon Canyon, Colorado, and acquired by the United States after 
December 23, 1981, to expand the Fort Carson military installation; or
    (7) That is a reserve area as defined in 16 U.S.C. 715s(g)(3), 
which is an area of land withdrawn from the public domain and 
administered, either solely or primarily, by the Secretary of the 
Interior, through the Fish and Wildlife Service.
    Payments in lieu of taxes (PILT) means Federal payments disbursed 
to units of general local government to compensate for the exemption of 
real estate taxes on entitlement lands within their boundaries.
    Section 6902 (31 U.S.C. 6902) payments means Federal payments 
disbursed to units of general local government containing entitlement 
lands.
    Section 6904 (31 U.S.C. 6904) payments means Federal payments 
disbursed to units of general local government for acquisitions or 
interest in lands acquired for addition to the National Park System or 
National Forest Wilderness Areas.
    Section 6905 (31 U.S.C. 6905) payments means Federal payments 
disbursed to units of general local government for lands in the Redwood 
National Park or Lake Tahoe Basin.
    Unit of general local government means:
    (1) a county, parish, township, borough, or city (other than in 
Alaska), where the city is independent of any other unit of general 
local government, that:
    (i) Is within the class(es) of such political subdivision in a 
State that the Secretary of the Interior determines, in his discretion, 
to be the principal provider(s) of governmental services within the 
State; and
    (ii) Is a unit of general local government, as determined by the 
Secretary of the Interior on the basis of the same principles as were 
used by the Secretary of Commerce on January 1, 1983, for general 
statistical purposes.
    (2) Any area in Alaska that is within the boundaries of a census 
area used by the Secretary of Commerce in the decennial census, but 
that is not included within the boundaries of a governmental entity 
described under paragraph (1) of this definition.
    (3) the Governments of the District of Columbia, the Commonwealth 
of Puerto Rico, Guam, and the Virgin Islands.


Sec. 1881.13  Who is eligible to receive PILT payments?

    (a) Each unit of general local government containing entitlement 
lands may receive a PILT payment.
    (b) A unit of general local government may not receive a payment 
for land owned or administered by a State or unit of general local 
government that was exempt from real estate taxes when the land was 
conveyed to the United States. However, a unit of general local 
government may receive a PILT payment for land when:
    (1) A State or unit of general local government acquires from a 
private party to donate to the United States within eight years of 
acquisition;
    (2) A State acquires through an exchange with the United States if 
the land acquired was entitlement land; or
    (3) In the State of Utah, that the United States acquires for 
Federal land, royalties or other assets if, at the time of acquisition, 
a unit of general local government was entitled to receive payments in 
lieu of taxes from the State of Utah for the land; provided that the 
payment to the local government does not exceed the payment the State 
would have disbursed if the land had not been acquired.

Payments to Local Governments Containing Entitlement Lands (31 
U.S.C. 6902)


Sec. 1881.20  How does BLM process section 6902 payments?

    (a) The BLM:
    (1) Determines the eligibility of units of general local 
governments, conferring when necessary, with the Bureau of the Census, 
officials of appropriate State and local governments, and officials of 
the agency administering the entitlement land;
    (2) Computes the amount of the payment disbursed to each unit of 
general local government; and
    (3) Certifies the amount of the payment disbursed to each unit of 
general local government.
    (b) The BLM disburses a payment each fiscal year to each unit of 
general local government containing entitlement lands.
    (c) The State of Alaska is required to distribute the payment it 
receives to home rule cities and general law cities (as such cities are 
defined by the State) that are located within the boundaries of the 
unit of general local government entitled to the payment.


Sec. 1881.21  What information does BLM need to calculate these 
payments?

    (a) The BLM obtains the necessary data on Federal and State 
payments from several sources:
    (1) Federal agencies provide the amount of entitlement land within 
the boundaries of each unit of general local government as of the last 
day of the fiscal year preceding the fiscal year for which BLM 
disburses the payment.
    (2) The Governor or designated official provides the amount of 
money transfers (land revenue sharing payments) disbursed by the State 
during the previous fiscal year to eligible units of general local 
government under the following payment laws listed under 31 U.S.C. 
6903(a)(1):
    (i) The Act of June 20, 1910 (Arizona and New Mexico Enabling Acts) 
(ch. 310, 36 Stat 557);
    (ii) Section 33 of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 
1012);
    (iii) The Act of May 23, 1908 (Knutson-Vandenberg Act regarding 
Forest Service timber sales contracts) (16 U.S.C. 500);
    (iv) Section 5 of the Act of June 22, 1948 (Payments to Minnesota 
from northern Minnesota National Forest receipts) (16 U.S.C. 577g-l);
    (v) Section 401(c)(2) of the Act of June 15, 1935 (Payments to 
local governments from National Wildlife Refuge System receipts) (16 
U.S.C. 715s(c)(2));

[[Page 21693]]

    (vi) Section 17 of the Federal Power Act (16 U.S.C. 810);
    (vii) Section 35 of the Act of February 25, 1920 (Mineral Leasing 
Act) (30 U.S.C. 191);
    (viii) Section 6 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 355);
    (ix) Section 3 of the Act of July 31, 1947 (Materials Act of 1947) 
(30 U.S.C. 603); and
    (x) Section 10 of the Act of June 28, 1934 (Taylor Grazing Act) (43 
U.S.C. 315i).
    (3) The Bureau of the Census provides statistics on the population 
of each unit of general local government.
    (b) The BLM consults with the affected unit of general local 
government and the administering agency to resolve conflicts in land 
records and other data sources.
    (c) The BLM uses the amount of actual appropriations, the formula 
set forth in 31 U.S.C. 6903(b)(1), which includes inflation 
adjustments, and Federal and State payments disbursed during the 
previous fiscal year to units of general local government under the 
land payment laws listed under 31 U.S.C. 6903(a)(1).


Sec. 1881.22  Are there any special circumstances that affect the way 
BLM calculates PILT payments?

    If a unit of general local government eligible for payments under 
this subpart reorganizes, BLM will calculate payments for the fiscal 
year in which the reorganization occurred as if the reorganization had 
not occurred. BLM will disburse any payment due to each new unit based 
on the amount of eligible acreage in that unit.


Sec. 1881.23  How does BLM certify payment computations?

    (a) The BLM will certify a computation for payment only after the 
Governor of the State or designated official in which the unit of 
general local government is located provides the BLM with:
    (1) A statement of the amount of all money transfers (land revenue 
sharing payments) that each entitled unit of general local government 
has received from the State during the previous fiscal year from 
revenues derived from the payment law(s) listed under 31 U.S.C. 
6903(a)(1);
    (2) A certification, in writing, signed by a State Auditor, an 
independent Certified Public Accountant or an independent public 
accountant that the statements furnished by the Governor or designated 
official have been audited in accordance with auditing standards 
established by the U.S.Comptroller General in Standards of Audit of 
Governmental Organizations, Programs, Activities and Functions, 
available through the Superintendent of Documents, U.S. Government 
Printing Office, Washington, DC 20402, and in accordance with the Audit 
Guide for Payments in Lieu of Taxes issued by the Department of the 
Interior.
    (b) The Office of the Inspector General, U.S. Department of the 
Interior, will provide appropriate assistance to the Director, BLM, 
under the provisions of sections 4 and 6 of the Inspector General Act 
of 1978 (5 U.S.C. Appendix), to facilitate implementing and 
administering the audit requirements specified in paragraph (a)(2) of 
this section.
    (c) The Office of the Inspector General will:
    (1) Develop appropriate audit guides which State auditors, 
independent Certified Public Accountants or independent public 
accountants, must use to audit the statements of the Governors or their 
designated officials and to certify the audits; and
    (2) Furnish copies of the guides to the Governor or designated 
official each year. You should send questions on the use or application 
of this guide to the Office of Inspector General, U.S. Department of 
the Interior, Washington, DC 20240.
    (d) The BLM may waive the requirement to certify audits if the 
General Accounting Office or the Office of the Inspector General 
verifies the information in statements the Governor or designated 
official furnishes or if BLM determines it is not necessary.

Payments to Local Governments for Acquisitions or Interest in Lands 
Acquired for Addition to the National Park System or National 
Forest Wilderness Areas (31 U.S.C. 6904)


Sec. 1881.30  How does BLM process section 6904 payments?

    (a) The BLM disburses payments to qualified units of general local 
government provided that the administering agency supplies the 
following information for each qualified unit of general local 
government:
    (1) Acreage or interests in land for which the payments are 
authorized; and
    (2) Any other information BLM may require to certify payments to 
each qualified unit of general local government.
    (b) BLM only disburses payments for a period of five years from the 
date the land was conveyed to the United States.


Sec. 1881.31  How does BLM calculate section 6904 payments?

    BLM calculates payments by determining 1% of the fair market value 
of the purchased land and comparing the result to the amount of real 
estate taxes paid on the land in the year prior to Federal acquisition. 
The payment to qualified units of general local government will be the 
lesser of the two.

Payments to Local Governments for Interest in Lands in the Redwood 
National Park or Lake Tahoe Basin (31 U.S.C. 6905)


Sec. 1881.40  How does BLM process section 6905 payments?

    (a) The BLM disburses payments to qualified units of general local 
government provided the administering agency supplies the following 
information for each qualified unit of general local government:
    (1) Acreage or interests in land for which the payments are 
authorized; and
    (2) Any other information BLM may require to certify payments to 
each qualified unit of general local government.
    (b) BLM disburses payments until 5% of the fair market value is 
paid in full.


Sec. 1881.41  How does BLM calculate section 6905 payments?

    BLM calculates payments by determining 1% of the fair market value 
of the purchased land and comparing the result to the amount of real 
estate taxes paid on the land in the year prior to Federal acquisition. 
The payment to qualified units of general local government will be the 
lesser of the two.

State and Local Governments' Responsibilities After BLM Distributes 
Pilt Payments


Sec. 1881.50  What are the local governments' responsibilities after 
receiving sections 6902, 6904, and 6905 PILT payments?

    (a) The local government may use section 6902 payments for any 
governmental purpose.
    (b) Within 90 days of receiving sections 6904 and 6905 payments, 
the local government must distribute the funds to the affected units of 
general local government and affected school districts. The affected 
units of general local government and school districts may use sections 
6904 and 6905 payments for any governmental purpose.
    (c) The local government must distribute sections 6904 and 6905 
payments in proportion to the tax revenues assessed and levied by the 
affected units of general local government and school districts in the 
Federal fiscal year before the Federal Government acquired the 
entitlement lands. The Redwoods Community College District in 
California is an affected school district for this purpose.

[[Page 21694]]

    (d) Within 120 days of receiving payments, the local government 
must certify to BLM that it has made an appropriate distribution of 
funds.


Sec. 1881.51  Are there general procedures applicable to all PILT 
payments?

    (a) The minimum payment that the BLM will disburse to any unit of 
general local government is $100.00 (one hundred dollars).
    (b) If Congress appropriates insufficient monies to provide full 
payment to each unit of general local government during any fiscal 
year, the BLM will reduce proportionally all payments in that fiscal 
year.


Sec. 1881.52  May a State enact legislation to reallocate or 
redistribute PILT payments?

    A State may enact legislation to reallocate or redistribute PILT 
payments. If a State does enact legislation, it must:
    (1) Notify the BLM if it enacts legislation which requires 
reallocating or redistributing payments to smaller units of general 
local government (see 31 U.S.C. 6907);
    (2) Provide the BLM a copy of the legislation within 60 days of 
enactment;
    (3) Provide the name and address of the State government office to 
which BLM should send the payment;
    (4) Distribute to its smaller units of general local government 
within 30 days of receiving the payment; and
    (5) Not reduce the payment made to smaller units of general local 
government to pay the cost of State legislation which reallocates or 
redistributes payments.


Sec. 1881.53  What is BLM's procedure on PILT payments to a State that 
enacts distribution legislation?

    The BLM would:
    (a) Notify the State that a single payment will be disbursed to the 
designated State government office beginning with the Federal fiscal 
year following the fiscal year in which the State enacted legislation; 
and
    (b) Provide the State with appropriate information that identifies 
the entitlement lands data on which BLM bases the payment.


Sec. 1881.54  What happens if a State repeals or amends distribution 
legislation?

    (a) The State must immediately notify the BLM in writing that it 
has repealed or amended the legislation and furnish BLM with a copy of 
the new law.
    (b) The BLM must:
    (1) Determine if the State's process complies with 31 U.S.C. 6907. 
If BLM determines that it does not, we must notify the designated State 
government office that BLM will disburse payment directly to eligible 
units of general local government; and
    (2) Start the payments with the Federal fiscal year in which the 
BLM receives a copy of the State's amendatory legislation. If BLM 
receives a copy of the legislation after July 1, payments made directly 
to eligible units of general local government will not begin until the 
next Federal fiscal year.


Sec. 1881.55  Can a unit of general local government protest the 
results of payment computations?

    Any affected unit of general local government may file a protest 
with the BLM.


Sec. 1881.56  How does a unit of general local government file a 
protest?

    The protesting unit of general local government must:
    (a) Submit evidence to indicate the possibility of error(s) in the 
computations or the data on which BLM bases the computations; and
    (b) File the protest by the first business day of the calendar year 
following the end of the fiscal year for which BLM made the payments.


Sec. 1881.57  Can a unit of general local government appeal a rejection 
of a protest?

    Any affected unit of general local government may appeal BLM's 
decision to reject a protest to the Interior Board of Land Appeals 
under the provisions of 43 CFR part 4.

[FR Doc. 00-10149 Filed 4-21-00; 8:45 am]
BILLING CODE 4310-84-P