BILL NUMBER: AB 1492	CHAPTERED
	BILL TEXT

	CHAPTER  289
	FILED WITH SECRETARY OF STATE  SEPTEMBER 11, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 11, 2012
	PASSED THE SENATE  SEPTEMBER 1, 2012
	PASSED THE ASSEMBLY  SEPTEMBER 1, 2012
	AMENDED IN SENATE  AUGUST 7, 2012

INTRODUCED BY   Committee on Budget (Blumenfield (Chair), Alejo,
Bonilla, Brownley, Buchanan, Butler, Cedillo, Chesbro, Dickinson,
Feuer, Gordon, Huffman, Mitchell, Monning, and Swanson)

                        JANUARY 10, 2012

   An act to add Section 13009.2 to the Health and Safety Code, and
to amend Section 4590 of, to add Article 9.5 (commencing with Section
4629) to Chapter 8 of Part 2 of Division 4 of, and to repeal Section
4629.10 of, the Public Resources Code, relating to forest resource
management, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1492, Committee on Budget. Forest resource management.
   (1) Existing law, with certain exceptions, makes any person who
negligently or in violation of the law sets a fire, or who fails or
refuses to correct a fire hazard prohibited by law, liable for the
fire suppression costs and for the costs of providing rescue or
emergency medical services, and provides for collection of the
charge. Under existing law, public agencies participating in fire
suppression, rescue, or emergency medical services may bring a civil
action to recover costs incurred by those agencies.
   This bill would provide that, in a civil action by a public agency
to recover damages caused by a fire, pecuniary damages must be
quantifiable and not unreasonable in relation to the prefire fair
market value of the property, taking into consideration the
ecological and environmental value of the property to the public. The
bill would limit the pecuniary damages that the public agency may
recover to specified ecological and environmental damages and certain
restoration and rehabilitation costs, replacement or acquisition
costs, or diminution in value of property as a result of the fire,
including lost timber value, and short-term costs related to
immediate damages resulting from the fire. Further, the bill would
prohibit a public agency from seeking to enhance the claim for
environmental damages under other provisions of law permitting civil
damages for injuries to trees and timber.
   (2) The Z'Berg-Nejedly Forest Practice Act of 1973 prohibits a
person from conducting timber operations, as defined, unless a timber
harvesting plan prepared by a registered professional forester has
been submitted to, and is approved by, the Department of Forestry and
Fire Protection.
   The act provides that a timber harvesting plan approved on or
after January 1, 2012, is effective for a period of not more than 3
years and may be extended by amendment for a one-year period, up to a
maximum of 2 one-year extensions if 2 requirements are met. The act
provides that a plan that is approved on or after January 1, 2010, to
December 31, 2011, inclusive, may be extended by amendment for a
2-year period, up to a maximum of 2 2-year extensions. The act
requires the notice of extension to include the circumstances that
prevented a timely completion of the work under the plan and an
agreement to comply with the specified law, rules, and regulations as
they exist on the date the extension notice is filed.
   This bill would provide instead that a timber harvesting plan
approved on or after July 31, 2012, would be effective for a period
of not more than 5 years unless extended and would instead authorize
the extension of the plan by amendment for a 2-year period. The bill
would provide instead that a timber harvesting plan approved between
January 1, 2010, and August 31, 2012, inclusive, may be extended by
amendment for a 2-year period, up to a maximum of 2 2-year periods
and would require the notice of extension for that plan to be
provided to the department not sooner than 140 days, but at least 10
days, prior to the expiration date of the plan.
   (3) This bill would establish the Timber Regulation and Forest
Restoration Fund in the State Treasury, and would require that all
revenues received from a specified assessment described in (4) and
(5) below imposed on the retail sale of lumber products, as defined,
and engineered wood products, as defined, less amounts deducted for
refunds and reimbursements, be deposited into the fund. The bill
would require that moneys deposited into the fund be expended, upon
appropriation by the Legislature, for specified administrative costs,
and for purposes relating to the regulatory activities of the
department and other state and local agencies involved in the
management of forest lands, and the costs of managing forest resource
programs in the state, for certain grants to state and local public
agencies, qualified nonprofit organizations, and recognized Indian
tribes for fire protection and suppression, and for grants to fund
restoration on timberland, as prescribed.
   This bill would require the State Board of Forestry and Fire
Protection, on or before October 1, 2012, to adopt a regulation that
interprets and makes specific the lumber products and the engineered
wood products that the board determines shall be subject to the
lumber products assessment imposed by the bill, as prescribed.
   The bill would require the Secretary of the Natural Resources
Agency, on or before January 10, 2013, and each January 10
thereafter, in conjunction with the 2014-15 Governor's Budget and the
Governor's Budgets thereafter, in consultation with the Secretary
for Environmental Protection, to submit a report to the Joint
Legislative Budget Committee on the activities of all state
departments, agencies, and boards relating to forest and timberland
regulation. The bill would require the Secretary of the Natural
Resources Agency, no later than March 1, 2014, as part of the 2014-15
budget process, to submit a report to the Joint Legislative Budget
Committee and relevant legislative policy committees, including a
review of the aforementioned report.
   (4) Existing law imposes a state sales and use tax on retailers
measured by the gross receipts from the sale of tangible personal
property sold at retail in this state, and a use tax on the storage,
use, or other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state, at a prescribed rate. Existing law imposes various other
taxes, including taxes on the privilege of engaging in certain
activities. The Fee Collection Procedures Law, a violation of which
is a crime, provides procedures for the collection of fees.
   This bill would, on and after January 1, 2013, in addition to any
other sales and use taxes imposed by law, impose an assessment on a
person who purchases a lumber product, as defined, or an engineered
wood product, as defined, in this state, at the rate of 1% of the
sales price. This bill would require the tax to be administered by
the State Board of Equalization, as prescribed, and would require a
retailer to collect the assessment from the person and remit the
amounts collected pursuant to the procedures set forth in the Fee
Collection Procedures Law. By expanding the application of the Fee
Collection Procedures Law, a violation of which is a crime, this bill
would impose a state-mandated local program.
   (5) Existing law requires the Department of Forestry and Fire
Protection to invite, consider, and respond in writing to comments
received from public agencies, including the Department of Fish and
Game, to which a timber harvest plan has been transmitted, and to
consult with these agencies at their request.
   This bill would appropriate the sum of $1,500,000 from the Timber
Regulation and Forest Restoration Fund to the Department of Fish and
Game to be used for the purposes of supporting the department's
review of timber harvest plans.
   (6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (7) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13009.2 is added to the Health and Safety Code,
to read:
   13009.2.  (a) In a civil action by a public agency seeking damages
caused by a fire, pecuniary damages must be quantifiable and not
unreasonable in relation to the prefire fair market value of the
property, taking into consideration the ecological and environmental
value of the property to the public. The only recoverable pecuniary
damages shall be:
   (1) Either the restoration and rehabilitation costs associated
with bringing the damaged property back to its preinjured state or
replacement or acquisition costs of equivalent value, or diminution
in value of property as a result of the fire, including lost timber
value, or some combination thereof.
   (2) Short-term costs related to immediate damages suffered as a
result of the fire, such as burned area emergency response costs,
costs associated with discrete restoration activities related to
repair and replacement of real property improvements, and remediation
and eradication costs relative to invasive species and any other
nonnative infestation caused by or exacerbated by sudden burn area
conditions.
   (b) In addition to the damages authorized by subdivision (a), a
public agency may also recover ecological and environmental damages
caused by the fire, if those damages are quantifiable, and are not
redressed by the damages set forth in subdivision (a), taking into
consideration the ecological and environmental value of the property
to the public. Ecological and environmental damages may include:
   (1) Lost recreational value.
   (2) Lost interim use.
   (3) Lost historical and archeological value.
   (4) Damage to wildlife, wildlife habitat, water or soil quality,
or plants.
   (5) Damage to any rare natural features of the property.
   (6) Lost aesthetic value.
   (c) In assessing the reasonableness of damages under subdivision
(b), the prefire fair market value of the property is relevant and
one factor to be considered, in addition to the other factors listed
in subdivision (b).
   (d) A public agency plaintiff who claims environmental damages of
any kind under subdivision (a) or (b) shall not seek to enhance any
pecuniary or environmental damages recovered under this section. This
section is not intended to alter the law regarding whether Section
3346 of the Civil Code or Section 733 of the Code of Civil Procedure
can be used to enhance fire damages, but this section does confirm
that if a public agency claims environmental damages under
subdivision (a) or (b), it shall not seek to enhance any damages
recovered under this section for any reason, and shall not use
Section 3346 of the Civil Code or Section 733 of the Code of Civil
Procedure to do so, regardless of whether those sections might
otherwise apply. This section is not intended to limit or change the
ability of a public agency to recover costs arising from a fire as
provided in Sections 13009 and 13009.1.
   (e) For purposes of this section, the term "public agency" means
the United States of America or any political subdivision thereof,
the State of California, any city, county, district, public agency,
or any other public subdivision of the state.
   (f) This section shall apply only to a civil action filed on or
after the effective date of the act adding this section.
  SEC. 2.  Section 4590 of the Public Resources Code is amended to
read:
   4590.  (a) (1) A timber harvesting plan approved on or after July
1, 2012, is effective for a period of not more than five years,
unless extended pursuant to paragraph (2).
   (2) A timber harvesting plan, on which timber operations have
commenced but not been completed, may be extended by amendment for a
two-year period in order to complete the timber operations, if both
of the following occur:
   (A) Good cause is shown.
   (B) All timber operations are in conformance with the plan, this
chapter, and all applicable rules and regulations, upon the filing of
the notice of extension as required by this section.
   (b) The extension shall apply to any area covered by the plan for
which a report has not been submitted under Section 4585. The notice
of extension shall be provided to the department not sooner than 30
days, but at least 10 days, prior to the expiration date of the plan.
The notice shall include the circumstances that prevented a timely
completion of the timber operations under the plan and, consistent
with Section 4583, an agreement to comply with this chapter and the
rules and regulations of the board as these exist on the date the
extension notice is filed.
   (c) Stocking work may continue for more than the effective period
of the plan under subdivision (a), but shall be completed within five
years after the conclusion of other work.
   (d) (1) A timber harvesting plan that is approved on or after
January 1, 2010, to August 31, 2012, inclusive, may be extended by
amendment for a two-year period in order to complete the timber
operations, up to a maximum of two 2-year extensions, if the plan
complies with subparagraphs (A) and (B) of paragraph (2) of
subdivision (a) and the notice of extension, pursuant to subdivision
(b), includes written certification by a registered professional
forester that neither of the conditions in subdivision (e) has
occurred.
   (2) Notwithstanding the notice provision of subdivision (b), for
the purposes of this subdivision, the notice of extension shall be
provided to the department not sooner than 140 days, but at least 10
days, prior to the expiration date of the plan.
   (e) The department shall not approve an extension pursuant to
subdivision (a) or (d) if either of the following has occurred:
   (1) Listed species, as defined in Article 1 (commencing with
Section 2050) of Chapter 1.5 of Division 3 of the Fish and Game Code
or the federal Endangered Species Act (16 U.S.C. Sec. 1531 et seq.),
have been discovered in the logging area of the plan since approval
of the timber harvesting plan.
   (2) Significant physical changes to the harvest area or adjacent
areas have occurred since the timber harvesting plan's cumulative
impacts were originally assessed.
   (f) An extension of a timber harvesting plan on which either of
the conditions in subdivision (e) has occurred may be obtained only
pursuant to Section 1039 of Title 14 of the California Code of
Regulations.
  SEC. 3.  Article 9.5 (commencing with Section 4629) is added to
Chapter 8 of Part 2 of Division 4 of the Public Resources Code, to
read:

      Article 9.5.  Timber Regulation and Forest Restoration Fund


   4629.  The Legislature finds and declares all of the following:
   (a) A thriving in-state forest products sector provides public
benefits, including employment opportunities in both rural and urban
areas, and economic development for rural communities.
   (b) Enabling continued economically viable production of forest
products can help to protect the state's forest lands from conversion
to other uses.
   (c) The state's forest practice regulations provide for
environmental protection of the state's air, water, habitat, and soil
resources.
   (d) Consumers of wood products in the state currently do not
directly pay for the state's forest practice program and the costs of
protecting the state's natural resources.
   (e) Current in-state producers of wood products already bear a
significant cost of conforming with the state's environmental laws,
which economically disadvantages those producers relative to
out-of-state production.
   (f) Conforming with the state's environmental laws ensures that
wildlife, habitat, clean air, forest, and water quality receive some
protection.
   4629.1.  The Legislature further finds that the state's forest
practice regulatory program needs to develop adequate performance
measures to provide transparency for both the regulated community and
other stakeholders.
   4629.2.  In enacting this article, it is the intent of the
Legislature to accomplish all of the following:
   (a) Promote and encourage sustainable forest practices consistent
with provisions of this chapter in a manner consistent with other
laws, including, but not limited to, the Timberland Productivity Act
of 1982 (Article 1 (commencing with Section 51100) of Chapter 6.7 of
Part 1 of Division 1 of Title 5 of the Government Code), the
California Environmental Quality Act (Division 13 (commencing with
Section 21000)), the Porter-Cologne Water Quality Act (Chapter 1
(commencing with Section 13000) of Division 7 of the Water Code), and
the California Endangered Species Act (Article 3 (commencing with
Section 2080) of Chapter 1.5 of Division 3 of the Fish and Game
Code).
   (b) Ensure continued sustainable funding for the state's forest
practice program to protect the state's forest resources, and replace
the current piecemeal funding structure with a single funding
source.
   (c) Support in-state production of timber within the state's
environmental standards, and promote and encourage retention of
forests and forested landscapes.
   (d) Create a funding source for the restoration of the state's
forested lands and promote restoration of fisheries and wildlife
habitat and improvement in water quality.
   (e) Promote restoration and management of forested landscapes
consistent with the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
   (f) Promote transparency in regulatory costs and programs through
the creation of performance measures and accountability for the state'
s forest practice regulatory program and simplify the collection and
use of critical data to ensure consistency with other pertinent laws
and regulations.
   (g) Identify and implement efficiencies in the regulation of
timber harvesting between state agencies.
   (h) Modify current regulatory programs to incorporate, and provide
incentives for best practices, and develop standards or strategies,
where appropriate, to protect natural resources, including the
development of plans that address road management and riparian
function on an ownershipwide, watershedwide, or districtwide scale.
   4629.3.   (a) The Timber Regulation and Forest Restoration Fund is
hereby created in the State Treasury. All revenues received from the
assessments imposed pursuant to Section 4629.5, less amounts
deducted for refunds and reimbursements, shall be deposited into the
fund.
   (b) Unless the context requires otherwise, the following
definitions shall apply to this article:
   (1) "Board" means the State Board of Forestry and Fire Protection.

   (2) "Department" means the Department of Forestry and Fire
Protection.
   (3) "Engineered wood product" means a building product, including,
but not limited to, veneer-based sheeting material, plywood,
laminated veneer lumber (LVL), parallel-laminated veneer (PLV),
laminated beams, I-joists, edge-glued material, or composite material
such as cellulosic fiberboard, hardboard, decking, particleboard,
waferboard, flakeboard, oriented strand board (OSB), or any other
panel or composite product where wood is a component part, that is
identified in regulations adopted by the board pursuant to Section
4629.4. For purpose of this paragraph, an "engineered wood product"
shall only include products that consist of at least 10 percent wood.

   (4) "Fund" means the Timber Regulation and Forest Restoration
Fund.
   (5) "Lumber product" means a product in which wood or wood fiber
is a principal component part, including, but not limited to, a solid
wood product, or an engineered wood product, that is identified in
regulations adopted by the board pursuant to Section 4629.4. "Lumber
product" does not include furniture, paper products, indoor flooring
products such as hardwood or laminated flooring, bark or cork
products, firewood, or other products not typically regarded as
lumber products.
   (6) "Principal component part" means 10 percent of the total
content by volume.
   (7) "Qualified nonprofit organization" means any nonprofit public
benefit corporation formed pursuant to the Nonprofit Corporation Law
(Division 2 (commencing with Section 5000) of Title 1 of the
Corporations Code) qualified to do business in California and
qualified for exempt status under Section 501(c)(3), 501(c)(4), or
501(c)(5) of the Internal Revenue Code.
   (8) "Recognized tribe" means those entities recognized as eligible
to receive service from the United States Bureau of Indian Affairs,
as listed in the Federal Register, and those tribes designated in the
list of nonrecognized tribes for California by the Native American
Heritage Commission.
   (9) "State responsibility area" means those areas for which the
state has primary fire protection responsibility, as designated by
the board in accordance with Section 4125.
   4629.4.   (a) On or before October 1, 2012, the board shall adopt
a regulation that interprets and makes specific the lumber products
and engineered wood products that the board determines shall be
subject to the lumber products assessment imposed pursuant to Section
4629.5. The board shall annually update the regulation. The lumber
products identified in the annually updated regulation that is
adopted shall become subject to the assessment imposed pursuant to
Section 4629.5 on the first day of the calender quarter commencing
more than 60 days after adoption of the updated regulation.
   (b) The board shall adopt any regulations or emergency regulations
necessary to implement the provisions of this article in accordance
with the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of title 2 of the Government Code). The board may readopt any
emergency regulation authorized by this section that is the same as
or substantially equivalent to an emergency regulation previously
adopted under this section. The initial adoption of emergency
regulations and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health
and safety, or general welfare. The initial emergency regulation and
the one readoption of an emergency regulation authorized by this
section shall be exempt from review by the Office of Administrative
Law. The initial emergency regulation and the one readoption of an
emergency regulations authorized by this section shall be submitted
to the Office of Administrative Law for filing with the Secretary of
State and each shall remain in effect for no more than 180 days, by
which time final regulations may be adopted. The lumber products and
engineered wood products identified in the regulation adopted shall
become subject to the assessment imposed pursuant to Section 4629.5,
commencing January 1, 2013.
   4629.5.  (a) (1) On and after January 1, 2013, there is hereby
imposed an assessment on a person who purchases a lumber product or
an engineered wood product for the storage, use, or other consumption
in this state, at the rate of 1 percent of the sales price.
   (2) A retailer shall charge the person the amount of the
assessment as a charge that is separate from, and not included in,
any other fee, charge, or other amount paid by the purchaser.
   (3) The retailer shall collect the assessment from the person at
the time of sale, and may retain an amount equal to the amount of
reimbursement, as determined by the State Board of Equalization
pursuant to regulations, for any costs associated with the collection
of the assessment, to be taken on the first return or next
consecutive returns until the entire reimbursement amount is
retained. For purposes of this paragraph, the State Board of
Equalization may adopt emergency regulations pursuant to Section
11346.1 of the Government Code. The adoption of any regulation
pursuant to this paragraph shall be deemed to be an emergency and
necessary for the immediate preservation of the public peace, health,
and safety, and general welfare.
   (b) The retailer shall separately state the amount of the
assessment imposed under this section on the sales receipt given by
the retailer to the person at the time of sale.
   (c) The State Board of Equalization shall administer and collect
the assessment imposed by this section pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2 of the Revenue and Taxation Code) with those changes as may be
necessary to conform to the provisions of this article. For purposes
of this section, the references in the Fee Collection Procedures Law
to "fee" shall include the assessment imposed by this section.
   (d) (1) The assessment is required to be collected by a retailer
and any amount unreturned to the person who paid an amount in excess
of the assessment, but was collected from the person under the
representation by the retailer that it was owed as an assessment,
constitutes debts owed by the retailer to this state.
   (2) Every person who purchases a lumber product or an engineered
wood product for storage, use, or other consumption in this state is
liable for the assessment until it has been paid to this state,
except that payment to a retailer relieves the person from further
liability for the assessment. Any assessment collected from a person
that has not been remitted to the State Board of Equalization shall
be a debt owed to the state by the retailer required to collect and
remit the assessment. Nothing in this part shall impose any
obligation upon a retailer to take any legal action to enforce the
collection of the assessment imposed by this section.
   (e) Except as provided in paragraph (3) of subdivision (a), the
State Board of Equalization may prescribe, adopt, and enforce
regulations relating to the administration and enforcement of this
section, including, but not limited to, collections, reporting,
refunds, and appeals.
   (f) (1) The assessment imposed by this section is due and payable
to the State Board of Equalization quarterly on or before the last
day of the month next succeeding each quarterly period.
   (2) On or before the last day of the month following each
quarterly period, a return for the preceding quarterly period shall
be filed with the State Board of Equalization using electronic media,
in the form prescribed by the State Board of Equalization. Returns
shall be authenticated in a form or pursuant to methods, as
prescribed by the State Board of Equalization.
   (g) For purposes of this section, all of the following shall
apply:
   (1) "Purchase" has the same meaning as that term is defined in
Section 6010 of the Revenue and Taxation Code.
   (2) "Retailer" has the same meaning as that term is defined in
Section 6015 of the Revenue and Taxation Code.
   (3) "Sales price" has the same meaning as that term is defined in
Section 6011 of the Revenue and Taxation Code.
   (4) "Storage" has the same meaning as that term is defined in
Section 6008 of the Revenue and Taxation Code.
   (5) "Use" has the same meaning as that term is defined in Section
6009 of the Revenue and Taxation Code.
   (h) (1) Every person required to pay the assessment imposed under
this article shall register with the State Board of Equalization.
Every application for registration shall be made in a form prescribed
by the State Board of Equalization and shall set forth the name
under which the applicant transacts or intends to transact business,
the location of his or her place or places of business, and such
other information as the State Board of Equalization may require. An
application for registration shall be authenticated in a form or
pursuant to methods as may be prescribed by the State Board of
Equalization.
   (2) An application for registration filed pursuant to this section
may be filed using electronic media as prescribed by the State Board
of Equalization.
   (3) Electronic media includes, but is not limited to, computer
modem, magnetic media, optical disk, facsimile machine, or telephone.

   4629.6.   Moneys deposited in the fund shall, upon appropriation
by the Legislature, only be expended for the following purposes:
   (a) To reimburse the State Board of Equalization for its
administrative costs associated with the administration, collection,
audit, and issuance of refunds related to the lumber products and
engineered wood assessment established pursuant to Section 4629.5.
   (b) To pay refunds issued pursuant to Part 30 (commencing with
Section 55001) of Division 2 of the Revenue and Taxation Code.
   (c) To support the activities and costs of the department, the
Department of Conservation, the Department of Fish and Game, the
State Water Resources Control Board, and regional water quality
control boards associated with the review of projects or permits
necessary to conduct timber operations. On or after July 1, 2013,
except for fees applicable for fire prevention or protection within
state responsibility area classified lands or timber yield
assessments, no currently authorized or required fees shall be
charged by the agencies listed in this subdivision for activities or
costs associated with the review of a project, inspection and
oversight of projects, and permits necessary to conduct timber
operations of those departments and boards.
   (d) For transfer to the department's Forest Improvement Program,
upon appropriation by the Legislature, for forest resources
improvement grants and projects administered by the department
pursuant to Chapter 1 (commencing with Section 4790) and Chapter 2
(commencing with Section 4799.06) of Part 2 of Division 4.
   (e) To fund existing restoration grant programs.
   (f) To the department, upon appropriation by the Legislature, for
fuel treatment grants and projects pursuant to authorities under the
Wildland Fire Protection and Resources Management Act of 1978
(Article 1 (commencing with Section 4461) of Chapter 7 of Part 2 of
Division 4).
   (g) To the department, upon appropriation by the Legislature, to
provide grants to local agencies responsible for fire protection,
qualified nonprofits, recognized tribes, local and state governments,
and resources conservation districts, undertaken on a state
responsibility area (SRA) or on wildlands not in an SRA that pose a
threat to the SRA, to reduce the costs of wildland fire suppression,
reduce greenhouse gas emissions, promote adaptation of forested
landscapes to changing climate, improve forest health, and protect
homes and communities.
   4629.7.   All grants made pursuant to subdivisions (f) and (g) of
Section 4629.6 shall fund activities that do any of the following, in
order of priority:
   (a) Improve forest health.
   (b) Promote climate mitigation strategies included in the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code)
scoping plan for the forest sector, as adopted by the State Air
Resources Control Board, or as amended through subsequent actions of
that board.
   (c) Promote climate change adaptation strategies for the forest
sector, as adopted by the Natural Resources Agency in the California
Climate Adaptation Strategy.
   4629.8.   (a) Funds deposited in the Timber Regulation and Forest
Restoration Fund shall be appropriated in accordance with the
following priorities:
   (1) First priority shall be for funding associated with the
administration and delivery of responsibilities identified in
subdivisions (a) to (c), inclusive, of Section 4629.6.
   (2) Only after paragraph (1) is funded, the second priority shall
be, if deposits are sufficient in future years to maintain the fund,
by 2016, at a minimum reserve of four million dollars ($4,000,000),
for use and appropriation by the Legislature in years during which
revenues to the account are projected to fall short of the ongoing
budget allocations for support of the activities identified in
paragraph (1).
   (3) Only after paragraphs (1) and (2) are funded, the third
priority shall be in support of activities designated in subdivisions
(d) and (e) of Section 4629.6.
   (4) Only after paragraphs (1), (2), and (3) are funded, the fourth
priority shall be to support the activities designated in
subdivisions (f) and (g) of Section 4629.6.
   (b) No funds shall be used to pay for or reimburse any
requirements, including mitigation of a project proponent or
applicant, as a condition of any permit.
   4629.9.   (a) On or before January 10, 2013, and on each January
10 thereafter in conjunction with the 2014-15 Governor's Budget and
Governors' Budgets thereafter, the Secretary of the Natural Resources
Agency, in consultation with the Secretary for Environmental
Protection, shall submit to the Joint Legislative Budget Committee a
report on the activities of all state departments, agencies, and
boards relating to forest and timberland regulation. This report
shall include, at a minimum, all of the following:
   (1) A listing, by organization, of the proposed total costs
associated with the review, approval, and inspection of timber
harvest plans and associated permits.
   (2) The number of timber harvest plans, and acreage covered by the
plans, reviewed in the 2011-12 fiscal year, or the most recent
fiscal year.
   (3) To the extent feasible, a listing of activities, personnel,
and funding, by department, for the forest practice program for
2012-13, or the most recent fiscal year, and the preceding 10 fiscal
years.
   (4) The number of staff in each organization dedicated fully or
partially to (A) review of timber harvest plans, and (B) other
forestry-related activities, by geographical location in the state.
   (5) The costs of other forestry-related activities undertaken.
   (6) A summary of any process improvements identified by the
administration as part of ongoing review of the timber harvest
process, including data and technology improvement needs.
   (7) Workload analysis for the forest practice program in each
organization.
   (8) In order to assess efficiencies in the program and the
effectiveness of spending, a set of measures for, and a plan for
collection of data on, the program, including, but not limited to:
   (A) The number of timber harvest plans reviewed.
   (B) Average time for plan review.
   (C) Number of field inspections per inspector.
   (D) Number of acres under active plans.
   (E) Number of violations.
   (F) Evaluating ecological performance.
   (b) A report required to be submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the Government
Code.
   4629.10.   (a) No later than March 1, 2014, as part of the 2014-15
budget process, the Secretary of the Natural Resources Agency, in
conjunction with the Secretary for Environmental Protection, shall
submit a report to the Joint Legislative Budget
                        Committee and to the relevant legislative
policy committees, including a review of the report required to be
submitted to the Joint Legislative Budget Committee pursuant to
Section 4629.9. This review shall include recommendations to the
budget committees on the future funding of the program, the adequacy
of the current regulatory programs, and suggestions for policy
recommendations that will improve this chapter and its implementing
regulations, and other aspects of the laws governing timber
harvesting in the state.
   (b) (1) A report required to be submitted pursuant to subdivision
(a) shall be submitted in compliance with Section 9795 of the
Government Code.
   (2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed as of January 1, 2018.
   4629.11.   (a) Notwithstanding any other law, the revenues in any
fiscal year may be accounted for on an accrued basis. The department
may borrow against anticipated revenues to the fund to meet cashflow
needs.
   (b) Notwithstanding any other law, a loan obtained pursuant to
subdivision (a) shall be interest free. The department shall repay
the loan in a timely manner from reserves received into the fund.
   4629.12.   (a) The Director of Finance shall authorize a loan,
from the General Fund to the fund, to implement the activities
described in Section 4629.6.
   (b) Any loan made pursuant to this section shall be repaid, with
interest at the pooled money investment rate, from revenues from the
assessment imposed pursuant to Section 4629.5.
   4629.13.   Notwithstanding any other law, the Controller may use
the moneys in the fund for cashflow loans to the General Fund, as
provided in Sections 16310 and 16381 of the Government Code. Any such
loan shall be exempt from paragraph (2) of subdivision (b) of
Section 16310 of the Government Code. Interest shall be paid on all
moneys loaned to the General Fund and shall be computed at a rate
determined by the Pooled Money Investment Board to be the current
earning rate of the fund from which the money is loaned. This section
does not authorize any transfer that would interfere with the
carrying out of the object for which these funds were created.
  SEC. 4.  The sum of one million five hundred thousand dollars
($1,500,000) is hereby appropriated from the Timber Regulation and
Forest Restoration Fund, created pursuant to subdivision (a) of
Section 4629.3 of the Public Resources Code, to the Department of
Fish and Game to be used for the purposes of supporting the
department's review of timber harvest plans.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 6.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order that statutory changes are adopted that are necessary to
address forest resource management needs in the state in the coming
years at the earliest possible time, it is necessary that this act
take effect immediately.