BILL ANALYSIS                                                                                                                                                                                                    


          |SENATE RULES COMMITTEE            |                  AB 1492|
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                                 THIRD READING

          Bill No:  AB 1492
          Author:   Assembly Budget Committee
          Amended:  8/7/12 in Senate
          Vote:     27 - Urgency

           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  11-0, 8/15/12
          AYES:  Leno, Alquist, DeSaulnier, Evans, Hancock, Liu, 
            Lowenthal, Negrete McLeod, Simitian, Wolk, Wright
          NO VOTE RECORDED:  Emmerson, Anderson, Fuller, Gaines, La 

           ASSEMBLY FLOOR  :  Not relevant

           SUBJECT  :    Budget Act of 2012:  Timber Harvesting

           SOURCE  :     Author

           DIGEST  :    This bill makes various changes related to 
          Timber Harvest Plans and revenues to implement the budget 
          actions as part of the 2012-13 budget package.

           ANALYSIS  :    The bill includes the following changes:

          1.Allows a timber harvest plan approved after July 31, 2012 
            to be in effect for a period of not more than five years 
            with extensions authorized for a two-year period.  

          2.Establishes the Timber Regulation and Forest Restoration 
            Fund in the State Treasury and imposes a new assessment 
            on lumber as follows:


                                                               AB 1492

             A.   Imposes an assessment on lumber products and 
               engineered wood products at a rate of one percent of 
               gross receipts from the sale of those products.

             B.   Funds are required to be available upon 
               appropriation for administrative costs, and for 
               purposes relating to the regulatory activities of the 
               Department of Forestry and Fire Protection, and other 
               state and local agencies involved in the management of 
               forest lands.

             C.   Funds may be made available for management of 
               forest lands, the cost of managing forest resource 
               programs in the state, and for certain grants to state 
               and local public agencies for fire protection, fire 
               suppression and restoration activities.

             D.   Retailers may be reimbursed for costs to set up 
               collection systems.  The fee may be itemized on 

          1.Requires the Secretary of the Natural Resources Agency 
            annually 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.

          2.Allows civil action by a public agency to recover damages 
            caused in a fire but limits the measure of damages for 
            injuries to timber, trees, or underwood negligently cause 
            by fire to the actual damages suffered.  

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  Yes

          This bill should not result in any changes to the budget 
          act in related budget actions.

           SUPPORT  :   (Verified  8/22/12)

          - - - - 

           OPPOSITION  :    (Verified  8/22/12)



                                                               AB 1492

          California Republican Assembly
          Home Depot
          Howard Jarvis Taxpayers Association
          Los Angeles Area Chamber of Commerce
          Lumber Association of California and Nevada
          National Lumber and Building Material Dealers Association
          Retail Industry Leaders Association
          Valley Industry and Commerce Association

           ARGUMENTS IN SUPPORT  :    According to the Assembly Budget 
          Committee, this bill provides the necessary statutory 
          references to enact the 2012-13 budget related to Timber 
          Harvest Plans.

           ARGUMENTS IN OPPOSITION  :    The California Republican 
          Assembly is opposed to what they see as a new lumber tax.

          DLW:n  8/22/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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