BILL ANALYSIS Ó AB 2544 Page 1 ASSEMBLY THIRD READING AB 2544 (Gordon) As Introduced February 24, 2012 Majority vote NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Chesbro, Brownley, |Ayes:|Fuentes, Blumenfield, | | |Dickinson, Huffman, | |Bradford, Charles | | |Monning, Skinner | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Knight, Grove, Halderman |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Clarifies and expands the Department of Forestry and Fire Protection's (CalFire) authority regarding land transactions for the purpose of qualifying for the Department of General Services (DGS) review exemption. Specifically, this bill authorizes CalFire to: 1)With the approval of DGS, enter into agreements, easements, licenses, or permits to acquire real property rights for the purposes of establishing fire protection, fire prevention, fire suppression, demonstration state forests, pest control, forest and range protection, and enhancement activities and related uses. 2)With the approval of DGS, lease real property acquired for forestry and fire protection purposes. Rent must be based on the fair market value of the property when used for the purpose for which it is leased. The lease term shall not exceed 10 years. No lease may be entered into that extends beyond the 10-year period unless approved by the Legislature or the Public Works Board as specified. 3)Provide temporary means of ingress to, and egress from, all property under its jurisdiction in order to provide ready access for the purposes of harvesting timber, conducting studies, and passing and placing equipment upon the AB 2544 Page 2 department's lands. 4)With the consent of DGS, lease any real or personal property that the CalFire deems necessary for temporary use of fire station facilities, modular facilities, storage, warehouse, or office purposes when existing departmental facilities are inadequate or when the extension, improvement, or development of fire stations and forestry lands is needed. 5)Upon application by the proper authorities, grant permits and easements a) to a public agency for public roads; b) to a public agency for utility lines; c) for electric, gas, water, sewer, telephone, telegraph, and utility lines, and pipelines and structures incidental thereto to perform a public service; and, d) to any oil and gas lessee of the state for pipeline right-of-way purposes. 6)Enter into contracts with owners of communication and telecommunication facilities to provide communications and telecommunications needed in connection with the prevention and extinguishment of forest fires. EXISTING LAW : 1)Establishes CalFire, which is responsible for the fire protection, fire prevention, maintenance, and enhancement of the state's forest, range, and brushland resources, contract fire protection, associated emergency services, and assistance in civil disasters and other nonfire emergencies. 2)Establishes DGS to provide centralized services including planning, acquisition, construction, and maintenance of state buildings and property. DGS may acquire title to real property in the name of the state whenever the acquisition of real property is authorized or contemplated by law, if no other state agency is specifically authorized and directed to acquire it. 3)Authorizes CalFire, with the approval of DGS, to purchase land for lookout sites and for other administrative purposes. 4)Authorizes CalFire, with the approval of DGS, to enter into contracts with powerline owners for use of facilities, such as pole lines, to provide communications needed in connection AB 2544 Page 3 with the prevention and extinguishment of forest fires. Provision may be made for indemnification and holding harmless of the owners of such facilities. Insurance may be purchased by DGS, upon the request of CalFire, to protect the state against loss or expense arising out of any such contract. 5)Authorizes DGS to exempt from its approval any state real estate acquisition or conveyance involving not more $150,000 for which DGS's approval is required by statute. Written notice of an exemption shall be given to the Controller. FISCAL EFFECT : According to the Assembly Appropriations Committee, potential savings of an unknown amount, less than $100,000, resulting from eliminating the need for DGS review of minor CalFire real estate transactions. The amount of these potential savings is unknown. (DGS expresses concern the bill will result in duplication of services, since DGS has a Real Estate Services Division that conducts real estate transactions for all departments. It seems more likely, however, that such duplication of services exists under current law, as CalFire real estate transactions, which are reviewed by CalFire capital outlay staff, must also be reviewed by DGS.) COMMENTS : CalFire, through its Capital Outlay Program, works with DGS to acquire property and develop plans for facilities such as fire stations, training centers, emergency command centers, fire lookout towers, radio towers, and a number of other kinds of compounds. According to the author, CalFire has developed real estate staffing and expertise through the Capital Outlay Program. When CalFire engages in a real estate transaction, staff, among other things, negotiates and drafts agreements and prepares the necessary documents. Under existing law, however, CalFire must send a proposed real estate transaction to DGS for review and approval. DGS often duplicates many of the same efforts performed by CalFire. The author asserts that DGS' involvement has delayed multiple projects and has cost CalFire and the General Fund hundreds of thousands of dollars. From 2008 to 2011, CalFire paid approximately $65,000 to $88,000 for DGS review. In some cases, the DGS review process is more expensive than the value of the transaction. AB 2544 Page 4 This bill gives CalFire the authority to receive exemptions from DGS for real estate acquisitions or conveyances involving not more than $150,000. Additionally, this bill provides CalFire the benefit of managing lands under its jurisdiction with minimal DGS involvement for certain transactions, such as ingress and egress approval for timber harvesting and other temporary needs, or when public agencies request easements from CalFire for installation of telephone, water, and public utilities to adjacent property owners. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092 FN: 0003460