BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 124
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          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 124 (Morrell) - As Introduced:  January 14, 2013

          Policy Committee:                              Natural  
          ResourcesVote:6-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill repeals the fire prevention fee on structures located  
          in State Responsibility Areas (SRA) as of January 1, 2014.

           FISCAL EFFECT  

          Fee revenue loss of approximately $90.7 million in 2013-14 (SRA  
          Fire Prevention Fund).  These fees fund fire prevention  
          activities at the Department of Forestry and Fire Protection  
          (CAL FIRE) or through local assistance grants and efforts by the  
          California Conservation Corps (CCC). 

           COMMENTS  

           1)Purpose.   According to the author, this bill is intended to  
            ensure that those persons subject to the fire prevention fee  
            are not taxed a second time for services provided locally.  

          2)Background  .  The state is responsible for wildland fire  
            protection in State Responsibility Areas (SRA), which are  
            generally defined to include most nonfederal timberlands,  
            rangelands and watersheds thinly populated and not within the  
            boundaries of a city.  Over 31 million acres, much privately  
            owned, are located in the SRA.  In the past, SRA were largely  
            unpopulated.  In recent years, however, local governments have  
            allowed increased housing development in the SRA but at a  
            level of density that maintains the state's obligation to  
            provide wildland fire protection.     

            As housing development in the SRA increased, so did state fire  
            protection costs.  In 1996-97, the department spent $475  








                                                                 AB 124
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            million on fire protection; in more recent years, CAL FIRE's  
            annual fire protection costs neared or surpassed $1 billion.

            The Legislative Analyst's Office (LAO) attributes much of the  
            increase in CAL FIRE's fire protection costs to increased  
            housing development in the SRA.  The LAO notes that as housing  
            development in SRA has increased, the department has spent  
            greater resources responding to events other than wildfires  
            for which the state is not legally responsible, such as  
            structural fires and medical emergencies.  Because the LAO  
            concludes that much of CAL FIRE's nonwildfire activities  
            provide private benefits, it has long recommended a fee on  
            owners of private land in the SRA to pay for a portion of CAL  
            FIRE's fire protection costs.

           3)Legislative Intent.   In 2011 the Legislature passed ABx1 29  
            (Blumenfield), requiring the Board of Forestry and Fire  
            Protection to adopt emergency regulations to establish a fire  
            prevention fee. The fee, not to exceed $150 on each structure,  
            was to raise $50 million to fund CAL FIRE fire prevention  
            activities.  In January 2012, the board issued its regulation,  
            establishing a fee of $150 per habitable structure on a parcel  
            located with the SRA, with a $35 exemption for each habitable  
            structure that is also within the boundaries of a local agency  
            that provides fire protection services.  Revenues from the fee  
            are to be used exclusively for fire protection.  
           
             In authorizing the fee, the Legislature recognized that  
            individual owners within the SRA received a disproportionately  
            larger benefit from fire prevention activities than realized  
            by the state's residents generally.   
             
          4)  Previous Attempts to Enact a Fee.   The Legislature has made  
            several attempts at imposing such a fee. In 2003, the budget  
            bill included a $35 fee on the owner of each parcel of land  
            within the SRA.  Many expressed concern that the per-parcel  
            fee failed to reflect the greater fire protection benefit  
            received by those who own larger parcels of land.  The  
            following year, before the fee was collected, the Legislature  
            passed another bill repealing the fee.  Other fire fee bills  
            were introduced in subsequent years, but ultimately failed in  
            the Legislature.  

          5)  Related Legislation.     This bill identical to AB 23  
            (Donnelly) which is also in the Appropriations Committee.








                                                                  AB 124
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           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081 

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