BILL ANALYSIS Ó
AB 2048
Page 1
Date of Hearing: April 7, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2048 (Dahle) - As Introduced: February 20, 2014
SUBJECT : Fire prevention fees: state responsibility areas
SUMMARY : Amends the statutes governing the fire prevention fee
by, among other things, clarifying who should pay the fee,
exempting an owner of habitable structures from paying the fee
if the structure has been destroyed by natural disaster, and
reduce the penalty for untimely fee payments.
EXISTING LAW :
1)Establishes the Department of Forestry and Fire Protection
(CAL FIRE), which, among other things, 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)Creates within CAL FIRE the State Board of Forestry and Fire
Protection (Board) consisting of nine members appointed by the
Governor. Requires the Board to protect the state's interest
in forest resources on private lands, which includes
establishing adequate forest policy and determining general
policies for CAL FIRE.
3)Requires the Board to classify all lands within the state for
the purpose of determining areas in which the financial
responsibility of preventing and suppressing fires is
primarily the responsibility of the state (these areas are
known as "state responsibility areas" or "SRA.")
4)Declares that it is necessary to impose a fire prevention fee
to pay for fire prevention activities in the SRA that
specifically benefit owners of structures in the SRA.
5)Requires the Board to adopt regulations to establish a fire
prevention fee in an amount not to exceed $150 (which must be
adjusted every year for inflation) to be charged on each
"structure" on a parcel that is within the SRA. Defines
"structure" as a building used or intended to be used for
AB 2048
Page 2
human habitation, including a mobile home or manufactured
home. Reduces the fire prevention fee by $35 if the structure
is also within the boundaries of a local agency that provides
fire protection services (this reduction applies to most
structures).
6)Requires the fire prevention fees to be deposited in the State
Responsibility Area Fire Prevention Fund, which is available
to the Board and CAL FIRE to expend for fire prevention
activities that benefit the owners of structures within the
SRA who are required to pay the fire prevention fee. Limits
fire prevention activities to the following: a) local
assistance grants established by the Board; b) grants to Fire
Safe Councils, the California Conservation Corps, or certified
local conservation corps for fire prevention projects and
activities in the SRA; c) grants to a qualified nonprofit
organization with a demonstrated ability to satisfactorily
plan, implement, and complete a fire prevention project
applicable to the SRA; d) inspections by CAL FIRE for
compliance with defensible space requirements around
structures in the SRA; e) public education to reduce fire risk
in the SRA; f) fire severity and fire hazard mapping by CAL
FIRE in the SRA; and, g) other fire prevention projects in the
SRA that are authorized by the Board.
7)Allows a person to petition for a redetermination of whether
the fire prevention fee applies to him or her within 30 days
after being served with a notice of determination (i.e., the
notice from CAL FIRE stating that a person must pay the fire
prevention fee). Requires the petition to be sent to CAL
FIRE, the Board, and the Board of Equalization (BOE).
8)Imposes a 20 percent penalty for each 30-day period in which
the fee remains unpaid after the fee becomes final.
THIS BILL :
1)Deletes the term "structure" and replaces it with "habitable
structure," which is the term used in the fire prevention fee
regulations promulgated by the Board. Defines "habitable
structure" as follows:
A building that contains one or more dwelling units or
that can be occupied for residential use. Buildings
occupied for residential use include single family
AB 2048
Page 3
homes, multidwelling structures, mobile and
manufactured homes, and condominiums. Habitable
structures do not include commercial, industrial, or
incidental buildings such as detached garages, barns,
outdoor sanitation facilities, and sheds. (This
definition is virtually the same as the definition of
"habitable structure" in the fire prevention fee
regulations.)
2)Defines "person" and "owner of a habitable structure" for
the purposes of the fire prevention fee statutes.
3)Authorizes (rather than requires) the Board to adjust the
fire prevention fee for inflation.
4)Authorizes the Board to exempt from the fire prevention
fee any habitable structure that is subsequently deemed
uninhabitable as a result of a natural disaster during
the year for which the fee is due, as well as one
subsequent year if the habitable structure has not been
repaired or rebuilt. Requires the board to only consider
granting an exemption if the following conditions are
met:
a) The owner of the habitable structure certifies that
the structure is not habitable as a result of a
natural disaster; or
b) The owner of the habitable structure either can
document that the habitable structure passed a
defensible space inspection conducted by CAL FIRE or
by one of its agents within one year of the date the
structure was damaged or destroyed or certifies that
the legally required defensible space was in place at
the time that the structure was damaged or destroyed
as a result of a natural disaster.
5)If a petition for redetermination of the fire prevention
fee is filed after the expiration of the 30-day time
period, authorizes CAL FIRE to treat the untimely
petition as an administrative protest or claim for refund
if it determines that the facts presented indicate that
the fire prevention fee originally determined may have
been excessive or that the amount or the application of
the fee may have been the result of an error by Cal FIRE
AB 2048
Page 4
or the Board.
6)Requires a petition for redetermination to be sent only
to CAL FIRE.
7)Eliminates the 20 percent penalty for each 30-day period
in which the fee remains unpaid after becoming final and
replaces it with the state's general 10 percent penalty
that applies to late payments of fees.
FISCAL EFFECT : Unknown
COMMENTS :
1)Fire Prevention Fee (ABX1 29) . Going into 2011, the state was
facing a $25.4 billion budget deficit (which grew to $26.6
billion after the governor cancelled the sale of several state
buildings) and an annual structural deficit of up to $21.5
billion was projected into the future. In March 2011, the
Legislature passed $13.4 billion in "solutions" (consisting
mostly of spending cuts) to address the deficit; however,
there was still a shortfall of $10.8 billion. To help address
the budget shortfall, the Legislature passed, among other
bills, ABX1 29, which required the Board to adopt emergency
regulations to establish a "fire prevention fee" not to exceed
$150 for each structure on a parcel that is within the SRA.
The fee was intended to fill a hole created by a $50 million
General Fund (GF) cut directed at CAL FIRE in the 2011 budget
bill. It has been well documented in news articles and
political colloquy that the Legislature was compelled to
establish the fee because it had to produce substantial GF
cuts, and other budget options, such as increasing revenues
through additional sales and income taxes, were politically
infeasible due to the two-thirds vote requirement for such
measures.
2)Inflation Adjustment . Under existing law, the Board is
required to increase the fire prevention fee every year for
inflation. For fiscal year 2013-14, the fee is $152.33. This
bill would no longer mandate this inflation adjustment;
instead, it will be left to the Board's discretion.
3)Natural Disaster Exemption . This bill exempts a person from
paying the fire prevention fee for two years if his or her
habitable structure becomes uninhabitable as a result of a
AB 2048
Page 5
natural disaster. Even after those two years, if the
structure is still uninhabitable, the fee can be waived for
not being a "habitable structure," which is a term defined by
this bill.
4)Appeals . Under existing law, a person my appeal a fire
prevention billing notice through a petition for a
redetermination if that petition is filed within 30 days of
receiving the notice. This bill gives CAL FIRE the
authorization to also consider appeals filed after the 30 day
period expires. Additionally, this bill only requires a
person to send the petition to one agency (CAL FIRE) instead
of three (under existing law, a petition must be sent to CAL
FIRE, the Board, and BOE).
5)Penalties . Under existing law, a person is subject to a 20
percent penalty for each 30-day period in which the fee
remains unpaid after the fee becomes final. In practice, this
penalty has only been applied if a person appeals the fee
through a petition for redetermination. If CAL FIRE denies
the petition for redetermination and the person does not pay
the fee, the 20 percent penalty will apply for each 30-day
period during which the fee remains unpaid. According to a
report from the BOE, if a person does not appeal but fails to
pay the fee on time, a 10 percent penalty is applied pursuant
to Section 55086 of the Revenue and Taxation Code (this a
general code section regarding fees). This bill eliminates
the 20 percent penalty and applies the 10 percent penalty to
all late payments
According to the BOE staff, for fiscal year 2011-12, the state
collected $71,872 attributable to the 20 percent penalty. In
fiscal year 2012-13, the state collected $2,528.37 for the
penalty.
6)Similar Legislation . AB 1519 (Donnelly) proposes to eliminate
the 20 percent penalty for each 30-day period in which the
fire prevention fee remains unpaid after becoming final.
REGISTERED SUPPORT / OPPOSITION :
Support
Central Coast Forest Association
Nevada County Board of Supervisors
AB 2048
Page 6
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092