BILL ANALYSIS Ó AB 2239 Page 1 Date of Hearing: April 7, 2014 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 2239 (Chesbro) - As Introduced: February 21, 2014 SUBJECT : Forest practices: management plans: change of ownership SUMMARY : Establishes a process to ensure that a person who acquires timberlands described in a Working Forest Management Plan (WFMP) or Nonindustrial Timber Management Plan (NTMP) receives notice on how to assume the plan. Gives discretion to the Department of Forestry and Fire Protection (CAL FIRE) to cancel a WFMP or NTMP if the new landowner does not assume the plan within one year of receiving the notice. EXISTING LAW : 1)Prohibits, in general, any person from conducting timber operations unless a harvesting plan, such as a timber harvest plan (THP), WFMP, or NTMP, has been prepared by a registered professional forester and approved by CAL FIRE. (THPs, WFMPs, and NTMPs, are considered the functional equivalent of an environmental impact report (EIR) under the California Environmental Quality Act (CEQA).) 2)Creates the WFMP, which is a long-term forest management plan for nonindustrial landowners with less than 15,000 acres of timberlands if the landowner commits to uneven aged management and sustained yield. 3)In the event of a change of ownership of the land described in a WFMP, requires the working forest landowner to notify the new landowner of the existence of the plan and the need to notify CAL FIRE of the new landowner's intent regarding assumption of the plan. Gives the new landowner one year from the date of the receipt of the notification to notify CAL FIRE in writing of his or her assumption of the plan. If CAL FIRE does not receive notification within this period, requires the plan to expire one year from the date the new landowner is advised by CAL FIRE of the necessity to assume the plan. 4)Creates the NTMP, which is a long-term forest management plan AB 2239 Page 2 for nonindustrial landowners with less than 2,500 acres of timberlands if the landowner commits to uneven aged management and sustained yield. 5)In the event of a change of ownership of the land described in a NTMP, requires the NTMP to expire 180 days from the date of change of ownership unless the new timberland owner notifies CAL FIRE in writing of the change of ownership and his or her assumption of the plan. THIS BILL : 1)Upon a change of ownership of the land described in the NTMP or WFMP, requires the transferring landowner to provide the acquiring landowner with a written transfer notice that discloses the existence of the plan and informs the acquiring landowner of the need to notify CAL FIRE if the acquiring landowner intends to assume the plan. If the transferring landowner fails to provide the transfer notice and CAL FIRE discovers the change of ownership, requires CAL FIRE to provide the acquiring landowner with the transfer notice. 2)Gives the acquiring landowner one year from the date of the receipt of the transfer notice to notify CAL FIRE of his or her assumption of the plan. If the acquiring landowner does not formally assume the plan within this period, authorizes CAL FIRE to cancel the plan. FISCAL EFFECT : Unknown COMMENTS : 1)Background . The NTMP was created by the Legislature in 1990 to allow landowners with no more than 2,500 acres to apply for a timber harvesting document that would allow for long-term approval with certain conditions under a known set of forest practice rules. The program requires the use of uneven aged forest management and proof that operations provide for sustained yield. Through an NTMP, a nonindustrial timberland owner first prepares a management plan that is subject to a multi-agency review process and acts as the functional equivalent of an EIR under CEQA. The cost of preparing this management plan is about 25 to 50 percent more than a typical THP, much of which comes from the required sustained yield analysis. However, unlike a THP, which is good for no more AB 2239 Page 3 than seven years, an NTMP lasts in perpetuity and the additional cost is recaptured over time because subsequent NTMP harvest entries can be conducted under a much simpler notice to CAL FIRE that is tiered off of the NTMP. Last year, the WFMP was created by AB 904 (Chesbro), Chapter 648, Statutes of 2013. The WFMP is similar to the NTMP; however, it applies to nonindustrial landowners with less than 15,000 acres of timberland and contains stricter environmental standards. Since both the NTMP and WFMP run with the land, they can be transferred from one landowner to the next. The NTMP has very strict and short timelines for a new landowner to assume the old landowner's plan: if the new landowner does not formally assume the plan with 180 days, the plan is cancelled. The WFMP has more lenient requirements: the new landowner has one year upon receiving the transfer notice to assume the plan before it is cancelled. This bill provides clean up language to make the WFMP's transfer provisions clearer and gives CAL FIRE the discretion to cancel a plan if the new landowner does not assume it within the specified time frame. Additionally, this bill amends the NTMP transfer of ownership language so it is governed by the same transfer provisions contained in the WFMP statutes. 2)No Crime Intended . During the drafting process of this bill, Legislative Counsel determined that if a transferring landowner violates the bill's notification requirements, he or she will be committing a crime (this is the reason for the Central Coast Forest Association's oppose position). This is not the intent of the bill. If the transferring landowner does not provide the new landowner with notice to assume the plan, eventually CAL FIRE will. The author and committee may wish to consider amendments to clarify that this bill does not create a new crime . REGISTERED SUPPORT / OPPOSITION : Support None on file AB 2239 Page 4 Opposition Central Coast Forest Association. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092