BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 203


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          Date of Hearing:  March 23, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 203  
          Obernolte - As Amended March 17, 2015


          SUBJECT:  State responsibility areas:  fire prevention fees


          SUMMARY:  Extends the deadline to file a petition for  
          redetermination of the state responsibility area fire prevention  
          fee from 30 days to 60 days.


          EXISTING LAW: 


          1)Requires the Board of Forestry (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 area" or "SRA.").

          2)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.

          3)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  








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            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).

          4)Requires the fire prevention fees to be deposited in the State  
            Responsibility Area Fire Prevention Fund, which is available  
            to the Board and the Department of Forestry and Fire  
            Protection (CAL FIRE) to expend for fire prevention activities  
            that benefit the owners of structures within the SRA.  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.  

          5)Allows a person to petition CAL-FIRE 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).

          6)Imposes a 10% penalty for each 30-day period in which the fee  
            remains unpaid after the fee becomes final. 

          7)Allows the Board to exempt from the 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.








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          FISCAL EFFECT:  Board of Equalization (BOE) estimates the annual  
          revenue loss to be about $497,961 (special funds).   
          Additionally, BOE will incur minor one-time costs for computer  
          programming and revising publications (special funds).


          COMMENTS:  


          1)Fire Prevention Fee (ABX1 29).  In early 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 cut to CAL FIRE in the 2011 budget bill. The  
            2014-15 Budget appropriated $76.3 million from SRA revenues to  
            enhance statewide fire prevention work including, for the  
            first time, $10 million for local assistance grants to be used  
            in locations where the effects of drought, fuel loading and  
            structure development converge.

          2)Appeals.  Under existing law, a person may appeal a fire  
            prevention fee billing notice through a petition for a  
            redetermination if that petition is filed within 30 days of  
            receiving the billing notice.  This bill extends the 30 day  
            deadline to 60 days.
           
           3)Prior Legislation.  
           
             AB 2048 (Dahle, Chesbro, and Gordon), Chapter 895, Statutes of  








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            2014, among other things, reduced the penalties for each 30  
            day the fee is unpaid and simplified the appeals process.  


            SB 1413 (Wyland, 2014) was almost identical to this bill and  
            was held in Assembly Appropriations.  


           4)Related legislation. 
            
            AB 301 (Bigelow) Requires the state responsibility area fire  
            prevention fee to be prorated for an owner that owns the  
            habitable structure for only a portion of the year for which  
            the fee is due. This bill is also scheduled to be heard by  
            this committee on March 23rd.

            AB 1202 (Mayes) requires the Board to reduce the fee to be  
            charged on a habitable structure by an amount equal to the  
            amount paid by the owner of the structure to a local fire  
            district for fire prevention services. Pending in Assembly  
            Rules Committee.  


           








          REGISTERED SUPPORT / OPPOSITION:




          Support









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          George Runner, Member, State Board of Equalization (sponsor)
          Board of Equalization Member, Diane L. Harkey, District 4
          California Farm Bureau Federation
          California Fire Chiefs Association
          California Taxpayers Association (Cal Tax)
          County of San Bernardino
          Fire Districts Association of California
          Howard Jarvis Taxpayers Association
          Plumas County Board of Supervisors
          San Diego County Board of Supervisors


          Opposition




          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092