BILL ANALYSIS Ó
AB 203
Page 1
ASSEMBLY THIRD READING
AB
203 (Obernolte)
As Amended June 2, 2015
Majority vote
-------------------------------------------------------------------
|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Hadley, Harper, Mark | |
| | |Stone, McCarty, | |
| | |Rendon, Wood | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
AB 203
Page 2
| | | | |
-------------------------------------------------------------------
SUMMARY: Extends the deadline to file a petition for
redetermination of the state responsibility area fire prevention
fee from 30 days to 60 days. Reestablishes the fire prevention
fee at its current level ($152.33) and on July 1, 2017 and
annually thereafter allows the Board of Forestry (Board) to adjust
the fee.
EXISTING LAW:
1)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 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 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 SRA
Fire Prevention Fund, which is available to the Board and the
Department of Forestry and Fire Protection (CAL FIRE) to expend
AB 203
Page 3
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.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)Annual revenue loss (special fund) in the $375,000 to $500,000
AB 203
Page 4
range.
2)Annual fee assessments are due and payable to the Board of
Equalization (BOE) 30 days from the date of assessment. During
FYs 2011-12, 2012-13 and 2013-14, interest and penalties paid
totaled $4,617,894. Of that amount, $1,493,882 in interest and
penalties was remitted on fees paid between 31 and 60 days from
the date of assessment. Under this bill, this amount would not
have been paid. Assuming delinquencies were the same over those
three years, the annual average revenue loss is therefore
computed as: $1,493,882 / 3 = $497,961.
3)However, BOE staff notes that the payments made after 60 days
continues to decline, at an average annual rate of 2%.
Meanwhile, timely payments made within the 30-day period have
improved, in part due to BOE outreach efforts. Given the
continued improvement in timely payments, BOE staff estimates
the annual average revenue loss attributable to penalties and
interest at $382,700.
4)Unknown, likely minor, one-time costs (special fund) for BOE to
reprogram computers and revise information and publications.
5)No additional costs to CALFIRE
COMMENTS:
1)Fire Prevention Fee (AB 29 X1 (Blumenfield), Chapter 8, Statutes
of 2011-12 First Extraordinary Session). 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
AB 203
Page 5
was still a shortfall of $10.8 billion. To help address the
budget shortfall, the Legislature passed, among other bills, AB
29 X1, 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.
Analysis Prepared by:
Michael Jarred / NAT. RES. / (916) 319-2092 FN:
0000912