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