BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1202


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1202 (Mayes) - As Amended May 5, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Board of Forestry and Fire Protection  
          (Board) to reduce the amount of the fire prevention fee (SRA) by  
          an amount equal to the amount paid to a local fire district for  
          fire prevention in the state responsibility areas.   








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          Additionally, this bill requires the Board to adopt guidelines  
          to clarify the type of written documentation the owner of a  
          structure is required to provide in order to receive the fee  
          reductions.


          FISCAL EFFECT:


          1)Significant reduction in fire prevention fee revenues,  
            potentially in the tens of millions of dollars annually (SRA  
            Fire Prevention Fund).  

            The Board of Equalization (BOE) estimates approximately 98% of  
            structures subject to the feeare located in an area that  
            provides local fire protection services.  This bill will  
            likely result in partial fee reduction, at least, for nearly  
            all structures subject to the fire prevention fee, which would  
            substantially diminish the  $76.9 million in fee revenue CAL  
            FIRE anticipates in 2015-16.



          2)General Fund pressure of an unknown amount, potentially in the  
            tens of millions of dollars, in 2015-16 to fund fire  
            prevention activities at CAL FIRE and the California  
            Conservation Corps (CCC) that otherwise would be funded by the  
            fire prevention fee. 



          3)Unknown administrative costs, potentially in the hundreds of  
            thousands of dollars,for the Board to adopt guidelines to  
            implement the program.


          COMMENTS:










                                                                    AB 1202


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          1)Purpose.  According to the author, property owners who  
            are already paying a special tax for these services at  
            the local level should not also have to pay for them at  
            the state level.  This bill provides a reduction in the  
            SRA fee in the amount paid to local districts.

          2)Background.   The state is responsible for wildland fire  
            protection in the SRA which are generally defined to include  
            most nonfederal timberlands, rangelands and watersheds thinly  
            populated and not within the boundaries of a city.  Over 31  
            million acres, much privately owned, are located in SRA.  In  
            the past, SRA lands were largely unpopulated.  In recent  
            years, however, local governments have allowed increased  
            housing development in SRA but at a level of density that  
            maintains the state's obligation to provide wildland fire  
            protection.  
             


            As housing development in SRA increased, so did state fire  
            protection costs.  In 1996-97, the department spent $475  
            million on fire protection; in more recent years, CALFIRE's  
            annual fire protection costs neared or surpassed $1 billion.


            The Legislative Analyst's Office (LAO) attributes much of the  
            increase in CALFIRE's fire protection costs to increased  
            housing development in SRA.  The LAO notes that as housing  
            development in SRA has increased, the department has spent  
            greater resources responding to events other than wildfires  
            for which the state is not legally responsible, such as  
            structural fires and medical emergencies.  Because the LAO  
            concludes that much of CALFIRE's nonwildfire activities  
            provide private benefits, LAO has long recommended a fee on  
            owners of private land in SRA to pay for a portion of  
            CALFIRE's fire protection costs.


          3)SRA Fire Protection Fees.  In 2011 the Legislature passed ABx1  








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            29 (Blumenfield), requiring the Board of Forestry and Fire  
            Protection to adopt emergency regulations to establish a fire  
            prevention fee. The fee, not to exceed $150 on each structure,  
            was to raise $50 million to fund CALFIRE fire prevention  
            activities.  In January 2012, the board issued its regulation,  
            establishing a fee of $150 per habitable structure on a parcel  
            located within SRA, with a $35 reduction for each habitable  
            structure that is also within the boundaries of a local agency  
            that provides fire protection services.  Revenues from the fee  
            are to be used exclusively for fire protection.  In  
            authorizing the fee, the Legislature recognized that  
            individual owners within SRA received a disproportionately  
            larger benefit from fire prevention activities than realized  
            by the state's residents generally.  

            As required by law, the fee was adjusted for inflation and is  
            currently $152.33 per habitable structure outside a fire  
            protection district and $117.33 for habitable structures  
            within a fire protection district.  According to the Board of  
            Equalization website, approximately 98% of habitable  
            structures in the SRA are covered by a local fire protection  
            agency resulting in most bills amounting to $117.33 per  
            habitable structure.


          4)Local fire protection.  There are many different districts and  
            many of them charge the public for fire protection and  
            prevention.  District rates have a high degree of variance  
            with some less than the $35 reduction and some more than the  
            $150 fire fee. The fees assessed by districts can also be  
            assessed by parcel, single family, or by the use of the  
            parcel. Districts combine their fire protection and fire  
            prevention services in one fee.  In contrast, the SRA fee is  
            one set amount for the whole state, is charged by habitable  
            structure, and only covers fire prevention. AB 1202 allows the  
            owner to provide written documentation of what they pay to a  
            district to receive a reduction in their SRA fee










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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081