BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            SB 1136         Hearing Date:    March 29,  
          2016
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          |Author:    |Morrell                |           |                 |
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          |Version:   |March 28, 2016                                       |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|William Craven                                       |
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           Subject:  Fire prevention:  state responsibility areas:  report


          BACKGROUND AND EXISTING LAW

          The State Responsibility Area (SRA) fire prevention fee was  
          enacted following the signing of Assembly Bill X1 29 in July  
          2011. The law approved the new fee to pay for fire prevention  
          services within the SRA. The fee is applied to all habitable  
          structures within the SRA and generates approximately $74  
          million annually. 


          Effective July 1, 2014, the fee is levied at the rate of $152.33  
          per habitable structure, which is defined as a building that can  
          be occupied for residential use. Owners of habitable structures  
          who are also within the boundaries of a local fire protection  
          agency will receive a reduction of $35 per habitable structure.


          According to the website of the Department of Forestry and Fire  
          Protection (CDF), this fee funds a variety of important fire  
          prevention services in the SRA. Such activities include fuel  
          reduction activities that lessen risk of wildfire to communities  
          and evacuation routes. Other activities include defensible space  
          inspections, fire prevention engineering, emergency evacuation  
          planning, fire prevention education, fire hazard severity  
          mapping, implementation of the State and local Fire Plans and  
          fire-related law enforcement activities such as arson  







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          investigation. 


          The legality of the fee is being challenged in court, and it is  
          not clear when the trial will occur. The argument is that the  
          fee should have been enacted as a tax with a 2/3 vote. 


          Since its adoption, the Legislature has considered many bills to  
          repeal the fee, none of which were passed. It also passed bills  
          allowing a landowner to apportion the fee with a prospective  
          buyer, to index the fee for inflation, and to exempt structures  
          destroyed by natural disasters from the fee. 


          An annual report on SRA fire fee expenditures is required by  
          law. The sunset date on these reports is January, 2017. In a  
          recent informational report from last year, CDF summarized  
          expenditures for the three fiscal years 2012-15. That report is  
          available on the CDF website. 


          Some legislators were concerned that they (and the public) were  
          not getting adequate information about SRA fire fee expenditures  
          despite this report and other information provided to them by  
          CDF. 


          PROPOSED LAW
          This bill would amend the annual reporting statute for SRA fee  
          expenditures by requiring that each report include a description  
          of each program and subprogram element for which the department  
          uses money generated from the fire prevention fee, including an  
          itemized accounting of expenditures for each program and  
          subprogram. The bill would also require reporting on equipment  
          expenditures, personnel positions that are associated with each  
          expenditure, descriptions and expenditures on each SRA grant  
          awarded by CDF, and past year, current year, and budget year  
          expenditures for each annual report.  It also directs the  
          department to make any appropriate recommendations to the  
          Legislature. The bill extends the sunset on the reporting  
          provisions until January 31, 2021. 

          ARGUMENTS IN SUPPORT








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          According to the author, CDF does report its SRA grant fee  
          expenditures much more transparently than it reports its fire  
          prevention activities that are also funded from SRA fire fees.  
          At the request of the author, CDF provided a much more detailed  
          report on SRA fire prevention activities that he believes is an  
          adequate precedent for future reports should this bill be  
          enacted. 

          ARGUMENTS IN OPPOSITION
          None received

          COMMENTS
          The author acknowledged that the department has provided the  
          expenditure information he sought in an acceptable format. The  
          question before the committee is whether that fulfilled request  
          should now be codified, or whether the author can obtain  
          agreement on another way to obtain a commitment from the  
          department for the expenditure information to be available to  
          the public without the need for a bill. That question may be  
          resolved at this hearing or at any future point in the process. 

          AMENDMENTS
          The author has requested three technical amendments that he will  
          adopt as author's amendments as well as adding co-authors: 

             1.   Page 3, in subdivision (f) include in the Cal Fire  
               report past year actuals, current year, and budget year  
               estimates. 
             2.   Page 3, include a comma in line 27 after the word  
               "subprogram" 
             3.   Page 3, include a comma in line 30 after the word  
               "subprogram"
             4.   Add Senate co-authors Berryhill, Fuller, Bates, and  
               Runner and Assembly co-authors Gallagher, Jones, Wagner,  
               and Olbernolte. 


          SUPPORT
          Senator George Runner (Ret.)
          Howard Jarvis Taxpayers Association
          46 Individuals

          OPPOSITION
          None Received








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