BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1136|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 1136
          Author:   Morrell (R), et al.
          Amended:  4/5/16  
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 3/29/16
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Fire prevention:  state responsibility areas:   
                     report


          SOURCE:    Author

          DIGEST:   This bill extends the sunset and adds reporting  
          requirements to the annual report from the California Department  
          of Forestry and Fire Protection (CDF) regarding the expenditure  
          of state responsibility area (SRA) fire fees. 

          ANALYSIS:  
          
          Existing law: 

          1)Enacts the SRA fire prevention fee following the signing of  
            ABX1 29 (Blumenfield, Chapter 8, Statutes of 2011-12 First  
            Extraordinary Session) 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.  

          2)Requires an annual report on SRA fire fee expenditures. The  








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            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 Web site. 





          This bill: 



          1)Extends the sunset date on the report to January 31, 2021. 



          2)Adds reporting requirements that require specific information  
            on expenditures from each program, subprograms, and element  
            for which CDF uses money from the fee. It also adds a  
            reporting provision for actual and current year fiscal  
            expenditures. 



          3)Provides that additional reporting requirements pertain to  
            equipment expenditures, personnel positions that are  
            associated with each expenditure, and descriptions and  
            expenditures on each SRA grant awarded. 



          Comments

          

          The additional reporting requirements reflect frustration on the  
          part of some legislators regarding the information provided them  
          regarding this fee, which is unpopular in some areas of the  
          state. The author acknowledged that he has received most, if not  
          all, of the information he requested in an acceptable format. If  
          there is an open question regarding this bill it is whether the  
          Legislature should codify an information request that has  
          already been satisfied. 







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          The SRA fee 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 CDF Web site, 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 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. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:  (Verified  4/25/16)      

          Former State Senator George Runner







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          Howard Jarvis Taxpayers Association
          San Bernardino County
          46 individuals


          OPPOSITION:   (Verified4/25/16)


          None received

          ARGUMENTS IN SUPPORT:  According to the author, he (and the  
          co-authors) were not receiving adequate information about SRA  
          fire fee expenditures despite the annual report. He believes  
          that SRA grant fee expenditures are reported much more  
          transparently than the 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. 


            


          Prepared by:William Craven / N.R. & W. / (916) 651-4116
          4/27/16 15:57:22


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