BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 13, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          SB  
          1136 (Morrell) - As Amended April 5, 2016


          SENATE VOTE:  37-0


          SUBJECT:  Fire prevention:  state responsibility areas:  report


          SUMMARY:  Extends the sunset and adds reporting requirements to  
          the annual report from the Board of Forestry and Fire Protection  
          (Board) regarding the expenditure of state responsibility area  
          (SRA) fire fees. 


          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. (i.e., SRAs.) 

          2)Declares that it is necessary to impose a 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 the fee  
            in an amount not to exceed $150, and allows the Board to  








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            adjust the fee every year for inflation.  Requires the fee 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.  Defines "owner of a  
            habitable structure" as the person that is the owner of record  
            of a habitable structure in the county tax assessor rolls or  
            as recorded by the Department of Housing and Community  
            Development (HCD) on July 1 of the state fiscal year for which  
            the fee is due.  Requires the Board of Equalization (BOE) to  
            collect the fee. 

          4)Requires the fee to be deposited in the State Responsibility  
            Area Fire Prevention Fund, which is available to the Board and  
            the Department of Forestry and Fire Protection (CAL FIRE) to  
            expend 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,









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            g) Other fire prevention projects in the SRA that are  
            authorized by the Board.  

          5)Requires the Board, until January 31, 2017, to submit a report  
            to the Legislature every January 31 on the status and uses of  
            the fund, containing specified information and  
            recommendations.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  


          1)Background.  California's SRA covers over 31 million acres and  
            includes land in every county except San Francisco and Sutter.  
             CAL FIRE operates more than 200 fire stations within the SRA,  
            contracts with other firefighting agencies, and has a proposed  
            wildland fire protection budget of $1.8 billion for this  
            fiscal year.  The fire protection budget includes, among other  
            things, fire prevention activities, such as brush clearance,  
            defensible space inspections, fire breaks, and other measures  
            to reduce the cost of firefighting, property loss, injury to  
            firefighters, and damage to the environment.

            CAL FIRE's fire protection budget has seen a steady increase  
            over the years and is the largest budget in the Natural  
            Resources Agency.  In the 1996-97 fiscal year, CAL FIRE's fire  
            protection budget was $266 million.  This increase has been  
            attributed in large part to the significant housing  
            development at the boundaries between wildlands and urban  
            areas, the heightened risk of catastrophic fires due to fire  
            suppression activities over the last century, and increased  
            staff costs.

          2)Fire Prevention Fee.  In early 2011, the state was facing a  
            $26.6 billion budget deficit, and an annual structural deficit  








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            of up to $21.5 billion was projected into the future.  In  
            March 2011, the Legislature passed $13.4 billion in budget  
            solutions (consisting mostly of spending cuts) to address the  
            deficit; however, there was still a shortfall of $10.8  
            billion.  To assist in addressing the budget shortfall, the  
            Legislature passed, among other bills, ABX1 29 (Blumenfield),  
            Chapter 8, Statutes of 2011-12, First Extraordinary Session,  
            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 fee generates  
            around $80 million a year in revenues, which is used to  
            enhance statewide fire prevention work, including local  
            assistance grants.  Recent local assistance grant awards have  
            focused on responding to the tree mortality crisis in  
            California where 29 million trees have died.  The local  
            assistance grants help locals reduce wildfire and tree fall  
            risks near homes in high tree mortality areas. 

          3)Amendments.  The author believes that the expenditure  
            reporting for the SRA fee has been inadequate and confusing.   
            This bill clarifies what must be reported.  However, part of  
            the confusion maybe that the reporting requirement is placed  
            on the Board when it is CAL FIRE that holds the data for the  
            report.  The author and committee may wish to consider  
            requiring CAL FIRE to complete the report and present it to  
            the Board and Legislature.  In addition, the author and  
            committee may also wish to consider technical amendments to  
            correct drafting errors.
            
          4)Related/Prior Legislation.  
           
             SB 1347 (Nielsen) also extends the sunset for the annual  
            report from the Board regarding the expenditure of SRA fire  
            fees. The bill is awaiting hearing in this committee.


            AB 1642 (Obernolte) extends the deadlines to either pay the  








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            SRA fire prevention fee or file a petition for redetermination  
            of the fee from 30 days to 60 days. This bill was held on  
            suspense in the Assembly Appropriations Committee.


            AB 2048 (Dahle, Chesbro, and Gordon), Chapter 895, Statutes of  
            2014, among other things, reduces the penalties for unpaid  
            fees and simplifies the appeals process.  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Sen. George Runner, Member, State Board of Equalization 


          City of Big Bear Lake


          Howard Jarvis Taxpayers Association


          Riverside County Board of Supervisors


          Rural County Representatives of California


          San Bernardino County Board of Supervisors 


          Santa Barbara County Board of Supervisors










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          45 Individuals




          Opposition


          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916)  
          319-2092