BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1136  


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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1136  
          (Morrell) - As Amended June 15, 2016


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          |Policy       |Natural Resources              |Vote:|8 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill extends the sunset date and adds additional reporting  
          requirements to the annual report regarding the expenditure of  
          state responsibility area (SRA) fire fees. Specifically, this  
          bill: 


          1)Requires CalFire rather than the Board of Forestry and Fire  
            Protection (Board) to prepare and submit the report. 



          2)Extends the sunset date on the report to from January 31,  








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            2017, to January 31, 2021. 



          3)Adds specific information to the report on expenditures from  
            each program, subprogram, and element for which CalFire uses  
            funds generated by the fee. Adds a reporting requirement for  
            actual and current year fiscal expenditures and budgeted  
            expenditures. 



          4)Requires an accounting of expenditures for equipment, staff  
            positions associated with all expenditures, and a description  
            of the grants awarded and how the funds were spent.
             


          FISCAL EFFECT:





          Any additional Calfire reporting costs are absorbable.


          COMMENTS:


          1)Purpose.  According to the author, the expenditure reporting  
            for the SRA fee has been inadequate and confusing.  This bill  
            clarifies what must be reported and changes the reporting  
            responsibility from the Board to CAL FIRE. 

          2)Background.   The state is responsible for wildland fire  
            protection in state responsibility areas (SRA), which are  
            generally defined to include most nonfederal timberlands,  
            rangelands and watersheds thinly populated and not within the  








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            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.





          3)SRA Fire Protection Fees.  In 2011 the Legislature passed ABx1  
            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 allowed by law, the Board adjusted the fee for inflation  
            and it is currently $152.33 per habitable structure outside a  
            fire protection district and $117.33 for habitable structures  
            within a fire protection district.  Approximately 10% of those  
            required to pay the fee have not paid any amount since the fee  
            was established.  Almost $40 million in fees remain  
            uncollected.  








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