BILL ANALYSIS Ó SB 1136 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1136 (Morrell) - As Amended June 15, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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, SB 1136 Page 2 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 SB 1136 Page 3 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. SB 1136 Page 4 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081