BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 557|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 557
Author: Kuehl (D)
Amended: 1/7/04
Vote: 21
SENATE NATURAL RES. & WILD. COMMITTEE : 5-3, 4/22/03
AYES: Kuehl, Alpert, Ortiz, Sher, Torlakson
NOES: Oller, Denham, Hollingsworth
SUBJECT : Timber products user fee
SOURCE : Author
DIGEST : This bill states legislative intent to establish
a timber products use fee for timber restoration and fire
risk reduction and to fund the review of timber harvesting
plan applications, the removal of dead and diseased trees
in southern California, and the Forest Resources
Improvement Fund.
This bill requires the Legislative Analyst's Office to
report on and recommend to the Legislature options to
collect, at the point of purchase, a timber user fee
imposed on consumers of sawn lumber and unsawn wood
products.
ANALYSIS : Existing law provides for the regulation of
forest practices. Under existing law, money in the Forest
Resources Improvement Fund may be expended, upon
appropriation by the Legislature, for specified purposes
relating to forest resources and to reimburse the General
CONTINUED
SB 557
Page
2
Fund for the costs of operation of state forests
administered by the Director of Forestry and Fire
Protection.
This bill:
1. Contains findings that (a) delineate the economic and
environmental importance of forest stewardship, discuss
the high costs associated with Timber Harvest Plan (THP)
review, and conclude that a user fee on timber products
is an equitable way to fund forest management, and (b) a
timber products user fee for timber restoration and fire
risk reduction could generate sufficient funds to
adequately review timber harvesting plan applications,
fund the removal of dead and diseased trees that pose
significant fire risks in southern California, and fund
the Forest Resources Improvement Fund. These funds might
also be used to replace the general fund outlay for
timber harvest plan review, and generate additional
funds to help restore the forest practices industry in
California, mitigate the effects of historic logging
practices on watersheds and wildlife, and protect
drinking water supplies for millions of Californians.
2. Requires the Legislative Analyst's Office to report on
and recommend to the Legislature one or more options to
collect, at the point of purchase, a timber products
user fee imposed on consumers of sawn lumber and unsawn
wood products and to be collected and administered by
the State Board of Equalization.
3. Specifies the intent of the Legislature that the timber
products user fee shall be deposited in a special fund
and shall be appropriated only for the following
purposes:
A. To fund the complete administrative review of
timber harvesting plans and other harvesting
procedures by the appropriate departments within the
Resources Agency and the appropriate regional water
board.
B. To reduce the risk of catastrophic wildfire in
southern California by measures that include, but are
SB 557
Page
3
not limited to, the removal and disposition of dead,
diseased, or hazardous trees in high- or very high
fire severity zones in the Counties of Los Angeles,
Orange, Riverside, San Bernadino, San Diego, or
Ventura.
C. Expenditures authorized by the Forest Resources
Improvement Fund as set forth in Section 4799.13 of
the Public Resources Code.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 1/14/04 prior version)
Note:The prior version of the bill imposed a timber
products user forest restoration excise tax on
consumers at the time of purchase of a timber product
for consumption in the state. It is not known if the
following groups remain in support or opposition to
the current version which provides legislative intent
and requires a Legislative Analyst report and
recommendation on options to collect a timber user
fee.
Californians Against Waste
Defenders of Wildlife
Forest Landowners of California
Harwood Products
Planning and Conservation League
OPPOSITION : (Verified 1/14/04 prior version)
American Forest and Paper Association
California Alliance For Consumer Protection
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Forestry Association
California Manufacturing and Technology Association
California Retailers Association
California Taxpayers' Association
Champion Lumber
Crenshaw Lumber Company
SB 557
Page
4
Economy Lumber
Lumber Association of California and Nevada
Mead Clark Lumber Company, Inc.
Pacific Do-At-Home Center
Pacific Wood Pacific Preserving Companies
Reliable Wholesale Lumber, Inc.
The Terry Companies
Visalia Lumber Co.
Western Wood Preservatives Institute
CP:nl 1/14/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****