BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2351
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2351 (Chesbro) - As Amended:  February 15, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:7-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the California Department of Forestry and  
          Fire Protection (CDF) to charge a user fee for overnight camping  
          and group activities in a state demonstration forest.  The bill  
          requires the fee to be no more than needed to reimburse CDF's  
          costs for maintaining and improving campground and recreational  
          facilities, the natural environment, and public access, all  
          within the states' demonstration forests.

           FISCAL EFFECT  

          Potential annual revenue to CDF in range of $80,000 to $120,000  
          (Forest Resources Improvement Trust Fund (FRIF)).

           COMMENTS  

           1)Rationale  .  The author contends it appropriate to charge  
            recreational users of the state's demonstration forests a fee  
            equal to the costs to CDF to provide for recreational use in  
            those forests.  The author notes that, currently, recreational  
            users enjoy access to the state's demonstration forests free  
            of charge, with costs to CDF covered by the sale of products  
            made from timber grown in the demonstration forests.  The  
            author further notes that recent declines in timber product  
            sales have reduced revenue to CDF, thereby exacerbating the  
            need for CDF to recuperate the costs of recreation in  
            demonstration forests.

           2)Background  .  CDF manages eight demonstration forests that,  
            together, cover 71,000 acres.  The purpose of the forests is  
            to demonstrate sustainable forest practices.  Activities in  








                                                                  AB 2351
                                                                  Page  2

            the forests include management, watershed protection and  
            restoration, and harvesting techniques.  In addition, CDF  
            reports about 40,000 days of recreational camping in the  
            demonstration forests each year.  

            The state's demonstration forests are financially self  
            sufficient.  This is because CDF is authorized to sell timber  
            and related products generated by the state forests.  Revenue  
            from such sales is deposited in the Forest Resources  
            Improvement Trust Fund and is available, upon appropriation,  
            to pay for the costs of managing the demonstration forests.  

            Traditionally, timber sale revenue was sufficient to cover  
            CDF's costs resulting from recreational use of the  
            demonstration forests, as campers and other recreational users  
            enjoyed the demonstration forests free of charge.  CDF reports  
            that more recently, however, a decline in timber product sales  
            has reduced revenues flowing into the trust fund.  As a  
            result, the trust fund has been strained as CDF continues to  
            cover the cost of both demonstration forest management and  
            recreational use of these forests.

           3)Related Legislation  .  AB 2360 clarifies the allowable uses of  
            revenues and revenue-generating activities in the FRIF and  
            diverts excess FRIF revenues from General Fund to CDF to  
            support specified programs when GF does not sustain CDF's  
            resource management budget.

           4)Supporters  , including the California Licensed Foresters  
            Association and the California Native Plant Society, contend  
            recreational users of the state's demonstration forests should  
            cover the costs that result from their use of the forests.   
            This is especially true, supports argue, in a time of economic  
            austerity and limited state funding.

           5)There is no registered opposition to this bill on file.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081