BILL ANALYSIS
AB 2360
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Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2360 (Chesbro) - As Amended: April 12, 2010
SUBJECT : Forest Resources: Forest Resources Improvement Fund
(FRIF).
SUMMARY : Clarifies the allowable uses of revenues and
revenue-generating activities in the FRIF; diverts excess FRIF
revenues from General Fund (GF) to California Department of
Forestry and Fire Protection (CDF) to support specified programs
when GF does not sustain CDF's resource management budget.
EXISTING LAW :
1)Authorizes CDF, in accordance with plans approved by the Board
of Forestry (Board), to acquire, manage, protect, and reforest
state forests.
2)Creates the FRIF in the State Treasury, for the deposit of
revenues from the sale of forest products from state forests
to support the management of these forests, including
restoration activities. Any balance in the FRIF must be
deposited in the GF.
THIS BILL :
1)Clarifies the allowable uses of the FRIF to be: implementation
of approved forest management plans of demonstration state
forests, public education, research, and monitoring activities
related to demonstration state forests. In addition to the
cost of operations of state forest management, CDF may also
reimburse itself for "related administrative costs."
2)Clarifies that revenue originating from activities within
state forest boundaries, including revenue from leases, rent,
fees, firewood, and permits must be deposited into the FRIF.
3)Deletes the requirement that money in excess of the amount
needed to support operations of state demonstration forests be
deposited in the GF.
4)Authorizes the Director of CDF to accept funds, to be
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deposited in the FRIF, received as mitigation for adverse
environmental impacts caused by a party responsible for
causing the illegal ignition of wild fires.
5)Provides that if the GF does not provide CDF funding for pest
management, state nurseries and seed banks, forest
improvement, urban forestry, vegetation management, and fire
and resource assessment programs at the same level or higher
than the previous budget year, the program funding shortfall
may be made whole with money from the FRIF reserve, upon
appropriation by the Legislature through the annual Budget
Act.?
6)Authorizes a reserve to accrue in the FRIF whenever FRIF
balances exceed appropriated expenditures.
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FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose : According to the author's office, "During the 2006
budget process, the Legislature shifted essential [CDF]
programs from FRIF to the General Fund. During General Fund
downturns and budgetary reductions, key [CDF] programs have
been adversely impacted. AB 2360 would provide [CDF] a more
reliable funding source for existing programs without
increasing General Fund costs."
2)Background : Historically, revenues from timber sales at
Jackson State Forest, the largest state forest, comprised the
majority of funds in the FRIF, which supported CDF's forest
resource programs such as pest management, state nurseries,
urban forestry, forest and rangeland assessment, and
vegetation management. Given this dependency on the FRIF to
fund non-state forest programs, environmental organizations in
Mendocino County expressed concern in the late 1990s that CDF
was increasing the rate of harvest at Jackson State Forest in
order to meet budgetary needs. In 2000, litigation by the
Campaign to Restore Jackson State Redwood Forest (Campaign)
precluded harvesting operations in Jackson State Forest for
the next eight years. The suit claimed that the forest's 1984
management plan had long since expired, and therefore any
logging was illegal under state law. In April 2001, a court
ruled in the Campaign's favor and enjoined further logging.
In January 2008, the Board approved a revised management plan
with the support of the Campaign. Last year, the state forest
reinitiated harvesting for the first time since 2000.
During the intervening years, the Legislature shifted CDF
funding from FRIF to the GF or special funds. Dwindling GF
revenues over the past decade has forced CDF to reduce its
support for its forest resource programs. However, given the
resumption of harvesting, CDF expects FRIF revenues to
increase dramatically to about $4 million in 2010/11.
3)Using FRIF as a back-stop : Under existing law, revenues in
the FRIF can only be used to support management of state
forests. Any excess funds must be deposited in the GF. This
bill proposes a partial return to the era where the FRIF
supported not only management of state forests but other
forest resource, range, and fire management programs. It does
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so by authorizing the FRIF, upon appropriation by the
Legislature, to back-fill GF support for the above programs in
years where the Legislature provides less GF support for these
programs than the previous year. The bill also creates a
reserve in the FRIF when revenues exceed expenditures. Excess
funds would no longer revert to the GF (according to CDF,
there has never been an excess in the FRIF).
REGISTERED SUPPORT / OPPOSITION :
Support
Department of Forestry and Fire Protection, CAL FIRE (sponsor)
California Council of Land Trusts
California Licensed Foresters Association
California ReLeaf
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California Urban Forests Council
Central Coast Regional Urban Forest Council
Goleta Valley Beautiful
Santa Barbara County Releaf
TreePeople
Opposition
None on file
Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092