BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2544
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2544 (Gordon)
          As Amended  June 27, 2012
          Majority vote
           
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          |ASSEMBLY:  |51-22|(May 10, 2012)  |SENATE: |36-0 |(August 13,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:   NAT. RES.

          SUMMARY  :  Clarifies and expands the Department of Forestry and 
          Fire Protection's (CAL FIRE) authority regarding land 
          transactions for the purpose of qualifying for the Department of 
          General Services (DGS) review exemption.  

          The Senate amendments  :

          1)Require that all agreements, easements, licenses, or permits 
            entered into by CAL FIRE be for no more than fair market value 
            and that DGS sign all applicable certificates of acceptance.  

          2)Reduce the lease period for real property acquired for 
            forestry and fire protection purposes from 10 years to 5 
            years.

          3)Delete the provision that authorizes CAL FIRE to grant permits 
            and easements a) to a public agency for public roads; b) to a 
            public agency for utility lines; c) for electric, gas, water, 
            sewer, telephone, telegraph, and utility lines, and pipelines 
            and structures incidental thereto to perform a public service; 
            and, d) to any oil and gas lessee of the state for pipeline 
            right-of-way purposes.

           EXISTING LAW  :

          1)Establishes CAL FIRE, which is responsible for the fire 
            protection, fire prevention, maintenance, and enhancement of 
            the state's forest, range, and brushland resources, contract 
            fire protection, associated emergency services, and assistance 
            in civil disasters and other nonfire emergencies.

          2)Establishes DGS to provide centralized services including 
            planning, acquisition, construction, and maintenance of state 








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            buildings and property.  DGS may acquire title to real 
            property in the name of the state whenever the acquisition of 
            real property is authorized or contemplated by law, if no 
            other state agency is specifically authorized and directed to 
            acquire it.

          3)Authorizes CAL FIRE, with the approval of DGS, to purchase 
            land for lookout sites and for other administrative purposes.

          4)Authorizes CAL FIRE, with the approval of DGS, to enter into 
            contracts with powerline owners for use of facilities, such as 
            pole lines, to provide communications needed in connection 
            with the prevention and extinguishment of forest fires.  
            Provisions may be made for indemnification and holding 
            harmless the owners of such facilities.  Insurance may be 
            purchased by DGS, upon the request of CAL FIRE, to protect the 
            state against loss or expense arising out of any such 
            contract. 

          5)Authorizes DGS to exempt from its approval any state real 
            estate acquisition or conveyance involving not more $150,000 
            for which DGS's approval is required by statute.  Written 
            notice of an exemption shall be given to the Controller.

           AS PASSED BY THE ASSEMBLY  , this bill authorized CAL FIRE to:

          1)With the approval of DGS, enter into agreements, easements, 
            licenses, or permits to acquire real property rights for the 
            purposes of establishing fire protection, fire prevention, 
            fire suppression, demonstration state forests, pest control, 
            forest and range protection, and enhancement activities and 
            related uses.

          2)With the approval of DGS, lease real property acquired for 
            forestry and fire protection purposes.  Rent must be based on 
            the fair market value of the property when used for the 
            purpose for which it is leased.  The lease term shall not 
            exceed 10 years.  No lease may be entered into that extends 
            beyond the 10-year period unless approved by the Legislature 
            or the Public Works Board as specified.

          3)Provide temporary means of ingress to, and egress from, all 
            property under its jurisdiction in order to provide ready 
            access for the purposes of harvesting timber, conducting 
            studies, and passing and placing equipment upon the 








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            department's lands.

          4)With the consent of DGS, lease any real or personal property 
            that CAL FIRE deems necessary for temporary use of fire 
            station facilities, modular facilities, storage, warehouse, or 
            office purposes when existing departmental facilities are 
            inadequate or when the extension, improvement, or development 
            of fire stations and forestry lands is needed. 

          5)Upon application by the proper authorities, grant permits and 
            easements a) to a public agency for public roads; b) to a 
            public agency for utility lines; c) for electric, gas, water, 
            sewer, telephone, telegraph, and utility lines, and pipelines 
            and structures incidental thereto to perform a public service; 
            and, d) to any oil and gas lessee of the state for pipeline 
            right-of-way purposes.

          6)Enter into contracts with property owners to provide 
            communications and telecommunications needed in connection 
            with the prevention and extinguishment of forest fires.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  CAL FIRE, through its Capital Outlay Program, works 
          with DGS to acquire property and develop plans for facilities 
          such as fire stations, training centers, emergency command 
          centers, fire lookout towers, radio towers, and a number of 
          other kinds of compounds.  According to the author, CAL FIRE has 
          developed real estate staffing and expertise through the Capital 
          Outlay Program.  When CAL FIRE engages in a real estate 
          transaction, staff, among other things, negotiates and drafts 
          agreements and prepares the necessary documents.  Under existing 
          law, however, CAL FIRE must send a proposed real estate 
          transaction to DGS for review and approval.  DGS often 
          duplicates many of the same efforts performed by CAL FIRE.  The 
          author asserts that DGS' involvement has delayed multiple 
          projects and has cost CAL FIRE and the General Fund hundreds of 
          thousands of dollars.  From 2008 to 2011, CAL FIRE paid 
          approximately $65,000 to $88,000 for DGS review.  In some cases, 
          the DGS review process is more expensive than the value of a 
          transaction.

          This bill, by specifying CAL FIRE's authority to enter into land 
          transactions, gives CAL FIRE the authority to receive exemptions 








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          from DGS for real estate acquisitions or conveyances involving 
          not more than $150,000.  Additionally, this bill provides CAL 
          FIRE the benefit of managing lands under its jurisdiction with 
          minimal DGS involvement for certain transactions, such as 
          ingress and egress approval for timber harvesting and other 
          temporary needs.

           
          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916) 
          319-2092 


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