BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1075|
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                                       CONSENT


          Bill No:  SB 1075
          Author:   Knight (R), et al.
          Amended:  4/21/14
          Vote:     21


           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  9-0, 4/22/14
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,  
            Monning, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Department of Forestry and Fire Protection:  civil  
          cost recovery

           SOURCE  :     Author


           DIGEST  :    This bill codifies the recommendation of the State  
          Auditor and imposes annual reporting requirements on the  
          California Department of Forestry and Fire Protection (CDF).   
          The reporting requirements include information on the settled  
          cases for the prior year including the name, date, location, and  
          total costs of the fire, the value of the settlement, and  
          related information.

           ANALYSIS  :    

          Existing law:

          1.Requires a person, who, among other things, negligently, or in  
            violation of the law, sets a fire, allows a fire to be set, or  
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            allows a fire to escape onto any public or private property,  
            to be liable for fire suppression costs incurred in fighting  
            the fire and for rescue or emergency medical services.

          2.Authorizes public agencies participating in the fire  
            suppression, rescue, or emergency medical services to  
            designate one or more agencies to bring an action to recover  
            the costs incurred by all the participating agencies.  Among  
            other things, CDF is responsible for providing fire protection  
            and prevention.

          3.Provides that the General Fund (GF) consists of monies  
            received into the Treasury and not required by law to be  
            credited to any other fund.

          This bill:

          1.Requires any monies recovered by CDF in a civil action  
            described in existing law to be deposited by CDF into the  
            Treasury, as provided.

          2.Requires CDF to make an annual report to the Legislature  
            regarding any monies recovered in a civil action.

          3.Requires the report to include, but not be limited to, all of  
            the following information:

             A.   Name, date, location, and total costs of the fire, and  
               the amount of any federal monies received.

             B.   Settlement or judgment information including the date  
               and total value of the settlement or judgment.

             C.   The amount of the settlement or judgment abated against  
               expenses whether state or federal, local remittance, or  
               total GF recovery including the abatement of expenses or  
               miscellaneous revenues.

             D.   Information specifying whether the settlement, if  
               applicable, was approved at the unit, region, or  
               headquarters level.

          1.Requires all monies in the account in the Special Deposit Fund  
            entitled "Civil Cost Recovery Investigation Support Account"  

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            to be immediately be transferred to the GF.

           Background
           
          In January, 2013, news outlets reported that CDF had placed  
          perhaps $3.7 million obtained from civil liability settlements  
          related to the intentional or negligent ignition of a fire into  
          an off-budget account.  The California District Attorneys  
          Association managed the account.  Most of the funds were spent  
          on various activities and equipment purchased by CDF.  $807,000  
          was moved to a special account where it remains.  As part of an  
          October, 2013, audit of CDF, the state auditor recommended that  
          the Legislature make explicit in statute a requirement that all  
          civil cost recovery funds must be deposited in the GF.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/5/14)

          Howard Jarvis Taxpayers Association

           ARGUMENTS IN SUPPORT  :    According to the Howard Jarvis  
          Taxpayers Association, this bill "is in response to the 2013  
          State Auditor Report that found that the California Board of  
          Forestry and Fire Protection [CDF] had diverted $3.7 million in  
          payments over seven years relating to wildfire costs to an  
          off-budget account they had established called the Wildland Fire  
          and Investigation Training and Equipment Fund.  In response to  
          civil litigation, the fund was shut down and the remaining  
          $807,000 was moved to a special account, where it remains  
          today."

          This bill will "move this money, and any future settlement  
          funds, into the General Fund.  Taxpayers deserve better than to  
          see taxpayer funded slush funds created with their hard-earned  
          dollars."


          RM:e  5/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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