BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1075
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1075 (Knight) - As Amended:  April 21, 2014 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires moneys recovered by CALFIRE in a civil action  
          related to fire suppression, rescue, or emergency medical  
          services to be deposited into the General Fund.  This bill also  
          requires CALFIRE to annually report specified cost recovery  
          actions.  

           FISCAL EFFECT  

          Minor, if any additional state costs for the annual report.

           COMMENTS  

           1)Purpose.   According to the author, this bill is necessary to  
            improve transparency at CALFIRE and to hold the department to  
            a high standard when dealing with taxpayer dollars.

           2)Background.   Existing law allows CALFIRE, to recover the costs  
            incurred for fire suppression and investigation activities  
            related to a fire resulting from negligence or a violation of  
            law. Through its cost recovery program, CALFIRE recovers fire  
            costs from persons it determines are responsible for starting  
            fires.

            According to the State Auditor, between June 2005 and  
            September 2012, CALFIRE arranged to have $3.7 million in  
            settlement payments for the cost of fire suppression and  
            investigation deposited in a bank account held under the name  
            and tax identification number of the California District  
            Attorneys Association to fund training and equipment projects.  
             








                                                                  SB 1075
                                                                  Page  2


            The State Auditor asserts that CALFIRE did not have the  
            statutory authority to establish this account.   

            As a result of the audit, CALFIRE closed this account and  
            transferred the remaining balance of over $800,000 to the  
            CCRISA.   To date, the balance remains in the CCRISA 

            The State Auditor also recommended, among other things, that  
            the Legislature specify that all cost recovery revenues be  
            deposited in the state treasury (i.e., the General Fund).  

            This bill codifies this recommendation as well as imposes  
            reporting requirements on cost recovery actions

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081