BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1413|
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                                    THIRD READING


          Bill No:  SB 1413
          Author:   Wyland (R)
          Amended:  4/10/14
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 4/24/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu, Walters
          NO VOTE RECORDED:  Knight

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/14
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    State responsibility areas:  fire prevention fees

           SOURCE  :     Board of Equalization Member, George Runner


           DIGEST  :    This bill extends the time period that property  
          owners have to pay the fire prevention fee from 30 to 60 days.   
          This bill also extends the time period for property owners to  
          request redetermination from the Department of Forestry and Fire  
          Protection (CALFIRE) from 30 to 60 days.

           ANALYSIS  :    CALFIRE provides wildland fire protection on  
          non-federal lands outside cities.  To meet this duty, the State  
          Board of Forestry and Fire Protection designates the State  
          Responsibility Area (SRA) every five years.  In 2011, the  
          Legislature imposed the fire prevention fee on owners of  
          structures in state responsibility areas to pay for the state's  
          costs of protecting SRAs against fires, and directed the Board  
          of Equalization (BOE) to collect it in accordance with the  
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          state's Fee Collection Procedures Law (AB 29X1, Blumenfield,  
          Chapter 8, First Extraordinary Session).  The fee totals $152.33  
          per structure in 2014, and is due and payable 30 days from the  
          date of assessment from BOE.  A 20% penalty applies for each 30  
          days that pass without payment.  

          This bill extends the time period that property owners have to  
          pay the fire prevention fee from 30 to 60 days.  This bill also  
          extends the time period for property owners to request  
          redetermination from CALFIRE from 30 to 60 days, and makes a  
          conforming change.  

           Comments
           
          While BOE collects the fee, CALFIRE determines who must pay the  
          fee, and the fee amount.  BOE can neither redetermine the fee,  
          nor accept a claim for refund unless the determination has been  
          set aside by CALFIRE, or a court reviews CALFIRE's  
          determination.  Currently, owners of structures in SRAs can  
          petition for redetermination within 30 days after service of  
          notice of determination; after that, the amount becomes final.   
          If the owner petitions for redetermination within the 30 day  
          period, CALFIRE must make a determination in writing, and can  
          eliminate the fee if it finds the fee does not apply.

           Related Legislation
           
          AB 1519 (Donnelly) deletes the 20% fire prevention fee penalty  
          that is added to final redeterminations for each 30-day period  
          the fee remains unpaid.

          AB 1954 (Harkey) changes the finality date of a petition for  
          redetermination from 30 to 90 days and, within that 90 days,  
          allows a feepayer to appeal to the BOE those redeterminations  
          that deny all or part of a refund. 

          AB 2048 (Dahle), among its fire prevention fee provisions, adds  
          definitions, makes permissive the annual rate adjustment,  
          clarifies the imposition of the fee, provides a disaster relief  
          provision, adds a "late protest" procedure, and replaces the 20%  
          penalty with a 10% penalty.

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

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          According to the Senate Appropriations Committee, BOE estimates  
          the annual revenue loss to be about $461,000 (special funds).   
          Additionally, BOE will incur minor one-time costs for computer  
          programming and revising publications (special funds).

           SUPPORT  :   (Verified  5/23/14)

          Board of Equalization Member, George Runner (source)
          California Taxpayers Association

           ARGUMENTS IN SUPPORT  :    According to the author, "More than  
          800,000 rural Californians receive a yearly Fire Prevention Fee  
          bill of $152.33, due 30 days from the date on the notice.  Due  
          to the rural nature of those being billed, many individuals do  
          not receive their bill(s) in a timely manner.  Additionally,  
          many of these individuals are on fixed incomes, making it nearly  
          impossible for them to pay their Fire Prevention Fee by the  
          30-day deadline."


          AB:k  5/25/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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