BILL ANALYSIS �
SB 1413
Page 1
Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1413 (Wyland) - As Amended: April 10, 2014
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the period of time owners of structures have
to pay or request redetermination of the fire prevention fee
from 30 days to 60 days.
FISCAL EFFECT
1)Annual revenue loss (special fund) in the $400,000 to $500,000
range.
Annual fee assessments are due and payable to the Board of
Equalization (BOE) 30 days from the date of assessment.
During FYs 2011-12 and 2012-13, interest and penalties paid
totaled $2,751,802. Of that amount, $921,654 in interest and
penalties was remitted on fees paid between 31 and 60 days
from the date of assessment. Under this bill, this amount
would not have been paid. Assuming delinquencies were the
same over those two years, the annual average revenue loss is
therefore computed as: $921,654 / 2 = $460,827.
2)Unknown one-time costs (special fund) for BOE to reprogram
computers and revise information and publications.
3)No additional costs to CALFIRE
COMMENTS
1)Purpose. This bill is sponsored by BOE Member George Runner
to provide additional time for feepayers to adjust their
budgets and pay their fees in a timely manner.
SB 1413
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2)Background. The state is responsible for wildland fire
protection in state responsibility areas (SRA) which are
generally defined to include most nonfederal timberlands,
rangelands and watersheds thinly populated and not within the
boundaries of a city. Over 31 million acres, much privately
owned, are located in SRA. In the past, SRA lands were
largely unpopulated. In recent years, however, local
governments have allowed increased housing development in SRA
but at a level of density that maintains the state's
obligation to provide wildland fire protection.
As housing development in SRA increased, so did state fire
protection costs. In 1996-97, the department spent $475
million on fire protection; in more recent years, CALFIRE's
annual fire protection costs neared or surpassed $1 billion.
The Legislative Analyst's Office (LAO) attributes much of the
increase in CALFIRE's fire protection costs to increased
housing development in SRA. The LAO notes that as housing
development in SRA has increased, the department has spent
greater resources responding to events other than wildfires
for which the state is not legally responsible, such as
structural fires and medical emergencies. Because the LAO
concludes that much of CALFIRE's nonwildfire activities
provide private benefits, LAO has long recommended a fee on
owners of private land in SRA to pay for a portion of
CALFIRE's fire protection costs.
3)SRA Fire Protection Fees. In 2011 the Legislature passed ABx1
29 (Blumenfield), requiring the Board of Forestry and Fire
Protection to adopt emergency regulations to establish a fire
prevention fee. The fee, not to exceed $150 on each structure,
was to raise $50 million to fund CAL FIRE fire prevention
activities. In January 2012, the board issued its regulation,
establishing a fee of $150 per habitable structure on a parcel
located within SRA, with a $35 reduction for each habitable
structure that is also within the boundaries of a local agency
that provides fire protection services. Revenues from the fee
are to be used exclusively for fire protection. In
authorizing the fee, the Legislature recognized that
individual owners within SRA received a disproportionately
larger benefit from fire prevention activities than realized
by the state's residents generally.
As required by law, the fee was adjusted for inflation and is
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currently $152.33 per habitable structure outside a fire
protection district and $177.33 for habitable structures
within a fire protection district.
4)BOE Tax and Fee Programs. The BOE administers more than 30
tax and fee programs, none of which provides a 60-day period
to pay the tax or fee or file a petition for redetermination.
5)Similar Legislation . AB 2048 (Dahle, Chesbro, and Gordon)
will, among other things, authorize CAL FIRE to consider a
petition for redetermination that has been filed after the 30
day period expires. AB 2048 is currently pending in the
Senate Appropriations Committee.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081