Existing law requires the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged annually on each habitable structure on a parcel that is within a state responsibility area. Existing law requires the fee to be levied upon the owner of a habitable structure if that person owns the structure on July 1 of the year for which the fee is due.

This bill would permit the owner of a property with one or more habitable structures subject to the fire prevention fee to, when selling the property, negotiate as one of the terms of the sale the apportionment between the parties of liability for payment of the fee, as specified. This bill would require the Department of Forestry and Fire Protection to notify an owner subject to a fire prevention fee that the owner may, when selling the habitable structure or structures, negotiate the apportionment of liability for payment of the fee between the parties as one of the terms of the sale.

Existing law requires the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged annually on each habitable structure on a parcel that is within a state responsibility area. Existing law requires the fee to be levied upon the owner of a habitable structure if that person owns the structure on July 1 of the year for which the fee is due.

This bill would permit the owner of a property with one or more habitable structures subject to the fire prevention fee to, when selling the property, negotiate as one of the terms of the sale the apportionment between the parties of liability for payment of the fee, as specified. This bill would require the Department of Forestry and Fire Protection to notify an owner subject to a fire prevention fee that the owner may, when selling the habitable structure or structures, negotiate the apportionment of liability for payment of the fee between the parties as one of the terms of the sale.

Existing law requires the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged annually on each habitable structure on a parcel that is within a state responsibility area. Existing law requires the fee to be levied upon the owner of a habitable structure if that person owns the structure on July 1 of the year for which the fee is due.

This bill would permit the owner of a property with one or more habitable structures subject to the fire prevention fee to, when selling the property, negotiate as one of the terms of the sale the apportionment between the parties of liability for payment of the fee. fee, as specified. This bill would require the Department of Forestry and Fire Protection to notify an owner subject to a fire prevention fee that the owner may, when selling the habitable structure or structures, negotiate the apportionment of liability for payment of the fee between the parties as one of the terms of the sale.

Existing law requires the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged annually on each habitable structure on a parcel that is within a state responsibility area. Existing law requires the fee to be levied upon the owner of a habitable structure if that person owns the structure on July 1 of the year for which the fee is due.

This bill would require the fee to be prorated for an owner, upon whom a fee is imposed, if that owner owns the habitable structure for only a portion of the year for which the fee is due. permit the owner of a property with one or more habitable structures subject to the fire prevention fee to, when selling the property, negotiate as one of the terms of the sale the apportionment between the parties of liability for payment of the fee. This bill would require the Department of Forestry and Fire Protection to notify an owner subject to a fire prevention fee that the owner may, when selling the habitable structure or structures, negotiate the apportionment of liability for payment of the fee between the parties as one of the terms of the sale.

Existing law requires the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged annually on each habitable structure on a parcel that is within a state responsibility area. Existing law requires the fee to be levied upon the owner of a habitable structure if that person owns the structure on July 1 of the year for which the fee is due.

This bill would require the fee to be prorated for an owner, upon whom a fee is imposed, if that owner owns the habitable structure for only a portion of the year for which the fee is due.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 301

Author:(Bigelow)

As Amended Ver:June 24, 2015

Majority vote

Original Committee Reference: NAT. RES.

SUMMARY: Requires Department of Forestry and Fire Protection (CAL FIRE) to notify owners of habitable structures subject to the state responsibility area fire prevention fee (fee) that when selling the property, they may negotiate the apportionment of the annual fee with the buyer as one of the terms of the sale.

The Senate amendments clarify that even though the seller's annual fee may be negotiated as one of the terms of the sale of a property the total fee liability still remains the responsibility of the person who owns the habitable structure on July 1 of the year for which the fee is due.

EXISTING LAW:

1. Requires the Board of Forestry (Board) to classify all lands within the state for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state (these areas are known as "state responsibility area" or "SRA.")

2. Declares that it is necessary to impose a fee to pay for fire prevention activities in the SRA that specifically benefit owners of structures in the SRA.

3. Requires the Board to adopt regulations to establish a fee in an amount not to exceed $150 (which must be adjusted every year for inflation) to be charged on each "structure" on a parcel that is within the SRA. Defines "structure" as a building used or intended to be used for human habitation, including a mobile home or manufactured home. Reduces the fee by $35 if the structure is also within the boundaries of a local agency that provides fire protection services (this reduction applies to most structures). Defines "owner of a habitable structure" as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the Department of Housing and Community Development (HCD) on July 1 of the state fiscal year for which the fee is due.

4. Requires the fee be levied upon the owner of a habitable structure if that person owns the habitable structure on July 1 of the year for which the fee is due.

5. Requires the fees to be deposited in the State Responsibility Area Fire Prevention Fund, which is available to the Board and the CAL FIRE to expend for fire prevention activities that benefit the owners of structures within the SRA. Limits fire prevention activities to the following: a) local assistance grants established by the Board; b) grants to Fire Safe Councils, the California Conservation Corps, or certified local conservation corps for fire prevention projects and activities in the SRA; c) grants to a qualified nonprofit organization with a demonstrated ability to satisfactorily plan, implement, and complete a fire prevention project applicable to the SRA; d) inspections by CAL FIRE for compliance with defensible space requirements around structures in the SRA; e) public education to reduce fire risk in the SRA; f) fire severity and fire hazard mapping by CAL FIRE in the SRA; and, g) other fire prevention projects in the SRA that are authorized by the Board.

6. Allows a person to petition CAL FIRE for a redetermination of whether the fee applies to him or her within 30 days after being served with a notice of determination (i.e., the notice from CAL FIRE stating that a person must pay the fee).

7. Imposes a 10% penalty for each 30-day period in which the fee remains unpaid after the fee becomes final.

8. Allows the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster during the year for which the fee is due, as well as one subsequent year if the habitable structure has not been repaired or rebuilt.

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

COMMENTS:

1. Fire Prevention Fee. In early 2011, the state was facing a $26.6 billion budget deficit, and an annual structural deficit of up to $21.5 billion was projected into the future. In March 2011, the Legislature passed $13.4 billion in budget solutions (consisting mostly of spending cuts) to address the deficit; however, there was still a shortfall of $10.8 billion. To help address the budget shortfall, the Legislature passed, among other bills, AB 28 X1 (Blumenfield), Chapter 8, Statutes of 2011-12 First Extraordinary Session, which required the Board to adopt emergency regulations to establish a fee not to exceed $150 for each structure on a parcel that is within the SRA.

2. Billing. CAL FIRE contracts the job of identifying fee payers to a Designated Fee Administrator (DFA). The DFA contacts tax assessors in all of the counties with SRA and contacts HCD to get a list of habitable structures and their owners on July 1. The DFA then overlays the list of habitable structures with the SRA boundaries that CAL FIRE provides. The DFA develops a list of fee payers and provides that list to the Board of Equalization (BOE) for them to bill. The DFA also runs the call center that answers calls from fee-payers and also processes petitions for redetermination (appeals) from fee-payers. BOE does not receive the list of fee payers until January and when taking into account the appeals process, the billing process can take until the next fiscal year to fully complete. This process represents a significant portion of the $15.5 million in administration costs that was budgeted for 2014-15.

Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0001107

 CONSENT  

Bill No: AB 301

Author: Bigelow (R)

Amended: 6/24/15 in Senate

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 6/9/15

AYES: Pavley, Stone, Allen, Hertzberg, Hueso, Jackson, Monning, Vidak, Wolk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 4/30/15 (Consent) - See last page for vote

SUBJECT: State responsibility areas: fire prevention fees

SOURCE: Author

DIGEST: This bill requires the Department of Forestry and Fire Protection (CAL FIRE) to notify a property owner upon whom a state responsibility area (SRA) fire fee is due to notify such property owner that if the home is sold, then the apportionment of the SRA fire fee may be negotiated as one of the terms of sale.

ANALYSIS:

Existing law:

1. Requires the Board of Forestry (Board) to classify all lands within the state for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state (these areas are known as “state responsibility area” or “SRA.”)
   
   

2. Declares that it is necessary to impose a fire prevention fee to pay for fire prevention activities in the SRA that specifically benefit owners of structures in the SRA.
   
   

3. Requires the Board to adopt regulations to establish a fire prevention fee in an amount not to exceed $150 (which must be adjusted every year for inflation) to be charged on each “structure” on a parcel that is within the SRA. Defines “structure” as a building used or intended to be used for human habitation, including a mobile home or manufactured home. Reduces the fire prevention fee by $35 if the structure is also within the boundaries of a local agency that provides fire protection services (this reduction applies to most structures). Defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the Department of Housing and Community Development (HCD) on July 1 of the state fiscal year for which the fee is due.

4. Requires the fee be levied upon the owner of a habitable structure if that person owns the habitable structure on July 1 of the year for which the fee is due.

5. Requires the fire prevention fees to be deposited in the State Responsibility Area Fire Prevention Fund, which is available to the Board and CAL FIRE to expend for fire prevention activities that benefit the owners of structures within the SRA. Limits fire prevention activities to the following:

1. local assistance grants established by the Board;

2. grants to Fire Safe Councils, the California Conservation Corps, or certified local conservation corps for fire prevention projects and activities in the SRA;

3. grants to a qualified nonprofit organization with a demonstrated ability to satisfactorily plan, implement, and complete a fire prevention project applicable to the SRA;

4. inspections by CAL FIRE for compliance with defensible space requirements around structures in the SRA;

5. public education to reduce fire risk in the SRA;

6. fire severity and fire hazard mapping by CAL FIRE in the SRA; and,

7. other fire prevention projects in the SRA that are authorized by the Board.

6. Allows a person to petition CAL FIRE for a redetermination of whether the fire prevention fee applies to him or her within 30 days after being served with a notice of determination (i.e., the notice from CAL FIRE stating that a person must pay the fire prevention fee).

7. Imposes a 10% penalty for each 30-day period in which the fee remains unpaid after the fee becomes final.

8. Allows the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster during the year for which the fee is due, as well as one subsequent year if the habitable structure has not been repaired or rebuilt.

This bill requires CAL FIRE to notify a property owner upon whom a SRA fire fee is due to notify such property owner that if the home is sold, then the apportionment of the SRA fire fee may be negotiated as one of the terms of sale.

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

SUPPORT: (Verified 6/23/15)

California Farm Bureau

California Taxpayers Association

Central Coast Forest Association

County of San Diego

Howard Jarvis Taxpayers Association

OPPOSITION: (Verified 6/23/15)

None received

ARGUMENTS IN SUPPORT: According to the author, current law requires an owner to pay the entire fee for the year even if a habitable structure changes ownership. AB 301 would change that by requiring CAL FIRE to notify property owners that if a structure subject to an SRA fee is sold, then the fee may be apportioned by agreement between the buyer and the seller.

All of the supporters agree that the bill will promote fairness between buyers and sellers, even while they dispute the legality of the SRA fire fee which is currently being litigated.

ASSEMBLY FLOOR: 77-0, 4/30/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Campos, Chávez, Gomez

Prepared by: William Craven / N.R. & W. / (916) 651-4116

6/24/15 16:15:23

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Fran Pavley, Chair

2015 - 2016 Regular

Bill No: AB 301 Hearing Date: June 9, 2015

Subject: State responsibility areas: fire prevention fees.

BACKGROUND AND EXISTING LAW

1. Requires the Board of Forestry (Board) to classify all lands within the state for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state (these areas are known as “state responsibility area” or “SRA.”)
   
   

2. Declares that it is necessary to impose a fire prevention fee to pay for fire prevention activities in the SRA that specifically benefit owners of structures in the SRA.
   
   

3. Requires the Board to adopt regulations to establish a fire prevention fee in an amount not to exceed $150 (which must be adjusted every year for inflation) to be charged on each “structure” on a parcel that is within the SRA. Defines “structure” as a building used or intended to be used for human habitation, including a mobile home or manufactured home. Reduces the fire prevention fee by $35 if the structure is also within the boundaries of a local agency that provides fire protection services (this reduction applies to most structures). Defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the Department of Housing and Community Development (HCD) on July 1 of the state fiscal year for which the fee is due.

4. Requires the fee be levied upon the owner of a habitable structure if that person owns the habitable structure on July 1 of the year for which the fee is due.

5. Requires the fire prevention fees to be deposited in the State Responsibility Area Fire Prevention Fund, which is available to the Board and the Department of Forestry and Fire Protection (CDF) to expend for fire prevention activities that benefit the owners of structures within the SRA. Limits fire prevention activities to the following: a) local assistance grants established by the Board; b) grants to Fire Safe Councils, the California Conservation Corps, or certified local conservation corps for fire prevention projects and activities in the SRA; c) grants to a qualified nonprofit organization with a demonstrated ability to satisfactorily plan, implement, and complete a fire prevention project applicable to the SRA; d) inspections by CDF for compliance with defensible space requirements around structures in the SRA; e) public education to reduce fire risk in the SRA; f) fire severity and fire hazard mapping by CAL FIRE in the SRA; and, g) other fire prevention projects in the SRA that are authorized by the Board.

6. Allows a person to petition CAL FIRE for a redetermination of whether the fire prevention fee applies to him or her within 30 days after being served with a notice of determination (i.e., the notice from CAL FIRE stating that a person must pay the fire prevention fee).

7. Imposes a 10% penalty for each 30-day period in which the fee remains unpaid after the fee becomes final.

8. Allows the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster during the year for which the fee is due, as well as one subsequent year if the habitable structure has not been repaired or rebuilt.

PROPOSED LAW

This bill requires the Department of Forestry and Fire Protection to notify a property owner upon whom a SRA fire fee is due to notify such property owner that if the home is sold, then the apportionment of the SRA fire fee may be negotiated as one of the terms of sale.

ARGUMENTS IN SUPPORT

According to the author, the current situation requires an owner to pay the entire fee for the year even if a habitable structure changes ownership. AB 301 would change that by requiring CDF to notify property owners that if a structure subject to an SRA fee is sold, that the fee may be apportioned by agreement between the buyer and the seller.

All of the supporters agree that the bill will promote fairness between buyers and sellers, even while they dispute the legality of the SRA fire fee which is currently being litigated.

ARGUMENTS IN OPPOSITION

None received

SUPPORT

California Farm Bureau

California Taxpayers Association

Central Coast Forest Association

County of San Diego

Howard Jarvis Taxpayers Association

OPPOSITION

None Received

-- END --

Date of Hearing: April 22, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 301

Author:(Bigelow) – As Amended Ver:April 15, 2015

Urgency: No State Mandated Local Program: No Reimbursable:

SUMMARY:

This bill requires Cal Fire to notify owners of habitable structures subject to the fire prevention fee that when selling the property, they may negotiate the apportionment of the annual fee with the buyer as one of the terms of the sale.

FISCAL EFFECT:

Minor, absorbable costs for Cal Fire to modify the annual bill.

COMMENTS:

1. Purpose. According to the author, if a habitable structure changes ownership, the owner of the structure on July 1 must pay the entire fee for the year. AB 301 allows the parties subject to a property sale to negotiate and pay only the portion of the fee agreed upon based on the time of ownership.

2. Background. 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 CALFIRE 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 currently $152.33 per habitable structure outside a fire protection district and $117.33 for habitable structures within a fire protection district.

3. Related Legislation. AB 203 (Obernolte) extends the deadline to file a petition for redetermination of the SRA fire prevention fee from 30 to 60 days. This bill is currently on suspense in this Committee.

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

Date of Hearing: April 13, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 301

Author:(Bigelow) – As Introduced Ver:February 12, 2015

SUBJECT: State responsibility areas: fire prevention fees

SUMMARY: Requires the state responsibility area fire prevention fee to be prorated for an owner that owns the habitable structure for only a portion of the year for which the fee is due.

EXISTING LAW:

1. Requires the Board of Forestry (Board) to classify all lands within the state for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state (these areas are known as “state responsibility area” or “SRA.”)
   
   

2. Declares that it is necessary to impose a fire prevention fee to pay for fire prevention activities in the SRA that specifically benefit owners of structures in the SRA.
   
   

3. Requires the Board to adopt regulations to establish a fire prevention fee in an amount not to exceed $150 (which must be adjusted every year for inflation) to be charged on each “structure” on a parcel that is within the SRA. Defines “structure” as a building used or intended to be used for human habitation, including a mobile home or manufactured home. Reduces the fire prevention fee by $35 if the structure is also within the boundaries of a local agency that provides fire protection services (this reduction applies to most structures). Defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the Department of Housing and Community Development (HCD) on July 1 of the state fiscal year for which the fee is due.

4. Requires the fee be levied upon the owner of a habitable structure if that person owns the habitable structure on July 1 of the year for which the fee is due.

5. Requires the fire prevention fees to be deposited in the State Responsibility Area Fire Prevention Fund, which is available to the Board and the Department of Forestry and Fire Protection (CAL FIRE) to expend for fire prevention activities that benefit the owners of structures within the SRA. Limits fire prevention activities to the following: a) local assistance grants established by the Board; b) grants to Fire Safe Councils, the California Conservation Corps, or certified local conservation corps for fire prevention projects and activities in the SRA; c) grants to a qualified nonprofit organization with a demonstrated ability to satisfactorily plan, implement, and complete a fire prevention project applicable to the SRA; d) inspections by CAL FIRE for compliance with defensible space requirements around structures in the SRA; e) public education to reduce fire risk in the SRA; f) fire severity and fire hazard mapping by CAL FIRE in the SRA; and, g) other fire prevention projects in the SRA that are authorized by the Board.

6. Allows a person to petition CAL FIRE for a redetermination of whether the fire prevention fee applies to him or her within 30 days after being served with a notice of determination (i.e., the notice from CAL FIRE stating that a person must pay the fire prevention fee).

7. Imposes a 10% penalty for each 30-day period in which the fee remains unpaid after the fee becomes final.

8. Allows the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster during the year for which the fee is due, as well as one subsequent year if the habitable structure has not been repaired or rebuilt.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement.

Currently if a habitable structure changes ownership, the owner of the structure on July 1 must pay the entire fee for the year. AB 301 aims to change that by requiring that the fee be prorated for an owner, if the owner owns a habitable structure for only a portion of the year for which the fee is due. This proration of the fee would ensure that all parties are contributing the correct amount and not over paying.

2. Fire Prevention Fee (ABX1 29). In early 2011, the state was facing a $25.4 billion budget deficit (which grew to $26.6 billion after the governor cancelled the sale of several state buildings) and an annual structural deficit of up to $21.5 billion was projected into the future. In March 2011, the Legislature passed $13.4 billion in “solutions” (consisting mostly of spending cuts) to address the deficit; however, there was still a shortfall of $10.8 billion. To help address the budget shortfall, the Legislature passed, among other bills, ABX1 29, which required the Board to adopt emergency regulations to establish a “fire prevention fee” not to exceed $150 for each structure on a parcel that is within the SRA. The fee was intended to fill a hole created by a $50 million General Fund cut to CAL FIRE in the 2011 budget bill. The 2014–15 Budget appropriated $76.3 million from SRA revenues to enhance statewide fire prevention work including, for the first time, $10 million for local assistance grants to be used in locations where the effects of drought, fuel loading and structure development converge.

3. Billing. CAL FIRE contracts the job of identifying fee payers to a Designated Fee Administrator (DFA). The DFA contacts tax assessors in all of the counties with SRA and contacts HCD to get a list of habitable structures and their owners on July 1. The DFA then overlays the list of habitable structures with the SRA boundaries that CAL FIRE provides. The DFA develops a list of fee payers and provides that list to the Board of Equalization (BOE) for them to bill. The DFA also runs the call center that answers calls from fee-payers and also processes petitions for redetermination (appeals) from fee-payers. BOE does not receive the list of fee payers until January and when taking into account the appeals process, the billing process can take until the next fiscal year to fully complete. This process represents a significant portion of the $15.5 million in administration costs that was budgeted for 2014-15. If the fee was prorated the billing process would be more costly, complicated and time consuming.

4. Owner of a habitable structure. Statute defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the HCD on July 1 of the state fiscal year for which the fee is due. This bill requires prorating the fee for the owner of a habitable structure, but does not change the definition of owner of a habitable structure. Therefore, a new owner who bought the habitable structure after July 1 would not have to pay the fee until they owned the property on July 1. The author’s office indicates this was not their intent and they would want the new owner to pay their share of the prorated bill.

5. Allowing owners to work it out. Rather than requiring CAL FIRE and BOE to track all fee payers home or mobile home sales, which would dramatically increase the cost of administering the fire prevention fee, and therefore reduce how much fire prevention work could be done, it might be more prudent to allow buyers and sellers to work out who pays what portion of the fee during the sales transaction of the habitable structure. The author and the committee may wish to consider removing the requirement that the fee be prorated and instead require CAL FIRE to notify fee payers that they may negotiate the apportionment of the fee between the parties.

6. Prior legislation.

AB 2048 (Dahle, Chesbro, and Gordon), Chapter 895, Statutes of 2014 reduced the penalties for each 30 day period the fee is unpaid, simplified the appeals process and authorized the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster.

7. Related legislation.

AB 203 (Obernolte) extends the deadline to file a petition for redetermination of the SRA fire prevention fee from 30 to 60 days. This bill was heard by this committee on March 23^rd and is awaiting hearing in Assembly Appropriations Committee.

AB 1202 (Mayes) requires the Board to reduce the fee to be charged on a habitable structure by an amount equal to the amount paid by the owner of the structure to a local fire district for fire prevention services. This bill is in Assembly Natural Resources Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Taxpayers Association (Cal Tax)

California Farm Bureau Federation

Howard Jarvis Taxpayers Association

San Diego County Board of Supervisors

Opposition

None on file

Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092

Date of Hearing: March 23, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 301

Author:(Bigelow) – As Introduced Ver:February 12, 2015

SUBJECT: State responsibility areas: fire prevention fees

SUMMARY: Requires the state responsibility area fire prevention fee to be prorated for an owner that owns the habitable structure for only a portion of the year for which the fee is due.

EXISTING LAW:

1. Requires the Board of Forestry (Board) to classify all lands within the state for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state (these areas are known as “state responsibility area” or “SRA.”)
   
   

2. Declares that it is necessary to impose a fire prevention fee to pay for fire prevention activities in the SRA that specifically benefit owners of structures in the SRA.
   
   

3. Requires the Board to adopt regulations to establish a fire prevention fee in an amount not to exceed $150 (which must be adjusted every year for inflation) to be charged on each “structure” on a parcel that is within the SRA. Defines “structure” as a building used or intended to be used for human habitation, including a mobile home or manufactured home. Reduces the fire prevention fee by $35 if the structure is also within the boundaries of a local agency that provides fire protection services (this reduction applies to most structures). Defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the Department of Housing and Community Development (HCD) on July 1 of the state fiscal year for which the fee is due.

4. Requires the fee be levied upon the owner of a habitable structure if that person owns the habitable structure on July 1 of the year for which the fee is due.

5. Requires the fire prevention fees to be deposited in the State Responsibility Area Fire Prevention Fund, which is available to the Board and the Department of Forestry and Fire Protection (CAL FIRE) to expend for fire prevention activities that benefit the owners of structures within the SRA. Limits fire prevention activities to the following: a) local assistance grants established by the Board; b) grants to Fire Safe Councils, the California Conservation Corps, or certified local conservation corps for fire prevention projects and activities in the SRA; c) grants to a qualified nonprofit organization with a demonstrated ability to satisfactorily plan, implement, and complete a fire prevention project applicable to the SRA; d) inspections by CAL FIRE for compliance with defensible space requirements around structures in the SRA; e) public education to reduce fire risk in the SRA; f) fire severity and fire hazard mapping by CAL FIRE in the SRA; and, g) other fire prevention projects in the SRA that are authorized by the Board.

6. Allows a person to petition CAL FIRE for a redetermination of whether the fire prevention fee applies to him or her within 30 days after being served with a notice of determination (i.e., the notice from CAL FIRE stating that a person must pay the fire prevention fee).

7. Imposes a 10% penalty for each 30-day period in which the fee remains unpaid after the fee becomes final.

8. Allows the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster during the year for which the fee is due, as well as one subsequent year if the habitable structure has not been repaired or rebuilt.

FISCAL EFFECT: Unkown

COMMENTS:

1. Author’s statement.

Currently if a habitable structure changes ownership, the owner of the structure on July 1st must pay the entire fee for the year. AB 301 aims to change that by requiring that the fee be prorated for an owner, if the owner owns a habitable structure for only a portion of the year for which the fee is due. This proration of the fee would ensure that all parties are contributing the correct amount and not over paying.

2. Fire Prevention Fee (ABX1 29). In early 2011, the state was facing a $25.4 billion budget deficit (which grew to $26.6 billion after the governor cancelled the sale of several state buildings) and an annual structural deficit of up to $21.5 billion was projected into the future. In March 2011, the Legislature passed $13.4 billion in “solutions” (consisting mostly of spending cuts) to address the deficit; however, there was still a shortfall of $10.8 billion. To help address the budget shortfall, the Legislature passed, among other bills, ABX1 29, which required the Board to adopt emergency regulations to establish a “fire prevention fee” not to exceed $150 for each structure on a parcel that is within the SRA. The fee was intended to fill a hole created by a $50 million General Fund cut to CAL FIRE in the 2011 budget bill. The 2014–15 Budget appropriated $76.3 million from SRA revenues to enhance statewide fire prevention work including, for the first time, $10 million for local assistance grants to be used in locations where the effects of drought, fuel loading and structure development converge.

3. Billing. CAL FIRE contracts the job of identifying fee payers to a Designated Fee Administrator (DFA). The DFA contacts tax assessors in all of the counties with SRA and contacts HCD to get a list of habitable structures and their owners on July 1^st. The DFA then overlays the list of habitable structures with the SRA boundaries that CAL FIRE provides. The DFA develops a list of fee payers and provides that list to Board of Equalization (BOE) for them to bill. The DFA also runs the call center that answers calls from fee-payers and also processes petitions for redetermination (appeals) from fee-payers. BOE does not receive the list of fee payers until January and when taking into account the appeals process the billing process can take until the next fiscal year to fully complete. This process represents a significant portion of the $15.5 million in administration costs that was budgeted for 2014-15. If the fee was prorated the billing process would be more costly, complicated and time consuming.

4. Owner of a habitable structure. Statute defines “owner of a habitable structure” as the person that is the owner of record of a habitable structure in the county tax assessor rolls or as recorded in the records of the HCD on July 1 of the state fiscal year for which the fee is due. This bill requires prorating the fee for the owner of a habitable structure, but does not change the definition of owner of a habitable structure. Therefore, a new owner who bought the habitable structure after July 1 would not have to pay the fee until they owned the property on July 1. The author’s office indicates this was not their intent and they would want the new owner to pay their share of the prorated bill.

5. Allowing owners to work it out. Rather than requiring CAL FIRE and BOE to track all fee payers home or mobile home sales, which would dramatically increase the cost of administering the fire prevention fee, and therefore reduce how much fire prevention work could be done, it might be more prudent to allow buyers and sellers to work out who pays what portion of the fee during the sales transaction of the habitable structure. The author and the committee may wish to consider removing the requirement that the fee be prorated and instead require CAL FIRE to notify fee payers that they may negotiate the apportionment of the fee between the parties.

6. Prior legislation.

AB 2048 (Dahle, Chesbro, and Gordon), Chapter 895, Statutes of 2014 reduced the penalties for each 30 day the fee is unpaid, simplified the appeals process and authorized the Board to exempt from the fee any habitable structure that is subsequently deemed uninhabitable as a result of a natural disaster.

7. Related legislation.

AB 203 (Obernolte) extends the deadline to file a petition for redetermination of the SRA fire prevention fee from 30 to 60 days. This bill is also scheduled to be heard by this committee on March 23^rd.

AB 1202 (Mayes) requires the Board to reduce the fee to be charged on a habitable structure by an amount equal to the amount paid by the owner of the structure to a local fire district for fire prevention services. Pending in Assembly Rules Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Taxpayers Association (Cal Tax)

California Farm Bureau Federation

Howard Jarvis Taxpayers Association

San Diego County Board of Supervisors

Opposition

None on File

Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092