BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1617|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1617
          Author:   Kehoe (D)
          Amended:  5/27/08
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  5-2, 4/8/08
          AYES:  Steinberg, Kehoe, Kuehl, Machado, Migden
          NOES:  Margett, Hollingsworth
          NO VOTE RECORDED:  Cogdill

           SENATE REVENUE & TAXATION COMMITTEE  :  5-3, 4/9/08
          AYES:  Oropeza, Alquist, Machado, Scott, Wiggins
          NOES:  Cogdill, Harman, Runner

           SENATE APPROPRIATIONS COMMITTEE  :  8-4, 5/22/08
          AYES:  Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza,  
            Simitian, Yee
          NOES:  Cox, Aanestad, Ashburn, Dutton
          NO VOTE RECORDED:  Ridley-Thomas, Runner, Wyland


           SUBJECT  :    State Responsibility Area Fire Prevention Fees

           SOURCE  :     Author


           DIGEST  :    This bill charges a $50 fee on all structures  
          within a state responsibility area for fire prevention.

           ANALYSIS  :    Under existing law, Department of Forestry and  
          Fire Protection (CDFFP) is required to provide fire  
          protection on lands that are deemed to be in the "state  
                                                           CONTINUED





                                                               SB 1617
                                                                Page  
          2

          responsibility area" (SRA).  SRAs are generally 
          lands that are (or were, prior to development) largely  
          covered by trees, brush, and grass and other undeveloped  
          lands.  SRAs cannot include federal owned or controlled  
          land, or land within a city.  Existing law requires CDFFP  
          to provide wildland fire prevention and firefighting  
          personnel and equipment.  Existing law authorizes CDFFP to  
          provide rescue, first aid, and other emergency services to  
          the public in the SRA if the activity does not require  
          additional funds.  

          According to the Legislative Analyst's Office, in its  
           Analysis of the 2008-2009 Budget Bill  , "Over the last  
          several decades, the state has experienced significant  
          housing development at the boundary between wildlands and  
          urban areas, known as the wildland urban interface.  In  
          particular, significant development has occurred in the  
          Sierra Nevada foothills and the interior ranges of Southern  
          California?. [W]hile the total acreage in SRA has remained  
          stable over the last 15 years, the number of housing units  
          in SRA has increased by 15 percent over this period -  
          despite changes in SRA designations which have moved fire  
          protection responsibility for significant numbers of houses  
          from SRA to local responsibility areas.  As development  
          increases in previously undeveloped - and often fire prone  
          - areas, fire protection costs increase for several  
          reasons.  First, the presence of more people increases the  
          incidence of wildland fires, as fires from human-caused  
          activities spread to wildland areas.  Second, protecting  
          people and homes often requires greater fire suppression  
          effort than would typically be used on forests or  
          rangelands.  Finally, the presence of people and structures  
          can sometimes limit the techniques used for fire prevention  
          or suppression.  For example, the use of prescribed burning  
          to reduce available fuel loads or the use of aircraft to  
          suppress fires may be limited by the presence of homes in a  
          formerly wildland area.  The inability to use these kinds  
          of fire suppression tactics increases the need for more  
          labor-intensive firefighting methods to protect people and  
          homes." 

          According to a report found on the department's Internet  
          Web site, people cause over 95 percent of the fires in the  
          SRA. 

                                                           CONTINUED





                                                               SB 1617
                                                                Page  
          3


          The total number of structures in the SRA is unknown.   
          According to the Legislative Analyst's Office, as of 2005  
          there were in excess of 850,000 residences in the SRA.  For  
          the purposes of this analysis, staff assumes that for every  
          ten residential structures there is a non-residential  
          structure 
          (85,000).  Additionally, the number of structures in the  
          SRA that are sufficiently covered by a structural fire  
          department is unknown.  For the purposes of this analysis,  
          staff assumes that 75 percent of structures in the SRA have  
          sufficient structural fire protection provided by a  
          non-CDFFP entity.

          This bill charges a $50 fee on all structures within a  
          state responsibility area for fire prevention.  The monies  
          are to be appropriated by the Legislature, and all start-up  
          costs are to be recovered from the fee.

          This bill requires local governments to collect the fee at  
          the same time and manner as secured property tax bills.   
          This bill requires that the fee be collected starting with  
          the 2009-10 fiscal year.

          The county collecting the fees will be authorized to retain  
          the portion of the fee authorized by the BOF to cover the  
          actual and reasonable costs associated with the collection  
          of this fee.

          The county auditor will be required to remit the fee  
          revenues to the State Treasurer for deposit into the State  
          Responsibility Area Fire Prevention Fund, established in  
          the bill. 

          The amount of revenues that will be generated by the fee  
          are unknown but potentially in excess of $45 million per  
          year.

          Money in the fund will be available to the board and the  
          department, upon appropriation by the Legislature, for fire  
          prevention activities in state responsibility areas,  
          attributable to benefits conferred on structures subject to  
          the fee.  Funds can be used for local assistant grants,  
          grants to Fire Safe Councils and the California  

                                                           CONTINUED





                                                               SB 1617
                                                                Page  
          4

          Conservation Corps, department inspections for compliance  
          with defensible space requirements around structures in  
          state responsibility areas, public education, fire severity  
          and fire hazard mapping by the department and other fire  
          prevention activities determined by the Board.

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2008-09     2009-10     
           2010-11   Fund
           Emergency regulations    $500                     General
          Parcel mapping           $315      $630      $630 General/
                                                            Special*
          Collection costs                        unknown,  
          $2000-$5000                             Special*
          Fee revenue                             $46,750    
          $46,750Special*
                    
          *State Responsibility Area Fire Protection Fund,  
          established in this bill.

           SUPPORT  :   (Verified  5/27/08)

          California Fire Safe Council
          California League of Conservation Voters
          California Native Plant Society
          CalTrout
          Defenders of Wildlife
          Endangered Habitats League
          Sierra Club

           OPPOSITION  :    (Verified  5/27/08)

          California Association of County Treasurers and Tax  
          Collectors 
          California State Association of Counties
          County of Amador
          County of Butte
          County of Calaveras

                                                           CONTINUED





                                                               SB 1617
                                                                Page  
          5

          County of Del Norte
          County of Glenn
          County of Inyo
          County of Lassen
          County of Mendocino
          County of Plumas
          County of Shasta
          County of Tehama
          County of Trinity
          County of Tulare
          Department of Finance
          Howard Jarvis Taxpayers Association
          Regional Council of Rural Counties
          Stop Hidden Taxes Coalition
          Tehama County Auditor-Controller
          Tuolumne County - Office of the Auditor-Controller


          CTW:nl  5/28/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****






















                                                           CONTINUED