Loading...
HomeMy WebLinkAboutMINUTES - 05052015 - C.28RECOMMENDATION(S): ADOPT a "Support" position on AB 203 (Obernolte), as amended: State Responsibility Areas: Fire Prevention Fees, a bill that extends the period for paying or disputing a fire prevention fee from 30 days to 60 days from the date of assessment. FISCAL IMPACT: The State Board of Equalization (BOE) estimates the annual revenue loss to the State to be about $497,961 (special funds). Additionally, BOE will incur minor one-time costs for computer programming and revising publications (special funds). BACKGROUND: At its April 2, 2015 meeting, the Legislation Committee considered the recommendation from the County Administrator to recommend a position of "Support" to the Board of Supervisors on AB 203. CURRENT STATUS: 04/15/2015 In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File. (Note: The Suspense File is where the Appropriations Committee sends any bill with an annual cost of more than $150,000 (any fund). Suspense File bills are then considered at one hearing after the state budget has been prepared and the committee has a better sense of available revenue. No testimony is presented – author or witness – at the Suspense File hearing.) APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/05/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor ABSENT:Federal D. Glover, District V Supervisor Contact: Lara DeLaney, (925) 335-1097 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 5, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: C. 28 To:Board of Supervisors From:LEGISLATION COMMITTEE Date:May 5, 2015 Contra Costa County Subject:AB 203 (Obernolte) State Responsibility Areas: Fire Prevention Fees BACKGROUND: (CONT'D) 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 $375,000 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, 2012-13 and 2013-14, interest and penalties paid totaled $4,617,894.. Of that amount, $1,493,882 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 three years, the annual average revenue loss is therefore computed as: $1,493,882 / 3 = $497,961. However, BOE staff notes that the payments made after 60 days continues to decline, at an average annual rate of two percent. Meanwhile, timely payments made within the 30-day period have improved, in part due to BOE outreach efforts. Given the continued improvement in timely payments, BOE staff estimates the annual average revenue loss attributable to penalties and interest at $382,700. 2) Unknown, likely minor, 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 review their assessments and either dispute the fee or adjust their budgets and pay their fees in a timely manner. 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 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. 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) Previous Legislation. Last year a similar measure, AB 1413 (Wyland) was held on suspense in the Assembly Appropriations Committee. CONSEQUENCE OF NEGATIVE ACTION: Contra Costa County would not have a position on the bill. ATTACHMENTS Bill Text Fact Sheet SRA Map--CCC CCC Fire Fee Facts As Introduced on January 29, 2015 FACT SHEET JAY OBERNOLTE Assemblyman, 33rd District Assembly Bill 203 – Fire Prevention Fee Due Dates SUMMARY AB 203 (Obernolte) would extend the period for paying or disputing a fire prevention fee from 30 days to 60 days from the date of assessment. BACKGROUND The fire prevention fee is assessed annually on owners of habitable structures located on a parcel within a State Responsibility Area (SRA). The SRA does not include lands within city boundaries or in federal ownership. Generally speaking, the SRA is comprised of rural areas, including the state’s wildlands and watersheds. Under Public Resources Code (PRC) Section 4213, the annual fire prevention fee is due and payable to the Board of Equalization (BOE) 30 days from the date of assessment. Additionally, PRC Section 4220 provides a 30-day period to dispute the fee by filing a petition for redetermination. If a taxpayer misses the filing deadline to appeal the assessed liability, they must first pay the fee in full and file a claim for refund. However, if a taxpayer files a timely petition they are not required to pay the fee until BOE makes a final ruling in regard to the dispute. PROBLEM Despite the efforts of BOE and the Department of Forestry and Fire Protection (CalFire) to clarify the fire fee billings, improve communications and publications, and educate fee payers about the petition process, many homeowners have expressed concern that the 30-day period does not allow them sufficient time to pay or dispute the fee. The reasons given generally include mail delays in rural areas, difficulty understanding fire fee bills, financial stress on fixed-income property owners, and a lack of time to obtain assistance and documentation. SOLUTION AB 203 would give property owners 60 days to pay or dispute the fire prevention fee, rather than the 30 days allowed under existing law. This would allow sufficient time for those residents to review their assessments and account for any delays. SUPPORT · George Runner – Vice Chair, California State Board of Equalization [Sponsor] · Diane Harkey – Member, California State Board of Equalization · Jerome Horton – Member, California State Board of Equalization · California Farm Bureau Federation · California Fire Chiefs Association · County of San Bernardino · Fire Districts Association of California · Howard Jarvis Taxpayers Association · Plumas County Board of Supervisors · San Diego County Board of Supervisors STAFF CONTACT INFORMATION Justin Hyer (916) 319-2033 justin.hyer@asm.ca.gov Attachment 2 03S04E 02S01E 02N01E 02N02W 01S01W 02S04E 03S03E 02S03E 03S01E 03S02E 01S03E 01S04E 01S02E01S01E 02S02E 04N02E04N01E 03N01E 01N04E01N02E01N01E 03N04E 02N04E 03N02E 04N04E 02N02E 01N03E 02N03E 01S03W 02N03W 03S01W 01N01W 02S03W 03N03E 04N03E 03N01W 01S02W 01N03W 02S01W 03N03W 01N02W 03N02W 02N01W 02S02W02S05W 01N04W 03S02W 03S05W 03N05W 01S04W 02N04W 03N04W 01N05W 03S03W 02S04W 6 1 6 1 6 6 6 6 6 6 1 6 66 6 1 1 1 1 61 6 6 1 6 1 1 1 1 6 6 1 6 31 6 6 1 1 1 31 6 1 6 1 1 1 31 1 36 1 31 1 31 6 6 36 6 6 1 36 6 6 1 6 6 1 6 6 6 1 6 1 31 31 1 1 1 1 1 6 1 6 1 6 6 1 61 31 31 1 6 1 6 11 1 31 31 31 36 31 36 31 36 31 36 36 31 31 36 31 31 31 36 31 36 36 31 36 31 31 31 31 36 31 36 36 36 31 31 36 3631 36 36 36 36 36 36 36 36 36 36 31 31 31 36 31 36 36 3131 3636 31 36 3636 3636 31 31 31 36 3131 36 36 31 31 ! ! ·|}160 ·|}29 ·|}4 ·|}24 ·|}160 ·|}13 £¤101 ·|}61 ·|}242 ·|}4 ·|}4 ·|}4 ·|}185 ·|}12 §¨¦780 §¨¦680 §¨¦880 §¨¦880 §¨¦80 §¨¦80 §¨¦280 §¨¦580 §¨¦580 ·|}84 §¨¦80 ·|}123 ·|}29·|}37 §¨¦680 §¨¦680 §¨¦680 ·|}24 §¨¦238 §¨¦580 Sacramento RiverNorth Mokelumne RiverMokelumne River UpperSan L eandro Reservoir San PabloReservoir BrionesReservoir Lake Chabot Clifton CourtForebay Bahia Altamont OAKLAND Hayward Vallejo Concord Antioch SAN FRANCISCO Richmond Livermore Oakley Pleasanton Dublin Danville Orinda Benicia Lafayette Pittsburg Walnut Creek San Ramon Brentwood Martinez Moraga Berkeley San Leandr o Pinole Hercules Rio V ista Pleasant Hill Clayton South San Francisco El Cerr ito Brisbane Amer icanCanyon San Pablo Albany Piedmont Emeryville Belvedere Isleto n Alameda A L A M E D A C O U N T Y SAN JOAQUIN COUNTYSAN FRA NCISCO BAY SAN PABLOBAY Suisun Bay Grizzly Bay Honker Bay Sacramento RiverSan Joaquin RiverN a p a R iver 121°36'0 "W121°42'0 "W121°48'0 "W121°54'0 "W122°0'0"W122°6'0"W122°12'0 "W122°18'0 "W122°24'0 "W 38°6'0"N 38°0'0"N 37°54'0"N 37°48'0"N 37°42'0"N Jerry Bro wn, Governor, State of CaliforniaJohn Laird , Secretary for Resources, The Natural Resources AgencyKen Pimlott, D irector, Department o f Fo restry an d Fire Prote ctio n The Sta te of Ca lifornia and the D epartm ent of For estry and Fire Pr otection m ake no re presenta tions or w arra nties r egarding the accuracy of data or map s. Neither the State nor th e D epartm ent sh all be liab le under any circum stance s for any d irect, sp ecial, incid ental, or conseque ntial dam ages w ith resp ect to any claim b y any use r o r third par ty on accoun t of, o r a rising fr om, the use o f data or m aps. Ob tain FRAP map s, data, m etadata a nd publications on the Interne t at http://frap.cdf.ca.govFor m ore inform ation , con tact CDF-FR AP, PO Box 9442 46, Sacr ame nto, CA 94 244-2 460, (9 16) 327-3 939. DATA SOU RCESCAL FIRE Sta te Responsibility Areas (sra11_2)CAL FIRE Incorporated Cities (Incorp11_2 ) MAP ID: sramap7 CO N TR A C O STA C O UN T Y STATE RESPON SIBILITY AREASFOR F IRE PR OTEC TION 0 10 Kilometers California Teale Albers, NAD 1983Scale 1: 100,000at 32" x 2 7"August 2012 © 0 5 Miles SRA (State Responsibility A rea) FRA (F ederal Responsibility A rea) LRA (Local Responsibility Area) NO TE: Federal lands transferred to private, state, or local government ownership initially are designated as LRA. Additional actions are required under Board of Forestry and Fire Protection rules for these areas to potentially be assigned SRA status. !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!Incorporated City