Forest Acquisition. Timber Harvesting Practices. Bond Act.

FOREST ACQUISITION. TIMBER HARVESTING PRACTICES. BOND ACT. INITIATIVE STATUTE. • Authorizes 10-year state acquisition program, limited logging moratorium, to permit public acquisition of designated ancient forests providing wildlife habitat. • Requires wildlife surveys, mitigation measures. Limits logging sites, including those near waterways. • Requires state-funded compensation, retraining program for loggers displaced by new regulations, acquisitions. • Authorizes general obligation bond issue of $742.000,000 to fund acquisition, other provisions. • Limits timber cutting practices, burning of forest residues, on California timberlands. • Mandates sustained yield standards. • Imposes new timber harvesting permit fees . • Revises Board of Forestry membership. • Discourages foreign export of forest products. Imposes penalties for violations. Summary of Legislative Analyst\u27s Estimate of Net State and Local Government Fiscal Impact: • If all authorized bonds are sold at 7.5 percent interest and paid over the typical 20-year period, General Fund will incur approximately $1.3 billion in costs to payoff bond principal ($742 million) and interest ($585 million). • Estimated average annual cost of bond principal and interest is $55 million. • State administrative costs of up to $10 million annually for state forestry review and enforcement programs, fully offset by revenues from timber harvesting fees. • Such fees would also offset current state logging-related regulatory costs, thus resulting in state savings of about $6.4 million annually. • Unknown effect on revenues from other state taxes, possible decreased revenue to local governments to extent lands acquired under measure would no longer be assessed property taxes