Forestry assistance program: loans.

Existing law establishes the forestry assistance program, to be conducted by the Department of Forestry and Fire Protection, which is required to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and education assistance, as well as through applied research. Existing law creates the Timber Regulation and Forest Restoration Fund in the State Treasury and requires that specified revenues received from a lumber or engineered wood products assessment, less amounts deducted for refunds and reimbursements, be deposited in the fund and, upon appropriation by the Legislature, used for specified purposes, including for forest resources improvement grants and projects administered by department. This bill would provide that assessments deposited into the fund, less amounts deducted for refunds and reimbursements, be used, upon appropriation by the Legislature, for forest resources improvement grants, loans, and projects. Existing law authorizes the director of the department to enter into an agreement with an eligible landowner pursuant to which the landowner will undertake forest resource improvement work in return for an agreement by the director to share the cost of carrying out that work. Existing law authorizes the director to make various types of loans, including loans to cover all or part of the landowner's cost for the work. Existing law requires these loans to be made for a term not exceeding 20 years and bearing interest at the prevailing rate. This bill would instead authorize the director to enter into those agreements only with small nonindustrial landowners, as defined. The bill would delete the term and interest rate requirements relating to these loans and instead require the director to establish reasonable terms relating to the length of, and the interest rate for, the loans. The bill would also require the director to provide the director's share of the costs described above in advance of any performed work if the eligible landowner agrees in writing to undertake the forest resource improvement work with the understanding that any funds provided for uncompleted work shall constitute a claim and lien upon the real property owned by the landowner, as provided. The bill would require any money recovered from the lien to be deposited into the fund.