To ensure that state agencies do not misdirect cost recovery revenues in the future, the Legislature should specify that these revenues include any money received as a result of cost recovery efforts, and should require that these revenues be deposited in the state treasury.
Senate Bill 1075 (Knight, Chapter 250, Statutes of 2014) requires any moneys recovered by the Department of Forestry and Fire Protection for fire suppression costs incurred in fighting a fire to be deposited by the department into the Treasury. The bill also requires the department to make an annual report to the Legislature regarding any fire suppression moneys recovered in a civil action, and requires all moneys in the Civil Cost Recovery Investigation Support Account to be immediately transferred to the General Fund.
Senate Bill 1075 only applies to "fire suppression costs" incurred by Cal Fire. In order to fully implement this recommendation, the Legislature should consider legislation directing all state agencies to deposit cost recovery revenue in the state treasury.