The bill establishes a new Forest Health Grant Program, which will be administered by the state forester. The program aims to provide financial assistance for projects that enhance water yield, reduce wildfire risks, support the forest products industry, improve wildlife habitats, and promote overall forest health. Grants will cover up to 65% of project costs, with the remaining funds sourced from matching contributions. Importantly, no grants can be awarded without the attorney general's written opinion certifying their legality. Additionally, a dedicated account for the grant program is created, which will hold funds appropriated by the legislature and any donations made to the account.

An appropriation of $3 million from the general fund is allocated to the forest health grant program account to support the implementation of this act. The bill stipulates that these funds will not lapse at the end of the fiscal year and will remain available for the program until further legislative action is taken. The state forester is also required to report annually to the joint agriculture, state and public lands and water resources interim committee on the grants awarded and the projects funded. The act is set to take effect on July 1, 2025.