The proposed 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 to be 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 will be created, allowing for the accumulation of funds and interest, which will be used exclusively for the program's purposes.

The bill includes an appropriation of $3 million from the general fund to support the Forest Health Grant Program, with stipulations that the funds cannot be transferred or used for other purposes without legislative approval. The funds will remain available until further legislative action is taken, ensuring ongoing support for the program. 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 their respective projects. The act is set to take effect on July 1, 2025.