BILL ANALYSIS Ó AB 731 Page 1 Date of Hearing: March 30, 2011 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Isadore Hall, Chair AB 731 (Jeffries) - As Introduced: February 17, 2011 SUBJECT : Firefighting. SUMMARY : Would annually appropriate $1,030,000 of revenue currently received by the state from specified tax and fee revenue sources for firefighting and emergency response purposes, including, but not limited to, the purchase of firefighting and rescue vehicles and equipment. Specifically, this bill : 1) States that the State Board of Equalization shall annually collect and process one million thirty thousand dollars ($1,030,000) from revenue currently received by the state from specified tax and fee revenue sources and shall be expended as follows: a) One million dollars ($1,000,000) shall be deposited annually into the State Assistance for Fire Equipment Account for the purposes of the State Assistance for Fire Equipment Act. The funds are to be used for firefighting and emergency response purposes, including, but not limited to, the purchase of firefighting and rescue vehicles and equipment, as specified; and, b) Thirty thousand dollars ($30,000) is hereby annually appropriated to the Office of the State Fire Marshal, State Fire Training, for the purposes of providing training courses and materials related to the types of emergencies and fires associated with the products or industries from which the fees or taxes are herein collected. 2) Provides the secretary of California Emergency Management Agency (CalEMA) shall use the appropriated funds to only purchase of new equipment and apparatus. 3) Requires the secretary of CalEMA to consult with additional specified individuals involved in firefighting before adopting certain regulations, as defined. 4) Makes legislative findings and declarations. AB 731 Page 2 EXISTING LAW : 1) Creates CalEMA and requires it to perform a variety of duties with respect to specified emergency preparedness, mitigation, and response activities in the state. 2) Authorizes the secretary of CalEMA to acquire specified firefighting apparatus and equipment for resale to a local agency, as defined, that provides fire suppression services or a fire company. 3) Establishes the State Assistance for Fire Equipment Account, a continuously appropriated fund, for purposes of the act. 4) Requires the secretary to consult with a specified committee before adopting regulations implementing the act. FISCAL EFFECT : Unknown. COMMENTS : Purpose of the bill : According to the author's office, "California is the home to its share of disasters, both natural and otherwise. These events range from the 1994 Northridge earthquake, the record breaking fire storms of 2003, 2007, 2008 and 2009 throughout the state, the 2005 La Conchita landslide, and the 1989 San Bernardino Duffy Street train derailment." The author states that "these events do not include the annual disasters across the state including on average 6,800 fires burning more than 248,000 acres, the over 200 earthquakes on average over a 3.5 magnitude and the yearly flooding and mudslides that take place. The state has seen an increasing level of natural disasters with more and more becoming severe. Many of these events utilize a mixture of state, local and regional resources. As the events grow in severity more resources are pulled from across the state. California's emergency response teams must be prepared to address each of these disasters." The author's office empathizes, "given the increase in the state population and the intensity and frequency of disasters within the state, it is evident that assistance is needed to enable the state to purchase additional firefighting and emergency AB 731 Page 3 equipment and apparatus for state and local emergency response and further build the ability to mitigate the effects of all forms of disasters." The author states, this bill will appropriate $1,030,000 annually to fill the funding void to purchase additional firefighting and emergency equipment and apparatus for state and local use. The specified allocation will come from a transfer of revenue currently received by the state from specified tax and fee revenue sources. Those sources are as follows: (1) Sixty thousand dollars ($60,000) from the Private Railroad Car Tax; (2) One hundred eighty thousand dollars ($180,000) from the funds received pursuant to the Cigarette and Tobacco Products Tax Law; (3) One hundred thousand dollars ($100,000) from funds received pursuant to the Energy Resources Surcharge Law; (4) One hundred fifty thousand dollars ($150,000) from the Alcoholic Beverage Tax; (5) One hundred fifty thousand dollars ($150,000) from funds received pursuant to the Insurance Taxation Law; (6) Seventy-five thousand dollars ($75,000) received pursuant to the Motor Vehicle Fuel Tax Law; (7) Fifteen thousand dollars ($15,000) from the Aircraft Jet Fuel; (8) Twenty-five thousand dollars ($25,000) from the Oil Spill Response Trust Fund; (9) Seventy-five thousand dollars ($75,000) received pursuant to the Hazardous Substances Tax Law; and (10) Twenty-five thousand dollars ($25,000) from the California tire fee pursuant to Section 42885 of the Public Resources Code. The author states, "As we continue to watch major disasters occur around the world, it is our job to ensure that California's emergency responders are trained and equipped with the resources to protect its residents." Policy consideration : Will this bill set future precedents for appropriating revenue currently received by the state from specified tax and fee revenue sources to fund future firefighting and emergency response purposes? Double-referral : This measure is double-referred to the Assembly Committee on Natural Resources. Prior legislation : AB 2791 (Assembly Governmental Organization Committee), Chapter 618, Statutes of 2010. Makes various statutory and technical changes to reflect the merger of the AB 731 Page 4 former Office of Emergency Services and the former Office of Homeland Security into the California Emergency Management Agency in January 1, 2009. AB 3075 (Assembly Governmental Organization Committee), Chapter 364 of 2008. Required the Office of Emergency Services (OES) to give first priority for the sale of new or used firefighting apparatus and equipment to a local agency that serves a rural area, and to give second priority for the sale of new or used firefighting apparatus and equipment to any local agency. Allows the office to sell the apparatus and equipment to public agencies outside California, the federal government, and Indian tribes, as specified. SB 546 (Dutton), Chapter 232, Statutes of 2005. Authorized the Office of Emergency Services (OES) to partner with private sector interests to integrate private sector and governmental emergency preparedness efforts. In addition, this bill creates the Disaster Resistant Communities Account in the General Fund into which private donations may be deposited. AB 1284 (Hansen) Chapter 1332 of 1987. Established the SAFE Act, designed to assist local agencies - particularly those local agencies located in rural areas of the state - in acquiring firefighting vehicles and related equipment. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531