BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 18


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          Date of Hearing:   April 8, 2015


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          AB 18  
          Dodd - As Amended March 12, 2015


          SUBJECT:  Disaster relief:  South Napa Earthquake


          SUMMARY:   This urgency measure, adds the South Napa Earthquake  
          that occurred on August 24, 2014 to the list of disasters  
          eligible for full state reimbursement of the local agency costs  
          under the California Disaster Assistance Act (CDAA or Act).   
          Specifically, this bill: 





          1)  Adds the South Napa Earthquake in August 2014, to the list  
          of disasters for which the state share of state eligible costs  
          is 100 percent under the Act.





          2)  Contains an urgency clause.


          EXISTING LAW: 









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          1)  Provides under the Act, that the state must pay 75% of the  
          non-federal share of eligible costs for any state-declared  
          emergency. 





          2)  Prohibits the state share for any eligible project from  
          exceeding 75% of total state eligible costs unless the local  
          agency is located within a city, county, or city and county that  
          has adopted a local hazard mitigation plan, in accordance with  
          the federal Disaster Mitigation Act of 2000, as part of the  
          safety element of its general plan, as specified.  





          3)  Provides for certain disasters that allow the state to cover  
          up to 100% of the non-federal eligible costs.  (e.g., 1989 Loma  
          Prieta earthquake, 1991 East Bay Fire, 1994 Northridge  
          earthquake, the 2001 Southern California wildfires, and the 2003  
          San Simeon earthquake).





          FISCAL EFFECT:  Unknown


          COMMENTS:  


          The California Disaster Assistance Act (Act) is California's  
          state disaster assistance program.  The Act reimburses local  
          governments for debris removal, emergency work, and repair or  








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          replacement of public facilities damaged by a disaster upon a  
          Governor's proclamation.  The state share of eligible expenses  
          is 75%, and local jurisdictions are responsible for the  
          remaining 25%.  When there is a federal declaration, the Federal  
          Emergency Management Agency (FEMA) pays 75% and the state pays  
          75% of the remaining 25%.  In recent federally declared  
          disasters, it has been the Legislature's practice to increase  
          the Act funding to 100% so that the state would pay the entire  
          remaining 25% nonfederal share of eligible costs.  The  
          Legislature usually has not increased the Act funding to 100%  
          for state-only disasters that  are not  federally declared.





          In 2006, the Legislature enacted AB 2140 (Hancock) Chapter 739,  
          Statutes of 2006, which was designed to promote the adoption of  
          local hazard mitigation plans (LHMP) that meet specified federal  
          standards.  Under this provision, a local jurisdiction is not  
          eligible for the 100% cost share under the Act unless it is  
          located within a city and/or county that has adopted an LHMP as  
          part of the safety element of its general plan.  





          According to the author's office, Napa and Sonoma County have  
          adopted an LHMP pursuant to existing law, and are eligible to  
          receive the full 100% share of costs.  


           Purpose of the bill  :  On August 24, 2014, a 6.1 magnitude  
          earthquake centered in Napa County caused severe damage in that  
          county and the surrounding counties of Solano and Sonoma.  The  
          earthquake caused structural damage to public and private  
          buildings.  The quake was the strongest to hit the San Francisco  
          Bay area since a magnitude-6.9 earthquake in 1989.  The quake  








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          damaged critical infrastructure, including power lines, water  
          mains and gas lines and sparked gas-fed fires that destroyed  
          several mobile homes.  The worst damage came near the epicenter  
          in downtown Napa, where a post office, library and a 141-room  
          hotel were among 150 homes and buildings deemed unsafe to  
          occupy.


          On the day of the earthquake, Governor Brown issued an emergency  
          proclamation for the state of California due to the effects of  
          the earthquake and continued aftershocks.  The Governor  
          declared, "Under the provisions of the California Government  
          Code, I find that conditions of extreme peril to the safety of  
          persons and property exists in Napa, Solano, and Sonoma counties  
          due to these events."


          On September 11, 2014, President Obama declared an earthquake  
          emergency that made federal dollars available to public agencies  
          for earthquake damage. The federal government will pay 75  
          percent of eligible costs.  Of the remaining 25 percent, the  
          state is to pay 75 percent and local agencies 25 percent.





          The City of Napa estimates the earthquake caused at least $300  
          million in damage to privately owned homes and commercial  
          properties, and $58 million in damage to public infrastructure.   






          According to information provided by the author's office, the  
          remaining 25 percent of non-federally reimbursed costs to Napa  
          and Solano Counties, as well as the cities of Vallejo and Napa,  








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          could approach $5 million. Without disaster relief assistance,  
          it will be difficult for the impacted cities to pay for damage  
          repairs that are were not covered by federal and state disaster  
          assistance.





          According to the author's office, this bill will continue a  
          well-established practice of the state that has been in place  
          after previous major disasters, such as the Loma Prieta and  
          Northridge earthquakes, as well as the 1991 East Bay Fire.  This  
          recent disaster came at a time when local governments are  
          financially strapped and this measure is intended to ensure that  
          local costs are reimbursed for the events surrounding the  
          earthquake.  It is only fitting that the state covers the costs  
          of the local agencies in this disaster as has been done in many  
          previous disasters in other areas.





           Prior legislation  : AB 1429 (Chesbro), 2011-12 Legislative  
          Session, vetoed by Governor Brown.  Would have added the tsunami  
          that affected Del Norte County in March 2011 to the list of  
          disasters eligible for full state reimbursement of the local  
          agency costs under the Act.  





          Governor Brown's veto message stated: "This measure would  
          require the state pay 100 percent of the total state eligible  
          costs for damages sustained to Del Norte County by the March  
          2011 tsunami.  "The state has not paid for a local government's  
          share of disaster costs since 2006 and this measure would cost  








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          the state over $1 million.  In addition, if I sign this measure,  
          other counties that sustain similar damages would likely request  
          the same relief-a precedent that the state currently cannot  
          afford."





          SB 1537 (Kehoe), Chapter 355, Statutes of 2008.  Added the  
          wildfires that occurred in southern California, commencing on or  
          about October 20, 2007, to the list of disasters eligible for  
          full state reimbursement of local agency costs under the Act. 





          SB 1764 (Kehoe), 2007-08 Session.  Would have required a local  
          agency, on or after January 1, 2010, to obtain an annual  
          certification by the State Fire Marshal (SFM) to be eligible to  
          receive a percentage for a state share in excess of 75 percent.   
          Also, would have required the SFM to specify the possible  
          percentage a local agency may receive in excess of the 75  
          percent based upon certain criteria and regulations to be  
          promulgated by SFM on or before July 1, 2009.  (Vetoed by  
          Governor Schwarzenegger)





          SB 1308 (Cox), Chapter 400, Statutes of 2008.  Included the  
          Angora Fire, which occurred in the Lake Tahoe Basin commencing  
          June 24, 2007, to the list of disasters eligible for full state  
          reimbursement of local agency costs under the Act.











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          AB 49 (Arambula), 2007-08 Session.  Would have amended the CDA  
          Act by adding the extreme cold weather that occurred throughout  
          California during the month of January 2007 to the list of  
          specific events eligible for full state reimbursement of local  
          agency costs.  (Held in Assembly Appropriations Committee.)  





          AB 1798 (Berg), Chapter 896, Statutes of 2006.  Added the severe  
          rainstorms that occurred in selected counties in Northern  
          California from December 17, 2005 to January 3, 2006, to the  
          list of disasters eligible for full state reimbursement of local  
          agency costs under the Act.





          AB 2140 (Hancock), Chapter 739, Statutes of 2006.  Prohibited  
          the state share for any eligible project from exceeding 75  
          percent of total state eligible costs unless the local agency is  
          located within a city, county, or city and county that has  
          adopted a local hazard mitigation plan as part of the safety  
          element of its general plan, as specified.  





          AB 2735 (Nava), Chapter 897, Statutes of 2006.  Added the severe  
          rainstorms that occurred in selected counties in Northern  
          California from December 17, 2005, to January 3, 2006, to the  
          list of disasters eligible for full state reimbursement of local  
          agency costs under the Act.









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          AB 164 (Nava and Bass), Chapter 623, Statutes of 2005.  Added  
          the severe storms, flooding, debris flows, and mudslides that  
          occurred in the Counties of Kern, Los Angeles, Santa Barbara and  
          Ventura in December 2004, January 2005, February 2005, and March  
          2005, to the list of disasters eligible for full state  
          reimbursement of local agency costs under the Act.





          SB 457 (Kehoe), Chapter 622, Statutes of 2005.  Added the severe  
          rainstorms, floods, mudslides, and other events that occurred in  
          the Counties of Orange, Riverside, San Bernardino, and San Diego  
          during December 2004, January 2005, February 2005, March 2005,  
          and June 2005 to the list of disasters eligible for full state  
          reimbursement of local agency costs under the Act.





          AB 1510 (Kehoe), Chapter 772, Statutes of 2004.  Added the  
          Southern California wildfires that occurred during October and  
          November 2003 and the San Simeon earthquake that occurred during  
          December 2003 to the list of disasters eligible for full state  
          reimbursement of local agency costs under the Act.





          SB 438 (Soto and Hollingsworth), 2003-04 Session.  Would have  
          added the wildfires that occurred in Southern California  
          beginning October 21, 2003, and the December 22, 2003, San  








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          Simeon earthquake to the list of disasters eligible for full  
          state reimbursement of local agency costs.  (Vetoed by the  
          Governor Schwarzenegger)


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Professional Firefighters


          City of Napa


          Napa County Board of Supervisors


          Napa County Transportation Planning Agency


          Napa Valley Vintners




          Opposition


          None on file




          Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531








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