BILL ANALYSIS Ó
AB 18
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
18 (Dodd) - As Amended March 12, 2015
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Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill adds the August 24, 2014, South Napa earthquake to the
list of disasters eligible for full state reimbursement of local
agency costs under the California Disaster Assistance Act
(CDAA).
FISCAL EFFECT:
One-time costs (GF) in the range of $2 million to $3 million.
AB 18
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COMMENTS:
1)Purpose. On August 24, 2014, a magnitude 6.1 earthquake
centered in Napa County caused damage in that county and
neighboring Solano County. According to the author, the
earthquake damaged several historic downtown Napa buildings as
well as critical infrastructure, including power lines, water
mains and gas lines.
2)California Disaster Assistance Act. The CDAA created the
state's disaster assistance program. Following an emergency
proclamation by the Governor, the program permits local
governments to seek reimbursement of costs relating to damage
caused by a disaster. The state ordinarily assumes 75% of
eligible expenses as a result of the disaster, and local
governments remain responsible for the remaining 25%.
When there is a federal declaration of disaster, as was the
case with the South Napa earthquake, the Federal Emergency
Management Agency assumes 75% of the eligible expenses,
leaving the state and local governments responsible for the
remaining 25%. In instances of federal disaster declaration,
the Legislature has often chosen to increase the state's
funding under the CDAA to 100% of the state and local portion,
thereby alleviating local governments from the remaining 6.25%
of the total costs. As at December 2014, there were
approximately $31 million in eligible expenses verified by
FEMA, though estimates are that total costs may approach $50
million. FEMA assumes 75% of the total. Of the remaining
25%, the state already assumes 75%, which is between $6
million to $9 million, under the standard CDAA responsibility.
The remaining $2 million to $3 million in local costs would
be assumed by the state following passage of this bill.
Other disasters eligible for 100% state funding under the CDAA
AB 18
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include the 1989 Loma Prieta earthquake, the 1991 East Bay
fire, the 1994 Northridge earthquake, the 2003 San Simeon
earthquake, and a series of severe storms, flooding, and
landslides that occurred between 2004 and 2006.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081