BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 18


                                                                    Page  1





          Date of Hearing:   April 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          18 (Dodd) - As Amended March 12, 2015


           ----------------------------------------------------------------- 
          |Policy       | Governmental Organization     |Vote:|21-0         |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          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


                                                                    Page  2





          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


                                                                    Page  3





            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