BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                        AB 18


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          ASSEMBLY THIRD READING


          AB  
          18 (Dodd)


          As Amended  March 12, 2015


          2/3 vote. Urgency


           ------------------------------------------------------------------ 
          |Committee       |Votes |Ayes                   |Noes              |
          |                |      |                       |                  |
          |                |      |                       |                  |
          |----------------+------+-----------------------+------------------|
          |Governmental    |21-0  |Gray, Linder,          |                  |
          |Organization    |      |Achadjian, Alejo,      |                  |
          |                |      |Bigelow, Campos,       |                  |
          |                |      |Cooley, Cooper, Daly,  |                  |
          |                |      |Cristina Garcia,       |                  |
          |                |      |Eduardo Garcia,        |                  |
          |                |      |Gipson,                |                  |
          |                |      |                       |                  |
          |                |      |                       |                  |
          |                |      |Roger Hernández,       |                  |
          |                |      |Jones-Sawyer, Levine,  |                  |
          |                |      |Mayes, Perea, Salas,   |                  |
          |                |      |Steinorth, Waldron,    |                  |
          |                |      |Wilk                   |                  |
          |                |      |                       |                  |
          |----------------+------+-----------------------+------------------|
          |Appropriations  |17-0  |Gomez, Bigelow, Bonta, |                  |
          |                |      |Calderon, Chang, Daly, |                  |
          |                |      |Eggman, Gallagher,     |                  |
          |                |      |Eduardo Garcia,        |                  |
          |                |      |Gordon, Holden, Jones, |                  |








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          |                |      |Quirk, Rendon, Wagner, |                  |
          |                |      |Weber, Wood            |                  |
          |                |      |                       |                  |
          |                |      |                       |                  |
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          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).   
          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% under CDAA.


          2)  Contains an urgency clause.


          EXISTING LAW: 


          1)  Provides under CDAA, 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  








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          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:  According to the Assembly Appropriations  
          Committee, one-time costs (General Fund) in the range of $2  
          million to $3 million.


          COMMENTS:  CDAA is California's state disaster assistance program.  
           CDAA reimburses local governments for debris removal, emergency  
          work, and repair or 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 CDAA  
          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 CDAA 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.  









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          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  
          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% of  
          eligible costs.  Of the remaining 25%, the state is to pay 75% and  
          local agencies 25%.


          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% of non-federally reimbursed costs to Napa and Solano  
          Counties, as well as the Cities of Vallejo and Napa, could  
          approach $5 million. Without disaster relief assistance, it will  








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          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), of 2011, 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 CDAA.  


          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 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  








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          about October 20, 2007, to the list of disasters eligible for full  
          state reimbursement of local agency costs under CDAA. 


          SB 1764 (Kehoe), of 2008.  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%.  Also, would have required the  
          SFM to specify the possible percentage a local agency may receive  
          in excess of the 75% 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 CDAA.


          AB 49 (Arambula), of 2007.  Would have amended the CDAA 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 the 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 CDAA.


          AB 2140 (Hancock), Chapter 739, Statutes of 2006.  Prohibited 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 as part of the safety element of its general plan,  








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          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 CDAA.


          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 CDAA.


          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 CDAA.


          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 CDAA.


          SB 438 (Soto), of 2004.  Would have added the wildfires that  
          occurred in Southern California beginning October 21, 2003, and  
          the December 22, 2003, San Simeon earthquake to the list of  
          disasters eligible for full state reimbursement of local agency  
          costs.  (Vetoed by Governor Schwarzenegger)









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          Analysis Prepared by:                                               
          Eric Johnson / G.O. / (916) 319-2531  FN: 0000565