BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 18 Hearing Date: 6/29/2015 ----------------------------------------------------------------- |Author: |Dodd | |-----------+-----------------------------------------------------| |Version: |3/12/2015 Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |Yes |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: Disaster relief: South Napa Earthquake DIGEST: This bill adds the August 24, 2014, South Napa Earthquake, to the list of events for which the state share of state eligible cost is up to 100% under the California Disaster Assistance Act (Act). ANALYSIS: Existing law: 1)Establishes the Act which generally provides 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 the 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. This bill: 1)Adds the August 24, 2014, South Napa Earthquake, to the list AB 18 (Dodd) Page 2 of ? of events for which the state share of state eligible cost is up to 100% under the Act. 2)Contains an urgency clause. Background Purpose of the bill. According to the author, "on August 24, 2014, a 6.0 magnitude earthquake hit South Napa and created significant damages. 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. Damage is expected to exceed $5 million in Vallejo and $4.5 million in Sonoma County. That same day, Governor Brown issued an emergency proclamation for the continued aftershocks that have damaged critical infrastructure, homes and other structures." The author further states that, "on September 11, 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%." According to Napa County officials, the remaining 25 percent of non-federally reimbursed costs to Napa and Solano Counties, as well as the cities of Vallejo and Napa, could approach $5 million. The author argues that "without disaster relief assistance it will be difficult for the impacted cities to pay for damage repairs that was not covered by federal and state disaster assistance." The California Disaster Assistance Act. The Act is California's state disaster assistance program. The Act 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 the Act funding to 100% so that the state would pay the entire remaining 25% nonfederal share of eligible costs. AB 18 (Dodd) Page 3 of ? In 2006, the Legislature passed 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 a 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. Prior/Related Legislation AB 1429 (Chesbro, 2011) 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. (Vetoed by Governor Brown) 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, 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%. (Vetoed by Governor Schwarzenegger) SB 1308 (Cox, Chapter 400, Statutes of 2008) added 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. AB 49 (Arambula, 2007) would have added 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 under the Act. (Held in the Assembly Appropriations Committee) AB 18 (Dodd) Page 4 of ? 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. 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, 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 the Governor Schwarzenegger) AB 18 (Dodd) Page 5 of ? FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: Napa County Board of Supervisors (Source) Solano County Board of Supervisors (Source) Association of Bay Area Governments California Professional Firefighters California State Association of Counties City of Napa Napa County Transportation Planning Agency Napa Valley Vintners OPPOSITION: None received ARGUMENTS IN SUPPORT: According to the Napa County Board of Supervisors, "this urgency statute 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. Without disaster relief assistance it will be incredibly difficult for Napa County to pay for damage repairs that are not covered by federal and state disaster assistance."