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
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          |Author:    |Dodd                                                 |
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          |Version:   |3/12/2015    Amended                                 |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Felipe Lopez                                         |
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          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)  









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          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."