BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 18 (Dodd) - Disaster relief: South Napa Earthquake
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|Version: July 7, 2015 |Policy Vote: G.O. 12 - 0 |
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|Urgency: Yes |Mandate: No |
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|Hearing Date: July 13, 2015 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 18, an urgency measure, would provide state
disaster-related relief to local agencies impacted by the South
Napa Earthquake that occurred on August 24, 2014.
Fiscal
Impact: Estimated General Fund costs of approximately $2.5
million, payable over several fiscal years beginning in 2015-16,
based upon preliminary estimates of eligible costs.
Background: 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 was
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the strongest to hit the San Francisco Bay area since the 6.9
magnitude Loma Prieta earthquake in 1989. The quake caused
structural damage to public and private buildings, and damaged
critical infrastructure, including power lines, water mains and
gas lines. 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. Governor
Brown issued an emergency proclamation on the day of the
earthquake, and President Obama declared an earthquake emergency
on September 11, 2014, making the disaster eligible for federal
relief. 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.
Existing law provides that the federal emergency management
agency (FEMA) pays local governments for 75 percent of eligible
disaster mitigation costs for federally-declared natural
disasters. Existing state law, the California Disaster
Assistance Act (CDAA), requires the state to pay 75 percent of
the remaining 25 percent of eligible costs for any
state-declared emergency. Local governments cover the remaining
amount. Existing law, AB 2140 (Hancock), Ch. 739/2006,
prohibits the state share for any eligible project from
exceeding 75 percent of state eligible costs unless the local
agency has adopted a local hazard mitigation plan as part of the
safety element of its general plan. For some statutorily
specified disasters, the state has paid 100 percent of the
non-federal eligible disaster mitigation costs.
Proposed Law:
AB 18, an urgency bill, would add the South Napa Earthquake
that occurred on August 24, 2014 to the statutory list of
natural disasters for which the state will pay up to 100 percent
of the non-federal portion of disaster-related costs that are
eligible for reimbursement.
Related
Legislation: The most recent legislation intended to provide
CDAA disaster relief to local agencies was AB 1429 (Chesbro),
which was vetoed by Governor Brown in 2011. That bill would
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have added the Tsunami that affected Del Norte County in March
of 2011 to the list of disasters eligible for full state
reimbursement of local costs. The veto message stated the
following:
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.
Staff notes that AB 1308 (Cox) and SB 1537 (Kehoe), both of
which would have provided full state reimbursement of local
disaster-related costs, were chaptered by Governor
Schwarzenegger in 2008, but failed to become operative because
they were contingent upon the enactment of SB 1764 (Kehoe),
which was vetoed.
Staff
Comments: Payment of local shares of disaster-related costs is
made with a Budget Act appropriation to the California Emergency
Management Agency, based on preliminary estimates. Because the
state attempts to reimburse all claims received in the budget
year, and does not control when claims are submitted, the amount
appropriated rarely matches the amount ultimately required in
any given year. When claims exceed the budget appropriation, a
supplemental appropriation may be made.
The Office of Emergency Services' preliminary estimates indicate
that total local agency costs eligible for reimbursement are
estimated to be $40 million, $30 million of which is covered by
the federal government. Under this bill, the state would pay
its share of $7.5 million, and assume the local share of $2.5
million.
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