BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 37|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 37
Author: Nielsen (R), et al.
Amended: 2/12/15
Vote: 27 - Urgency
SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 3/24/15
AYES: Pavley, Stone, Allen, Fuller, Hertzberg, Hueso, Jackson,
Monning, Wolk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Water: floods
SOURCE: Sutter Butte Flood Control Agency
DIGEST: This bill authorizes the Department of Water Resources
(DWR) to reimburse local project sponsors of flood projects
funded under the Urban Flood Risk Reduction (UFRR) program for
costs incurred after July 1, 2014, and before issuance of a
funding commitment, or amendment or execution of the funding
agreement, but no later than December 31, 2015.
ANALYSIS: Under existing law, DWR has provided funding under
Proposition 1E to local flood project sponsors for projects that
reduce urban flood risks. The funding guidelines provide that
only work performed after a Funding Agreement is executed may be
eligible for reimbursement.
However, if a project receives additional funding from a
SB 37
Page 2
subsequent round of funding, the local flood project sponsor may
reimbursed for expenditures incurred after July 1, 2014, and
before issuance of a funding commitment, or amendment or
execution of the funding agreement, but no later than October 1,
2015.
This bill extends the period in which a local flood project
sponsor may be reimbursed for expenditures incurred after July
1, 2014, to before issuance of a funding commitment, or
amendment or execution of the funding agreement, but no later
than December 31, 2015.
Background
The Legislature appropriated $155 million in the 2014/15 budget
for this program. The schedule for this next round of funding
is:
January 21, 2015UFRR Program Guidelines and Project Solicitation
Package approved by the Director, finalized and
released to the public.
March 9, 2015 Concept Proposals due (or postmarked) by 5:00
P.M.
May 15, 2015 State notifies local agencies of results of
funding decisions.
Under that schedule, DWR would have four and a half months to
complete the funding package before it's reimbursement authority
would end.
The proponents of this bill are concerned that DWR will miss the
October 1, 2015 deadline.
Comments
Is this really a problem? It depends on your expectations of
SB 37
Page 3
DWR. If you believe DWR will meet its May 15 date to award
grants and would then work expeditiously to execute funding
agreements before October 1, then no, it's not a real problem.
If, on the other hand, you think DWR is liable to run into some
difficulty causing it to miss the October 1 funding deadline,
then yes, it is a real problem.
What is the harm in passing this anyway? This bill was drafted
fairly narrowly. Should the bill be enacted and it was later
found to be unnecessary, there wouldn't likely be any lingering
consequence.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified4/15/15)
Sutter Butte Flood Control Agency (source)
Association of California Water Agencies
California Association of Realtors
California Central Valley Flood Control Association
OPPOSITION: (Verified4/15/15)
None received
ARGUMENTS IN SUPPORT: According to the author, "Suspending
work on the Feather River West Levee Project could cost the
State and local sponsor tens of millions of dollars in
construction contract claims, expired right-of-way agreements,
extended overhead and increased financing costs. SB 37
facilitates construction moving forward without delay, avoids
burdening the local sponsor with expenditures above the local
project cost share, and avoids the negative consequences that
would result from unforeseen delays in state contract approval
of the final phase of the project. Without this certainty,
ongoing construction operations may be forced to shut down,
SB 37
Page 4
reducing public safety, cost effectiveness and eroding public
trust."
Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
4/15/15 16:29:07
**** END ****