BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 30, 2016


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          SB  
          438 (Hill) - As Amended June 14, 2016


          SENATE VOTE:  37-0 (Not relevant)


          SUBJECT:  Earthquake safety:  statewide earthquake early warning  
          program and system


          SUMMARY:  This bill would establish, within the California  
          Office of Emergency Services (Cal OES), the California  
          Earthquake Early Warning Advisory Board (board) to support the  
          development of the statewide earthquake early warning system  
          (system). Specifically, this bill:  


             1)   Requires the board to include 7 voting members and 2  
               nonvoting members, as follows:


               a)     The Secretary of the Natural Resources Agency, or  
                 his or her designee.


               b)     The Secretary of California Health and Human  
                 Services, or his or her designee.










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               c)     The Secretary of Transportation, or his or her  
                 designee.


               d)     The Secretary of Business, Consumer Services, and  
                 Housing, or his or her designee.


               e)     One member who is appointed by, and serves at the  
                 pleasure of, the Speaker of the Assembly and represents  
                 the interests of private businesses.


               f)     One member who is appointed by, and serves at the  
                 pleasure of, the Governor and represents the utilities  
                 industry.


               g)     One member appointed by the Senate Committee on  
                 Rules representing county government whose term of office  
                 shall be four years to run with the officer or incumbent.  
                 The Senate Committee on Rules shall appoint, on an  
                 alternating basis, a member who resides in northern or  
                 southern California.


               h)     The Chancellor of the California State University,  
                 or his or her designee, shall serve as a nonvoting member  
                 of the board.


               i)     The President of the University of California, or  
                 his or her designee, may serve as a nonvoting member of  
                 the board.


             1)   Requires the  board to convene periodically and advise  
               the Governor's Office of Emergency Services (Cal OES) on  
               all aspects of the program, including, but not limited to:








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               a)     System operations.



               b)     Research and development.



               c)     Finance and investment.



               d)     Training and education.

             1)   Requires the California Integrated Seismic Network  
               (CISN) to be responsible for the generation of an  
               earthquake early warning alert and related system  
               operations.



             2)   Requires Cal OES, on or before February 1, 2018, develop  
               and submit a business plan for the program to the Senate  
               Committee on Governmental Organization, the Assembly  
               Committee on Governmental Organization, the Senate Budget  
               and Fiscal Review Committee, the Assembly Committee on  
               Budget, and the Legislative Analyst's Office, as specified.

             3)   Requires Cal OES, on or before February 1, 2019, and  
               annually thereafter, report to the Legislature any changes  
               to the business plan from the prior year and shall provide  
               a general report on progress of the program and the  
               implementation of the system.



             4)   Discontinues the requirement that the funding sources  








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               for the system exclude the General Fund and be limited to  
               federal funds, funds from revenue bonds, local funds, and  
               funds from private sources.



             5)   Deletes the provisions providing for the repeal and the  
               contingent operation of the requirement that the office  
               develop the system.



             6)   Appropriates $23,100,000 from the General Fund to Cal  
               OES for the purpose of implementing the system.



             7)    Makes legislative findings in support of its  
               provisions.





          EXISTING LAW:   


          1)Creates, within the office of the Governor, Cal OES which,  
            under the Director of Emergency Services, coordinates disaster  
            response, emergency planning, emergency preparedness, disaster  
            recovery, disaster mitigation, and homeland security  
            activities. 





          2)Requires various entities, including Cal OES, through a  
            public-private partnership, to develop a comprehensive  








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            statewide earthquake early warning system in California, as  
            specified.





          3)Requires Cal OES to identify funding for an earthquake early  
            warning system through single or multiple sources of revenues  
            that shall be limited to federal funds, funds from revenue  
            bonds, local funds, and private grants.  





          4)Prohibits General Fund moneys to be used for the establishment  
            of an earthquake early warning system.





          5)Specifies that if funding is not identified by January 1,  
            2016, the provisions relating to the establishment of an  
            earthquake early warning system should be repealed.


          6) Establishes the California Earthquake Safety Fund (fund) in  
            the State Treasury.


          FISCAL EFFECT:  Unknown


          COMMENTS:


           Purpose of the bill  : According to the author: "California is the  








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          second most seismologically active state in the nation and a  
          statewide earthquake early warning system has the potential to  
          save lives, prevent injuries, and reduce monetary losses. We owe  
          it to Californians to get the system up and running as soon as  
          possible. SB 438 helps to do so by eliminating current  
          restrictions on public funding and creating an implementation  
          advisory board."


           Background  : In 2013 the California Legislature passed and the  
          Governor signed SB 135 (Chapter 342, Statutes of 2013), which  
          requires Cal OES in collaboration with various entities, to  
          develop a comprehensive statewide earthquake early warning  
          system in California.  The bill further requires Cal OES to  
          identify funding for the system but specifically prohibits  
          General Fund money to be used.  SB 135 also specifies that if  
          funding is not identified by January 1, 2016, the provisions of  
          the bill will be repealed.  SB 494 (Chapter 799, Statues of  
          2015), delayed this dateline to July 1, 2016. 





          The California Geological Survey (CGS) estimates its costs  
          associated with developing the system would be approximately $23  
          million in the first year and approximately $16 million annually  
          thereafter.  These costs include realigning CGS' ground  
          stations, purchasing additional instrumentation, upgrading  
          existing instrumentation and communications networks, and  
          staffing the system 24 hours a day, seven days a week.


          Cal OES is currently in the process of identifying funding for  
          the project and has been working with CISN, a working group  
          composed of the United State Geological Survey, the California  
          Geological Survey, California Seismic Safety Commission, UC  
          Berkeley Seismological Laboratory, California Institute of  
          Technology as well as other interest groups to establish best  








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          practices for an earthquake early warning system in California. 





           Earthquake Early Warning Systems  :  While earthquakes cannot be  
          predicted or prevented, using advanced science and technology  
          has in the past detected seismic activity and provided advanced  
          warning.  The objective of earthquake early warning systems is  
          to rapidly detect the occurrence of an earthquake, estimate the  
          level of ground shaking to be expected, issue a warning before  
          significant ground shaking begins, and estimate the location and  
          the magnitude of the earthquake.  This is not the same as  
          earthquake prediction, which currently is not possible. 

          When an earthquake occurs, the earthquake produces different  
          types of shock waves, which travel at different speeds.  The  
          fastest and weakest of these waves are called P-waves.  
          Technology exists that can detect the energy from P-waves to  
          estimate the location and the magnitude of the earthquake. This  
          method can provide warning before the more destructive S-wave  
          arrives. The S-wave is responsible for most of the strong  
          shaking that usually creates the most damage during earthquakes.

          The amount of warning time at a particular location depends on  
          the distance from the earthquake epicenter.  Locations very  
          close to the earthquake epicenter will receive relatively little  
          or no warning whereas locations far removed from the earthquake  
          epicenter would receive more warning time but may not experience  
          damaging shaking.  

          Studies on earthquake early warning methods in California  
          concluded that the warning time would range from a few seconds  
          to a few tens of seconds, depending on the distance from the  
          earthquake epicenter.  However, very large earthquakes emanating  
          from the San Andreas Fault could produce significantly more  
          warning time because the affected area would be much larger.









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          Regardless of the warning time, earthquake early warning systems  
          can provide adequate time to slow down and stop trains, stop  
          cars from entering tunnels, automatically shut down dangerous  
          machinery, and countless other benefits.  Taking such actions  
          before an earthquake arrives can reduce damage and casualties  
          during and after an earthquake.   

          Earthquake early warning systems are currently in place in Japan  
          and Mexico and many other countries throughout the world are  
          currently in the process of developing such systems.



           Private and Public Funding  : Cal OES, to date, has been unable to  
          demonstrate they have any firm commitments for private funding.  
          They have pointed to the absence of a governance structure in  
          statute as a reason for the lack of firm funding commitments  
          from private interests.  SB 438 is a product of negotiations  
          between the author, Assembly G.O. Committee and Cal OES to  
          address this issue.





          On June 15, 2016, the Legislature passed SB 826: Budget Act of  
          2016. Within the 2016 budget is a one-time appropriation of $10  
          million to provide initial operating costs and staff to build  
          out the California Earthquake Early Warning System and Program.  
          This is a shift in policy for the Legislature and  
          Administration. As mentioned above, SB 135 (Padilla) prohibited  
          General Fund moneys to be used for the establishment of the  
          system.  





          Staff Note: The Budget Act was signed by the Governor on Monday,  








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          June 27, 2016. The author has committed to removing the $23.1  
          million appropriation in fiscal committee, since the $10 million  
          mentioned above has been officially allocated to Cal OES.  





           Prior/Related Legislation  : AB 1346 (Gray) of 2015-2016 Session.  
          Discontinues the requirement that the funding sources for the  
          system exclude the General Fund and be limited to federal funds,  
          funds from revenue bonds, local funds, and funds from private  
          sources. (Pending in Senate Appropriations)





          SB 494 (Hill, Chapter 799, Statues of 2015) created the  
          California Earthquake Safety Fund to be used for seismic safety  
          and earthquake-related programs, including the earthquake early  
          warning system and requires the identification of funding of the  
          earthquake early warning system to occur by July 1, 2016.





          AB 918 (Cooley, Chapter 187, Statutes of 2013) required OES, on  
          or before July 1, 2015, to update the SEP to include proposed  
          best practices for local governments and nongovernmental  
          entities to use to mobilize and evacuate people with  
          disabilities and others with access and functional needs during  
          an emergency or natural disaster. 













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          SB 31 (Padilla Chapter 342, Statutes of 2013) required OES, in  
          collaboration with various entities, to develop a comprehensive  
          statewide earthquake early warning system in California. 





          AB 928 (Blakeslee) of 2009-2010 Session. Would have required the  
          High-Speed Rail Authority to develop an earthquake early warning  
          system and coordinate development of that system with various  
          state agencies.  (Held in Assembly Governmental Organization  
          Committee)





          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Academy of Pediatrics, California


          American Red Cross


          Bay Area Rapid Transit 


          California Department of Insurance


          California Fire Chiefs Association








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          California Institute of Technology 


          California State Firefighters' Association


          Computing Technology Industry Association 


          Fire Districts Association of California


          Mayor Eric Garcetti, City of Los Angeles


          Silicon Valley Leadership Group




          Opposition


          None on File




          Analysis Prepared by:Kenton Stanhope / G.O. / (916)  
          319-2531















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