BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 438  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 438  
          (Hill) - As Amended August 1, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill establishes the California Earthquake Early Warning  
          Advisory Board (Board) within the California Office of Emergency  
          Services (CalOES). Specifically, this bill: 









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          1)Requires the Board to include 7 voting members that include  
            the following: 


             a)   The Secretaries, or their designees, of the California  
               Natural Resource Agency, the California Health and Human  
               Services Agency, the California Department of  
               Transportation, and the California Business Consumer  
               Services, and Housing Agency.


             b)   Two members appointed by the Legislature, with one  
               member representing the interests of private business who  
               is appointed by the Speaker of the Assembly and the other  
               member representing county government who is appointed by  
               the Senate Committee on Rules.


             c)   One member representing the utilities industry appointed  
               by the Governor.


          2)Requires the Board to include one nonvoting member from the  
            California State University and one nonvoting member from  
            University of California. 


          3)Requires the Board to convene periodically and advise CalOES  
            on all aspects of the program, including system operations,  
            research and development, finance and investment, and training  
            and education. 


          4)Requires CalOES, in consultation with the Board, to develop  
            and submit a business plan by February 1, 2018, of the early  
            earthquake warning program to the Legislature and the  
            Legislative Analyst's Office, and requires CalOES each year  
            thereafter to report to the Legislature annually on the  








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            implementation progress. 


          FISCAL EFFECT:


          1)Minor and absorbable costs to CalOES to support the Board.


          2)Minor cost pressures to develop a business plan and report  
            annually to the Legislature. This bill codifies an existing  
            plan to develop a plan for implementing an early earthquake  
            system, and the reporting requirements for CalOES established  
            in this bill will result in minor and absorbable cost  
            pressures.


          COMMENTS:


          1)Purpose. The author's office provided the following statement  
            following the June 30, 2016 amendments: "SB 438 eliminates  
            current restrictions on public funding and creates an advisory  
            board to support the implementation of a statewide earthquake  
            early warning system that will help save lives and protect the  
            public before temblors strike. An earthquake early warning  
            system is a must in California, the second most  
            seismologically active state. It's not if, but when the next  
            Big One will strike.



            Depending on the location and strength of an earthquake, an  
            early warning system can give an alert of up to 60 seconds  
            before the shaking starts. Even a few seconds of warning can  
            provide time for residents to drop and cover, can enable  
            trains to come to a complete stop or slow down, and much  
            more."









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          2)Background. In 2013 the California Legislature passed and the  
            Governor signed SB 135 (Chapter 342, Statutes of 2013), which  
            required CalOES to develop a comprehensive statewide  
            earthquake early warning system in California. The bill also  
            required CalOES to identify funding for the system, but  
            specifically prohibited General Fund money to be used. SB 135  
            also specified that if funding was not identified by January  
            1, 2016, the provisions of the bill would 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.





            The 2016-17 budget includes an increase of $10 million GF to  
            CalOES to support the implementation of the California  
            Earthquake Early Warning System. The funding will be used to  
            perform research on necessary technology and other aspects  
            that will integrate public and private infrastructure, provide  
            public education, and provide training. 





          3)Business plan. SB 438 also codifies the implementation of the  








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            early earthquake system by defining the scope of the business  
            plan to be completed by February 1, 2018. That plan must  
            include a plan for funding the early earthquake warning system  
            and the source of those funds, the role of private entities  
            and local emergency staff in the participation of the program,  
            and the expected risks the program may encounter. 
          


          Analysis Prepared by:Luke Reidenbach / APPR. / (916)  
          319-2081