BILL ANALYSIS Ó SB 438 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 438 (Hill) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Governmental Organization | |20 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: SB 438 Page 2 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 SB 438 Page 3 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." SB 438 Page 4 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 SB 438 Page 5 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