BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 438


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          SENATE THIRD READING


          SB  
          438 (Hill and Hertzberg)


          As Amended  August 1, 2016


          Majority vote


          SENATE VOTE:  37-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                    |Noes              |
          |                |     |                        |                  |
          |                |     |                        |                  |
          |                |     |                        |                  |
          |----------------+-----+------------------------+------------------|
          |Governmental    |20-0 |Gray, Bigelow, Alejo,   |                  |
          |Organization    |     |Bonta, Campos, Cooley,  |                  |
          |                |     |Cooper, Daly, Cristina  |                  |
          |                |     |Garcia, Eduardo Garcia, |                  |
          |                |     |Gipson, Roger           |                  |
          |                |     |Hernández,              |                  |
          |                |     |                        |                  |
          |                |     |                        |                  |
          |                |     |Jones-Sawyer, Levine,   |                  |
          |                |     |Linder, Maienschein,    |                  |
          |                |     |Salas, Steinorth,       |                  |
          |                |     |Waldron, Wilk           |                  |
          |                |     |                        |                  |
          |----------------+-----+------------------------+------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,      |                  |
          |                |     |Bloom, Bonilla, Bonta,  |                  |
          |                |     |Calderon, Chang, Daly,  |                  |








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          |                |     |Eggman, Gallagher,      |                  |
          |                |     |Eduardo Garcia, Holden, |                  |
          |                |     |Jones, Obernolte,       |                  |
          |                |     |Quirk, Santiago,        |                  |
          |                |     |Wagner, Weber, Wood,    |                  |
          |                |     |Chau                    |                  |
          |                |     |                        |                  |
          |                |     |                        |                  |
           ------------------------------------------------------------------ 


          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 seven voting members and two  
            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.


             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  








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               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:


             a)   System operations.


             b)   Research and development.


             c)   Finance and investment.










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             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 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)Makes legislative findings in support of its provisions.


          EXISTING LAW:   









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          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  
            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:  According to the Assembly Appropriations  
          Committee:


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









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          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:


          Purpose of the bill:  According to the author:  "California is  
          the 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 (Padilla), 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 (Hill), Chapter 799, Statutes  
          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  








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          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,  
          University of California, Berkeley Seismological Laboratory,  
          California Institute of Technology as well as other interest  
          groups to establish best 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  








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          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.


          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.  This bill is a product of  
          negotiations between the author, Assembly Governmental  
          Organization Committee and Cal OES to address this issue.


          On June 15, 2016, the Legislature passed SB 826 (Leno), Chapter  
          23, Statutes of 2016:  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  








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          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.  


          Prior/Related Legislation:  AB 1346 (Gray) of the current  
          legislative 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, Statutes 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 Cal  
          OES, on or before July 1, 2015, to update the State Emergency  
          Plan 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. 


          SB 135 (Padilla), Chapter 342, Statutes of 2013 required Cal  
          OES, in collaboration with various entities, to develop a  
          comprehensive statewide earthquake early warning system in  
          California. 


          AB 928 (Blakeslee) of the 2009-10 Regular 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 the Assembly Governmental  
          Organization Committee)








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          Analysis Prepared by:                                             
                          Kenton Stanhope / G.O. / (916) 319-2531  FN:  
          0003805