BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           SB 937           Hearing Date:    3/8/2016
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          |Author:    |McGuire                                              |
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          |Version:   |2/2/2016    Introduced                               |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
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          SUBJECT: Disaster relief:  County of Lake:  fires


            DIGEST:    This bill adds the forest fires that occurred in the  
          County of Lake in 2015 to the list of events for which the state  
          share of state eligible cost is up to 100% under the California  
          Disaster Assistance Act (CDAA).

          ANALYSIS:
          
          Existing law:
          
          1)Establishes the CDAA which generally provides that the state  
            must pay 75% of the non-federal share of eligible costs for  
            any state declared emergency.  For some statutorily specified  
            disasters the state is required to pay 100% of the non-federal  
            cost.

          2)Prohibits the state share for any eligible project from  
            exceeding 75% of total state eligible costs unless the local  
            agency is located within the city, county, or city and county  
            that has adopted a local hazard mitigation plan, in accordance  
            with the federal Disaster Mitigation Act of 2000, as part of  
            the safety element of its general plan, as specified.

          This bill:

          1)Adds the forest fires that occurred in the County of Lake in  
            2015 to the list of events for which the state share of state  







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            eligible cost is up to 100% under the CDAA.

          2)Contains an urgency clause, to take effect immediately.



          Background

          The California Disaster Assistance Act (CDAA) reimburses local  
          governments for debris removal, emergency work, and repair or  
          replacement of public facilities damaged by a disaster upon a  
          Governor's proclamation.  The state share of eligible expenses  
          is 75%, and local jurisdictions are responsible for the  
          remaining 25%.  When there is a federal declaration, the Federal  
          Emergency Management Agency (FEMA) pays 75% and the state pays  
          75% of the remaining 25% of eligible costs for any  
          state-declared emergency.  For some statutorily specified  
          disasters, the state has paid 100% of the non-federal eligible  
          disaster mitigation costs.  Existing law, AB 2140 (Hancock,  
          Chapter 739, Statutes of 2006), prohibits the state share for  
          any eligible project from exceeding 75% of state eligible costs  
          unless the local agency has adopted a local hazard mitigation  
          plan as part of the safety element of its general plan.  

          Purpose of SB 937.  According to the author's office, "in 2015,  
          over 50% of all wild-land fire activity in the entire State of  
          California was in just one county, the County of Lake.  Three  
          major fires impacted the County of Lake: The Rocky, Jerusalem  
          and the Valley.  The Rocky and Jerusalem fires were incredibly  
          destructive, scorching 94,556 acres, but the Valley Fire was of  
          historic proportion. The Valley Fire was the third worst  
          wild-land fire in California history.  The devastating blaze  
          started on September 12, 2015 and didn't stop for nearly a month  
          after its initial spark. At its peak, 48 acres burned every  
          minute.  And in the end, over 1,900 structures burned to the  
          ground, including 1,300 homes.  Nearly 20,000 residents were  
          evacuated and ultimately 170,623 acres burned and more than $1.3  
          billion in damage resulted from the historic disaster.  These  
          fires were exacerbated by a severe drought."

          Additionally, the author's office notes that Lake County is one  
          of the state's most severely disadvantaged communities with high  
          poverty levels and unemployment at twice the national average.   
          Furthermore, the author's office contends that the catastrophic  
          fires of 2015 triggered a multi-year drop in property, sales,  








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          and bed taxes, since much of the taxable property burned in the  
          fire.  The author's office states that this bill seeks disaster  
          relief by adding the Lake County fires of 2015 to the list of  
          events for which the state will pay up to 100% of the  
          non-federal portion of disaster-related costs that are eligible  
          for reimbursement.  If passed by the Legislature and signed by  
          the Governor, SB 937 will take effect immediately in order to  
          relieve the burden of Lake County municipalities and residents.

          Prior Disasters.  Payment of local shares of disaster-related  
          costs has been statutorily extended in the following disasters:
           
                 The October 17, 1989, Loma Prieta earthquake;
                 The October 20, 1991, East Bay fire;
                 The fires that occurred in southern California from  
               October 1, 1993, to November 30, 1993;
                 The January 17, 1994, Northridge Earthquake;
                 The storms that occurred in California in January and  
               February, 1995;
                 The storms that occurred in California in December, 1996  
               and early January of 1997;
                 The winter storms and flooding that occurred from  
               February 1, 1998, to April 30, 1998;
                 The wildfires that occurred in southern California   
               commencing October 21, 2003;
                 The December 22, 2003, San Simeon Earthquake;
                 The storms, flooding, debris flows, and mudslides that  
               occurred during December 27, 2004, to January 11, 2005;
                 The storms, flooding, landslides, and mud and debris  
               flows that occurred in southern California during the  
               period from February 16, 2005, to February 23, 2005;
                 The storms, flooding, mudslides, and landslides that  
               occurred in northern California during the period from  
               December 17, 2005, to January 3, 2006;
                 The storms and flooding that occurred in northern and  
               central California during the period from March 29, 2006,  
               to April 16, 2006.

          Prior/Related Legislation
          
          AB 18 (Dodd, 2015) adds the South Napa earthquake that occurred  
          in Napa County on August 24, 2014 to the list of disaster events  
          for which the state share of state eligible costs is 100%.   
          (Held in Senate Appropriations Committee) 









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          AB 1429 (Chesbro, 2011) would have added the tsunami that  
          occurred in Del Norte County on March 2011 to the list of  
          disaster events for which the state share of state eligible  
          costs is 100%.  (Vetoed - Governor's message noted, "The state  
          has not paid for a local government's share of disaster costs  
          since 2006 and this measure would cost the state over $1  
          million.  In addition, if I sign this measure, other counties  
          that sustain similar damages would likely request the same  
          relief - a   precedent that the state currently cannot afford.")

          SB 1537 (Kehoe, Chapter 355, Statutes of 2008) added the  
          wildfires that occurred in southern California, commencing on or  
          about October 20, 2007, to the list of disasters eligible for  
          full state reimbursement of local agency costs under the CDAA.   
          [SB 1537 failed to become operative because it was contingent  
          upon the enactment of SB 1764 (Kehoe, 2008) which was vetoed.]

          SB 1764 (Kehoe, 2008) would have required a local agency, on or  
          after January 1, 2010, to obtain an annual certification by the  
          State Fire Marshal (SFM) to be eligible to receive a percentage  
          for a state share in excess of 75%.  Also, would have required  
          the SFM to specify the possible percentage a local agency may  
          receive in excess of the 75% based upon certain criteria and  
          regulations to be promulgated by SFM on or before July 1, 2009.   
          (Vetoed by Governor)

          SB 1308 (Cox, Chapter 400, Statutes of 2008) included the Angora  
          Fire which occurred in the Lake Tahoe Basin commencing June 24,  
          2007, to the list of disasters eligible for full state  
          reimbursement of local agency costs under the CDAA.  [AB 1308  
          failed to become operative because it was contingent upon the  
          enactment of SB 1764 (Kehoe, 2008) which was vetoed.]

          AB 49 (Arambula, 2007) would have amended the CDAA by adding the  
          extreme cold weather that occurred throughout California during  
          the month of January 2007 to the list of specific events  
          eligible for full state reimbursement of local agency costs.   
          (Held in Assembly Appropriations Committee)  

          AB 1798 (Berg, Chapter 896, Statutes of 2006) added the severe  
          rainstorms that occurred in selected counties in Northern  
          California from December 17, 2005, to January 3, 2006, to the  
          list of disasters eligible for full state reimbursement of local  
          agency costs under the CDAA.









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          AB 2140 (Hancock, Chapter 739, Statutes of 2006) prohibited the  
          state share for any eligible project from exceeding 75% of total  
          state eligible costs unless the local agency is located within a  
          city, county, or city and county that has adopted a local hazard  
          mitigation plan as part of the safety element of its general  
          plan, as specified.  
           
           AB 2735 (Nava, Chapter 897, Statutes of 2006) added the severe  
          rainstorms that occurred in select counties in Northern  
          California from December 17, 2005, to January 3, 2006, to the  
          list of disasters eligible for full state reimbursement of local  
          agency costs under the CDAA.

          AB 164 (Nava, Chapter 623, Statutes of 2005) added the severe  
          storms, flooding, debris flows, and mudslides that occurred in  
          the Counties of Kern, Los Angeles, Santa Barbara and Ventura in  
          December 2004, January 2005, February 2005, and March 2005, to  
          the list of disasters eligible for full state reimbursement of  
          local agency costs under the CDAA.

          SB 457 (Kehoe, Chapter 622, Statutes of 2005) added the severe  
          rainstorms, floods, mudslides, and other events that occurred in  
          the Counties of Orange, Riverside, San Bernardino, and San Diego  
          during December 2004, January 2005, February 2005, March 2005,  
          and June 2005 to the list of disasters eligible for full state  
          reimbursement of local agency costs under the CDAA.

          AB 1510 (Kehoe, Chapter 772, Statutes of 2004) added the  
          Southern California wildfires that occurred during October and  
          November 2003 and the San Simeon earthquake that occurred during  
          December 2003 to the list of disasters eligible for full state  
          reimbursement of local agency costs under the CDAA.

          SB 438 (Soto, 2003) would have amended the CDAA by adding the  
          wildfires that occurred in Southern California beginning October  
          21, 2003, and the December 22, 2003, San Simeon earthquake to  
          the list of disasters eligible for full state reimbursement of  
          local agency costs.  (Vetoed by the Governor)

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            SUPPORT:  









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          California Professional Firefighters
          California State Association of Counties
          Calpine Corporation
          City of Clearlake
          City of Lakeport
          Hidden Valley Lake Community Services District
          Lake County Board of Supervisors
          Lake County Chamber of Commerce
          Lake County Office of Education
          Lake County Wine Studio
          Middletown Rancheria
          Rural County Representatives of California
          South Lake County Fire Protection District
          And, several private individuals

          OPPOSITION:

          None received.