BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: SB 1118 Hearing Date: 4/12/2016 ----------------------------------------------------------------- |Author: |Berryhill | |-----------+-----------------------------------------------------| |Version: |3/28/2016 And as proposed to be amended in | | |Committee | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |Yes |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Arthur Terzakis | | | | ----------------------------------------------------------------- SUBJECT: Disaster relief DIGEST: This bill adds the forest fires that occurred in the County of Calaveras in 2015 to the list of events for which the state share of state eligible costs 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 Calaveras SB 1118 (Berryhill) Page 2 of ? in 2015 to the list of events for which the state share of state eligible costs is up to 100% under the CDAA. 2)Contains an urgency clause, to take effect immediately. 3)Contains double jointing language to avoid a chaptering out issue between this bill and SB 937 (McGuire, 2016). 4)Contains the following legislative findings and declarations: a) In 2015, the Butte Fire burned through 70,868 acres of Calaveras County, took the lives of two people and destroyed or damaged 965 structures at an estimated $300 million in insured losses, making it the seventh most destructive wildfire to hit the state. b) On September 10, 2015, the Calaveras County Board of Supervisors ratified the Declaration of a Local Emergency in Calaveras County as a result of the September 9, 2015, fire that caused damage to public and private property. c) On September 22, 2015, Governor Brown requested that the Butte Fire be declared a federal major disaster - a day later, President Obama declared the Butte Fire a federal major disaster. d) Prior to the Butte Fire, the County of Calaveras had not fully recovered from the economic impacts of the 2007 recession when property tax revenues declined 28% between the 2008-09 fiscal year and the 2012-13 fiscal year for a loss in annual General Fund revenue of nearly $4 million, and since that time, property tax revenues have only recovered by 12.3%. e) The County of Calaveras' share of costs for the Butte Fire is estimated to be $1.4 million which will significantly impact the County's general fund reserve of $2.4 million. f) The estimated property valuation loss is $53.8 million and the County is expected to experience continued decline in assessed property tax valuation. g) The County of Calaveras has, for the past eight years, adopted a deficit budget balanced with reductions to SB 1118 (Berryhill) Page 3 of ? departmental budgets and the use of prior year carryover and one-time funds. 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 1118. According to the author's office, "this bill seeks disaster relief by adding the forest fires that occurred in the County of Calaveras in 2015 (referred to as the Butte Fire) to the list of events for which the state share of state eligible costs is up to 100%. This bill will continue a well-established practice of the state that has been in place after previous major disasters. Without disaster relief assistance it will be incredibly difficult for Calaveras County to pay for damage repairs that are not covered by federal and state disaster assistance. Calaveras County is a rural, lightly populated county that does not have the resources necessary to make-up the difference. If passed by the Legislature and signed by the Governor, SB 1118 will take effect immediately in order to relieve the burden of Calaveras County municipalities and residents." Prior Disasters. Payment of the local share of disaster-related costs has been statutorily extended in the following disasters [Govt. Code Section 8686 (b)]: The October 17, 1989, Loma Prieta earthquake; The October 20, 1991, East Bay fire; The fires that occurred in southern California from SB 1118 (Berryhill) Page 4 of ? 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 SB 1385 (Leyva, 2016) adds a new stand-alone section of law to the CDAA that stipulates the state share for eligible costs to local entities shall be 100% of total state eligible costs in connection with the shooting that occurred at the Inland Regional Center in San Bernardino on December 2, 2015. (Pending in this committee) SB 937 (McGuire, 2016) 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 CDAA. (Pending in Senate Appropriations Committee) 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) 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 SB 1118 (Berryhill) Page 5 of ? 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. 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 SB 1118 (Berryhill) Page 6 of ? 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: Calaveras County Board of Supervisors Rural County Representatives of California Wine Institute SB 1118 (Berryhill) Page 7 of ? OPPOSITION: None received