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
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          |Author:    |Berryhill                                            |
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          |Version:   |3/28/2016    And as proposed to be amended in        |
          |           |Committee                                            |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
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          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  







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            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  








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               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  








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               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  








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          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  








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          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








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          OPPOSITION:

          None received