BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                         Senator Elaine K. Alquist, Chair            S
                             2005-2006 Regular Session               B

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          SB 1015 (Romero)                                           5
          As Amended August 15, 2005 
          Hearing date:  August 16, 2005
          Government Code; Penal Code; Vehicle Code; Uncodified Law  
          (URGENCY)
          SH:mc


                              OFFICE OF HOMELAND SECURITY  


                                       HISTORY


          Source:  Administration

          Prior Legislation: SB 77 (Committee on Budget and Fiscal Review)  
          - Ch. 38, Stats. of 2005 
                       AB 139 (Committee on Budget) - Ch. 74, Stats. of  
          2005
                       AB 2104 (Committee on Budget) - Ch. 702, Stats. of  
          2004 
                       AB 1759 (Wesson) - Ch. 38, Stats. of 2003

          Support: California State Sheriffs' Association; Sheriff, San  
          Bernardino County

          Opposition:None known (as currently amended)  
           



                                      KEY ISSUES




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          SHOULD A STATEMENT OF LEGISLATIVE INTENT TO RESTRUCTURE THE  
          STATE OFFICE OF HOMELAND SECURITY DURING THE NEXT LEGISLATIVE  
          SESSION BUT TO GIVE THE EXISTING OFFICE THE RESPONSIBILITY OF  
          ADMINISTERING ITS OWN BUDGET APPROPRIATION COMMENCING WITH THIS  
          FISCAL YEAR BE ENACTED INTO LAW, AS SPECIFIED?

                                                                (CONTINUED)


          SHOULD THE ATTORNEY GENERAL BE REQUIRIED TO FURNISH STATE  
          SUMMARY CRIMINAL HISTORY INFORMATION TO PERSONS EMPLOYED WITHIN  
          THE OFFICE OF HOMELAND SECURITY WHOSE DUTIES AND  
          RESPONSIBILITIES REQUIRE THE AUTHORITY TO ACCESS CRIMINAL  
          HISTORY AND OTHER CRIMINAL INTELLIGENCE INFORMATION, AND WHO  
          HAVE BEEN CLEARED TO DO SO BY BOTH THE STATE DEPARTMENT OF  
          JUSTICE AND THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY,  
          AS SPECIFIED?

          SHOULD THE OFFICE OF HOMELAND SECURITY BE CONSIDERED A LAW  
          ENFORCEMENT ORGANIZATION AS REQUIRED FOR RECEIPT OF CONFIDENTIAL  
          CRIMINAL INTELLIGENCE INFORMATION, AS SPECIFIED?

          SHOULD THE BUDGET ACT OF 2005 BE AMENDED TO REVISE - AND ADD NEW  
          LINE ITEM APPROPRIATIONS - REAPPROPRIATING MONEY CURRENTLY IN  
          THE BUDGET ACT FOR THE SUPPORT OF THE OFFICE OF HOMELAND  
          SECURITY (GIVING THAT OFFICE "LINE ITEM STATUS" IN THE BUDGET  
          ACT), AS SPECIFIED?

          SHOULD RELATED CHANGES IN LAW BE MADE AND SHOULD THIS BILL TAKE  
          EFFECT IMMEDIATELY UPON ENACTMENT AS AN URGENCY MEASURE?



                                       PURPOSE
          
          The purpose of this bill is to (1) enact a statement of  
          legislative intent to restructure the State Office of Homeland  
          Security during the next legislative session but to give the  
          existing office the responsibility of administering its own  




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          budget appropriations commencing with this fiscal yea.; (2) give  
          statutory authority for persons employed within the Office of  
          Homeland security whose duties and responsibilities require the  
          authority to access criminal history and other criminal  
          intelligence information, as specified; (3) amend the Budget Act  
          of 2005 to revise and add new line item appropriations -  
          reappropriating money currently in the Budget Act - for the  
          support of the Office of Homeland Security (giving that office  
          "line item status" in the Budget Act), as specified; and, (4)  
          make related changes in law and take effect immediately upon  
          enactment as an urgency measure.

           Existing law  provides that the Governor shall appoint, to serve  
          at his or her pleasure, an executive officer who shall be  
          Director of Homeland Security.  The Director of Homeland  
          Security shall be in charge of homeland security and shall be  
          the state coordinator of all homeland security activities,  
          including, but not limited to, homeland security strategy,  
          information analysis related to terrorism, and protection of  
          critical infrastructure from terrorism.  The Governor shall also  
          appoint one deputy director of homeland security who shall serve  
          at the pleasure of the director.  (Government Code  12016.)

           Existing law  requires that the Department of Justice maintain  
          state summary criminal history information and make that  
          information available to specified persons.  (Penal Code   
          11105 - 11105.4.)

           Existing law  (the California Public Records Act) provides for  
          the public access to governmental records with exceptions which  
          include law enforcement records, as specified.  (Government Code  
           5250 et seq.; law enforcement exceptions in Government Code   
          6254(f).)

           Existing law  creates the Commission on Peace Officer Standards  
          and Training (POST) which among other responsibilities sets  
          minimum selection and training standards for California law  
          enforcement, as specified.  (Penal Code  13500 et seq.)

           Existing law  creates the Office of Emergency Services (OES) in  




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          the office of the Governor.  Among other duties, during a state  
          of war emergency, a state of emergency, or a local emergency,  
          the director of OES shall coordinate the emergency activities of  
          all state agencies in connection with such emergency, and every  
          state agency and officer shall cooperate with the director in  
          rendering all possible assistance in carrying out the provisions  
          of this chapter.  (Government Code  8585 et seq.)

           Existing law  provides that the OES Emergency Response Training  
          Advisory Committee shall be established and shall recommend the  
          criteria for terrorism awareness curriculum content to meet the  
          training needs of state and local emergency response personnel  
          and volunteers.  (Government Code  8588.10.)

           Existing law  does the following:

           Creates the California Department of Health Services and  
            Director of Health Services, as specified.  (Health and Safety  
            Code  100100 et seq.)

           Requires each of California's counties to provide public  
            health services.  (Health and Safety Code  101000.)  Each of  
            California's 58 counties and 3 large California cities have  
            Physician Health Officers.  (See Health and Safety Code   
            101375 and 101460 relating to city health officers where a  
            city has not opted for county exercise of health officer  
            powers in a city.)

           Grants specific authority to county health officers, including  
            (1) the authority to take any preventive measure that may be  
            necessary to protect and preserve the public health from any  
            public health hazard during any "state of war emergency,"  
            "state of emergency," or "local emergency," as defined by  
            Section 8558 of the Government Code, within his or her  
            jurisdiction; (2) defines "preventive measure" as abatement,  
            correction, removal or any other protective step that may be  
            taken against any public health hazard that is caused by a  
            disaster and affects the public health; (3) the authority,  
            upon consent of the county board of supervisors or a city  
            governing body, to certify any public health hazard resulting  




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            from any disaster condition if certification is required for  
            any federal or state disaster relief program.  (Health and  
            Safety Code  101040.)

           Provides that federal funding received by the State Department  
            of Health Services for bioterrorism preparedness and emergency  
            response is subject to appropriation in the annual Budget Act  
            commencing with the 2003-04 fiscal year.  (Health and Safety  
            Code  101317.)

           Existing law  requires that the Director of Homeland Security, in  
          collaboration with the State Department of Health Services,  
          shall, on or before February 1 of each year, report to the  
          chairperson of the Joint Legislative Budget Committee, and the  
          chairperson of the budget committee of each house of the  
          Legislature, on their respective expenditures of federal  
          homeland security and bioterrorism funds, as specified.   
          (Government Code  9147.5.)

           This bill  does the following:

           Enacts a statement of legislative intent to restructure the  
            State Office of Homeland Security during the next legislative  
            session but to give the existing office the responsibility of  
            administering its own budget appropriations commencing with  
            this fiscal year.

           Requires that the Attorney General shall furnish state summary  
            criminal history information to persons employed within the  
            Office of Homeland Security whose duties and responsibilities  
            require the authority to access criminal history and other  
            criminal intelligence information, and who have been cleared  
            to do so by both the State Department of Justice and the  
            United States Department of Homeland Security, as specified.

           Adds to law that the State Office of Homeland Security is  
            considered a law enforcement organization as required for  
            receipt of confidential intelligence information, as  
            specified.





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           Amends the Budget Act of 2005 to revise - and add new line  
            item appropriations - reappropriating money currently in the  
            Budget Act - for the support of the Office of Homeland  
            Security (giving that office "line item status" in the Budget  
            Act), as specified.

           Makes related changes in law and takes effect immediately upon  
            enactment as an urgency measure.

                                      COMMENTS

          1.  Need for This Bill
           
          The author's office indicates that:

              The Governor's Office of Homeland Security (OHS)  
              was established on February 7, 2003, by Executive  
              Order D-67-03.  The Office is responsible for  
              coordinating homeland security activities  
              throughout California and serves as the Governor's  
              chief advisor on all homeland security related  
              issues.

              OHS functions are divided into six divisions, each  
              of which is headed by a deputy director, aided by  
              an assistant deputy.

                   Information Analysis;
                   Critical Infrastructure Protection;
                   Local, External and Legislative Affairs; 
                   Grants Management; 
                   Planning, Research and Emergency  
                Preparedness;
                   Training and Exercises

              OHS has made real progress in its efforts to  
              secure California from terrorist attacks.   
              Regional Terrorism Threat Assessment Centers have  
              been established across the state.  A State  
              Terrorism Threat Assessment Center has been  




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              created in conjunction with the California Highway  
              Patrol and the Department of Justice.   
              Organizations from federal, state, and local  
              levels have participated in statewide training  
              exercises.  Furthermore, representatives from OHS  
              have been working to evaluate and harden critical  
              infrastructure across California.

              This bill would provide budgetary authority to  
              streamline contractual services necessary to  
              facilitate its day-to-day operations.  And last,  
              the measure would authorize OHS to review criminal  
              justice information, which is essential to its  
              grant programs and preparing California for a  
              terrorist attack.

          2.  What Does This Bill as Amended Do  ?

           Intent language  - this bill contains uncodified Legislative  
          intent language - both in Section 1 of the bill and in  
          provisions rewriting budget line items - which states that the  
          Office of Homeland Security is to be restructured during the  
          next legislative session (see Comment #11 for the general effect  
          of such intent):

               SECTION 1.  (a) The Legislature finds and declares all of  
          the following:
               (1) The Office of Homeland Security was established in  
          February 2003 by executive order to coordinate the state's  
          antiterrorism activities.

               (2) In February of 2005, the Legislative Analyst's Office  
          recommended that the Legislature provide statutory authority for  
          the Office of Homeland Security.  The Legislative Analyst's  
          Office analysis points out funding delays and the lack of a  
          unified strategic approach to homeland security issues.
               (3) The Legislature recognizes, in light of the events of  
          September 11, 2001, and the more recent London bombings, the  
          pressing need for a unified approach to homeland security within  
          the state.




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               (b) Therefore, the Legislature intends to restructure the  
          Office of Homeland Security during the next legislative session  
          but to give the existing Office of Homeland Security  
          responsibility of administering its own budget appropriations  
          commencing with this fiscal year.
           
           Access to criminal history information  - see Comment #3, below.

           Budget Act amendments  - The Office of Homeland Security states  
          that they have operated since early 2003 as an "orphan" office  
          with dependence on the Office of Emergency Services to provide  
          the administrative support necessary for a state agency to  
          operate.  With the recent 2005 State Budget changes and an  
          increase to approximately 50 employees, the OHS indicates that  
          they are hampered in efficiently operating because they are  
          neither a statutory state agency nor do they have "line item  
          status" in the state budget.  While this bill as currently  
          amended does not create that statutory status, the OHS indicates  
          that the line item status will itself help facilitate operations  
          of the Office.  The money appropriated in the State Budget is  
          federal funding, not state general fund money (plus the OHS also  
          distributes federal dollars in grants and funding to local and  
          state agencies, as well).  NOTE: the budget language in this  
          bill would be in effect through June 30, 2006, and would need to  
          be extended in the 2006-07 State Budget to remain in effect  
          after that date.

           Technical change to Vehicle Code section 5066  - this bill keeps  
          the "technical" change to Vehicle Code section 5066 which was  
          first added when this bill was totally rewritten on July 1,  
          2005, to pertain to the Office of Homeland Security.  Section  
          5066 creates the California memorial license plate, with one  
          half of the funds raised - upon appropriation by the Legislature  
          - to be allocated to the Office of Criminal Justice Planning  
          (OCJP) to be used solely for antiterrorism activities.  OCJP no  
          longer is in existence and this bill replaces that office with  
          the Office of Homeland Security.  [NOTE: the OCJP was abolished  
          as of January 1, 2004, by Chapter 157, Statutes of 2003.  OCJP's  
          programs have generally been transferred to the Office of  
          Emergency Services and the Board of Corrections.]




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           Ugency clause  - this bill contains an urgency clause which  
          states:

               In order for the Office of Homeland Security to adequately  
          administer the grants, properly reimburse local agencies for  
          their homeland security expenditures, and receive all  
          information necessary to evaluate threats and prepare training,  
          it is necessary that this act take effect immediately.

          3.  Furnishing State Summary Criminal History Information; and, an  
            Exemption to the Public Records Act

           This bill proposes to authorize specified employees of the new  
          Office of Homeland Security to have access to state summary  
          criminal history information on the same basis as "peace  
          officers" by adding a new Penal Code section 11105.06 within  
          the sections of the Penal Code relating to that information  
          and the requirements on the Attorney General in maintaining  
          and sharing that information.  Other non-law enforcement  
          persons are given similar access to that information in other  
          "11105" provisions.

          This bill proposes a new "exemption" for specified staff of  
          the Office of Homeland Security to have access to public  
          records which are otherwise confidential by adding those OHS  
          staff to the exemptions from disclosure under the California  
          Public Records Act contained in existing Government Code  
          section 6254(f) which currently includes the following:

               ? nothing in this chapter shall be construed to require  
               disclosure of records
               that are any of the following:  (f)  Records of complaints  
               to, or investigations conducted by, or records of  
               intelligence information or security procedures of, the  
               office of the Attorney General and the Department of  
               Justice, and any state or local police agency, or any  
               investigatory or security files compiled by any other state  
               or local police agency, or any investigatory or security  
               files compiled by any other state or local agency for  




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               correctional, law enforcement, or licensing purposes,  
               except that state and local law enforcement agencies shall  
               disclose the names and addresses of persons involved in, or  
               witnesses other than confidential informants to, the  
               incident, the description of any property involved, the  
               date, time, and location of the incident, all diagrams,  
               statements of the parties involved in the incident, the  
               statements of all witnesses, other than confidential  
               informants, to the victims of an incident, or an authorized  
               representative thereof, an insurance carrier against which  
               a claim has been or might be made, and any person suffering  
               bodily injury or property damage or loss, as the result of  
               the incident caused by arson, burglary, fire, explosion,  
               larceny, robbery, carjacking, vandalism, vehicle theft, or  
               a crime as defined by subdivision (b) of Section 13951,  
               unless the disclosure would endanger the safety of a  
               witness or other person involved in the investigation, or  
               unless disclosure would endanger the successful completion  
               of the investigation or a related investigation.  However,  
               nothing in this division shall require the disclosure of  
               that portion of those investigative files that reflect the  
               analysis or conclusions of the investigating officer.   
               Customer lists provided to a state or local police agency  
               by an alarm or security company at the request of the  
               agency shall be construed to be records subject to this  
               subdivision.  [Specified arrest and related information  
               which shall be disclosed follows in this section but is not  
               included here.]

          Committee staff is informed that the OHS staff currently may  
          obtain some redacted information but that the OHS needs these  
          two new proposed authorizations in order to do the work  
          necessary to evaluate security risks and related tasks.  OHS  
          also indicates that accessing such information is limited in  
          general for all "authorized" persons under current law and  
          regulatory provisions.  For example, the California Attorney  
          General's office has prepared and distributed "Criminal  
          Intelligence Guidelines" - reprinted June 1999 - which include  
          a number of definitions and procedures to be followed for the  
          creation, maintenance, and dissemination of criminal file  




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          information.  Those guidelines also include Part 23, Section  
          28 of the Code of Federal Regulations (as revised September  
          16, 1993) which indicates that the "purpose of this regulation  
          is to assure that all criminal intelligence systems operating  
          through support under the Omnibus Crime Control and Safe  
          Streets Act of 1968, 42 U.S.C. 3711, et seq., as amended (Pub.  
          L. 90-351, as amended by Pub. L. 91-644, Pub. L. 93-83, Pub.  
          L. 93-415, Pub. L. 94-430, Pub. L. 94-503, Pub. L. 95-115,  
          Pub. L. 96-157, Pub. L. 98-473, Pub. L. 99-570, Pub. L.  
          100-690, and Pub. L. 101-647), are utilized in conformance  
          with the privacy and constitutional rights of individuals."

          The CFR provisions also include the following in 23.20  
          "Operating principles":

               (a) A project shall collect and maintain criminal  
               intelligence information concerning an individual only if  
               there is reasonable suspicion that the individual is  
               involved in criminal conduct or activity and the  
               information is relevant to that criminal conduct or  
               activity.

               (b) A project shall not collect or maintain criminal  
               intelligence information about the political, religious  
               or social views, associations, or activities of any  
               individual or any group, association, corporation,  
               business, partnership, or other organization unless such  
               information directly relates to criminal conduct or  
               activity and there is reasonable suspicion that the  
               subject of the information is or may be involved in  
               criminal conduct or activity. 

               (c)  Reasonable Suspicion  or  Criminal Predicate  is  
               established when information exists which establishes  
               sufficient facts to give a trained law enforcement or  
               criminal investigative agency officer, investigator, or  
               employee a basis to believe that there is a reasonable  
                                        possibility that an individual or organization is  
               involved in a definable criminal activity or enterprise.   
               In an interjurisdictional intelligence system, the  




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               project is responsible for establishing the existence of  
               reasonable suspicion of criminal activity either through  
               examination of supporting information submitted by a  
               participating agency or by delegation of this  
               responsibility to a properly trained participating agency  
               which is subject to routine inspection and audit  
               procedures established by the project.  ?

               (l) A project shall make assurances that there will be no  
               harassment or interference with any lawful political  
               activities as part of the intelligence operation.  ?

               (o) The [United States] Attorney General or designee may  
               waive, in whole or in part, the applicability of a  
               particular requirement or requirements contained in this  
               part with respect to a criminal intelligence system, or  
               for a class of submitters or users of such system, upon a  
               clear and convincing showing that such waiver would  
               enhance the collection, maintenance or dissemination of  
               information in the criminal intelligence system, while  
               ensuring that such system would not be utilized in  
               violation of the privacy and constitutional rights of  
               individuals or any applicable state or federal law.

          The OHS is subject to those CFR provisions if the Office has  
          access to such information.  However, neither the state  
          guidelines nor the CFR provisions define what actually may be  
          within the purview of the state Office of Homeland Security  
          and therefore do not define "criminal conduct or activity"  
          which the OHS might investigate or maintain information about.

          SHOULD THESE TWO PROPOSED NEW PROVISIONS IN THIS BILL BE  
          ENACTED PRIOR TO THE STATUTORY CREATION OF THE OFFICE OF  
          HOMELAND SECURITY AND STATUTORY REQUIREMENTS FOR THE TYPE OF  
          INFORMATION WHICH IS APPROPRIATE FOR THE OFFICE TO  
          INVESTIGATE?

          IF THESE PROPOSED NEW PROVISIONS ARE ENACTED, WOULD IT BE  
          APPROPRIATE TO PLACE A SUNSET ON THEM TO ENSURE THAT THE  
          FUTURE DISCUSSIONS ABOUT THE STATUTORY CREATION OF AN OFFICE  




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          OF HOMELAND SECURITY INCLUDE A DISCUSSION OF THE ACCESS TO  
          SUCH INFORMATION? 

          4.  Action of the Senate Budget Subcommittee #5
           
          On May 19, 2005, the Senate Budget Subcommittee #5 had the  
          following agenda item:

               2.  May Revise.  Establish Office of Homeland Security  
               as a New Agency
               May Revise Request.  This Finance Letter proposal  
               consists of the following:
               ?      $7.4 million in federal funds and 21 positions  
                 for additional support of OHS activities.
               ?      $22 million in federal funds for state  
                 operations.
               ?      $117 million in federal funds for local  
                 assistance.
               ?      Trailer bill language to establish OHS as a  
                 separate department and various budget bill  
                 provisions which would spilt the funding of OHS  
                 activities between the OES (from 7/1/05 to 12/31/05)  
                 and OHS (from 1/1/06 to 6/30/06).

               Analyst's Recommendation.  The LAO does not have any  
               issues with the proposed staffing and funding  
               increases.  However, the LAO has raised concerns with  
               the proposed trailer bill language.  First, the LAO  
               indicates that there are a number of significant  
               policy issues related to the authorization of OHS  
               which deserve policy consideration by the Legislature.  
                For example, the administration is proposing  
               establishing OHS as a separate standalone department.   
               The LAO notes that the Legislature may wish to  
               consider other alternatives such as authorizing OHS to  
               be over OES (which would be similar to the federal  
               Department of Homeland Security model) or continuing  
               to have OHS as a part of OES (which would be  
               consistent with the current situation).  In addition,  
               the LAO indicates that the proposed trailer language  




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               contains some significant policy issues such as  
               allowing OHS to (1) issue search warrants and (2) be  
               exempt from the entire Administrative Procedure Act.   
               In the view of the LAO, both of these policy issues  
               require significant legislative input which is not  
               typically provided through the budget committee  
               process.  For these reasons, the LAO recommends that  
               the Legislature reject the proposed trailer bill and  
               direct the administration to seek approval of the  
               language through a policy bill.

          The Budget Subcommittee did suggest that the Administration  
          sponsor a separate bill in the normal - not "trailer bill" -  
          process.  There were staff positions funded in the 2005-06 State  
          Budget for the existing "Office of Homeland Security."

          In addition, the language in this bill as currently amended does  
          not include any new "search warrant" authority nor does it  
          involve an exemption from the Administrative Procedures Act.

          5.  Recommendations of the Legislative Analyst
           
          The LAO 2005-06 analysis of the Governor's proposed budget  
          includes "General Government" which notes the following (pages  
          F-13 to F-25):

              California has received almost $900 million in  
              federal homeland security funds, which has helped  
              the state start addressing homeland security  
              needs.  The state, however, lacks a unified  
              strategic approach to homeland security.  In  
              addition, only 31 percent of the state's homeland  
              security funds have been spent to date.  We make a  
              number of recommendations on how to address these  
              problems in the state's homeland security  
              approach.
              
                                      ***

              Many State and Local Agencies Involved in Homeland  




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              Security.  Many agencies - at both the state and  
              local levels - are involved in California's  
              homeland security activities.  At the state level,  
              the primary agencies are OHS, DHS, Emergency  
              Medical Services Authority (EMSA), California  
              Highway Patrol (CHP), Military Department, and the  
              Departments of Transportation, and Forestry and  
              Fire Protection.  The OHS and DHS regularly meet  
              with these departments to coordinate the state's  
              antiterrorism activities.  At the local level, the  
              primary agencies are the sheriffs, police, public  
              health, fire, emergency medical services,  
              hospitals, and other health-related agencies.  At  
              the local level, the emphasis has been on updating  
              emergency response plans, conducting exercises,  
              training first responders (people who are the  
              first on the scene of an event), and purchasing  
              personal protective equipment (PPE) and medical  
              supplies.  In addition, since 2001, state and  
              local agencies have been involved in a number of  
              joint homeland security related activities.  For  
              example, the Military Department, in collaboration  
              with several different state and local agencies,  
              has trained over 100,000 first responders on what  
              to do in the event of a terrorist attack.  The  
              OHS, through the collaboration of various law  
              enforcement agencies, has established the state  
              terrorism threat assessment and early warning  
              centers to gather intelligence and share  
              information statewide among federal, state, and  
              local law enforcement agencies.  In addition, DHS  
              has been able to design a statewide disease  
              reporting system and develop a statewide network  
              that alerts public health officials of  
              bioterrorism events.

                                      ***

              Legislative Direction Needed





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              Our review found that legislative policy direction  
              of the state's homeland security efforts is  
              needed.

              Lack of Statutory Framework for OHS.  To date, the  
              state's homeland security efforts have been  
              directed through executive orders and budget  
              requests.  The authority for OHS has been  
              primarily provided through broader emergency  
              authority under the Emergency Services Act (ESA).   
              Our review, however, found that OHS and some of  
              its specific duties (in particular the prevention  
              of disasters) are not delineated in the ESA.   
              Without specific statutory authority, it could be  
              difficult for OHS to prioritize and accomplish  
              some of its activities.  For example, OHS  
              currently relies on local agencies' cooperation to  
              coordinate activities.  There may, however, be  
              occasions when some local agencies do not wish to  
              participate or coordinate their activities.   
              Currently, OHS lacks the statutory authority to  
              require local agencies to participate in those  
              activities.

              Legislative Funding Priorities Have Not Been  
              Identified.  Both OHS and DHS approve state and  
              local grant proposals.  The OHS grant funding  
              decisions are based on (1) priorities set by the  
              administration and (2) federal government  
              restrictions on the use of the funds.  Typically,  
              the administration has requested appropriation  
              authority for OHS funds from the Legislature after  
              making grant funding decisions.  A better process  
              would allow the Legislature to provide input prior  
              to making the funding decisions.  The DHS grant  
              funding decisions are based on priorities set by  
              the administration and state constituency groups.   
              In previous years, the Legislature has  
              appropriated a portion of the grant funding  
              through both the budget and other statutes to  




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              allow more time for DHS to work with the relevant  
              groups to determine how funds would be spent.   
              Since the state's homeland security efforts lack a  
              statutory framework, the Legislature has never  
              established its priorities for the use of the  
              grant funds.  For this reason, there may be some  
              legislative priorities on the use of these funds  
              that are not being addressed.  For example, the  
              Legislature may consider evaluating communication  
              systems or assessing vulnerabilities in public  
              buildings a higher priority than some of the  
              administration's funding priorities.   
              Alternatively, it could decide to dedicate a  
              larger or smaller portion of the CDC grant funds  
              to local jurisdictions.  (As noted earlier, CDC  
              does not require a certain split of funding.)

          6.  Executive Order D-67-03 (February 7, 2003)

           Executive Order D-67-03 first mentions the following:

              WHEREAS, in 1999, the Governor's Office of Emergency  
              Services joined with federal, state and local agencies  
              to establish an inter-disciplinary committee known as  
              the State Strategic Committee on Terrorism to plan for  
              and develop programs to address terrorist threats; and

              WHEREAS, the California Anti-Terrorism Information  
              Center was established on September 25, 2001, to  
              coordinate the exchange and assessment of information  
              between state and local law enforcement agencies  
              regarding terrorism within California . . .

          That order also includes the following:

              IT IS ORDERED that the State of California Office of  
              Homeland Security is established in the Office of the  
              Governor.  The mission of the Office of Homeland  
              Security shall be to develop and coordinate the  
              implementation of a comprehensive state strategy to  




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              coordinate security activities throughout California,  
              and to highlight the extraordinary technological  
              capabilities of California's private industry to help  
              protect all Americans.

              IT IS FURTHER ORDERED that the Office of Homeland  
              Security shall be headed by a Director, who shall be  
              appointed by, and who shall serve at the pleasure of,  
              the Governor.  The Director of the Office of Homeland  
              Security shall be the individual primarily responsible  
              for coordinating state security efforts of all  
              departments and agencies in the State of California and  
              shall be the principal point of contact for and to the  
              Governor with respect to coordination of such efforts.

              IT IS FURTHER ORDERED that the duties and  
              responsibilities of the Office of Homeland Security  
              shall include the following:

              1.    Coordinating security activities throughout  
              California.

              2.    Coordinating the activities of all state agencies  
              pertaining to terrorism-related issues, including, but not  
              limited to, all legislative issues, contact with federal and  
              local agencies, training, and public outreach activities.

              3.    Coordinating and approving all activities between  
              state agencies and federal agencies on topics related to  
              terrorism, including coordinating and approving all state  
              requests for federal funds designated for terrorism-related  
              activities, developing guidelines for all such state  
              requests, and approving the distribution of any federal  
              funds allocated to the state.

              4.    Serving as the principal point of contact for and to  
              the Governor with respect to the federal Department of  
              Homeland Security and all other federal and state agencies,  
              and legislators, on matters relating to terrorism and state  
              security.




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              5.    Coordinating the review and assessment of the State of  
              California Emergency Plan and the California Terrorism  
              Response Plan, and coordinating the amendment and the  
              submission of those plans, through the California Emergency  
              Council, to the Governor for approval.

              6.    Assigning specific state security functions to  
              state agencies consistent with the duties and  
              responsibilities identified in the California Emergency  
              Plan and the California Terrorism Response Plan.  Such  
              assignments will be made by Administrative Order issued  
              by the Director of the Office of Homeland Security.

              7.    Coordinating efforts to ensure that all state  
              departments and agencies that have intelligence  
              collection responsibilities have sufficient  
              technological capabilities and resources to collect  
              intelligence and data relating to terrorist activities  
              or possible terrorist acts within the State of  
              California.

          7.  Recommendations of the California Performance Review  
           
           The Report of the California Performance Review includes a  
          number recommendations pertaining to Homeland Security (starting  
          on page 302) including the following:

              ISSUE
                   In California, authority and responsibility for  
                public safety - law enforcement, fire and emergency  
                management, homeland security, and victim services  
                are divided among more than 80 separate state  
                entities.  This creates confusing command structures  
                and causes miscommunication and inoperability between  
                entities.

              SOLUTIONS
                   Consolidate state government entities responsible  
                for public safety into a single Department of Public  




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                Safety and Homeland Security.

          There are numerous other related recommendations in the CPR  
          report.



          8.   2005-06 Budget Act  

          The 2005-06 Budget Act and trailer bill language includes  
          the following:

































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               Annual reporting requirement for homeland security  
               expenditures from AB 139 (trailer bill):


               SEC. 27. Section 9147.5 is added to the Government Code, to  
               read: 9147.5. (a) Notwithstanding Section 7550.5, the  
               Director of Homeland Security, in collaboration with the  
               State Department of Health Services, shall, on or before  
               February 1 of each year, report to the chairperson of the  
               Joint Legislative Budget Committee, and the chairperson of  
               the budget committee of each house of the Legislature, on  
               their respective expenditures of federal homeland security  
               and bioterrorism funds. (b) The report shall include all of  
               the following information: (1) Descriptions of grant  
               expenditures and coordination activities at the state and  
               local level that have occurred over the past fiscal year.  
               (2) How those activities met the state's strategic goals  
               and objectives. (3) Funding amounts awarded to state and  
               local agencies. (4) Funding levels by grant and grant year,  
               designating which funds have been expended or encumbered,  
               or remain unencumbered. (5) Any challenges encountered by  
               state or local agencies that hindered their expenditure of  
               the funds. (6) Areas of focus for the upcoming fiscal year.  
               (c) Nothing in this section shall be construed to require  
               the Director of Homeland Security or the State Department  
               of Health Services to disclose or include classified  
               information. 


               Strategic plan requirement in the 2005 Budget Act (SB 77):


               4. The Office of Homeland Security, in collaboration with  
               the State Department of Health Services, shall report to  
               the Chairperson of the Joint Legislative Budget Committee,  
               and the chairperson of the fiscal and policy committees of  
               each house of the Legislature on or before February 1,  
               2006, a statewide strategic plan for the use of federal  
               homeland security and bioterrorism funds by all departments  




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               and local jurisdictions. The plan shall include the state's  
               goals and objectives for improving the state's level of  
               preparedness for a terrorism event, which (a) is based on  
               an assessment of the state's level of preparedness and (b)  
               reflects a coordination of preparedness activities at the  
               state and local level. It is not the intent of the  
               Legislature to require the Office of Homeland Security or  
               the State Department of Health Services to disclose or  
               include sensitive or classified information in the  
               strategic plan. 


               Funding priorities for homeland security in the 2005 State  
               Budget Act (SB 77):




               5. It is the intent of the Legislature that the funding  
               priorities for federal homeland security funds are: (a)  
               enhancing information sharing between local, state, and  
               federal public safety agencies; (b) identifying and  
               protecting critical infrastructure and key assets to deter  
               terrorists; (c) enhancing coordination of state agencies'  
               homeland security activities; (d) implementing the state's  
               homeland security strategy; and (e) implementing  
               interoperable communications for public safety agencies. 


          9. May Revise Proposed Language  

          Committee staff is informed that the May revise this year  
          did include budget item language for support of the Office  
          of Homeland Security which is similar to that included in  
          this bill.  That language was not included in the State  
          Budget Act of 2005 as enacted in SB 77.

          10.   Related Legislation  

          AB 1495 (Canciamilla) as first amended on June 20, 2005, exempts  











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          from the California Public Records Act disclosure "critical  
          infrastructure" information, as defined, that is voluntarily  
          submitted to the California Office of Homeland Security for use  
          by that office, including the identity of the person or entity  
          submitting the information.  AB 1495 is an urgency measure and  
          is in the Senate Committee on Judiciary.

          11.   Effect of Stated Legislative Intent  

          This bill would enact uncodified legislative intent to create an  
          Office of Homeland Security, as specified.  As is oft noted in  
          Legislative Counsel Opinions:

               The acts of one legislative body cannot limit or restrict  
               its own power or that of subsequent Legislatures by  
               enacting legislation, and the act of one Legislature cannot  
               bind its successors (City and County of San Francisco v.  
               Cooper (1975) 13 Cal.3d 898, 929; In re Collie (1952) 38  
               Cal.2d 396, 398; County Mobilehome Positive Action Com.,  
               Inc. v. County of San Diego (1998) 62 Cal.App 4th 727,  
               734).

          However, as a statement of intent, this bill does provide  
          notice that a bill or bills will be introduced to create  
          that office in statute.


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