BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           548 (Hollingsworth)
          
          Hearing Date:  5/7/07           Amended: 4/10/07
                                                                   As  
          proposed to be amended
          Consultant:  Bob Franzoia       Policy Vote: GO 7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 548, an urgency measure, would extend the  
          authorization for the Disaster Response-Emergency Operations  
          Account (DREOA) in the Special Fund for Economic Uncertainties  
          from July 2007 to January 2013.  By extending the existence of a  
          continuously appropriated fund, the bill would make an  
          appropriation.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2007-08      2008-09       2009-10     Fund
           Sunset extension                        See Staff  
          CommentsGeneral        
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          Under current law, the Director of Finance may allocate funds in  
          the DREOA to reimburse state agencies for disaster response  
          operation costs incurred during a Governor declared state of  
          emergency.  The allocations are to cover the cost of activities  
          that occur within 120 days after a proclamation of emergency.   
          For disaster response operation costs which occur after 120  
          days, state agencies must seek appropriations though the annual  
          budget process.  

          The fiscal impact of the bill would be the difference in any  
          year between what the Director of Finance allocates and what the  
          Legislature appropriates in the annual budget act.  

          The proposed amendments would delete the extension from 120 days  
          to 360 days, the time that allocations may be made by the  
          Director of Finance for disaster response operation costs  










          incurred by state agencies.  As proposed to be amended, the bill  
          would extend current law for five years.