BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           548 (Hollingsworth)
          
          Hearing Date:  5/31/07          Amended: 4/10/07
          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  
          (SFEU) 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            $0 to $1,000 or more in any year      
                                 General    
                                               See Staff Comments
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.

          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.  

          Statute expresses the intent of the Legislature that the DREOA  
          have an unencumbered balance of $1 million at the beginning of  
          each fiscal year and if the DREOA requires additional moneys to  
          meet claims against the account, the Director of Finance may  
          transfer moneys from the SFEU to the account in an amount  
          sufficient to pay the amount of claims that exceed the  
          unencumbered balance in the account.

          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 amendment 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.  With this amendment, the bill would  
          extend current law for five years.