BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 548|
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                                 THIRD READING


          Bill No:  SB 548
          Author:   Hollingsworth (R)
          Amended:  6/4/07
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORG. COMMITTEE :  7-0, 3/27/07
          AYES:  Florez, Denham, Battin, Maldonado, Wiggins, Wyland,  
            Yee
          NO VOTE RECORDED:  Negrete McLeod, Vincent

           SENATE APPROPRIATIONS COMMITTEE  :  16-0, 5/31/07
          AYES:  Torlakson, Cox, Aanestad, Ashburn, Cedillo, Corbett,  
            Dutton, Florez, Kuehl, Oropeza, Ridley-Thomas, Runner,  
            Simitian, Steinberg, Wyland, Yee
          NO VOTE RECORDED:  Battin


           SUBJECT  :    California Emergency Services Act

           SOURCE  :     Governors Office of Emergency Services


           DIGEST  :    This bill extends the sunset date of the  
          Disaster Response- Emergency Operations Account in the  
          Special Fund for Economic Uncertainties from July 1, 2007,  
          to January 1, 2013.  Makes a change to the current  
          definition of "state of emergency" relative to the  
          Department of Corrections and Rehabilitation and related  
          conditions that are not to be included under what  
          constitutes a state of emergency within that definition.

           ANALYSIS :    Existing law provides that the Director of the  
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          Office of Emergency Services (OES) is responsible for  
          coordinating the emergency activities of all state agencies  
          in connection with a state emergency.

          Existing law, within the Emergency Services Act (Act),  
          establishes the Disaster Response-Emergency Operations  
          Account (DREOA) in the Special Fund for Economic  
          Uncertainties (SFEU).  Moneys in the DREOA are continuously  
          appropriated subject to specified limitations for  
          allocation by the Director of the Department of Finance  
          (DOF) to state agencies for disaster response operation  
          costs incurred as a result of a proclamation by the  
          Governor of a state of emergency.  Existing law repeals  
          these provisions on July 1, 2007.  
           
          The Act defines a "state of emergency," for purposes of its  
          provisions, as the duly proclaimed existence of conditions  
          of disaster or of extreme peril to the safety of persons  
          and property within the state caused by specified  
          conditions.

          This bill specifies that these conditions do not include  
          conditions in the state's prisons, medical facilities, or  
          youth correctional facilities resulting solely from the  
          actions or inaction of the Department of Corrections and  
          Rehabilitation in administering those facilities.
           
           Background  

          According to the OES, this bill is necessary because the  
          DREOA provides the Director of DOF authority to make  
          certain disaster response allocations.  The DREOA, which is  
          established within the Special Fund for Economic  
          Uncertainties, has been utilized to provide an immediate  
          funding source for extraordinary emergency response costs  
          expended by state (and at one time local) agencies.  This  
          funding source provides the state an opportunity for a more  
          expeditious response to and recovery from disasters.  In  
          addition, the DREOA provides flexibility to the Governor as  
          the DREOA could be and has been used as an expedient  
          alternative to the cumbersome budget deficit process for  
          necessary disaster related costs to state agencies.    

          The DREOA is scheduled to sunset July 1, 2007.  This bill  







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          extends the sunset clause to January 1, 2013. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          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

          Existing law 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 DOF 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 DOF allocates and  
          what the Legislature appropriates in the annual budget act.  
           

           SUPPORT  :   (Verified  6/1/07)

          Governor's Office of Emergency Services (source)
          Department of Finance


          TSM:mw  6/4/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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