BILL ANALYSIS
SB 548
Page 1
(Without Reference to File )
SENATE THIRD READING
SB 548 (Hollingsworth)
As Amended July 16, 2007
2/3 vote. Urgency
SENATE VOTE :40-0
GOVERNMENTAL ORGANIZATION 14-0APPROPRIATIONS
(vote not
available)
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|Ayes:|Torrico, Plescia, De | | |
| |Leon, Evans, Garcia, | | |
| |Jeffries, Levine, | | |
| |Mendoza, Portantino, | | |
| |Price, Richardson, Silva, | | |
| |Soto, Tran | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Reestablishes for a specified period of time the
Disaster Response-Emergency Operations Account (DREOA) in the
Special Fund for Economic Uncertainties (SFEU). Specifically,
this bill :
1)Specifies that the authority of the DREOA will expire on the
January 1, 2009.
2)Contains an urgency clause, allowing this bill to take effect
immediately upon enactment.
EXISTING LAW :
1)Provides that the Director of the Office of Emergency Services
(OES) is responsible for coordinating the emergency activities
of all state agencies in connection with a state emergency.
2)Establishes, pursuant to the Emergency Services Act (Act), the
DREOA in the 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
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agencies for disaster response operation costs incurred as a
result of a proclamation by the Governor of a state of
emergency. Existing law repealed these provisions on July 1,
2007.
3)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.
4)Provides that the Director DOF 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.
5)Expresses the intent of the Legislature that the DREOA have an
unencumbered balance of $1 million at the beginning of each
fiscal year (FY) and if the DREOA requires additional moneys
to meet claims against the DREOA, the Director of DOF may
transfer moneys from the SFEU to the DREOA in an amount
sufficient to pay the amount of claims that exceed the
unencumbered balance in the DREOA.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)No new costs; however, this bill would continue the allocation
of $1 million per year from the SFEU into the DREOA. These
funds are continuously appropriated. Therefore, the DREOA
will maintain a minimum balance of $1 million, but the
appropriations into the DREOA could greatly exceed that
amount.
2)Continuously appropriates money from the SFEU to the DREOA.
COMMENTS : 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 SFEU, has been utilized to provide an immediate
funding source for extraordinary emergency response costs
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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 authority of the DREOA expired on July 1, 2007. This bill
reestablishes the DREOA and extends its authority until January
1, 2009.
Prior legislation : SB 1102 (Hollingsworth), Chapter 561,
Statutes of 2005, extended the sunset date applicable to the
DREOA within the SFEU from January 1, 2006 to July 1, 2007.
SB 1102 (Budget Committee), Chapter 227, Statutes of 2004, among
other things, continued until January 1, 2006 the DREOA within
the SFEU and allocated $1 million to the DREOA at the beginning
of each FY.
Analysis Prepared by : Ryan Spencer / G. O. / (916) 319-2531
FN: 0002092