BILL ANALYSIS �
AB 1429
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 1429 (Chesbro) - As Amended: March 25, 2011
SUBJECT : Disaster relief: March 2011 tsunami.
SUMMARY : Adds the tsunami that occurred in Mendocino County
and Del Norte County in March 2011, to the events for which the
state share of state eligible cost is 100%. Specifically, this
bill :
1) Adds the tsunami that occurred in Mendocino County and Del
Norte County in March 2011, to the events for which the state
share of state eligible cost is 100% under the California
Disaster Assistance Act (Act).
2) This bill would declare that it is to take effect
immediately as an urgency statute.
EXISTING LAW :
1) Authorizes a local agency to receive state financial
assistance for a repair or restoration project following the
proclamation of a local emergency. The state share for eligible
projects is generally no more than 75% of total state eligible
costs, unless the local agency is located within a city, county,
or city and county that has adopted a local hazard mitigation
plan in accordance with the federal Disaster Mitigation Act of
2000 as part of the safety element of its general plan, in which
case the Legislature may provide for a state share of local
costs that exceeds 75% of total state eligible costs.
2) Provides for certain disasters (e.g., 1989 Loma Prieta
earthquake, 1991 East Bay Fire, 1994 Northridge earthquake, the
2001 Southern California wildfires), the law provides that the
state cover up to 100% of the non-federal eligible costs.
3) Prohibits the state share for any eligible project from
exceeding 75% of total state eligible costs unless the local
agency is located within a city, county, or city and county that
has adopted a local hazard mitigation plan as part of the safety
element of its general plan, as specified.
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FISCAL EFFECT : Unknown.
COMMENTS :
The California Disaster Assistance Act (Act) is California's
state disaster assistance program. The Act reimburses local
governments for debris removal, emergency work, and repair or
replacement of public facilities damaged by a disaster upon a
Governor's proclamation. The state share of eligible expenses
is seventy-five percent, and local jurisdictions are responsible
for the remaining 25 percent. When there is a federal
declaration, the Federal Emergency Management Agency (FEMA) pays
seventy-five percent and the state pays seventy-five percent of
the remaining twenty-five percent. In recent federally declared
disasters, it has been the Legislature's practice to increase
the Act funding to one hundred percent so that the state would
pay the entire remaining twenty-five percent nonfederal share of
eligible costs. The Legislature usually has not increased the
Act funding to one hundred percent for state-only disasters that
are not federally declared.
In 2006, the Legislature enacted AB 2140 (Chapter 739, Statutes
of 2006), which was designed to promote the adoption of local
hazard mitigation plans (LHMP) that meet specified federal
standards. Under this provision, a local jurisdiction is not
eligible for the one hundred percent cost share under the Act
unless it is located within a city and/or county that has
adopted an LHMP as part of the safety element of its general
plan.
To date thirteen cities and counties (Clovis, Coalinga, Fresno,
Huron, Kings County, Kingsburg, Mendota, Nevada County, Sanger,
Santa Cruz County, Selma, and Sutter County) have adopted
compliant LHMP plans. Del Norte County and Mendocino County
have not adopted an LHMP pursuant to existing law, and are not
eligible to receive the 100 percent share of costs. Therefore,
this bill would be ineffective in providing additional
assistance to these two counties. Of the thirteen jurisdictions
currently in compliance with this requirement, Santa Cruz County
is the only tsunami-affected jurisdiction, but it is not
included in this bill.
On March 11, 2011, Governor Brown declared a state of emergency
for Del Norte, Humboldt, San Mateo, and Santa Cruz counties, and
on March 16, 2011, declared a state of emergency for Mendocino
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and San Luis Obispo counties. The Governor declared "I certify
that the recent tsunami incident, coupled with California's
other recent disasters, is of such severity and magnitude that
supplementary federal assistance is necessary, as the effective
response is beyond the capabilities of the state and the
affected local governments."
On April 18, 2011, FEMA announced that federal disaster aid will
be available to the state and eligible local governments and
certain private nonprofit organizations on a cost-sharing basis
for emergency work and the repair or replacement of facilities
damaged by the tsunami wave surge in Del Norte and Santa Cruz
counties. The Preliminary Damage Assessment (PDA) indicates the
Del Norte had $20.7 million in damages and Mendocino County had
$22 million in damages.
Purpose of the bill : According to the author's office, Del
Norte and Mendocino Counties have been faced with the economic
blow caused by the tsunami surges that crashed into the North
Coast on March 11, 2011 which caused more than $48 million in
damage to California ports, harbors, boats, businesses and
infrastructure
This disaster came at a time when local governments are
financially strapped and responding to a natural disaster is a
considerable financial burden. This bill would ensure that
local costs are reimbursed for the events surrounding the
tsunami.
The author states, the tsunami's water surge along the
California coastline destroyed public and private property,
loosened boats from moorings, sank vessels, damaged docks and
pilings, forced an accumulation of debris in harbors, caused
fuel to be discharged in marinas, and destroyed or damaged local
businesses. The water surge required extensive emergency
response and clean-up. Emergency shelters were opened and
thousands of residents were evacuated from their homes. The
author maintains, this bill follows a long-standing tradition in
having the state reimburse local governments for the financial
impact incurred due to the response to, and recovery
from, natural or manmade disasters that periodically strike
California.
Policy consideration : In order to ensure that Del Norte County
is eligible for the full 100 percent under the California
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Disaster Assistance Act, this bill would need to be amended with
language to include a waiver to Section 8685.9 of the Government
Code relating to adopting a local hazard mitigation plan, as
specified, in order to be eligible for an increase in the
percentage of the total state eligible costs for disaster
relief.
In addition, Mendocino County was not specifically included in
the federal disaster declaration and thus may not be eligible
for federal funding. The author might want to take this into
consideration if this bill moves forward.
Author amendments : The author will be offering an amendment in
committee to grant Del Norte County a waiver to Government Code
Section 8685.9 relating to adopting a local hazard mitigation
plan. The amendment will state the following: "Government Code
Section 8685.9 shall not apply to the March 10, 2011, tsunami
effects in Del Norte, as specified in agreements between the
state and the United States for federal financial assistance."
Prior legislation : SB 1537 (Kehoe), Chapter 355, Statutes of
2008. Adds the wildfires that occurred in southern California,
commencing on or about October 20, 2007, to the list of
disasters eligible for full state reimbursement of local agency
costs under the California Disaster Assistance Act.
SB 1764 (Kehoe), 2007-2008 Legislation Session. Required a
local agency, on or after January 1, 2010, to obtain an annual
certification by the State Fire Marshal (SFM) to be eligible to
receive a percentage for a state share in excess of 75 percent.
Requires the SFM to specify the possible percentage a local
agency may receive in excess of the 75 percent based upon
certain criteria and regulations to be promulgated by SFM on or
before July 1, 2009. Vetoed by Governor
SB 1308 (Cox), Chapter 400, Statutes of 2008. Includes the
Angora Fire which occurred in the Lake Tahoe Basin commencing
June 24, 2007, to the list of disasters eligible for full state
reimbursement of local agency costs under the California
Disaster Assistance Act.
AB 2140 (Hancock), Chapter 739, Statutes of 2006. Prohibits the
state share for any eligible project from exceeding 75% of total
state eligible costs unless the local agency is located within a
city, county, or city and county that has adopted a local hazard
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mitigation plan as part of the safety element of its
general plan, as specified.
AB 2735 (Nava), Chapter 897, Statutes of 2006. Adds the severe
rainstorms that occurred in selected counties in California that
commenced on December 19, 2005, and March 29, 2006, and the
wildfires in San Bernardino County in July 2006, to the list of
disasters eligible for full state reimbursement of local
property tax losses, beneficial homeowners' exemption treatment,
full state reimbursement of local agency costs under the Act,
and favorable net operating loss carry forward treatment.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Association of Counties
Del Norte Board of Supervisors
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531