BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 1429 (Chesbro)
          
          Hearing Date: 8/15/2011         Amended: 5/16/2011
          Consultant: Bob Franzoia        Policy Vote: G O 13-0
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 1429, an urgency measure, would add the tsunami 
          that occurred in Del Norte County in March 2011, to the list of 
          disasters for which the state share of state eligible cost is up 
          to 100 percent.  This bill would exempt the county from a 
          specified planning requirement as a condition of receiving this 
          level of assistance.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           State assumption of    $1,294 payable over more than one 
          fiscalGeneral
          local share of disaster costs     year
          _________________________________________________________________
          ____

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

          The California Disaster Assistance Act requires the state to pay 
          75 percent of the non- federal share of costs for any state 
          declared emergency.  This bill would require the state to cover 
          up to 100 percent of the non-federal share of costs associated 
          with the tsunami that occurred in the county in March 2011, as 
          specified in agreements for federal assistance.

          The Preliminary Damage Assessment indicates the county had $20.7 
          million in damages.  A request for a federal disaster 
          declaration was submitted on April 6, 2011 and was approved for 
          the county (as well as Santa Cruz County) on April 18. Under 
          this bill, the state would pay its share of $20.7 million (18.75 
          percent or $3,881,250) and assume the local share of $1,293,750 
          (6.25 percent).

          Payment of local shares of cost is made with a Budget Act 
          appropriation to the California Emergency Management Agency.  








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          Because the state attempts to reimburse all claims received in 
          the budget year, and does not control when claims are submitted, 
          the amount appropriated rarely matches the amount ultimately 
          required in any given year.  When claims exceed the budget 
          appropriation, a supplemental appropriation may be made.  

          Chapter 739/2006 (AB 2140, Hancock) prohibits the state share 
          for any eligible project from exceeding 75 percent 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.  Where the local agency has complied, the Legislature may 
          provide for a state share of local costs that exceed 75 percent 
          of total state eligible costs.  This bill exempts the county 
          from complying with this requirement.