BILL ANALYSIS �
AB 1429
Page 1
GOVERNOR'S VETO
AB 1429 (Chesbro)
As Amended May 16, 2011
2/3 vote. Urgency
GOVERNMENTAL ORGANIZATION 15-0APPROPRIATIONS 17-0
-----------------------------------------------------------------
|Ayes:|Hall, Nestande, Atkins, |Ayes:|Fuentes, Harkey, |
| |Block, Chesbro, Cook, | |Blumenfield, Bradford, |
| |Galgiani, Gatto, Hill, | |Charles Calderon, Campos, |
| |Olsen, Ma, Perea, V. | |Davis, Donnelly, Gatto, |
| |Manuel P�rez, Silva, | |Hall, Hill, Lara, |
| |Allen | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
| | | | |
-----------------------------------------------------------------
-----------------------------------------------------------------
|ASSEMBLY: |78-0 |(May 31, 2011) |SENATE: |40-0 |(September 6, |
| | | | | |2011) |
-----------------------------------------------------------------
SUMMARY : Adds the tsunami that affected Del Norte County in
March 2011 to the list of disasters eligible for full state
reimbursement of the local agency costs under the California
Disaster Assistance Act (CDAA or Act). Specifically, this bill :
1)Adds the tsunami that occurred in Del Norte County in March
2011, to the events for which the state share of state
eligible cost is 100% under the Act.
2)Declares that it takes 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
AB 1429
Page 2
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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, additional General Fund (GF) costs of $1.3 million if
the state pays for Del Norte County's share of the costs
associated with the March 2011 tsunami. Preliminary costs
submitted by Del Norte County to California Emergency Management
Agency are in excess of $20 million. The federal government pays
75% of those costs. Under this bill, the state would pick up
the entire remaining amount of $5 million. Absent this
legislation, the state pays for 18.75% of the costs and the
county pays 6.25%.
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 75%, and local jurisdictions are
responsible for the remaining 25%. When there is a federal
declaration, the Federal Emergency Management Agency (FEMA) pays
75% and the state pays 75% of the remaining 25%. In recent
federally declared disasters, it has been the Legislature's
AB 1429
Page 3
practice to increase the Act funding to 100% so that the state
would pay the entire remaining 25% nonfederal share of eligible
costs. The Legislature usually has not increased the Act
funding to 100% for state-only disasters that are not federally
declared.
In 2006, the Legislature enacted AB 2140 (Hancock) 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 100% 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 13 cities and counties 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% 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
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 County had $20.7 million in damages and Mendocino
AB 1429
Page 4
County had $22 million in damages.
Purpose of the bill : According to the author, Del Norte County
faces an 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.
The author notes this disaster came at a time when local
governments are financially strapped. This bill ensures local
costs are reimbursed for the events surrounding the tsunami.
GOVERNOR'S VETO MESSAGE :
"This measure would require the state pay 100 percent of the
total state eligible costs for damages sustained to Del Norte
County by the March 2011 tsunami.
"The state has not paid for a local government's share of
disaster costs since 2006 and this measure would cost the state
over $1 million. In addition, if I sign this measure, other
counties that sustain similar damages would likely request the
same relief-a precedent that the state currently cannot afford."
Analysis Prepared by: Eric Johnson / G. O. / (916) 319-2531
FN: 0002930