BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2011-2012 Regular Session               B

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          SB 49 (Strickland)                                          
          As Amended April 27, 2011 
          Hearing date: May 3, 2011
          Government Code
          MK:mc

                      LOCAL GOVERNMENT: EMERGENCY RESPONSE: FEES  

                                       HISTORY

          Source:  Author

          Prior Legislation: AB 1004 (Portantino) - 2009, amended out 
          before bill was heard in Senate
                       SB 1707 (Aanestad) - Chapter 51, Statutes of 2004
                       SB 1830 (Aanestad) - failed Senate Public Safety 
          2004

          Support: Association of California Insurance Companies; CalTax; 
                   California Federation of Republican Women; The Personal 
                   Insurance Federation of California a number of 
                   individuals 

          Opposition:League of California Cities; AFSCME; California State 
                   Firefighters' Association, Inc.; Newberry Springs Fire 
                   Chief; City of Susanville Fire Department; Association 
                   of California Water Agencies (unless amended); Town of 
                   Apple Valley; City of Scotts Valley; City of Moreno 
                   Valley; City of Garden Grove; City of Beverly Hills; 
                   City of Cathedral City; City of Clovis Fire Department; 
                   City of Palm Springs Fire Department; Squaw Valley Fire 
                   Department; National City Fire Department; Stanislaus 
                   Consolidated Fire Protection District; Regional Council 




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                   of Rural Counties; a few individuals
           

                                         KEY ISSUE
           
          SHOULD THE LAW PROHIBIT A CITY, COUNTY, ET CETERA, FROM CHARGING A 
          FEE TO ANY PERSON, REGARDLESS OF RESIDENCY FOR THE EXPENSE OF AN 
          EMERGENCY RESPONSE?



                                       PURPOSE

          The purpose of this bill is to prohibit cities and counties from 
          charging non-residents for the cost of an emergency response 
          unless otherwise authorized by law.
          
           Existing law  provides that emergency response s may be recovered 
          from the driver of a motor vehicle, boat or plane whose 
          negligent operation of the vehicle resulting in the emergency 
          response was a result of being under the influence of alcohol or 
          drugs.  (Government Code �� 53150-53156.)

           Existing law  provides that any person who intentionally enters 
          into an area that is closed or has been closed to the public by 
          a competent authority for any reason or who drives a vehicle on 
          a public street or highway that is temporarily covered by a rise 
          in water is liable for the cost of emergency response to search 
          for, rescue that person, and remove any vehicle.  (Government 
          Code � 53159.)

           Existing law  provides that any person who negligently or in 
          violation of the law sets a fire or allows a fire to be set, or 
          allows a fire kindled or attended by him or her to escape onto 
          any public or private property, is liable for the fire 
          suppression costs incurred in fighting the fire and for the cost 
          of providing rescue or emergency medical services, and those 
          costs shall be a charge against that person.  The charge shall 
          constitute a debt of that person, and is collectible by the 




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          person, or by the federal, state, county, public, or private 
          agency, incurring those costs in the same manner as in the case 
          of an obligation under a contract, expressed or implied.  
          (Health and Safety Code � 13009.)

           Existing law  provides that the county board of supervisors may 
          authorize the sheriff to search and rescue persons who are lost 
          or are in danger of their lives within or in the immediate 
          vicinity of the county, and the county or city and county of 
          residence of a person searched for or rescued by the sheriff 
          shall pay the county or city and county conducting such search 
          or rescue all of the reasonable expenses exceeding $100.  
          (Government Code �� 26614; 26614.5.)

           Existing law  provides that person is liable for the reasonable 
          costs of any contents of a vehicle a driver willingly or 
          negligently permits to be deposited upon a street or highway.  
          (Vehicle Code ��17300 et seq.)

           This bill  provides that a city, including a charter city, 
          county, district, municipal corporation or public authority 
          shall not, except as otherwise authorized by law, charge a fee 
          to any person, regardless of residency, for the expense of an 
          emergency response.

           This bill  provides that an emergency response includes, but is 
          not limited to, fire, police or medical response.

           This bill  provides that it shall not apply to a special district 
          unless that special district receives revenue from transaction 
          and use taxes in accordance with specified law.

           This bill  contains legislative intent language declaring that 
          the availability and use of emergency response resources 
          throughout the state is an issue of statewide concern and not a 
          municipal affair.

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          




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          For the last several years, severe overcrowding in California's 
          prisons has been the focus of evolving and expensive litigation. 
           As these cases have progressed, prison conditions have 
          continued to be assailed, and the scrutiny of the federal courts 
          over California's prisons has intensified.  

          On June 30, 2005, in a class action lawsuit filed four years 
          earlier, the United States District Court for the Northern 
          District of California established a Receivership to take 
          control of the delivery of medical services to all California 
          state prisoners confined by the California Department of 
          Corrections and Rehabilitation ("CDCR").  In December of 2006, 
          plaintiffs in two federal lawsuits against CDCR sought a 
          court-ordered limit on the prison population pursuant to the 
          federal Prison Litigation Reform Act.  On January 12, 2010, a 
          three-judge federal panel issued an order requiring California 
          to reduce its inmate population to 137.5 percent of design 
          capacity -- a reduction at that time of roughly 40,000 inmates 
          -- within two years.  The court stayed implementation of its 
          ruling pending the state's appeal to the U.S. Supreme Court.  

          On Monday, June 14, 2010, the U.S. Supreme Court agreed to hear 
          the state's appeal of this order and, on Tuesday, November 30, 
          2010, the Court heard oral arguments.  A decision is expected as 
          early as this spring.  

          In response to the unresolved prison capacity crisis, in early 
          2007 the Senate Committee on Public Safety began holding 
          legislative proposals which could further exacerbate prison 
          overcrowding through new or expanded felony prosecutions.     

           This bill  does not appear to aggravate the prison overcrowding 
          crisis described above.


                                      COMMENTS

          1.     Need for This Bill  





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          According to the author:

               Numerous local entities throughout the state have 
               enacted some form of fee or tax for costs related to 
               dispatching an emergency responder.  While some 
               entities charge anyone at fault, others only impose 
               these fees/taxes on non-residents.  

               Local entities assert these fees/taxes are simply 
               reimbursement for services rendered.  They also assert 
               non-residents are benefiting from a community in which 
               they are not a member.  However, residents and 
               non-residents all contribute to a community; both 
               generate revenue for the local government entities and 
               the local businesses.  

               Public safety is a basic function of government.  We 
               pay taxes for these basic services.  To charge an 
               individual for an accident is nothing more than a 
               double tax.
                
          2.     Ban Charging for Emergency Response Cost  

          Existing law allows for the recovery of emergency costs when an 
          intentionally set fire gets out of hand, or a drunken driver 
          causes an accident, or a person intentionally goes out of bounds 
          in a wilderness area, or intentionally drives onto a flooded 
          street.

          This bill would prohibit a city, including a charter city, 
          county district, municipal corporation or public authority from 
          charging an emergency response fee to any person regardless of 
          residency for the expense of an emergency response.  The 
          specified fees allowed under existing law would still be 
          permitted.

          This bill does not apply to a special district that is only 
          funded through property taxes and receives no sales taxes.





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          3.     Arguments in Support  

          The author and supporters argue that public safety is a basic 
          function of government, and it is paid for through sales and use 
          taxes or sometimes by property taxes.  Charging for emergency 
          response to accidents is an additional tax.  Since much money 
          for emergency services comes at least in part through sales 
          taxes, it is not paid for just by residents of the city or 
          county, but also by those who work or do other business there.  
          The author points to the recent repeal of such a tax by the City 
          of Roseville and non-implementation of one in Sacramento as an 
          example of why these fees don't make economic sense for 
          municipalities.

               On February 16, 2011, the City of Roseville repealed 
               their emergency response fee.  They adopted their 
               ordinance in 2009 and expected to collect $100,000 a 
               year from the fee/tax.  The city collected only 
               $40,000 in the first 18 months.

               On February 25, 2011, Sacramento's emergency response 
               fee/tax takes effect.  Sacramento will charge 
               non-residents for emergency response services.  
               Without ever being implemented, the Sacramento City 
               Council reversed its position and repealed the new 
               emergency response fee/tax on March 29, 2011.

          Unlike the existing fees for accidents where the person at fault 
          was DUI, or for rescues when a person intentionally goes into a 
          restricted area, or for clean-up of debris on a freeway, all 
          emergency response calls don't necessarily involve any 
          intentional conduct.  Accidents can happen because of weather, 
          road conditions, vehicle malfunctions, as well as simple 
          negligence.   The author and supporters do not believe it is 
          appropriate to charge emergency response fees in these 
          situations.







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          The bill specifically exempts special districts that only get 
          fees through property taxes because the author believes that in 
          those situations it is not a double tax to tax non-residents 
          because non-residents would not be paying property taxes, as 
          they may pay sales and similar taxes.

          4.   Arguments in Opposition  

          Opponents disagree with the legislative intent in this bill and 
          believe that the decision to charge the fees prohibited in this 
          bill is a local issue that should not be decided on a statewide 
          basis.  Specifically, the Fire Department of the City of Clovis 
          and other cities state:

               We need the ability of our local governments to run 
               our communities as our elected officials deem correct, 
               not have the State dictate our local fiscal needs.  If 
               the State mandates that local taxpayers now pick up 
               the bill for some of these services, it may 
               drastically impact our ability to continue to provide 
               the quality of services we have provided in the past.

          The League of California Cities also believes that this is not 
          of statewide concern and furthermore argues:

               The restrictions are cause for concern on several 
               levels.  First, populations are not static-they move 
               between jurisdictions for work, shopping, or leisure 
               and can place high demand in specific areas at peak 
               times.  It is unreasonable to assume a single 
               jurisdiction should bear the burden of emergency 
               response duties without collecting reimbursement from 
               these non-residents who do not contribute to local 
               property tax or public safety assessments that fund 
               city services.

               Second, SB 49 could set a precedent with negative 
               consequences for other public agencies including the 
               state.  It is not uncommon for public agencies to 




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               charge different fees based on residency, such as 
               tuition for state universities or colleges. This bill 
               would stifle city councils including charter city 
               councils, in their efforts to make appropriate funding 
               decisions for their city and potentially spread 
               similar limitations on all public agencies.

           Cathedral City states that this bill:

               �I]s cause for concern when looking at statewide 
               emergency response capabilities. The state's mutual 
               aid network relies heavily on the participation of 
               local agencies.  But cities like ours would be faced 
               with a difficult choice of sending personnel and 
               equipment to our neighbors, or across the state, in 
               response to catastrophic fires, floods or man-made 
               disasters, if it meant putting our own residents' 
               safety at risk.

          SHOULD THE LAW PROHIBIT A CITY, COUNTY, ET CETERA, FROM CHARGING 
          A FEE TO ANY PERSON, REGARDLESS OF RESIDENCY FOR THE EXPENSE OF 
          AN EMERGENCY RESPONSE?

          IS THIS AN ISSUE OF LOCAL OR STATEWIDE CONCERN?


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