BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 1065 (Alquist) - Emergency preparedness: earthquakes and
fires: water supplies
Amended: As Introduced Policy Vote: GO 9-1
Urgency: No Mandate: No
Hearing Date: April 30, 2012 Consultant:
Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 1065 would require the Seismic Safety
Commission (commission) to formulate a task force on
postearthquake firefighting with regard to water supplies. This
bill would require the task force to recommend statewide
guidelines and an implementation plan on postearthquake
firefighting and water supplies and report by July 1, 2013.
This bill states the commission shall operate within its current
budget as it initiates the task force.
Fiscal Impact: Up to $100,000 from the General Fund for six
months to convene a task force and recommend statewide
guidelines and an implementation plan.
Likely minor General Fund and special fund costs for six
months for state agencies to participate in the task force.
Background: The Seismic Safety Commission was established in
1975 with General Fund support to provide policy guidance and
coordination for earthquake-related government programs. The
commission consists of 20 commissioners and is supported by
approximately seven staff with a budget of approximately $1.3
million. Beginning in 2001-02, the commission was funded
through a charge on the gross receipts of insurers of commercial
and residential properties. This charge expires on July 1,
2012.
As noted by the Legislative Analyst, the Governor's budget
proposes deleting the sunset provision in existing law to make
the charge on insurers permanent. However, Legislative Counsel
has informally advises that the Governor's proposal appears to
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be unconstitutional. Specifically, under Article XIII A,
Section 3, of the State Constitution (Proposition 26, 2010), the
extended charge on insurers to support the commission would be a
tax because the commission provides a broad public benefit
rather than a direct benefit to the insurers paying the charges.
Such a tax would not be permissible because Article XIII,
Section 28 (f), of the Constitution states that with limited
exceptions the state's insurance tax shall be in lieu of all
other state and local taxes on insurers.
Due to these legal concerns, the Legislative Analyst has
recommended that the Legislature reject the Governor's proposal.
The Legislature then would need to consider the future of the
commission, which would lack a funding source beginning July 1.
Given the commission's broad purpose, addressing seismic issues
on a statewide basis, identifying a new fee to fund the
commission seems unlikely, and the Constitution limits the
ability to provide other funding options. It is unclear at this
time whether other existing Insurance Fund fee sources could be
a viable funding source.
Accordingly, the state's General Fund may prove to be the most
viable source for continuing the funding of the commission.
Budget action on this issue is pending.
The California Emergency Services Act provides, among other
things, that public water systems with 10,000 or more service
connections shall review and revise their disaster preparedness
plans in conjunction with related agencies, including, but not
limited to, local fire departments and the California Emergency
Management Agency to ensure that the plans are sufficient to
address possible disaster scenarios. These plans should examine
and review pumping station and distribution facility operations
during an emergency, water pressure at both pumping stations and
hydrants, and whether there is sufficient water reserve levels
and alternative emergency power, including, but not limited to,
onsite backup generators and portable generators (Government
Code 8607.2).
Proposed Law: The commission would be required to initiate, with
the assistance and participation of other government agencies, a
joint fire-water agency task force composed of urban California
fire chiefs and managers of water purveyor departments to
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develop postearthquake firefighting water target goals. On or
before July 1, 2013, the task force shall recommend statewide
guidelines and an implementation plan for postearthquake
firefighting water supplies.
In implementing this section, the commission shall consult with
the following agencies:
(1) California Emergency Management Agency.
(2) Public Utilities Commission.
(3) Department of Forestry and Fire Protection.
(4) Department of Water Resources.
Staff Comments: The Pacific Earthquake Engineering Research
Center (PEER) is a multi-institutional research and education
center with headquarters at the University of California,
Berkeley. Investigators from over 20 universities, several
consulting companies, plus researchers at various state and
federal government agencies contribute to research programs
focused on performance-based earthquake engineering in
disciplines including structural and geotechnical engineering,
geology/seismology, lifelines, transportation, risk management,
and public policy.
The commission contracted with PEER to study fire following
earthquake readiness and in November 2011, PEER issued Water
Supply in Regards to Fire Following Earthquakes. One of the
report's recommendations was to require development of
postearthquake firefighting water target goals for urban fire
departments and water agencies.
In March 2012, the commission awarded a follow-up contract to
PEER. The purpose of this contract is to develop standardized
documents to facilitate planning between urban fire departments
and water suppliers and to assist, but not mandate local
government participation. Coordinated planning and preparedness
for fire following earthquake would be fostered via the
preparation of white papers on the issues, problems and possible
mitigation of fire following earthquake and the convening of
meetings of key urban fire departments and water suppliers.
Staff notes the Legislature adopts the Budget Act every year
based on workload assumptions and legislative priorities for
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spending. The Appropriations Committee cannot assume that
additional workload can be undertaken within existing resources
without displacing other activities the Legislature has
explicitly or implicitly recognized in adopting the annual
Budget Act. In addition, as most state agencies have
experienced budget reductions and staff furloughs in recent
years, it has become more difficult to undertake additional
responsibilities within existing resources. Thus, while this
bill directs the commission to establish a task force, the costs
of the task force are not absorbable. Any additional activities
required by legislation will likely result in the delay or
elimination of other duties within the commission.