BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 548
                                                                  Page  1

          Date of Hearing:   July 11, 2007

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Alberto Torrico, Chairman
                  SB 548 (Hollingsworth) - As Amended:  July 5, 2007

           SENATE VOTE  :   40-0
           
          SUBJECT  :   California Emergency Services Act

           SUMMARY  :   Continues for a specified period of time the Disaster  
          Response-Emergency Operations Account in the Special Fund for  
          Economic Uncertainties.  Specifically,  this bill  

          1)Extends the sunset date of the Disaster Response- Emergency  
            Operations Account in the Special Fund for Economic  
            Uncertainties from July 1, 2007, to January 1, 2009. 

          2)Contains an urgency.

          EXISTING LAW  :
           
           1)Provides that the Director of the Office of Emergency Services  
            (OES) is responsible for          coordinating the emergency  
            activities of all state agencies in connection with a state  
            emergency.

          2)Provides within the Emergency Services Act (Act), establishes  
            the Disaster Response-Emergency Operations Account (DREOA) in  
            the Special Fund for Economic Uncertainties (SFEU).  Moneys in  
            the DREOA are continuously appropriated subject to specified  
            limitations for allocation by the Director of the Department  
            of Finance (DOF) to state agencies for disaster response  
            operation costs incurred as a result of a proclamation by the  
            Governor of a state of emergency.  Existing law repeals these  
            provisions on July 1, 2007.  
                     
          3)Defines a "state of emergency," for purposes of its  
            provisions, as the duly proclaimed existence of conditions of  
            disaster or of extreme peril to the safety of persons and  
            property within the state caused by specified conditions.

          4)Providers under current law, the Director of Finance may  
            allocate funds in the DREOA to reimburse state agencies for  
            disaster response operation costs incurred during a Governor  








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            declared state of emergency.  The allocations are to cover the  
            cost of activities that occur within 120 days after a  
            proclamation of emergency.   For disaster response operation  
            costs, which occur after 120 days, state agencies must seek  
            appropriations though the annual budget process.  

          5)Expresses the intent of the Legislature that the DREOA have an  
            unencumbered balance of $1 million at the beginning of each  
            fiscal year and if the DREOA requires additional moneys to      
                  meet claims against the account, the Director of Finance  
            may transfer moneys from the SFEU to the account in an amount  
            sufficient to pay the amount of claims that exceed the  
            unencumbered balance in the account.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :

          According to the OES, this bill is necessary because the DREOA  
          provides the Director of DOF authority to make certain disaster  
          response allocations.  The DREOA, which is established within  
          the Special Fund for Economic Uncertainties, has been utilized  
          to provide an immediate           funding source for  
          extraordinary emergency response costs expended by state (and at  
          one time local) agencies.  This funding source provides the  
          state an opportunity for a more expeditious response to and  
          recovery from disasters.  In addition, the DREOA provides  
          flexibility to the Governor as the DREOA could be and has been  
          used as an expedient alternative to the cumbersome budget  
          deficit process for necessary disaster related costs to state  
          agencies.    

          The authority of the DREOA expired on July 1, 2007.  This bill  
          extends the sunset clause to January 1, 2009.

           Prior legislation  :
                    
          SB 1102 (Hollingsworth) Chapter 561, Statutes of 2005.  Extended  
          the sunset date applicable to the DREOA within the Special Fund  
          for Economic Uncertainties from January 1, 2006 to July 1, 2007.

          SB 1102 (Budget Committee) Chapter 227, Statutes of 2004.  Among  
          other things, this measure continued until January 1, 2006 the  
          DREOA within the Special Fund for Economic Uncertainties and  
          allocated $1 million to the Account at the beginning of each  








                                                                  SB 548
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          fiscal year.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County and Municipal Employees
          Department of Finance
          Governor's Office of Emergency Services (source)
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Ryan Spencer / G. O. / (916) 319-2531