This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

 THIRD READING  

Bill No: AB 72

Author: Committee on Budget

Amended: 1/30/19 in Assembly

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 15-0, 2/7/19

AYES: Mitchell, Nielsen, Beall, Durazo, Hurtado, Leyva, McGuire, Monning, Moorlach, Pan, Roth, Skinner, Stern, Umberg, Wieckowski

NO VOTE RECORDED: Jones, Morrell, Stone

ASSEMBLY FLOOR: 74-0, 2/4/19 - See last page for vote

SUBJECT: Budget Act of 2018

SOURCE: Author

DIGEST:

This bill amends the 2018-19 Budget Act to provide resources relating to emergency and disaster events.

ANALYSIS: This bill, specifically:

1. Appropriates $50 million General Fund for an emergency preparedness campaign as follows: a) $30 million for a statewide campaign through California Volunteers within the Office of Planning and Research, and b) $20 million for local grants through the Office of Emergency Services.
2. Loans $10 million from the General Fund to the State Emergency Telephone Number Account to enable the state to begin making immediate progress in upgrading the microwave network as part of Next Gen 911 system activities.
3. Appropriates $10 million General Fund to continue emergency water funding for emergency drinking water and technical assistance.
4. Adds $10 million General Fund to local water districts for technical assistance related to compliance with current drinking water standards.
5. Clarifies that funding in the 2018 Budget to improve the quality of drinking water in public schools may be awarded as grants to public agencies, public water systems, or non-profit organizations and reappropriates the balance of funds provided in 2016 for the same purpose, clarifying that these funds are to be made available for contracts, as specified.
6. Provides $15 million General Fund to the Department of Finance to retain legal counsel and audit services for any public utility liability issues.
7. Appropriates $31.3 million General Fund to backfill property tax losses incurred as a result of wildfires, including: a) estimated current year losses for Butte, Lake, Los Angeles, Orange, Riverside, Shasta and Siskiyou Counties, and b) estimated losses in 2019-20 and 2020-21 for the Counties of Butte and Lake.
8. Creates the Rapid Response Reserve Fund to address costs arising from immigration and human trafficking emergency situations and deposits $5 million into this new account. This bill gives the Department of Finance authority to move this funding to any existing general fund budget item and allows any allocation to a non-profit entity using these funds to be exempt from certain contracting requirements.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, this bill has a total cost of $131.3 million General Fund, and of this amount $116.3 million was assumed in the Governor’s proposed 2019-20 Budget package.

SUPPORT: (Verified 2/7/19)

None received

OPPOSITION: (Verified 2/7/19)

None received

ASSEMBLY FLOOR: 74-0, 2/4/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Carrillo, Chau, Chen, Chiu, Choi, Chu, Cooper, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Calderon, Cervantes, Cooley, Cunningham, Jones-Sawyer, Rodriguez

Prepared by: Joe Stephenshaw / B. & F.R. / 916-651-4103

2/8/19 12:16:33

**** END ****

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 72 Hearing Date: February 7, 2019

Subject: Budget Act of 2018

Summary:

Amends the 2018-19 budget act to provide resources relating to emergency and disaster events.

Proposed Law:

Specifically, this bill:

1. Appropriates $50 million General Fund for an emergency preparedness campaign, as follows: a) $30 million for a statewide campaign through California Volunteers within the Office of Planning and Research, and b) $20 million for local grants for local grants through the Office of Emergency Services.
2. Loans $10 million from the General Fund to the State Emergency Telephone Number Account to enable the State to begin making immediate progress in upgrading the microwave network as part of Next Gen 911 system activities.
3. Appropriates $10 million General Fund to continue emergency water funding for emergency drinking water and technical assistance.
4. Adds $10 million General Fund to local water districts for technical assistance related to compliance with current drinking water standards.
5. Clarifies that funding in the 2018 budget to improve the quality of drinking water in public schools may be awarded as grants to public agencies, public water systems, or non-profit organizations and reappropriates the balance of funds provided in 2016 for the same purposes, clarifying that these funds are to be made available for contracts, as specified.
6. Provides $15 million General Fund to the Department of Finance to retain legal counsel and audit services for any public utility liability issue.
7. Appropriates $31.3 million General Fund to backfill property tax losses incurred as a result of wildfires, including: a) estimated budget year losses for Butte, Lake, Los Angeles, Orange, Riverside, Shasta and Siskiyou counties, and 2) estimated losses in 2019-20 and 2020-21 for the counties of Butte and Lake.
8. Creates the Rapid Response Reserve Fund to address costs arising from immigration and human trafficking emergency situations and deposits $5 million into this new account. This bill gives the Department of Finance authority to move this funding to any existing general fund budget item and allows any allocation to a non-profit entity using these funds to be exempt from certain contracting requirements.

Fiscal Effect:

This bill has a total cost of $131.3 million General Fund, and of this amount $116.3 million was assumed in the Governor’s proposed 2019-20 budget package.

Support:

None on file.

Opposed:

None on file.

Comments:

This bill amends the 2018 budget to take early action on items related to emergency and disaster expenditures. This bill, as well as its corresponding trailer bill AB 73, are intended to take immediate action to provide support and relief to communities across California that have or are continuing to experience unexpected costs due to emergency or disaster situations.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 72

Author:(Committee on Budget)

As Amended Ver:January 29, 2019

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

Amends the 2018-19 budget act to provide resources relating to emergency and disaster events.

Major Provisions

1. Appropriates $31.3 million to backfill property tax losses incurred as a result of wildfires. Of this amount, $11.5 million is for losses related to fires in Butte, Lake, Los Angeles, Orange, Riverside, Shasta and Siskiyou Counties. The remaining $19.7 million provides Butte and Lake Counties a continued backfill for 2019-20, 2020-21, and 2021-22.
2. Provides $50 million for emergency preparedness, with $30 million for a statewide campaign and $20 million for local grants.
3. Creates the Rapid Response Reserve Fund to address costs arising from immigration and human trafficking emergency situations and deposits $5 million into this new account. This bill gives Department of Finance authority to move this funding to any existing general fund budget item and allows any allocation to a non-profit entity using these funds to be exempt from certain contracting requirements.
4. Appropriates $10 million to continue funding for emergency water funding for emergency drinking water and technical assistance.
5. Adds $10 million for technical assistance to local water districts for technical assistance related to compliance with current drinking water standards.
6. Provides $15 million to the Department of Finance to retain legal counsel and audit services for any public utility liability issue.
7. Loans $10 million to the State Emergency Telephone Number Account to allow the State to begin work on Next Gen 911 system activities.
8. Clarifies that funding reappropriated in the 2018 budget to improve the quality of drinking water in public schools to be made available through a contract by county offices of education to a non-profit entity.

COMMENTS:

This bill amends the 2018 budget to take early action on items related to emergency and disaster expenditures. This bill, as well as its corresponding trailer bill AB 73 (Budget Committee) of the current legislative session, are intended to take immediate action to provide support and relief to communities across California that have or are continuing to experience unexpected costs due to emergency or disaster situations that have occurred during the 2018-19 fiscal year.

The Department of Finance comments that it anticipates requesting additional property tax backfill costs from 2018 wildfires, which will be incorporated later in the 2019 budget process as loss information from recent fires become available.

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

This bill has a total cost of $131.3 million, of this amount $116.3 million was assumed in the Governor’s proposed 2019-20 budget package.

VOTES:

ASM BUDGET: 28-0-4

YES: Ting, Obernolte, Arambula, Bloom, Chiu, Cooper, Fong, Frazier, Gallagher, Cristina Garcia, Jones-Sawyer, Lackey, Mathis, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Ramos, Reyes, Luz Rivas, Blanca Rubio, Mark Stone, Wicks, Wood

ABS, ABST OR NV: Brough, Limón, Maienschein, Weber

UPDATED:

VERSION: January 29, 2019

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000016

Date of Hearing: January 29, 2019

ASSEMBLY COMMITTEE ON BUDGET

Philip Y. Ting, Chair

ABPCA Bill Id:AB 72 (

Author:Committee on Budget) – As Amended Ver:January 29, 2019

SUBJECT: Budget Act of 2018

SUMMARY: Amends the 2018-19 budget act to provide resources relating to emergency and disaster events. Specifically, this bill:

1. Appropriates $31.3 million to backfill property tax losses incurred as a result of wildfires in Butte and Lake Counties. This funding represents backfill funding for the next three fiscal years.
   
2. Provides $50 million for emergency preparedness, with $30 million for a statewide campaign and $20 million for local grants.
   
3. Creates the Rapid Response Reserve Fund to address costs arising from immigration and human trafficking emergency situations and deposits $5 million into this new account. This bill gives Department of Finance authority to move this funding to any existing general fund budget item and allows any allocation to a non-profit entity using these funds to be exempt from certain contracting requirements.
   
4. Appropriates $10 million to continue funding for emergency water funding for emergency drinking water and technical assistance.
   
5. Adds $10 million for technical assistance to local water districts for technical assistance related to compliance with current drinking water standards.
6. Provides $15 million to the Department of Finance to retain legal counsel and audit services for any public utility liability issue.
   
7. Loans $10 million to the State Emergency Telephone Number Account to allow the State to begin work on Next Gen 911 system activities.
   
8. Clarifies that funding reappropriated in the 2018 budget to improve the quality of drinking water in public schools to be made available through a contract by county offices of education to a non-profit entity.

FISCAL EFFECT: This bill has a total cost of $131.3 million, of this amount $116.3 million was assumed in the Governor’s proposed 2019-20 budget package.

COMMENTS: This bill amends the 2018 budget to take early action on items related to emergency and disaster expenditures. This bill, as well as its corresponding trailer bill AB 73, are intended to take immediate action to provide support and relief to communities across California that have or are continuing to experience unexpected costs due to emergency or disaster situations that have occurred during the 2018-19 fiscal year.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Christian Griffith / BUDGET / (916) 319-2099