TO: | Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB12 by Carona (Relating to disaster preparedness and emergency management; providing a penalty. ), Committee Report 1st House, Substituted |
There are provisions of the bill that are anticipated to have no significant impact to the State or that are assumed could be reasonably be absorbed with existing resources. The fiscal impact of other provisions of the bill cannot be determined due to the unavailability of reliable data or information.
The bill would amend the Education, Government, Health and Safety, Transportation, and Utilities Codes relating to disaster preparedness and emergency management.
Three sections of the bill would address the disaster contingency fund. All three provisions (Section 1.08, 1.12, and 1.15) related to the disaster contingency fund could have a significant fiscal impact to the state; however, due to the unknown size, duration, and location of any particular disaster or the scope of the state's recovery efforts, the fiscal impact can not be determined. Additionally, the Comptroller reports that the Disaster Contingency Fund (0453) currently has no available balance and no existing funding mechanism that would appropriate funds to the account in the future.
Section 1.08 of the bill states the Governor’s Division of Emergency Management (GDEM) may employ or contract with temporary personnel from division funds, federal funds, or funds from the disaster contingency fund. The bill also states GDEM may enroll, organize, train and equip a cadre of disaster reservists to temporarily augment its permanent staff. GDEM may also activate and pay enrolled disaster reservists to support recovery operations in the aftermath of a disaster or major emergency. Current law allows GDEM to contract for these services from funds appropriated to the division, from federal funds, or from the disaster contingency fund. Section 1.12 of the bill states a public or not-for-profit hospital may request funding from the disaster contingency fund or through a mutual aid agreement with a political subdivision for deployment of hospital services. The bill states that if funds are not available for the required insurance, an agency may request funding from the disaster contingency fund. Section 1.15 of the bill allows an agency to request funding from the Disaster Contingency Fund for the purpose of purchasing insurance in order to qualify for federal disaster assistance funds. Section 5154 of the federal Stafford Act requires that insurance purchased in order to qualify for federal disaster assistance must be maintained for the life of the structure to protect against future loss to such property. This could have a significant fiscal impact to the state; however, due to the unknown cost of such policies, the number of agencies seeking assistance, and the life of such structures, the cost can not be determined.
Section 4.01 of the bill states that the Adjutant General’s Department (AGD) shall pay members of the Texas State Guard who are called to state active duty and if the length of stay exceeds 45 consecutive days, the Texas State Guard may be paid up to 140 percent of the amount authorized in the General Appropriations Act. The probable impact of this provision cannot be determined due to the unavailability of information related to the number of times state active Texas State Guard members duty would exceed 45 consecutive days, therefore the amount of pay to Texas State Guard members on state active duty cannot be determined. According to the AGD, members who are on state active duty are not treated as classified state employees; they are treated as employees, only for the purpose of reporting to the Internal Revenue Service. In order to estimate the increase of 140 percent authorized in the General Appropriations Act if the state active duty exceeds 45 days, the estimate will be based on the current rate of pay of $121 per day. This would be an increase of $48 per day. During Hurricane Katrina, over 900 Texas State Guard members were called to state active duty and 800 members were called to active duty during Hurricane Ike. The estimate will assume that a mission is for 105 days and that there will be a gradual reduction in members called to state active duty as the mission comes to an end. The estimate will assume 600 members for an additional 15 days over 45 days (600 X 15 = 9,000 X $48/day = $432,000) plus 400 members for another 30 days over 60 days (400 X 30 = 12,000 X $48/day = 576,000) plus 200 members for another 15 days over 90 days (200 X 15 = 3,000 X $48/day = $144,000) for a grand total of exceeding 45 days by 60 days of $1,152,000. The estimate also assumes that this will be 100 percent general revenue. If the mission receives federal support it could be reimbursed at 75 percent to 100 percent. Therefore, if AGC received federal support, the remaining state impact would be $288,000 per year.
The bill adds extreme heat to the definition of disaster. The bill requires the Texas Engineering Extension Service of the
The bill would repeal Government Code, Section 418.072 regarding the Disaster Emergency Funding Board and Government Code, Chapter 2302 regarding the State Cogeneration Council.
There are provisions of the bill that are anticipated to have no significant fiscal impact to units of local government or that are assumed could be reasonably absorbed with existing resources. The fiscal impact of other provisions of the bill cannot be determined due the unavailability of reliable data or information.
Source Agencies: | 301 Office of the Governor, 401 Adjutant General's Department, 473 Public Utility Commission of Texas, 529 Health and Human Services Commission, 537 State Health Services, Department of, 551 Department of Agriculture, 716 Texas Engineering Extension Service
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LBB Staff: | JOB, KJG, GG, LG, SK, SDO
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