BILL NUMBER: AJR 1AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 23, 2009 INTRODUCED BY Assembly Member Blakeslee JANUARY 22, 2009 Relative to natural catastrophes. LEGISLATIVE COUNSEL'S DIGEST AJR 1, as amended, Blakeslee. Natural catastrophes: planning. Earthquake damage: mitigation planning. This measure would respectfully memorialize state the Congress and the President of the United States to enact legislation creating a comprehensive national catastrophe plan that includes a federal insurance backstop to improve the availability of reasonably priced property and casualty insurance policies covering losses related to natural catastrophes Legislature's support of the expedient development of mitigation efforts across the state by federal and local governmental entities, in cooperation with private enterprises and individuals, to protect against earthquake damage . Fiscal committee: no. WHEREAS, The United States Geological Survey has predicted an earthquake with a magnitude 6.7 or greater in California within the next 30 years; and WHEREAS, The Hayward Fault near San Francisco is predicted to certainly rupture again with greater force than the 1989 Loma Prieta earthquake; and WHEREAS, On October 15, 2009, the Great California ShakeOut organized a drill where millions of people in homes, schools, businesses, government offices, and public places all over southern California practiced what to do during an earthquake, and called the event the Great California ShakeOut Drill; and WHEREAS, Results of the Great California ShakeOut Drill showed that a large earthquake in southern California would cost approximately $213 billion, including business interruption, and could result in the death of approximately 1,800 people; and WHEREAS, The last major earthquake on the Hayward Fault was 140 years ago, and the last five earthquakes on this fault have come, on average, 140 years apart; and WHEREAS, Recent reports have confirmed that mitigation techniques can greatly improve the structural stability of a building and dramatically improve the safety of its occupants; and WHEREAS, Mitigation against earthquake damage is dramatically more cost-effective than repairing buildings after a great earthquake, and economic loss from halted business and interrupted services can also be avoided by retrofitting buildings before an earthquake strikes; and WHEREAS, The astronomical costs of repair that occur after a devastating national disaster often fall on the government; now, therefore, be it RESOLVED BY THE ASSEMBLY AND THE SENATE OF THE STATE OF CALIFORNIA, JOINTLY, That the Legislature of California strongly supports the expedient development of mitigation efforts across California by federal and local governmental entities, in cooperation with private enterprises and individuals, to protect against earthquake damage that could result in a loss of life and a dramatic lowering of California's economic status and vibrancy; and be it further RESOLVED, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution. WHEREAS, The United States Geological Survey has predicted a magnitude 6.7 or greater earthquake in California within the next 30 years; and WHEREAS, It is predicted with certainty that the Hayward Fault, near San Francisco, will rupture again with greater force than the 1989 Loma Prieta earthquake; and WHEREAS, It is an appropriate role for the federal government to make it possible for more Americans to take responsibility for protecting their families' property and assets from natural disasters; and WHEREAS, The economic consequences of a state-specific natural catastrophe, including taxpayer funded relief, recovery, and rebuilding programs and higher insurance costs, extend to the citizens of all states; and WHEREAS, Few California homeowners buy earthquake insurance because the premium and deductible are prohibitively expensive; and WHEREAS, A federal backstop would help qualified states purchase federal reinsurance at significantly lower cost; and WHEREAS, It is an appropriate role for the federal government to save lives and protect property by strengthening natural catastrophe prevention, mitigation, and response programs; now, therefore, be it Resolved by the Assembly and the Senate of the State of California, jointly, That the Legislature respectfully memorializes the Congress and the President of the United States to enact legislation creating a comprehensive, integrated national catastrophe plan that includes the participation of states to better prepare and protect American homeowners from inevitable, large-scale natural catastrophes; and be it further Resolved, That the legislation should include a federal backstop supported by actuarially sound premiums to improve the availability of reasonably priced property and casualty insurance from private markets to homeowners throughout the nation; and be it further Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, to the Majority Leader of the Senate, and to each Senator and Representative from California in the Congress of the United States.