03/24/2010 09:00 AM House FINANCE

HOUSE BILL NO. 292                                                                                                            
                                                                                                                                
     "An Act relating to grants to victims of a disaster in                                                                     
     this state; and providing for an effective date."                                                                          
                                                                                                                                
MCHUGH PIERRE,  DEPUTY COMMISSIONER, DEPARTMENT  OF MILITARY                                                                    
AND  VETERANS AFFAIRS  (DMVA) presented  an overview  of the                                                                    
bill. He spoke of the disaster  last year in Eagle and other                                                                    
communities  along  the  Yukon River  noting  the  disparity                                                                    
between   the   individual    assistance   grants   programs                                                                    
established in  1977 compared to  the federal  grant amount.                                                                    
When a disaster  is declared by the President  of the United                                                                    
States, FEMA issues individual assistance  grants based on a                                                                    
number suggested  by the Consumer  Price Index  (CPI), which                                                                    
last  year was  $30,300 per  affected household.  Mr. Pierre                                                                    
noted that  Alaska grants  have not  changed from  $5000 and                                                                    
this  bill   would  make  the  amount   for  state  declared                                                                    
disasters half of the federal  amount. The maximum this year                                                                    
would be $14,950 per household affected.                                                                                        
                                                                                                                                
MICHAEL  O'HARE,  DEPUTY   DIRECTOR,  DIVISION  OF  HOMELAND                                                                    
SECURITY  AND  EMERGENCY  MANAGEMENT,  DMVA,  stressed  that                                                                    
there is  a very  rigorous process  for disaster  victims to                                                                    
prove their loss. Mr. O'Hare noted  that his staff sets up a                                                                    
local  disaster assistance  center in  affected communities.                                                                    
There  is an  involved  application  process with  extensive                                                                    
verification that the loss is  real and sustained during the                                                                    
declared disaster incident.                                                                                                     
                                                                                                                                
9:33:31 AM                                                                                                                    
                                                                                                                                
Representative Gara  asked if the  Yukon River  flooding was                                                                    
the only disaster in past  year. Mr. O'Hare noted a declared                                                                    
federal    disaster    in    Kodiak    affecting    critical                                                                    
infrastructure.  Representative  Gara  asked  if  this  bill                                                                    
would cover  federal or state disasters.  Mr. O'Hare replied                                                                    
that it  is specific to  state declared disasters.  He noted                                                                    
that  in  the  2009  spring  flood,  most  communities  were                                                                    
covered under the  federal program, but there  were about 30                                                                    
families that  did not qualify.  All that could  be provided                                                                    
by  the  state  was  $5000.  He reiterated  that  it  is  an                                                                    
involved application process to collect funds.                                                                                  
                                                                                                                                
Representative  Gara asked  for  an example  of someone  who                                                                    
could  not be  helped enough.  Mr. O'Hare  noted that  there                                                                    
have been  individuals affected who  did not fall  under the                                                                    
federal  declaration.  Representative Gara  maintained  that                                                                    
there may  still be  people suffering  from the  2009 flood.                                                                    
Mr.  O'Hare  replied that  those  who  did not  qualify  are                                                                    
resorting  to other  methods. Representative  Gara asked  if                                                                    
there would  be any  objection to going  back to  help those                                                                    
from 2009 under  this bill. Mr. O'Hare declared  the bill is                                                                    
not  retroactive. Mr.  Butcher added  that great  steps have                                                                    
been taken  to help those  in need to receive  volunteer and                                                                    
donations  from  the  community. Representative  Gara  noted                                                                    
there  could still  be  people  in need  of  help from  that                                                                    
flood.  Mr.  Pierre responded  that  was  correct, but  most                                                                    
needs have been met. The goal  is get the individual back on                                                                    
their feet,  but not  get them  to the  exact same  point as                                                                    
before the  disaster. He clarified  that there is  no double                                                                    
dipping   into   both    state   and   federal   assistance.                                                                    
Representative Gara asked  for those that were  unable to be                                                                    
helped would  there be  any benefit  or substantial  cost to                                                                    
making this bill retroactive to January 1, 2009.                                                                                
                                                                                                                                
9:38:57 AM                                                                                                                    
                                                                                                                                
Mr. O'Hare  replied that those  that only qualified  for the                                                                    
small amount were  helped by volunteer and  local groups. He                                                                    
felt  comfortable that  they  have been  helped  as best  as                                                                    
possible. Those  individuals have  not been made  whole, but                                                                    
they are recovering and progressing.                                                                                            
                                                                                                                                
Representative Salmon  inquired if  the state pays  any part                                                                    
when  a federal  disaster  is declared.  Mr. O'Hare  replied                                                                    
that federal regulations cite that  the state is responsible                                                                    
for paying 25 percent  of the recovery costs. Representative                                                                    
Salmon asked if  that was 25 percent of  $30,000. Mr. O'Hare                                                                    
replied that  would be  correct. He added  that it  does not                                                                    
just  cover the  public  assistance grants.  If  there is  a                                                                    
federally  declared  disaster   the  public  and  individual                                                                    
assistance grant covers a much larger area.                                                                                     
                                                                                                                                
9:41:07 AM                                                                                                                    
                                                                                                                                
Representative Salmon inquired about  the bigger costs, such                                                                    
as  power  and roads,  and  wondered  how those  costs  were                                                                    
determined.  Mr.   O'Hare  replied   that  they   worked  in                                                                    
partnership  with  FEMA  to  arrive  at  the  best  economic                                                                    
program  to restore  the critical  infrastructure. He  noted                                                                    
that in Eagle  there was an effort to get  people out of the                                                                    
way of  future flooding  paths. They  have also  worked with                                                                    
the local power companies to  not only restore services, but                                                                    
prevent flood damage from happening again.                                                                                      
                                                                                                                                
9:42:18 AM                                                                                                                    
                                                                                                                                
Representative  Joule  remarked  that this  bill  helps  the                                                                    
department  to  react to  a  disaster  a little  better.  He                                                                    
wondered if there  are resources to help  better planning so                                                                    
the need to react is not  as great. Mr. O'Hare reported that                                                                    
the  federal  government  does  provide  the  division  with                                                                    
planning specific  money from Homeland Security  and FEMA to                                                                    
go out into the communities  to help them be better prepared                                                                    
to  respond.   There  have   been  many   planning  regional                                                                    
workshops implemented to make them better prepared.                                                                             
                                                                                                                                
Mr. Pierre  used the  2009 spring floods  as an  example and                                                                    
noted that staff  was sent to villages before  the flood hit                                                                    
to see  what the effect might  be and help the  community to                                                                    
be prepared.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
Co-Chair Stoltze referred to the new revised fiscal note.                                                                       
                                                                                                                                
9:45:00 AM                                                                                                                    
                                                                                                                                
Mr. Pierre explained the fiscal  note changes. He noted that                                                                    
the  money that  goes to  disaster grants  comes out  of the                                                                    
disaster  relief fund.  The previous  fiscal note  showed an                                                                    
increase of  $900,000 total that  would be spent as  a worst                                                                    
case  scenario. He  noted that  realistically only  about 30                                                                    
percent of the  applicants get the maximum mount  so it will                                                                    
never  be   the  $900,000  increase   that  was   shown.  He                                                                    
emphasized that no new funds were  needed at this time to be                                                                    
appropriated for the bill from this committee.                                                                                  
                                                                                                                                
9:47:23 AM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas  MOVED to report  HB 292 out  of Committee                                                                    
with  individual recommendations  and  the accompanying  new                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
HB  292 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation and with a new zero fiscal note.