Legislature(2009 - 2010)BARNES 124
02/02/2010 01:00 PM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB291 | |
| HB292 | |
| HB274 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 274 | TELECONFERENCED | |
| *+ | HB 291 | TELECONFERENCED | |
| *+ | HB 292 | TELECONFERENCED | |
HB 292-GRANTS TO DISASTER VICTIMS
1:54:31 PM
CHAIR GATTO announced that the next order of business would be
HOUSE BILL NO. 292, "An Act relating to grants to victims of a
disaster in this state; and providing for an effective date."
1:54:48 PM
McHUGH PIERRE, Deputy Commissioner, Department of Military &
Veterans' Affairs (DMVA), reminded the committee the state
suffered monumental disasters last year, two of which were
Presidential Disaster Declarations. The largest disaster, the
spring flood that spread from Eagle down to the Kuskokwim and
Yukon Rivers, focused attention on the state's Individual and
Family Grant (IFG) program, portions of which have not been
changed since 1977. For example, the Federal Emergency
Management Program (FEMA) was granting relief in the amount of
approximately $30,000 per family, but families eligible under
the state disaster declaration were receiving $5,000. He said,
"It was very troubling to witness people who were trying to
rebuild ... to see the disparity when someone lost their house
in one location of our state and another person ... [was]
eligible for different amounts of service." Mr. Pierre
expressed his hope that the proposed bill will change this
situation.
1:56:25 PM
MICHAEL O'HARE, Deputy Director, Division of Homeland
Security/Emergency Management (DHS&EM),Department of Military &
Veterans Affairs (DMVA), explained that the governor is limited
by statute to grant a maximum of $5,000 in individual assistance
to those affected in a state-declared disaster emergency.
Recent experience shows this amount is just not enough; in fact,
in current dollars $5,000 in 1977 values about $18,500. A
multi-agency task force, including DMVA, DHS&EM, the Department
of Health and Social Services (DHSS), the Department of Public
Safety (DPS), AHFC, and the U.S. Department of Agriculture Rural
Development, recommended the provisions in the proposed bill
such that in a state-declared disaster or emergency, the
governor may allow individual assistance grant funding up to
one-half of the federal amount. Mr. O'Hare further explained
that the federal amount fluctuates based on the consumer price
index (CPI). Therefore, the bill amends the $5,000 limit to a
more reasonable and current amount based on today's economy.
1:58:48 PM
CHAIR GATTO posed a scenario in which an insured homeowner
suffers a loss in a declared disaster zone.
MR. O'HARE responded that homeowners with insurance, or the
means by which to recover from the loss, are not eligible; in
fact, DHS&EM has staff to assess damages and the economic status
of victims. In further response to Chair Gatto, he said cases
can also be reviewed as to the insured's deductable.
2:00:18 PM
REPRESENTATIVE TAMMIE WILSON asked why the amount of $14,950 was
chosen for the eligibility amount.
MR. O'HARE indicated that an increase from $5,000 to half of the
FEMA Individual Assistance (IA) allotment "seemed appropriate."
He estimated that only 30 percent of those affected by a
disaster will qualify for 100 percent of the eligible expenses.
MR. PIERRE added that this recommendation came from the task
force because a state disaster is less in magnitude than a
federal disaster.
MR. O'HARE further noted that the amount fluctuates with the
CPI. In response to Chair Gatto, he clarified that the maximum
an individual or household can qualify for is the federal
amount, not both the state and the federal amount. Mr. O'Hare
further described the qualification process.
2:03:00 PM
CHAIR GATTO asked whether the grant was a reimbursable amount or
"a check upfront to help you get started."
MR. O'HARE provided the options for payments, verification of
expenses, and the methods for checking for non-compliance.
2:03:45 PM
REPRESENTATIVE BUCH assumed there is a pool of money.
MR. O'HARE said yes, the Disaster Relief Fund is funded through
the general fund. In further response to Representative Buch,
he relayed the fund consists of approximately $100,000, which is
all that is left after the spring disaster cost $10 million.
MR. PIERRE added that his department is bound by statute and
cannot spend more than $1 million without legislative
authorization. However, the legislature has forward-funded the
disaster fund in the amount of $5 million per year. If
necessary during the interim or session, the department can
request the legislative leadership to approve additional or
future funds.
MR. O'HARE, in response to Chair Gatto, explained that in the
interim the leadership of both bodies of the legislature issues
the authorization; during session, the department requests a
supplemental authorization.
2:05:49 PM
REPRESENTATIVE KAWASAKI referred to the fiscal note and pointed
out that the fiscal note only includes monies that would be
designated to grantees; therefore, there is zero overhead for
the agency.
MR. O'HARE agreed. Although the fiscal note is speculative, the
sponsors have based its numbers on an average over the past five
years. In further response to Representative Kawasaki, he said
the bill identifies "U.S. code 42, which is that federal element
which fluctuates on the CPI."
MR. PIERRE further added that the sponsors based the fiscal note
on the amount "that we would pay out this year, so we've tried
to make it very appropriate to today's response...."
2:07:27 PM
REPRESENTATIVE BUCH expressed his concern that at the time this
obligation would be instituted, the state will enter into an
extended period of potential shortfalls in the budget. In fact,
two or three disasters could encumber the state with massive
obligations. He warned that to triple the state's obligation
seems to be a very expensive adjustment.
MR. PIERRE stated that the department shares Representative
Buch's concerns; however, the intent of the original language of
the fund would be equal to an $18,000 expenditure today. He
concluded that the proposed bill does not surpass the original
intent of the legislature and encouraged the committee to make
recommendations after considering the needs of Alaskans,
particularly those in rural areas.
2:10:33 PM
CHAIR GATTO suggested the legislation may need "sideboards" to
prevent abuse of the benefits.
MR. O'HARE encouraged Chair Gatto to meet his staff who perform
damage assessments and audits in affected communities. He
assured the committee his staff is diligent in assessing and
verifying losses of items for which there may not be documented
evidence, through interviews with elders and other individuals.
2:13:04 PM
MR. PIERRE reminded the committee the maximum grant is $14,950.
2:13:40 PM
MR. O'HARE said that he shared the concern about the opportunity
for fraud, but encouraged the committee to focus on the intent
of the bill that is to help those who have been affected by
disaster in a manner that is appropriate in the current economy.
The state is not an insurance company, and this funding "will
only get them up on one knee, or maybe two feet."
2:14:49 PM
REPRESENTATIVE RAMRAS observed that fraud is a crime, and
although people will abuse the system, most people are honest
and most times the reimbursement or insurance payment does not
leave a person whole. He expressed his belief that the
overwhelming majority of people who would be eligible for this
assistance are honest. Representative Ramras said, "We should
not allow the bad behavior of ... the few to affect good
legislation for the many."
2:16:17 PM
MR. O'HARE assured the committee that his staff has prosecuted
fraudulent claims.
2:16:46 PM
REPRESENTATIVE BUCH said, "Doubling the numbers of disasters and
tripling the response to that, we would go from 10 to 60 million
dollars of obligation. That's my concern."
2:17:47 PM
REPRESENTATIVE TAMMIE WILSON pointed out that the legislation
states, "may appropriate up to $15,000." Therefore, this amount
could be changed by the governor; in addition, the legislature
must re-appropriate money into the fund. She asked whether her
understanding of the legislation was correct.
MR. O'HARE replied yes.
2:18:33 PM
REPRESENTATIVE KAWASAKI has heard that is difficult to apply for
the $5,000 due to the lack of receipts. He surmised that
raising the cap on eligibility might cause more people to apply.
MR. PIERRE opined that more people will not apply. The
department already conducts an aggressive advertising campaign
in affected disaster areas during which staff are sent in to
help with the application process. Moreover, the fiscal note
purposefully reflects "a very liberal number there, because I
wanted to show ... the maximum impact, in case there were
questions."
2:20:14 PM
REPRESENTATIVE KAWASAKI asked for confirmation that the funding
would be just for the grant, and not for more man hours.
MR. PIERRE indicated that DMVA is a very small department that
makes up 0.3 percent of the overall budget. There are 70
employees in Mr. O'Hare's staff at DHS&EM, and there are 300
state employees at DMVA, with 4,000 National Guard members. He
stressed that DMVA employees are dedicated to helping folks
during times of disaster.
MR. O'HARE explained that his staff sets up disaster assistance
centers in affected communities to interview local individuals
and verify damages.
MR. PIERRE, in response to Representative Kawasaki's earlier
question about the budget, further explained that although
employees are sometimes pulled from other areas to maintain
consistency in handling cases, the amount of money and number of
staff remains the same. Furthermore, his department is looking
for more efficiency and has reduced its budget by 0.5 percent
this year.
2:23:16 PM
CHAIR GATTO questioned whether renters who purchased flood
insurance at different times would benefit.
MR. O'HARE answered that because both renters would benefit from
flood insurance, they would not qualify for this program, except
perhaps for the amount of the deductible.
CHAIR GATTO referred to the last page of document entitled
"State Individual and Family Grant Program (IFG)" and read:
If the grantee is a renter, flood insurance required
under this section must be maintained on the contents
of the rental unit for as long as the grantee resides
at the flood-damaged property address.
MR. O'HARE clarified that owners or renters need to have had
insurance coverage prior to the disaster.
2:25:38 PM
REPRESENTATIVE RAMRAS asked what happens to a typical off-duty
enlisted soldier who volunteers for duty during an emergency.
MR. PIERRE informed the committee that in an emergency, the
local community government sends a disaster declaration to the
state. If the governor agrees to declare a state disaster, the
state emergency coordination center at DHS&EM will task from the
local community "response-to-needs." The community's request is
sent to the joint force commander who asks for volunteers.
These volunteers are paid a state active duty rate, according to
their rank, from the Disaster Relief Fund; in fact, their pay
from the state is in lieu of their regular week-end drill or
annual training time paid by the federal government.
2:29:21 PM
REPRESENTATIVE KAWASAKI asked whether the disaster relief funds
can go to purposes other than directly to individuals.
MR. O'HARE said yes. The funds also encompass response costs
such as safety of life and protection of property. However, the
portion of the bill being discussed addresses the recovery
aspect of a disaster; state monies to assist affected
individuals recover from a disaster.
MR. PIERRE added that disaster relief funds are also used in a
25 percent matching fund program with FEMA. In response to
Chair Gatto, he clarified that an arrangement with the
Department of Defense National Guard Bureau allows for expenses
on the federal side in response to a disaster. These expenses
are paid through federal training funds; in fact, to pay for
expenses incurred during a disaster, the department uses federal
funding through the U.S. Property and Fiscal Office, which is a
federal [contractor] working for the National Guard Bureau in
Washington, D.C. The federal training monies can be applied to
gasoline, trucks, repairs, and other expenses.
2:31:46 PM
CHAIR GATTO set aside HB 292.
[Although not formally announced, HB 292 was held.]
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