02/16/2010 08:00 AM House STATE AFFAIRS

               HB 292-GRANTS TO DISASTER VICTIMS                                                                            
                                                                                                                                
9:43:07 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN announced  that the final order of  business was HOUSE                                                               
BILL  NO.  292, "An  Act  relating  to  grants  to victims  of  a                                                               
disaster in this state; and providing for an effective date."                                                                   
                                                                                                                                
9:43:43 AM                                                                                                                    
                                                                                                                                
McHUGH PIERRE, Deputy Commissioner/Chief  of Staff, Office of the                                                               
Commissioner/Adjutant General, Department  of Military & Veterans                                                               
Affairs,  presented  HB   292  on  behalf  of   the  House  Rules                                                               
Committee,  sponsor by  request of  the  governor.   He said  the                                                               
department gives  out two  disaster-related grants.   One  is for                                                               
public  assistance, for  example,  to cover  public utilities  or                                                               
city infrastructure after  a declared disaster.   The other grant                                                               
is given to individual households and  has a cap of $5,000.  That                                                               
cap has not changed since 1977.   Mr. Pierre noted that $5,000 in                                                               
1977  is equal  to  $18,000 in  2010.   The  proposed bill  would                                                               
adjust the  amount of  the cap  to connect  it with  the consumer                                                               
price  index; it  would be  half of  what the  federal government                                                               
gives  out during  a disaster,  which he  opined is  a reasonable                                                               
amount of money.   Mr. Pierre deferred to Mr.  O'Hare for further                                                               
details.                                                                                                                        
                                                                                                                                
9:45:26 AM                                                                                                                    
                                                                                                                                
MIKE    O'HARE,   Deputy    Director,   Division    of   Homeland                                                               
Security/Emergency Management, Department  of Military & Veterans                                                               
Affairs, offered information  regarding HB 292, on  behalf of the                                                               
House Rules  Committee, sponsor by  request of the governor.   He                                                               
stated  that   the  proposed  legislation  would   modernize  the                                                               
individual assistance grant  program to the current  economy.  He                                                               
said  the  department  set  up   a  multi-agency  task  force  to                                                               
determine what,  if any,  increase is needed.   The  [task force]                                                               
was comprised of a diverse  group of individuals, including those                                                               
from:    the  Department  of   Commerce,  Community,  &  Economic                                                               
Development,  the  Department  of  Health  and  Social  Services,                                                               
Alaska Voluntary  Organizations Active in Disaster  (AKVOAD), the                                                               
Alaska Housing  Finance Corporation, the American  Red Cross, the                                                               
United   States   Department   Agriculture  (USDA),   and   rural                                                               
organizations.   The  model formulated  by the  task force  would                                                               
make the  grant cap  half of  the federal  individual assistance,                                                               
which  fluctuates with  the economy  through  the consumer  price                                                               
index.    Currently,  the  maximum  for  the  federal  individual                                                               
assistance  grant   is  approximately  $30,000;   therefore,  the                                                               
proposed grant  from the State  of Alaska would  be approximately                                                               
$15,000.                                                                                                                        
                                                                                                                                
9:47:37 AM                                                                                                                    
                                                                                                                                
MR. O'HARE  said this proposed  legislation came about  after the                                                               
devastating floods in Interior Alaska  in 2009, which affected 40                                                               
communities along  the Yukon-Kuskokwim Rivers.   These residents,                                                               
he  reported, received  federal individual  assistance up  to the                                                               
$30,000 maximum.  He said  there were approximately 30 victims of                                                               
the disaster in  those communities who were  not eligible because                                                               
they were not in that federally  declared zone, and all the State                                                               
of Alaska  was able to  give those  people was $5,000,  which was                                                               
insufficient.   Mr.  O'Hare reiterated  that  under the  proposed                                                               
legislation,  during  a  state-declared  disaster,  the  governor                                                               
would  be allowed  to  provide  up to  half  the  [amount of  the                                                               
federal] individual  assistance grant  program to  those affected                                                               
in the disaster.                                                                                                                
                                                                                                                                
9:48:39 AM                                                                                                                    
                                                                                                                                
MR.  PIERRE emphasized  that the  state adheres  to a  strict and                                                               
stringent process  by which it  hands out  the grant money.   For                                                               
example, people  are not automatically given  the maximum amount.                                                               
Of  the  households affected  in  a  disaster, about  30  percent                                                               
receive   the  maximum   allowable  amount,   which  Mr.   Pierre                                                               
reiterated is currently  $5,000.  He explained that  the money is                                                               
given in  an effort to get  people back on their  feet to rebuild                                                               
their homes  and lives.   He offered  further details  related to                                                               
the  determination of  how much  money a  person is  awarded.   A                                                               
person who has  money in the bank and is  prepared for a disaster                                                               
may not receive any money at all, for example.                                                                                  
                                                                                                                                
9:49:36 AM                                                                                                                    
                                                                                                                                
MR.  O'HARE said  the department  interviews victims  and reviews                                                               
photographs to  determine whether  the victim  does not  have the                                                               
capability  to make  him/herself  whole  again without  financial                                                               
help.                                                                                                                           
                                                                                                                                
9:50:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG related  his  understanding that  there                                                               
have  been no  claims under  the state  fund since  the first  of                                                               
2010.   He  then opined  that it  is not  enough to  increase the                                                               
amount  given by  the state  to  one half  of that  given by  the                                                               
federal government.  He said the  people who need money have been                                                               
"wiped out" and are  left with nothing.  He asked  why the cap is                                                               
proposed  to be  half, and  he said  he is  prepared to  offer an                                                               
amendment to increase the amount to "the maximum."                                                                              
                                                                                                                                
9:51:12 AM                                                                                                                    
                                                                                                                                
MR. O'HARE answered  that the concept of  state declared disaster                                                               
is  "a  smaller  version  of   a  federally  declared  disaster."                                                               
Furthermore,  state declared  disasters  happen more  often.   He                                                               
stated  that the  concept of  giving money  is an  opportunity to                                                               
help in part of the process of a victim being whole again.                                                                      
                                                                                                                                
9:52:09 AM                                                                                                                    
                                                                                                                                
MR. PIERRE added that the money  the state pays comes through its                                                               
disaster  relief fund,  which  is not  supported  by the  federal                                                               
government.    It  would  not  be until  a  federal  disaster  is                                                               
declared that the State of  Alaska would receive federal support,                                                               
and  then it  would be  federal dollars  that would  be given  as                                                               
individual assistance  to the victims.   He stated,  "A household                                                               
... could not double-dip."                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG  remarked that the fiscal  note is about                                                               
$600,000.                                                                                                                       
                                                                                                                                
9:52:57 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
MR.  O'HARE, in  response to  Representative Gruenberg,  said the                                                               
fiscal  note   is  speculative,   because  disasters   cannot  be                                                               
anticipated.  He said the  fiscal note reflects the increase from                                                               
the  original $5,000  to an  approximate $15,000.   He  indicated                                                               
that in one disaster, only  30-35 percent of applicants qualified                                                               
for the  maximum $5,000.   The aforementioned taskforce  has said                                                               
the best model to follow would be half of the federal amount.                                                                   
                                                                                                                                
9:54:46 AM                                                                                                                    
                                                                                                                                
MR. PIERRE,  in response to Representative  Gruenberg, emphasized                                                               
that  the  numbers of  disaster  victims  affected would  not  be                                                               
changed by the proposed legislation.   The numbers showing on the                                                               
fiscal note,  he said, have been  a good average since  2002.  He                                                               
said changing the  amount of the state's grant cap  to equal that                                                               
of the  federal grant would double  the fiscal note.   He related                                                               
that  Alaska experiences  5-6 state  disasters per  year, and  he                                                               
reiterated  that not  all  of those  disasters  are eligible  for                                                               
federal assistance.  To illustrate  his point, Mr. Pierre relayed                                                               
that in 2009, there were  two disasters declared by the President                                                               
of the United States, while  Alaska declared 3-4 state disasters.                                                               
Mr. Pierre stated that the  one federally declared disaster was a                                                               
mud  slide  in  Kodiak  that was  "not  eligible  for  individual                                                               
assistance" - it was "only a public assistance disaster."                                                                       
                                                                                                                                
MR.  PIERRE  explained  that  in   some  disasters,  only  public                                                               
assistance  -  for  roads  and utilities  -  is  awarded;  public                                                               
assistance, he reminded the committee,  is not awarded for damage                                                               
of  individual  homes.    The   bill  addresses  those  who  have                                                               
experience  damage  to  their  homes.   He  said  the  department                                                               
heavily  emphasizes  being  proactive   with  the  community  and                                                               
lending a  hand, rather than a  full handout.  He  said there are                                                               
representatives  from the  department who  travel to  communities                                                               
that typically experience flooding to  ask residents if they have                                                               
followed prevention  tactics.   The emphasis  is in  ensuring the                                                               
safety of these people.                                                                                                         
                                                                                                                                
9:57:22 AM                                                                                                                    
                                                                                                                                
MR. PIERRE, in response to  Representative Seaton, confirmed that                                                               
the  fiscal  note reflects  the  difference  between the  current                                                               
average and the proposed amount.                                                                                                
                                                                                                                                
MR. O'HARE,  in response to  Representative Seaton,  related that                                                               
in the  past two-three  years, the  Alaska State  Legislature had                                                               
the vision to forward-fund the  disaster relief fund.  Currently,                                                               
there are  approximately $100,000  left in that  fund.   He added                                                               
that the  department must obtain permission  from the legislature                                                               
to spend more  than $1 million per disaster.   The department has                                                               
"a   very   good  measure   of   capping   expenditures"  and   a                                                               
responsibility to provide its finance plan to the legislature.                                                                  
                                                                                                                                
9:59:27 AM                                                                                                                    
                                                                                                                                
MR. PIERRE, in response to  a concern expressed by Representative                                                               
Gatto, said  the state  is not  discriminating between  rural and                                                               
urban  residents.   He  explained  that there  are  two types  of                                                               
disasters  described  in  statute:   AS  26.26,  which  addresses                                                               
natural  disasters,  and  AS   26.44,  which  addresses  economic                                                               
disasters.    He  said  economic disasters  are  handled  by  the                                                               
Department  of  Commerce,   Community,  &  Economic  Development.                                                               
Communities that  experience disaster  file a declaration  to the                                                               
state.   The state analyzes  the declaration, and,  if warranted,                                                               
holds a  disaster policy cabinet  to determine whether or  not to                                                               
declare a state disaster based on  the local response.  The state                                                               
would ask the  federal government for help once it  has spent all                                                               
its resources.                                                                                                                  
                                                                                                                                
MR. O'HARE, in  response to a hypothetical example  of a chemical                                                               
spill  disaster  offered  by  Representative  Gatto,  echoed  Mr.                                                               
Pierre's outline of  the steps that would be taken,  first by the                                                               
community,  next  by  the  state,  and  finally  by  the  federal                                                               
government, as necessary.   He stated, "What  we're talking about                                                               
here  is  ...  individual  assistance for  the  recovery  of  the                                                               
disaster."   If the chemical spill  had resulted in the  death of                                                               
family  members, the  state  could  give money  to  help pay  for                                                               
funeral  costs.   If  the  hypothetical  spill had  affected  the                                                               
homes, the grant money could be applied.                                                                                        
                                                                                                                                
10:03:46 AM                                                                                                                   
                                                                                                                                
CHAIR LYNN announced that HB 292 was held over.