04/03/1996 02:35 PM Senate CRA

                                                                               
 Number 585                                                                    
                                                                               
     CSHB 322(FIN) GRANTS FOR HOUSING FOR DISASTER VICTIMS                    
                                                                              
 SENATOR TORGERSON brought CSHB HB 322(FIN) before the committee as            
 the next order of business.  He stated because the committee lacked           
 a quorum, the hearing on the legislation would be considered a work           
 session.                                                                      
                                                                               
  TAPE 96-19, SIDE B                                                           
 Number 001                                                                    
                                                                               
  ROGER POPPE , aide to Representative Pete Kott, explained that in            
 federal disaster relief, the federal government can provide grant             
 funds directly to individuals to make their own temporary housing             
 arrangements and reimburse them up to 100 percent.  Currently, the            
 state of Alaska does not have the authority to do that when the               
 governor declares a state emergency.  As a result, the Division of            
 Emergency Services is required to arrange for temporary housing,              
 arrange for leases, renew lease arrangements periodically as                  
 needed, and generally act as an intermediary between the lessors              
 and the persons using the temporary housing.  This causes several             
 problems for the division, and it is administratively burdensome              
 and increases the cost of administering the program.                          
                                                                               
 Mr. Poppe said HB 322 authorizes the Division of Emergency Services           
 to provide the grants directly to the individuals, which will                 
 remove a lot of bureaucratic activity on their part.  He added it             
 will not make the state more vulnerable in terms of the whole                 
 process because in providing funds to the people that need them,              
 the state would first have to determine whether federal funds had             
 been provided, or whether payment was made by the private insurer,            
 or whether assistance was provided by the Red Cross, etc., so the             
 state would be the last in the line in an emergency situation.                
                                                                               
 Number 040                                                                    
                                                                               
  CAROL CARROLL , Director, Administrative & Support Services                  
 Division, Department of Military & Veterans Affairs, said in a                
 disaster the Red Cross is the first responder in providing                    
 temporary aid.  However, if individuals are not able to get back              
 into their residences for a period of time, they are eligible for             
 temporary housing assistance from the state and from the federal              
 government if it is a federally declared disaster.  If it is a                
 state-only declared disaster, the Division of Emergency Services              
 acts as the rental agent.  The legislation will allow the                     
 individuals to find their own accommodations and be reimbursed by             
 the state.  If an individual is a renter prior to the disaster, it            
 limits it to one month of Red Cross assistance and then up to three           
 months assistance from the state.  Home owners have an 18-month               
 limit on temporary housing funds.                                             
                                                                               
 Number 070                                                                    
                                                                               
  SENATOR TORGERSON  pointed out that during the last flood disaster           
 in the state, the administration said there were no funds available           
 for that disaster, and it was the local governments, through their            
 purchase orders, that actually provided the money for all of the              
 work that was done.  The local governments were eventually                    
 reimbursed by the state.  He asked how this program will be handled           
 when there isn't money appropriated for disaster relief.   MS.                
 CARROLL  said last year when there weren't enough funds, the                  
 department borrowed $3,000,000 from another allocation within the             
 disaster relief fund to match both the federal money and the state            
 only portion of that flood.                                                   
                                                                               
  SENATOR TOGERSON  said he has serious concerns when there isn't              
 money in the appropriation pot, as well as the bill carrying a zero           
 fiscal note.   MS. CARROLL  said the bill just gives authority for            
 when a disaster occurs and it would have a negative fiscal impact             
 because they would not have to spend money on the administrative              
 work  At the time of a disaster, because the disaster relief fund             
 now has about $26 in it, there would be a fiscal impact.                      
                                                                               
 There being no further testimony on CSHB 322(FIN),  SENATOR                   
 TORGERSON  stated it would be back before the committee at its next           
 meeting.