Legislature(1999 - 2000)

04/26/1999 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
CS FOR SENATE BILL NO. 101(FIN) am                                                                                              
                                                                                                                                
"An Act relating to disasters and to the disaster                                                                               
relief fund."                                                                                                                   
                                                                                                                                
DARWIN PETERSON, STAFF, SENATOR TORGERSON read the sponsor                                                                      
statement in support of SB 101:                                                                                                 
                                                                                                                                
The House Military and Veterans Affairs Committee                                                                               
Substitute for Committee Substitute for Senate Bill 101                                                                         
clarifies the definition of a disaster by replacing                                                                             
vague terminology in statute with more specific                                                                                 
language.  This will direct the executive branch of                                                                             
government in identifying what constitutes a disaster                                                                           
prior to making a gubernatorial disaster declaration.                                                                           
                                                                                                                                
In addition to amending the definition of disaster, HCS                                                                         
CS SB 101(MLV) makes a diversion from current law to                                                                            
the funding limits within the executive branch in                                                                               
reference to disaster emergencies.  The governor is                                                                             
given broad authorization to expend up to $1,000,000 to                                                                         
prevent or minimize the effects of an event or a                                                                                
disaster within the state.  If the governor feels that                                                                          
further expenditures from state funds are necessary in                                                                          
excess of $1,000,000 for a specific event, legislative                                                                          
authorization or a presidential declaration of disaster                                                                         
is required.  Wildland fire disasters are exempt from                                                                           
this policy.                                                                                                                    
                                                                                                                                
Co-Chair Therriault asked if the sponsor had concerns with                                                                      
the HCS (STA) version. Mr. Peterson replied that they had                                                                       
concerns with language on page 2, section 3. He explained                                                                       
that there are two caps under current law, one at $500                                                                          
thousand dollars and one at $1 million dollars. These were                                                                      
combined into one cap of $1 million dollars. He recommended                                                                     
that the two limitations remain separate. The caps would be                                                                     
under $500 thousand dollars for a broad variety of events                                                                       
and $1 million dollars for specifically for disasters.                                                                          
Seventy-five percent of disasters since 1978 have been under                                                                    
$500 thousand dollars. This would return to the current                                                                         
statutory limitation.                                                                                                           
                                                                                                                                
Co-Chair Therriault noted that there is no cap on wildlife                                                                      
fires.                                                                                                                          
                                                                                                                                
Mr. Peterson also pointed to page 3, lines 4 - 6. He                                                                            
explained that under current law the Governor must notify                                                                       
the presiding officers if he wishes to spend more than a                                                                        
million dollars. The Senate language required the presiding                                                                     
officer to poll all members of the legislature and receive                                                                      
majority consent. He acknowledged that it could be difficult                                                                    
to contact all members during the interim. The sponsor                                                                          
recommends that the presiding officers contact a majority of                                                                    
members telephonically. There would still need majority                                                                         
consent. If 31 members agree that a special session is not                                                                      
necessary than the governor could go ahead with the disaster                                                                    
plan.                                                                                                                           
                                                                                                                                
Mr. Peterson referred to page 4, definition of disaster. The                                                                    
Senate wanted a more concise definition. "An event such as"                                                                     
may be objectionable due to its broad interpretation.                                                                           
                                                                                                                                
Representative Foster observed that "including" was deleted                                                                     
from page 4, line 9.                                                                                                            
                                                                                                                                
Mr. Peterson explained that the language was amended in the                                                                     
House Military and Veterans Affairs Committee. The intent                                                                       
was to broaden the definition and allow the governor to                                                                         
declare a disaster on any event that resulted in a disaster                                                                     
of $2 million dollars. The Senate definition was more                                                                           
specific. In the Senate version, the governor could spend up                                                                    
to $1 million dollars on disasters that were enumerated. The                                                                    
governor could spend up to $500 thousand dollars on                                                                             
disasters that were not enumerated such as a plane                                                                              
collision. If the governor want to spend more than $500                                                                         
thousand dollars on a disaster that was not enumerated he                                                                       
would have to address the legislature.                                                                                          
                                                                                                                                
In response to a question by Representative Foster, Mr.                                                                         
Peterson noted that if there was a disaster such as a plane                                                                     
crash the governor could spend funds immediately. He                                                                            
estimated that further funding could be obtained within a                                                                       
few hours.                                                                                                                      
                                                                                                                                
Representative Foster recalled an emergency in his district.                                                                    
It took 14 calls and an hour and a half before he was able                                                                      
to reach anyone to respond.                                                                                                     
                                                                                                                                
Representative Austerman concluded that the sponsor's                                                                           
concern is with the addition of "such as". He clarified that                                                                    
the sponsor prefers the Senate version. He ascertained that                                                                     
if the disaster was not defined the governor would have $500                                                                    
thousand dollars.                                                                                                               
                                                                                                                                
Representative Foster noted that a number of people would                                                                       
have to be contacted. Co-Chair Therriault pointed out that                                                                      
the governor would only need to contact further members if                                                                      
he wanted to spend more than $500 thousand dollars.                                                                             
                                                                                                                                
Representative Grussendorf spoke in support of the House                                                                        
State Affairs Committee version. He stated that he would                                                                        
prefer to argue to the funding after the disaster. He did                                                                       
not want to see a delay on funding.                                                                                             
                                                                                                                                
Co-Chair Therriault pointed out that the $500 thousand                                                                          
dollar and $1 million dollar limitations exist in current                                                                       
law. In response to a question by Co-Chair Therriault, Mr.                                                                      
Peterson noted that the current disaster spending limits                                                                        
have not created problems.                                                                                                      
                                                                                                                                
Representative J. Davies stated that page 2, lines 6 and 7                                                                      
needed further clarification.                                                                                                   
                                                                                                                                
"The governor may expend during a fiscal year not more                                                                          
than $1,000,000 of state funds per event to prevent,                                                                            
minimize, or respond to the effects of an event that                                                                            
occurs in the state..."                                                                                                         
                                                                                                                                
He pointed out that if an event is prevented then it is not                                                                     
an event that occurred. He suggested that additional                                                                            
language is needed to clarify this provision.                                                                                   
                                                                                                                                
Representative J. Davies questioned the intent of language                                                                      
on page 3, line 17 - 20.                                                                                                        
                                                                                                                                
(b) Notwithstanding any other provision of this                                                                                 
chapter, if the declaration of a disaster                                                                                       
emergency occurs while the legislature is in                                                                                    
session or if a special session is held, actions                                                                                
taken by the governor under this chapter after                                                                                  
the close of the session that are not ratified                                                                                  
by law adopted during that session are void."                                                                                   
                                                                                                                                
He pointed out that action could be the result of a law                                                                         
previously adopted. He maintained that the language is over                                                                     
reaching and should be deleted. He suggested that any                                                                           
actions taken that are inconsistent with law adopted during                                                                     
the session should be void.                                                                                                     
                                                                                                                                
Mr. Peterson stated that the language states that if the                                                                        
governor goes over the cap and the legislature disagrees,                                                                       
that any action taken by the governor would be void.                                                                            
                                                                                                                                
Representative Austerman referred to the Bristol Bay                                                                            
economic disaster.  Mr. Peterson replied that there is no                                                                       
place in the bill that specifically discusses economic                                                                          
disasters. The legislature discusses physical disaster.                                                                         
                                                                                                                                
Representative Austerman questioned if "such as" could open                                                                     
the door to economic disasters.  Mr. Peterson replied that                                                                      
it might be possible if an economic disaster was caused by                                                                      
an event "such as" the ones listed.                                                                                             
                                                                                                                                
Representative J. Davies suggested that it would be                                                                             
difficult to separate natural and economic disasters.  Co-                                                                      
Chair Therriault referred to page 4, lines 2 - 4. He                                                                            
observed that "the occurrence or imminent threat of                                                                             
widespread or severe damage, injury, [OR] loss of life or                                                                       
property" could have an economic impact. He observed that a                                                                     
shortage of food could cause a loss of life and a shortage                                                                      
of fuel during winter months could cause a loss of property.                                                                    
He asked why the Senate added the language.  Mr. Peterson                                                                       
explained that the Senate Finance Committee inserted the                                                                        
language in case a disaster resulted in a shortage of food,                                                                     
water or fuel.  Co-Chair Therriault felt that the language                                                                      
was unnecessary.                                                                                                                
                                                                                                                                
Representative Foster observed that the State Emergency                                                                         
Response Commission passed a resolution signed by Phillip                                                                       
Oates, Commissioner of Military and Veterans Affairs                                                                            
opposing SB 101 (copy on file).                                                                                                 
                                                                                                                                
DAVE LIEBERSBACH, DIRECTOR, DIVISION OF EMERGENCY SERVICES,                                                                     
MILITARY AND VETERANS AFFAIRS testified via teleconference.                                                                     
He stated that the Department of Military and Veterans                                                                          
Affairs feels that the House State Affairs Committee version                                                                    
is workable. He referred to the resolution by the State                                                                         
Emergency Response Commission. Discussions with the State                                                                       
Emergency Response Commission indicated that they would not                                                                     
object to the current version.                                                                                                  
                                                                                                                                
Representative Foster questioned if there is a federal                                                                          
definition for "disaster". Mr. Liebersbach clarified that                                                                       
there is a federal definition for "disaster". He explained                                                                      
that the Western Alaska Fisheries disaster was not included                                                                     
under the definition of a major disaster by the presidential                                                                    
declaration. The federal funds for the Western Alaska                                                                           
Fisheries disaster were obtained under a different route.                                                                       
                                                                                                                                
In response to a question by Representative Foster, Mr.                                                                         
Liebersbach noted that the addition of "an event such as" on                                                                    
line 5, page 4 has broaden the legislation sufficiently to                                                                      
allow the support of the department. He pointed out that he                                                                     
did not want to try to delineate every possible disaster for                                                                    
the future. He stressed that there needs to be a broad                                                                          
enough interpretation to allow coverage.                                                                                        
                                                                                                                                
Representative Austerman noted that he requested a breakdown                                                                    
of the $60 million federal dollars appropriated through the                                                                     
Steven's Act.                                                                                                                   
                                                                                                                                
Co-Chair Therriault expressed concern with the addition of                                                                      
the language "an event such as".                                                                                                
                                                                                                                                
CAROL CARROLL, DIRECTOR, DIVISION OF SUPPORT SERVICES,                                                                          
DEPARTMENT OF NATURAL RESOURCES stated that the breakdown of                                                                    
federal funds is available and that she would provide it to                                                                     
members.                                                                                                                        
                                                                                                                                
Representative Grussendorf asked how long the statutory                                                                         
limitation of $500 thousand dollars has been in placed.  Ms.                                                                    
Carroll noted that the limitations have been in placed since                                                                    
the 1970's. Representative Grussendorf pointed out that the                                                                     
value of the funds has decreased.                                                                                               
                                                                                                                                
Co-Chair Therriault noted that the bill proposes one                                                                            
limitation. He questioned if there is a problem with the                                                                        
current statute. Ms. Carroll noted that $500 thousand                                                                           
dollars could be used to advert a disaster or an imminent                                                                       
event that might cause a disaster. Under an actual disaster                                                                     
the entire $1 million dollars would be available. The                                                                           
legislation allows $1 million dollars to be spent on a                                                                          
disaster or to divert a disaster.                                                                                               
                                                                                                                                
Vice-Chair Bunde noted that 75 percent of the disasters that                                                                    
have occur in the state of Alaska since 1978 have been under                                                                    
$500 thousand dollars. He questioned if it would be possible                                                                    
to spend more than $500 thousand dollars within the first                                                                       
few minutes. Ms. Carroll replied that it is difficult to                                                                        
tell. She noted that a lot of money could be spent within a                                                                     
few minutes for a major disaster, if out-of-state resources                                                                     
were used. She stressed that if the state is committed to                                                                       
expend funds that they will be expended.                                                                                        
                                                                                                                                
Representative Foster observed that under the House State                                                                       
Affairs version the Governor would have to contact 6                                                                            
members. He questioned how the decision would be carried. He                                                                    
expressed concern that it could take time. He noted that                                                                        
there would be an executive committee making the decision.                                                                      
                                                                                                                                
Co-Chair Therriault pointed out that the legislation                                                                            
requires that the Governor shall prepare and deliver to the                                                                     
Commissioner's Office and chairs of finance a financing plan                                                                    
describing the amount.                                                                                                          
                                                                                                                                
Representative Foster expressed concern that a decision                                                                         
could be made not to have a special session without input                                                                       
from individual members.                                                                                                        
                                                                                                                                
GEORGE UTERMOHLE, LEGAL COUNSEL, LEGISLATIVE AFFAIRS AGENCY                                                                     
responded to previous questions. He emphasized that the                                                                         
listing of events of a similar nature that are classified                                                                       
modifies an event "such as". He clarified that a riot would                                                                     
not be "an event such as" if it were not included in the                                                                        
list.                                                                                                                           
                                                                                                                                
Co-Chair Therriault asked if economic disasters would be                                                                        
swept in under the list of events "such as". Mr. Utermohle                                                                      
observed that disasters that have an economic affect could                                                                      
be included, but stated that a pure economic disaster as                                                                        
defined in, AS 44 would not be included under the language.                                                                     
                                                                                                                                
Co-Chair Therriault asked why "an event such as" is needed.                                                                     
Representative Grussendorf suggested that a meteorite would                                                                     
not be included without the additional language. Mr.                                                                            
Utermohle noted that the issue is how tight the boundary                                                                        
would be drawn around disasters the governor could declare.                                                                     
Co-Chair Therriault pointed out that the governor would                                                                         
still be able to respond to an event that was not detailed,                                                                     
such as a meteorite, because some of the other events would                                                                     
occur.                                                                                                                          
                                                                                                                                
Vice-Chair Bunde stated that the language clarifies that the                                                                    
events would be natural in nature and exclude economic                                                                          
disasters. Mr. Utermohle agreed.                                                                                                
                                                                                                                                
(Tape Change, HFC 99 -103, Side 2)                                                                                              
                                                                                                                                
Co-Chair Therriault reiterated questions by Representative                                                                      
J. Davies regarding the need for language on page 3, line 17                                                                    
- 20. Mr. Utermohle explained that the language is a                                                                            
modification of existing law. He noted that the language                                                                        
would void actions of the governor not sanctioned by the                                                                        
legislature. He stressed that "it is a function of how tight                                                                    
a rein the legislature wants to keep on the governor. The                                                                       
governor's authority to precede expires when the legislature                                                                    
adjourns if the governor's action was not ratified by the                                                                       
legislature. Under the legislation, a disaster appropriation                                                                    
could be cut off at any time by appropriate legislative                                                                         
action.                                                                                                                         
                                                                                                                                
In response to a question by Representative Foster, Mr.                                                                         
Utermohle explained that language on page 3, line 4 pertains                                                                    
to delivery of the governor's financing plan. He noted that                                                                     
the other members of the body have the ability to call                                                                          
themselves into special session. Co-Chair Therriault noted                                                                      
that the language on page 3, lines 4 - 6 allows the governor                                                                    
to expend money if the legislature decides not to go into a                                                                     
special session.                                                                                                                
                                                                                                                                
Representative J. Davies referred to page 5, lines 5 - 8.                                                                       
Mr. Utermohle noted that the language carries forward                                                                           
existing language. He stated that the following language                                                                        
could be deleted from existing law in order to resolve                                                                          
Representative J. Davies' concerns.                                                                                             
                                                                                                                                
"The governor may expend during a fiscal year not more                                                                          
than $1,000,000 of state funds per event to prevent,                                                                            
minimize, or respond to the effects of an event that                                                                            
occurs in the state and that, in the determination of                                                                           
the governor, poses a direct and imminent threat."                                                                              
                                                                                                                                
Vice-Chair Bunde questioned if the governor could declare a                                                                     
disaster on an event that occurs in Canada or another state.                                                                    
Mr. Utermohle noted that the language clarifies that the                                                                        
Governor is responding to events in the state of Alaska.                                                                        
                                                                                                                                
Vice-Chair Bunde referred to page 3, lines 17 - 20. He                                                                          
questioned if the language is a pocket veto for the                                                                             
legislature. Mr. Utermohle stated that if the legislature                                                                       
does not ratify the governor's actions than his authority to                                                                    
operate ends. It compels the legislature to take action if                                                                      
the disaster is to be addressed.                                                                                                
                                                                                                                                
Representative J. Davies summarized that the legislature                                                                        
would have to ratify disaster expenditures under $1 million                                                                     
dollars. Mr. Utermohle clarified that expenditures after the                                                                    
end of the session or special session would not be                                                                              
authorized. Expenditures during the legislative session                                                                         
would be authorized under the governor's authority. The                                                                         
language speaks to a declared disaster as opposed to an                                                                         
event. An event is not necessarily a disaster.                                                                                  
                                                                                                                                
SB 101 was HELD in Committee for further consideration.                                                                         

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