Legislature(2009 - 2010)CAPITOL 106

02/18/2010 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 115 PERMANENT ABSENTEE VOTING TELECONFERENCED
Moved CSHB 115(STA) Out of Committee
+= HJR 38 CONST. AM: INCREASE NUMBER OF LEGISLATORS TELECONFERENCED
Moved CSHJR 38(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 292 GRANTS TO DISASTER VICTIMS TELECONFERENCED
Moved Out of Committee
               HB 292-GRANTS TO DISASTER VICTIMS                                                                            
                                                                                                                                
8:05:43 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN announced  the first 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."                                                                               
                                                                                                                                
8:06:18 AM                                                                                                                    
                                                                                                                                
MICHAEL   O'HARE,   Deputy   Director,   Division   of   Homeland                                                               
Security/Emergency Management, Department  of Military & Veterans                                                               
Affairs, reviewed  that the  proposed legislation  would increase                                                               
state individual  assistance in a state-declared  disaster from a                                                               
cap of $5,000  to half the amount of that  which is given through                                                               
federal   individual  assistance,   which  fluctuates   with  the                                                               
consumer  price index.   A  task  force met  and determined  that                                                               
$5,000 was  not enough and  an increase  is necessary.   The task                                                               
force included representatives from  the following agencies:  the                                                               
Department of  Commerce, Community,  & Economic  Development, the                                                               
Department  of  Health  and  Social  Services,  the  Division  of                                                               
Homeland  Security/Emergency   Management,  the   Alaska  Housing                                                               
Finance  Corporation,  and  the  American Red  Cross,  and  other                                                               
volunteer  organizations active  in  disaster issues.   The  task                                                               
force  made  the  decision  that  the  best  model  to  modernize                                                               
individual  assistance to  today's  economy would  be to  provide                                                               
half  of the  federal individual  assistance, which  currently is                                                               
approximately  $30,000.   The proposed  bill  would increase  the                                                               
state   individual  assistance   grant  to   half  of   that,  or                                                               
approximately  $15,000 as  a maximum  cap to  those victims  of a                                                               
state declared disaster.                                                                                                        
                                                                                                                                
8:08:50 AM                                                                                                                    
                                                                                                                                
MR.  O'HARE  related   that  the  spring  floods   in  2009  were                                                               
devastating to communities in Alaska  - the event was a federally                                                               
declared disaster.   Out  of the  40 communities  affected, there                                                               
were  approximately  30  households  that  did  not  qualify  for                                                               
federal assistance, and  all the state was allowed  by statute to                                                               
provide  for their  individual assistance  was $5,000,  which Mr.                                                               
O'Hare said truly was not enough.   He said the recommendation of                                                               
the  task force  is in  the proposed  legislation.   He explained                                                               
that  the proposed  amount is  needed to  "provide equity  in the                                                               
recovery process," not to "make them whole."                                                                                    
                                                                                                                                
8:09:44 AM                                                                                                                    
                                                                                                                                
MR. O'HARE  described the  relief process to  the committee.   He                                                               
said  the  state  does  not  simply  write  checks.    Individual                                                               
assistance officers run disaster  assistance field centers in the                                                               
communities where staff members  accept applications from victims                                                               
and  verify the  loss  through on-site  visits, photographs,  and                                                               
receipts,   or   through   cross-verification   statements   from                                                               
community leadership.  The officers  also verify that the victims                                                               
could not otherwise recover on  their own, either using their own                                                               
finances  or  through  insurance.     The  individual  assistance                                                               
officers  cross-reference that  information to  determine whether                                                               
there  has been  any  past disaster  noncompliance.   Mr.  O'Hare                                                               
offered to answer questions.                                                                                                    
                                                                                                                                
8:10:53 AM                                                                                                                    
                                                                                                                                
MR. O'HARE, in response to  Representative Seaton, explained that                                                               
if  a  federal disaster  is  declared,  victims would  apply  for                                                               
federal  disaster  relief  and  could  qualify  for  the  maximum                                                               
$30,000; however, victims could not  receive both the $30,000 and                                                               
the state relief grant money, just one or the other.                                                                            
                                                                                                                                
REPRESENTATIVE SEATON said that  was his understanding, but noted                                                               
that  the  language in  the  bill  does  not  support that.    He                                                               
directed attention  to [paragraph (1)],  on page 1,  beginning on                                                               
line 10, which read as follows:                                                                                                 
                                                                                                                                
               (1) when the President declares a major                                                                          
     disaster, the  governor may make  a grant of  an amount                                                                    
     whose  total  of  federal and  state  shares  does  not                                                                    
     exceed  the  maximum  amount authorized  by  42  U.S.C.                                                                
     5174(h)  [42  U.S.C.  5178(f)] for  grants  payable  to                                                                
     individuals and families;                                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  said he interprets  that language  to mean                                                               
that the  state grant  is limited  to the  amount of  the federal                                                               
grant.   For  example, he  said, if  the federal  grant had  been                                                               
$7,000, the state could grant up to $7,000, but no more.                                                                        
                                                                                                                                
MR.  O'HARE explained  that individuals  in a  federally declared                                                               
disaster could qualify for grant money  up to the maximum.  Using                                                               
Representative Seaton's example, he  said if the victim qualified                                                               
for $7,000  of federal money,  the state  is required to  give 25                                                               
percent of that $7,000.                                                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON  said  he  is trying  to  figure  out  the                                                               
meaning of:   "the governor may  make a grant of  an amount whose                                                               
total of federal  and state shares does not  exceed the maximum".                                                               
He asked if 42 U.S.C. 5174(h) refers "the $29,000 cap."                                                                         
                                                                                                                                
MR. O'HARE confirmed that 42  U.S.C. 5174(h) contains the federal                                                               
cap.  He  reviewed the language in Section 1(b)(1)  and (2).  Mr.                                                               
O'Hare  stated,   "That's  correct,   in  a   federally  declared                                                               
disaster, the governor  can provide for up to that  amount - that                                                               
$30,000.  They  will be reimbursed by the  federal government for                                                               
... the  amount, less 25  percent."   In response to  a follow-up                                                               
question  from  Representative  Seaton, he  confirmed  that  that                                                               
requirement is written in federal regulations.                                                                                  
                                                                                                                                
8:15:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN asked how  the 30 aforementioned Alaskans                                                               
qualified for state aid, but not for federal aid.                                                                               
                                                                                                                                
MR. O'HARE explained  that the state declaration  [related to the                                                               
aforementioned  2009   flooding]  encompassed  a  wide   area  of                                                               
affected river  communities.   He said,  "They would  not qualify                                                               
for a  federal declaration if  the community  as a whole  was not                                                               
widely affected,  but there were individuals  that were affected.                                                               
So,  a federal  declaration may  not encompass  the entire  state                                                               
declared area."                                                                                                                 
                                                                                                                                
8:16:36 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN,  after ascertaining  that there was  no one  else who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
8:16:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  expressed  concern that  the  proposed                                                               
bill would  not raise the  cap even  higher; however, he  said he                                                               
does not  want to "kill the  bill with kindness."   He concluded,                                                               
then, that he would not be offering an amendment to that end.                                                                   
                                                                                                                                
8:17:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  directed attention  to language on  page 2,                                                               
beginning on line  1, which states that if  the governor declares                                                               
a  disaster emergency,  "the  governor  may make  a  grant of  an                                                               
amount  not  to  exceed  one-half of  the  maximum  grant  amount                                                           
established under (1) of this  subsection".  Representative Gatto                                                           
said, "There's no reference to this  grant."  He surmised that it                                                               
could be  "a brand new  grant outside  of all other  grants," and                                                               
offered his understanding that that  would mean that the governor                                                               
could give  a victim  - as  another grant -  half of  the maximum                                                               
amount of the federal grant.                                                                                                    
                                                                                                                                
MR. O'HARE confirmed that is correct.                                                                                           
                                                                                                                                
REPRESENTATIVE GATTO said, "So, we have two grants here."                                                                       
                                                                                                                                
MR. O'HARE reiterated that either  the federal or the state grant                                                               
can be given, not both.                                                                                                       
                                                                                                                                
REPRESENTATIVE GATTO asked Mr. O'Hare  to provide an example as a                                                               
means of clarification.                                                                                                         
                                                                                                                                
MR. O'HARE proffered:                                                                                                           
                                                                                                                                
     For example  purposes, Representative Gatto, you  are a                                                                    
     disaster victim in a  federally declared disaster area.                                                                    
     You are  qualified to receive  up to the  federal limit                                                                    
     of $30,000,  approximately, and  that is  your maximum.                                                                    
     I,  Mike O'Hare,  being a  disaster victim  in a  state                                                                    
     declared  area or  those victims  we just  talked about                                                                    
     ...  would be,  under this  provision, ...  entitled to                                                                    
     receive up to half of that  in a state grant.  So, that                                                                    
     would be the difference.                                                                                                   
                                                                                                                                
8:20:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said  part of his confusion is  a result of                                                               
there being  no language  in the  proposed legislation  that says                                                               
the  department   shall  seek  reimbursement  from   the  federal                                                               
government for the grant.  He  surmised that that language may be                                                               
in some other section that is not being modified in HB 292.                                                                     
                                                                                                                                
MR. O'HARE confirmed  that is correct; the  language is contained                                                               
in 44  U.S.C.  In response  to Chair Lynn, he  suggested that any                                                               
confusion  that committee  members may  be experiencing  could be                                                               
cleared  up  by providing  the  language  of that  federal  code;                                                               
however, he opined  that amending the bill may  "muddy the waters                                                               
as to the calculation formula - the process."                                                                                   
                                                                                                                                
8:23:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG stated  his understanding  that federal                                                               
law  provides  the  mechanism for  reimbursement;  therefore  the                                                               
state does  not need to have  related language in its  own law in                                                               
order to seek reimbursement from the federal government.                                                                        
                                                                                                                                
MR. O'HARE responded that is correct.                                                                                           
                                                                                                                                
8:24:07 AM                                                                                                                    
                                                                                                                                
MR.  O'HARE, in  response to  Representative Petersen,  confirmed                                                               
that "double  dipping" - being  awarded grant  reimbursement from                                                               
both  the   state  and  the   federal  government  -  is   not  a                                                               
possibility.                                                                                                                    
                                                                                                                                
8:24:39 AM                                                                                                                    
                                                                                                                                
MS.  WILSON related  that she  found the  analysis in  the fiscal                                                               
note helpful.                                                                                                                   
                                                                                                                                
8:24:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to report  HB 292 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection,  HB 292 was reported out of the                                                               
House State Affairs Standing Committee.                                                                                         

Document Name Date/Time Subjects
05 HB115-OOG-DOE-2-12-10.pdf HSTA 2/18/2010 8:00:00 AM
HB 115