HOUSE BILL NO. 292 "An Act relating to grants to victims of a disaster in this state; and providing for an effective date." MCHUGH PIERRE, DEPUTY COMMISSIONER, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS (DMVA) presented an overview of the bill. He spoke of the disaster last year in Eagle and other communities along the Yukon River noting the disparity between the individual assistance grants programs established in 1977 compared to the federal grant amount. When a disaster is declared by the President of the United States, FEMA issues individual assistance grants based on a number suggested by the Consumer Price Index (CPI), which last year was $30,300 per affected household. Mr. Pierre noted that Alaska grants have not changed from $5000 and this bill would make the amount for state declared disasters half of the federal amount. The maximum this year would be $14,950 per household affected. MICHAEL O'HARE, DEPUTY DIRECTOR, DIVISION OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT, DMVA, stressed that there is a very rigorous process for disaster victims to prove their loss. Mr. O'Hare noted that his staff sets up a local disaster assistance center in affected communities. There is an involved application process with extensive verification that the loss is real and sustained during the declared disaster incident. 9:33:31 AM Representative Gara asked if the Yukon River flooding was the only disaster in past year. Mr. O'Hare noted a declared federal disaster in Kodiak affecting critical infrastructure. Representative Gara asked if this bill would cover federal or state disasters. Mr. O'Hare replied that it is specific to state declared disasters. He noted that in the 2009 spring flood, most communities were covered under the federal program, but there were about 30 families that did not qualify. All that could be provided by the state was $5000. He reiterated that it is an involved application process to collect funds. Representative Gara asked for an example of someone who could not be helped enough. Mr. O'Hare noted that there have been individuals affected who did not fall under the federal declaration. Representative Gara maintained that there may still be people suffering from the 2009 flood. Mr. O'Hare replied that those who did not qualify are resorting to other methods. Representative Gara asked if there would be any objection to going back to help those from 2009 under this bill. Mr. O'Hare declared the bill is not retroactive. Mr. Butcher added that great steps have been taken to help those in need to receive volunteer and donations from the community. Representative Gara noted there could still be people in need of help from that flood. Mr. Pierre responded that was correct, but most needs have been met. The goal is get the individual back on their feet, but not get them to the exact same point as before the disaster. He clarified that there is no double dipping into both state and federal assistance. Representative Gara asked for those that were unable to be helped would there be any benefit or substantial cost to making this bill retroactive to January 1, 2009. 9:38:57 AM Mr. O'Hare replied that those that only qualified for the small amount were helped by volunteer and local groups. He felt comfortable that they have been helped as best as possible. Those individuals have not been made whole, but they are recovering and progressing. Representative Salmon inquired if the state pays any part when a federal disaster is declared. Mr. O'Hare replied that federal regulations cite that the state is responsible for paying 25 percent of the recovery costs. Representative Salmon asked if that was 25 percent of $30,000. Mr. O'Hare replied that would be correct. He added that it does not just cover the public assistance grants. If there is a federally declared disaster the public and individual assistance grant covers a much larger area. 9:41:07 AM Representative Salmon inquired about the bigger costs, such as power and roads, and wondered how those costs were determined. Mr. O'Hare replied that they worked in partnership with FEMA to arrive at the best economic program to restore the critical infrastructure. He noted that in Eagle there was an effort to get people out of the way of future flooding paths. They have also worked with the local power companies to not only restore services, but prevent flood damage from happening again. 9:42:18 AM Representative Joule remarked that this bill helps the department to react to a disaster a little better. He wondered if there are resources to help better planning so the need to react is not as great. Mr. O'Hare reported that the federal government does provide the division with planning specific money from Homeland Security and FEMA to go out into the communities to help them be better prepared to respond. There have been many planning regional workshops implemented to make them better prepared. Mr. Pierre used the 2009 spring floods as an example and noted that staff was sent to villages before the flood hit to see what the effect might be and help the community to be prepared. Co-Chair Stoltze closed public testimony. Co-Chair Stoltze referred to the new revised fiscal note. 9:45:00 AM Mr. Pierre explained the fiscal note changes. He noted that the money that goes to disaster grants comes out of the disaster relief fund. The previous fiscal note showed an increase of $900,000 total that would be spent as a worst case scenario. He noted that realistically only about 30 percent of the applicants get the maximum mount so it will never be the $900,000 increase that was shown. He emphasized that no new funds were needed at this time to be appropriated for the bill from this committee. 9:47:23 AM Vice-Chair Thomas MOVED to report HB 292 out of Committee with individual recommendations and the accompanying new fiscal note. There being NO OBJECTION, it was so ordered. HB 292 was REPORTED out of Committee with a "do pass" recommendation and with a new zero fiscal note.