HB 322 - GRANTS FOR HOUSING DURING DISASTER CO-CHAIRMAN KOTT announced the next bill to be heard would be HB 322. He asked Mr. Morrison to continue his testimony. Number 137 MR. MORRISON stated HB 322 has been introduced to improve the administration for temporary housing during state declared disaster emergencies. This legislation was introduced during the 1994 legislative session as HB 421, and passed the House on March 14, 1994, by a 40 to 0 vote. It died in Senate Rules Committee at the end of the 1994 legislative session. This bill is slightly different from the exact language of the bill but the intent is clear. It has been modified to conform to the last version of the bill that came out of the Senate Finance Committee with one minor change. The state's current procedure for people who need to be relocated, due to the disaster, is the staff of the Division of Emergency Services arranges for and leases the temporary housing. In Federally declared disasters, the Federal Emergency Management Agency (FEMA) has a tool at their disposal to issue grants to those individuals to make their own housing arrangements. This is a lot more efficient and exposes the government to less liability. Additionally, it is less of an intrusion into the personal lives of the people effected by the disaster. MR. MORRISON stated the intent of HB 322 is to give the state the ability to issue grants for temporary housing similar to the methods used by the feds in federal declared disasters. The language changed in the Senate Finance Committee in 1994, ensures in statute that there is an offset to make sure that we do not pay people twice if they are receiving funds from FEMA or private insurance. The language states as a condition of accepting the grant, the recipient shall agree to repay the state for any assistance in the event that the recipient is reimbursed from any other source. It requires a coordination of benefits so they do not get paid twice for the same services. Number 192 CO-CHAIRMAN KOTT asked how would you check if a person who receives a state grant does not get paid by an insurance company. MR. MORRISON replied we would not have a problem in coordinating with FEMA for the federal grants. With a private insurance company, we would have the person sign a certification saying they would repay the state. We would have to audit the individuals to insure that did not take place. CO-CHAIRMAN KOTT asked if the grant application would identify if the person had private insurance and if that person would be seeking reimbursement. MR. MORRISON replied that he was not aware if that is on the grant application, it is in the procedures of the temporary housing program. The Division of Emergency Services has a separate plan just for temporary housing and it is in that procedure that items are not paid for if it is covered by private insurance. CO-CHAIRMAN asked what the upper cap on the grant is. MR. MORRISON replied the grant is not limited by a dollar amount, it is limited by time. He said 18 months is the maximum that a person can be provided for temporary housing under a state disaster. Number 230 REPRESENTATIVE DAVIES asked if this gets in the way of how the division responds to emergencies. MR. MORRISON replied that this is just an additional tool. The best way to respond to disasters would be selected by the people managing the disaster and would depend on the nature of the disaster. This does not mandate that grants be made in every case but enables the division to use it when appropriate. REPRESENTATIVE DAVIES asked what kind of conditions are in grant applications. He asked if there are there reporting requirements and if they have to submit receipts. MR. MORRISON replied that he is sure that there will be those type of requirements. These conditions are required under the federal grant process. The state does not have this program, that is the intent of this bill. Under the federal grant program, a person applies for a fixed dollar amount based on estimated expenditures over a three month period. The cases are reviewed every three months and adjustments can be made at that time. Number 250 CO-CHAIRMAN REPRESENTATIVE IVAN moved to pass HB 322 out of committee with individual recommendations and the attached fiscal note. CO-CHAIRMAN KOTT asked if there was an objection. Hearing none, the HB 322 was moved out of committee.