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.