Daniel Inouye: “I wish to raise an issue of concern with the managers of the bill. It relates to the direction of an audit conducted by…”

“I wish to raise an issue of concern with the managers of the bill. It relates to the direction of an audit conducted by the Federal Emergency Management Agency's [FEMA] inspector general on the county of Kauai and the State of Hawaii on the damages caused by Hurricane Iniki. It looks to undo insurance settlements, sanctioned by FEMA and agreed upon 4 years ago. In doing so, the inspector general would renege on funding commitments FEMA previously made, thereby leaving the county with outstanding obligations and in debt. The State of Hawaii voluntarily purchased insurance over that which was required after Hurricane Iwa hit in 1981. To now second guess the county's settlement with its insurance carriers, and then use it as the basis for denying previously approved damage survey reports [DSR's] is without precedent. It is a disincentive for States and cities to insure themselves against natural disasters. FEMA is wrongly penalizing a State for its good faith effort to minimize future losses and reduce the expenditure of Federal funds. There are currently no clear guidelines in the Stafford Act.”