04/04/2025 01:30 PM Senate LABOR & COMMERCE

                     SB  11-FLOOD INSURANCE                                                                                 
                                                                                                                                
1:46:35 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration of  SENATE BILL  NO. 11 "An  Act relating  to flood                                                               
insurance;  relating  to  property  insurance;  establishing  the                                                               
Alaska Flood Authority  and the Alaska flood  insurance fund; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
1:47:23 PM                                                                                                                    
SENATOR  BERT  STEDMAN,  District A,  Alaska  State  Legislature,                                                               
Juneau, Alaska, as sponsor of SB  11, presented a brief recap and                                                               
stated  that  this bill  proposes  creating  a state-level  flood                                                               
insurance  program  to  replace  FEMA's  program.  He  said  FEMA                                                               
premiums  are too  high, actual  losses  in Alaska  are low,  and                                                               
FEMA's  building   restrictions  unnecessarily   limit  shoreline                                                               
development. He  noted that most Alaska  communities already have                                                               
planning commissions capable  of regulating construction locally.                                                               
SB 11 aims to lower  costs, expand insurance benefits, and return                                                               
building control to the state and  local level. He said that FEMA                                                               
is financially strained by heavy  risk exposure in other regions,                                                               
leaving Alaskans  subsidizing those  areas. He stated  his belief                                                               
that the  state is financially  strong enough to  provide better,                                                               
more responsive support for its own citizens.                                                                                   
                                                                                                                                
1:50:16 PM                                                                                                                    
SENATOR  GRAY-JACKSON  said  she   received  a  letter  from  the                                                               
Anchorage Planning Department that  said the department would not                                                               
recommend establishing  a public body  or authority, as  it could                                                               
encourage  or  subsidize  development   in  areas  with  elevated                                                               
natural hazard risks.                                                                                                           
                                                                                                                                
1:51:04 PM                                                                                                                    
CHAIR  BJORKMAN   stated  that  new  flood   maps  were  recently                                                               
released,  and some  people have  raised  concerns because  areas                                                               
shown on the maps have  rarely, if ever, experienced flooding. He                                                               
asked if these  maps, or any future flood maps,  would affect who                                                               
is  included  or excluded  from  using  the new  state  insurance                                                               
program.                                                                                                                        
                                                                                                                                
1:51:37 PM                                                                                                                    
SENATOR  STEDMAN deferred  the question  to the  Director of  the                                                               
Division of Insurance, Lori Wing-Heir.                                                                                          
                                                                                                                                
1:51:59 PM                                                                                                                    
LORI  WING-HEIER,  DIRECTOR,  Division of  Insurance,  Anchorage,                                                               
Alaska,  answered questions  relating to  SB 11  and stated  that                                                               
this  new legislation  would establish  an  authority that  would                                                               
review flood maps. In some cases,  it may adopt federal maps, but                                                               
in others it  could create its own,  identifying which properties                                                               
are truly at risk based on actual flooding history.                                                                             
                                                                                                                                
1:53:30 PM                                                                                                                    
CHAIR BJORKMAN  opened public testimony  on SB 11;  finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
1:54:02 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:54:06 PM                                                                                                                    
SENATOR MERRICK  moved to report  SB 11, work  order 34-LS0134\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
1:54:19 PM                                                                                                                    
CHAIR BJORKMAN  found no  objection and SB  11 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.