Legislature(2023 - 2024)SENATE FINANCE 532
03/12/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB236 | |
| SB127 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 236 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 127 | TELECONFERENCED | |
SENATE BILL NO. 236
"An Act relating to grants to disaster victims."
9:06:49 AM
Co-Chair Olson relayed that it was the first hearing for SB
236.
9:07:09 AM
SENATOR JESSE KIEHL, SPONSOR, explained that the bill would
make changes in Alaskas Disaster Assistance Program. The
changes would kick in for natural disasters that included a
disaster declaration from the governor, but not a disaster
declaration from the President of the United States (U.S.).
He characterized the bill as Alaska helping Alaskans even
when the Federal Emergency Management Agency (FEMA) did not
show up. The bill would make two changes, one of which
involved the amount of aid. Current law set state disaster
assistance at half of the maximum that FEMA paid, which was
currently about $21,000 with inflation adjustment. He
reminded that when a natural disaster affected homes and
livelihoods, $21,000 did not meet needs. The bill would
raise the amount of state aid to $50,000 and would adjust
to a higher amount when the FEMA amount was adjusted
higher.
Senator Kiehl addressed the second change, which pertained
to what he considered a loophole when the program was
created. The state program would help with expenses not
covered by insurance, but the state disaster assistance
could not be applied to damage to condominiums experiencing
damage to the structure. He asserted that the bill would
not allow for double dipping. The bill would allow condo
owners to be eligible for state aid for damage to
condominium structures on the same terms as a single family
homeowner.
9:10:01 AM
ELLA ADKISON, STAFF FOR SENATOR KIEHL, addressed a
Sectional Analysis document (copy on file):
Sec. 1: Repeals and reenacts a previously existing
section in statute without substantive changes so the
format is consistent with later sections.
Sec. 2: Increases the maximum amount of state aid to
the greater of $50,000 or half of the federal maximum:
currently, the maximum is approximately $21,000.
Allows a grantee who is a member of a condo
association to use state aid to pay for their share of
condo-wide damage expenses.
Senator Wilson asked if the bill had an effective date.
Senator Kiehl relayed that the bill had no specific
effective date clause, and the bill would take effect 90
days after being signed by the governor or being passed
into law without signature.
Senator Wilson asked if any past disaster victims would be
eligible if the bill passed.
Senator Kiehl answered no, and that there was no
retroactivity clause in the bill.
9:11:32 AM
WADE BRYSON, ASSEMBLY MEMBER, CITY AND BOROUGH OF JUNEAU,
spoke in favor of the bill. He relayed that he was a 29
year resident of Juneau, and was a small business owner. //
He mentioned a disaster that took place on August 6, 2023,
when the Mendenhall River flooded after there was a glacial
outburst flood resulting in a high water mark that was 180
percent higher than the previous record. He recounted
viewing the flooding with U.S. Senator Lisa Murkowski and
seeing boulders the size of cars and buses that had been
moved with the force of the water.
Mr. Bryson discussed the effect of the flooding disaster on
the neighborhood and the circumstance of losing a home. He
mentioned neighborhood meetings and outreach. He noted that
whole neighborhoods had been affected. He posited that the
average person's largest wealth asset was a home. He
thought the consequences of leaving the state assistance
level at $21,000 instead of raising it as proposed in the
bill could be the difference between being able to start
over in the state or having to leave. He discussed a family
that had lost a house. He thought the bill would be a step
in creating some surety and helping Alaskans. He asserted
that the City of Juneau supported the bill.
9:15:12 AM
Co-Chair Olson considered taxpayer funds for disasters, and
asked how to justify using state funds from Alaskans very
far from the scene of the disaster.
Mr. Bryson thought the nature of living in Alaska was
pertinent. He used the example of another district hit by
an earthquake, after which FEMA did not step in if the
amount of damage to a community was not sufficiently
catastrophic. The bill would apply to home and condo owners
that were productive members of society. He emphasized not
losing population due to disasters.
Co-Chair Olson considered that no one was immune from
disasters. He mentioned Typhoon Merbok in Golovin, where
there was 4 feet of sand inside the new house he had built.
Mr. Bryson mentioned a landslide in a neighboring Southeast
Alaska community, and noted that every community had tried
to provide some level of aid. He thought Alaskans would
appreciate raising the level of aid.
Co-Chair Olson thought Mr. Bryson had put it well.
9:18:19 AM
SYLVIA HEINZ, TEAM RUBICON, HAINES, relayed that she worked
for three years as the Disaster Reconstruction Project
Manager for the Chilkoot Indian Association. She had worked
as coordinator for the Haines Long-term Recovery Group and
also as Deputy Administrator for Alaskas Team Rubicon, a
veterans-based disaster response organization. She had been
involved in recovery efforts of over 200 disaster-affected
households across Alaska. She had seen the phenomenal job
of the Alaska Division of Homeland Security and Emergency
Managements Individual Assistance Program first-hand. She
emphasized that Alaska had one of the best programs in the
country.
Ms. Heinz discussed listed four reasons to support the
bill. She asserted that disasters were increasing in
frequency. She contended that current disaster funding was
insufficient and cited that insurance had only covered one
of the 240 households affected by the disaster in Haines.
She argued that the bill was good for the economy, through
addressing housing needs and supporting local whole-
community recovery. She emphasized that she supported the
bill because she felt trust for the Alaska Division of
Homeland Security and Emergency Management. She discussed
funding accountability and rules governing fund deployment.
9:22:23 AM
STEVE BRADFORD, VICE PRESIDENT, RIVERSIDE CONDO
ASSOCIATION, JUNEAU, testified in favor of the bill. He
relayed that the Riverside Condo Association had to make
some significant decisions regarding repairs to its condos.
The repairs added up to $1.1 million and had to be borne by
the condo owners as current state law did not allow grants
to condo owners. The assessment to each owner in the
association was about $21,000 for 48 units and almost
$27,000 for three larger units. In addition, a number of
condo owners had interior damage to condos, including
cracked sheetrock and flooring damage. He noted that
Building D had lost its foundation and there had been about
100 yards of undermining erosion. He described that through
cooperation of the city and federal, contractors had been
able to assist and save the building from total collapse.
Mr. Bradford continued his remarks. He asserted that the
Riverside Condo owners wholeheartedly supported the
legislation that would place condo owners on the same
emergency benefit eligibility level as single-family
homeowners in the state. He discussed hardship on condo
owners that were not able to receive state aid.
Senator Merrick asked the sponsor about the definition of
"condo." She thought Ms. Heinz had referenced homeowners'
insurance and asked about the intersection between
homeowners insurance and disaster aid.
Senator Kiehl noted that the last line of the bill had a
cross-reference to the definition of unit owners. The bill
used an existing statutory definitions for condo owners. He
offered to provide a copy of the statue to the committee.
Senator Kiehl relayed that so many of the states disasters
involved things that insurance did not cover. He cited that
insurance did not cover movement of earth. He noted that he
had talked with the Division of Insurance about the bill to
ensure that the provisions did not encourage Alaskans to
reduce insurance coverage. He was confident the bill would
not harm peoples desire or ability to get insurance
coverage.
Senator Wilson asked if the bill would cover individuals
that were not the primary residents of the affected home.
He asked about an individual that owned ten condos that
were affected.
Senator Kiehl thought there was staff from the division
could address the question.
9:28:18 AM
BRYAN FISHER, DIRECTOR OF HOMELAND SECURITY AND EMERGENCY
MANAGEMENT, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS,
answered "no." He cited regulations that specified other
factors of eligibility that required a home to be a primary
owner-occupied residence [to receive aid].
Co-Chair Olson asked about fire and if homeowners would be
eligible for the aid referenced in the bill.
Senator Kiehl thought that as long as the fire was declared
a disaster by the governor, it would be eligible for the
program.
Co-Chair Olson asked about if the fire was not in a
persons primary residence.
Senator Kiehl was certain that the bill addressed aid that
was reserved for a persons primary residence.
Mr. Fisher agreed that the aid applied to primary
residences that were owner-occupied.
Co-Chair Stedman thought the committee should consider the
definitions. He mentioned homes purchased for children or
owned within the family. He pondered that the committee
want to consider broadening the definition.
Senator Kiehl was happy to discuss the definition with Co-
Chair Stedman and the division.
Senator Bishop was interested in the definition of
"occupied," and mentioned he had constituents that lived a
subsistence lifestyle that involved occupation of different
residences seasonally. He asked about the definition as it
pertained to seasonal residences.
Mr. Fisher relayed that the definition in the
administrative code specified that a person had to live in
the home for at least six months of the year. If a person
stayed in a home for more than six months, it would be
considered a primary residence.
9:31:49 AM
Senator Wilson referenced the penultimate paragraph in the
analysis on page 2 of FN 1 from the DMVA:
The proposed new advanced structure creates complex
decision points, making it difficult to calculate the
exact impact it would have on costs relating to the
individual assistance program.
Senator Wilson asked whether the complex decision points
related to the department or the individual applying for
disaster funds.
Mr. Fisher answered that the decision points related to the
division, and explained that there were many eligibility
requirements that were in regulation to pay through the
program. He used the example of trying to determine what
portions of a home were eligibility for repair funding. He
listed additional details that added complexity.
Senator Wilson understood the complexity of the
determination. He wanted to ensure the bill would not make
it more difficult for disaster victims.
Mr. Fisher emphasized that the division strove to make
matters easier for victims of disasters to navigate the
program.
Senator Merrick referenced page 2, line 2 that referenced
"an amount not to exceed the greater of $50,000 or one-half
of the maximum allowed. She asked if there was a structure
that was worth $40,000, it would constitute the maximum
that could be received.
Senator Kiehl answered affirmatively, and relayed that
there was not an opportunity to keep extra funds up to the
maximum. He referenced Ms. Heinz comments about using
receipts to determine eligibility.
Senator Bishop thanked Mr. Fisher and those in his
department. He mentioned that he had had two floods in his
district in two years, and appreciated Mr. Fishers team
coming to the village and helping people process claims.
Co-Chair Olson thanked Mr. Fisher on behalf of Golovin for
its work in the area.
Co-Chair Olson OPENED public testimony.
Co-Chair Olson CLOSED public testimony.
SB 236 was HEARD and HELD in committee for further
consideration.
Co-Chair Olson reminded the committee and gallery that it
was Ashley Johnson-Barr Day, and explained that some
members were wearing purple ribbons in commemoration of her
birthday.