02/22/2024 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

               SB 236-GRANTS TO DISASTER VICTIMS                                                                            
                                                                                                                                
1:32:16 PM                                                                                                                    
CHAIR DUNBAR  announced the consideration  of SENATE BILL  NO. 236                                                              
"An Act relating to grants to disaster victims."                                                                                
                                                                                                                                
He said  this is the  introductory hearing  of SB 236.  He invited                                                              
the  bill sponsor  to  put himself  on the  record  and begin  his                                                              
testimony.                                                                                                                      
                                                                                                                                
1:32:31 PM                                                                                                                    
SENATOR JESSE KIEHL, District B, Alaska State Legislature,                                                                      
Juneau, Alaska, sponsor of SB 236, paraphrased the following                                                                    
sponsor statement:                                                                                                              
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Living  in Alaska  is a  privilege, but  one that  comes                                                                   
     with  costs. Chief  among them  is the  risk of  natural                                                                   
     disasters.  These  disasters  can upend  lives,  and  be                                                                   
     incredibly destructive.                                                                                                    
                                                                                                                                
     Many of  these tragic  events do not  rise to the  level                                                                   
     of  a federal  disaster declared  by  the President.  SB
  fixes  two  issues with  aid  in  those  state-only                                                                   
     disasters.  Under current  law, Alaskans  who survive  a                                                                   
     disaster  can   receive  a  mere  $21,000half    of  the                                                                   
     federal  relief  numberfrom   the  state  to  cover  the                                                                   
     costs of  the damage. For  many, that doesn't  even come                                                                   
     close  to  covering   the  need.  Not  only   that,  but                                                                   
     Alaskans  who are a  part of  a condo association  can't                                                                   
     use that  relief to pay  off any condo-wide  damage. So,                                                                   
     if the  condo's foundation  was damaged,  you can't  use                                                                   
     state   help  to  pay   for  itbut    you  can   replace                                                                   
     furniture. This  is a real  problem for the  citizens of                                                                   
     our state.                                                                                                                 
                                                                                                                                
     SB  236  increases  the  state   relief  amount  to  the                                                                   
     greater   of  $50,000   or  half   the  federal   relief                                                                   
     allowable. It  also gives Alaskans  who own a  condo the                                                                   
     flexibility  to  pay  off   their  share  of  condo-wide                                                                   
     expenses with  that money. It's the least we  can do for                                                                   
     those striving to recover from a disaster.                                                                                 
                                                                                                                                
1:33:33 PM                                                                                                                    
SENATOR KIEHL said in recent years, constituents and Alaskans                                                                   
statewide have found gaps in the State's response to state-level                                                                
disasters. SB 236 proposes to close two of these gaps by:                                                                       
                                                                                                                                
Increasing the Amount of State Disaster Relief                                                                                
• The amount of assistance available from the disaster relief                                                                   
   fund for a state-level disaster is currently up to half the                                                                  
   amount that FEMA will pay, about $21,000. He said that does                                                                  
   not fix much.                                                                                                                
                                                                                                                                
• Senate Bill 236 addresses this by setting the disaster                                                                        
   assistance available at the greater of $50,000 or half of the                                                                
   federal disaster  assistance level.  State disaster  assistance                                                              
   is based on a person's actual losses,  not automatically paying                                                              
   $50,000.                                                                                                                     
                                                                                                                                
Common Expense Liability for Condo Homeowners Associations                                                                    
•  The  current  law  does  not  allow  a  homeowner  in  a  condo                                                              
   association to  cover  disaster-caused  damages for  which  the                                                              
   homeowners association bills them. The old  saying is that  you                                                              
   own it from the  paint in,  while  the roof and  foundation are                                                              
   owned by, and  the obligation  of, the homeowners  association.                                                              
   If  the  disaster  damages  the  roof  or  foundation  and  the                                                              
   homeowners association bills  each unit owner, it  doesn't meet                                                              
   the current law for  state disaster assistance  eligibility. SB
 fixes  this  by  allowing  condo  owners  to  use  disaster                                                              
   assistance to pay such bills.                                                                                                
                                                                                                                                
1:36:15 PM                                                                                                                    
SENATOR KIEHL  said that  although the  legislature could  spend a                                                              
lot of  time and  money addressing  every possibility  of disaster                                                              
damage, that  is not  the case with  this bill.  SB 236  plugs one                                                              
glaring hole  and raises  the amount of  money provided  to fellow                                                              
Alaskans to get them back on their feet.                                                                                        
                                                                                                                                
1:36:51 PM                                                                                                                    
SENATOR GRAY-JACKSON asked what the federal disaster amount is.                                                                 
                                                                                                                                
SENATOR KIEHL replied that it is approximately $42,000.                                                                         
                                                                                                                                
1:37:20 PM                                                                                                                    
ELLA   ADKISON,  Staff,   Senator   Jesse   Kiehl,  Alaska   State                                                              
Legislature,  Juneau, Alaska,  presented  the following  sectional                                                              
analysis for SB 236 on behalf of the sponsor:                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
               SB 236 ver. U: Disaster Assistance                                                                             
                                                                                                                              
                       Sectional Analysis                                                                                     
                                                                                                                                
       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.                                                                                                
                                                                                                                                
1:38:24 PM                                                                                                                    
CHAIR DUNBAR announced invited testimony on SB 236.                                                                             
                                                                                                                                
1:38:29 PM                                                                                                                    
WADE  BRYSON,  Assembly  Member,   City  and  Borough  of  Juneau,                                                              
Juneau,  Alaska, gave  invited testimony  on behalf  of the  Mayor                                                              
and the  Juneau Assembly in  support of  SB 236. He  described the                                                              
flood  damage caused  by a  jokulhlaup at  the Mendenhall  Glacier                                                              
last August. Water  rose within a foot of cresting  the Mendenhall                                                              
Back Loop Bridge;  the bridge is usually 20 feet  above the river.                                                              
He  joined  Capital   City  Fire  and  Rescue   and  U.S.  Senator                                                              
Murkowski in the  observation of land formation  changes after the                                                              
flood. The  river straightened  where there  were once  "S" turns,                                                              
chunks of  mountain hundreds  of yards long  were gone,  and large                                                              
rocks were displaced.  He attended a public  neighborhood meeting.                                                              
He reported that  residents were scared and panicked.  As chair of                                                              
Public Works  and Facilities, he  heard public testimony  from the                                                              
community. He said  that residents felt the city  was unsupportive                                                              
and expected more aid.                                                                                                          
                                                                                                                                
MR. BRYSON  said that he  felt helpless  as a politician.  He said                                                              
the only  promise he could make  was that there were  no promises.                                                              
The situation  was  beyond the city's  control  and relied  on the                                                              
State for  relief. Disasters  create panic  because people  do not                                                              
know what to do  next, how quickly aid will come,  or if insurance                                                              
will  cover damages.  In this  case,  earth movement  disqualified                                                              
insurance claims.  He said an  increase in State  assistance would                                                              
provide  relief  during  trying  times. He  emphasized  that  most                                                              
people's wealth  is in  their homes. He  stated that  retirees who                                                              
lost their  homes were  the most  affected and  wondered how  they                                                              
would  start  over.  Increasing  the  assistance  cap  to  $50,000                                                              
offers  more surety  to  citizens experiencing  one  of the  worst                                                              
moments of  their lives where  they had no  home to return  to. He                                                              
said  that   no  district  in   Alaska  is  immune   from  natural                                                              
disasters.                                                                                                                      
                                                                                                                                
MR.  BRYSON  expressed  appreciation  to  the  committee  for  the                                                              
opportunity to  share his  experience and speak  on behalf  of his                                                              
community.                                                                                                                      
                                                                                                                                
1:43:02 PM                                                                                                                    
SYLVIA  HEINZ, representing  self,  Haines,  Alaska, gave  invited                                                              
testimony  in support  of SB 236,  stating she  resides in  Haines                                                              
and Juneau. She  said that she worked with the  Long Term Recovery                                                              
Group  in   Haines.  It   disbanded  after   that  disaster   work                                                              
concluded.  She  spoke from  her  professional experience  as  the                                                              
Tribal  Emergency Manager  for  the Chilkoot  Indian  Association,                                                              
the Reconstruction  Project Manager, and the  Deputy Administrator                                                              
for  Alaska  Team  Rubicon.  She  said  she  is  honored  to  have                                                              
responded to disasters statewide and in the Lower 48.                                                                           
                                                                                                                                
MS.  HEINZ  encouraged  support   of  SB  236  for  the  following                                                              
reasons:                                                                                                                        
                                                                                                                                
•  Alaskans  need it,  and  the  current  funding  is  inadequate.                                                              
   Disasters are increasing in frequency and intensity, and the                                                                 
   likelihood of experiencing one is growing.                                                                                   
                                                                                                                                
•  The economic benefits. This  funding creates jobs,  and much of                                                              
 the money goes toward contractors and reconstruction efforts.                                                                  
                                                                                                                                
•  Trust. She said Alaska  has one of the country's  best Homeland                                                              
   Security and Emergency Management divisions. It and the                                                                      
   Individual Assistance (IA) program effectively manage disaster                                                               
   funds.                                                                                                                       
                                                                                                                                
1:45:05 PM                                                                                                                    
MS.  HEINZ recounted  the  2020 disaster  in  Haines, where  heavy                                                              
rain  and snow  led  to landslides,  fatalities,  and  significant                                                              
damage  to  250 households.  About  34  percent of  the  community                                                              
reported damage.  She later assessed  another 140  households that                                                              
needed assistance.  Communities cannot recover by  themselves with                                                              
those numbers.  She said  that she could  share story  after story                                                              
of  the   community's  reliance   on  state-managed   funding  for                                                              
recovery. Without  funding, some  people could  not get  back into                                                              
their homes and  the State would still be supporting  them through                                                              
tax dollars  and public assistance.  She reiterated  that Alaskans                                                              
need this bill.                                                                                                                 
                                                                                                                                
1:47:00 PM                                                                                                                    
STEVE  BRADFORD,  Vice-President,   Riverside  Condo  Association,                                                              
Juneau, Alaska,  gave invited testimony  in support of SB  236. He                                                              
described the  2023 flood damage  and the subsequent  repair costs                                                              
as follows:                                                                                                                     
                                                                                                                                
•  The association lost one hundred feet of  front yard out to the                                                              
   river.                                                                                                                       
                                                                                                                                
•  One hundred  cubic yards  of  soil was  lost  beneath the  most                                                              
   damaged building, which almost collapsed and was nearly lost                                                                 
   to the river.                                                                                                                
                                                                                                                                
• The association is in the process of repairing that building.                                                                 
                                                                                                                                
• The total repair costs are expected to be about $1.09 million.                                                                
                                                                                                                                
•  State law does not allow  financial grants to condo  owners, so                                                              
   condo unit owners must bear the cost of repairs. Only single-                                                                
   family residences are entitled up to the $21,000 in State                                                                    
   disaster relief.                                                                                                             
                                                                                                                                
•  Each condo  owner has  been assessed  $21,062  for the  smaller                                                              
   units and $26,882 for the larger units.                                                                                      
                                                                                                                                
MR. BRADFORD  emphasized that, in  many cases, condos  are starter                                                              
homes.  Many condo  owners could  barely  afford to  get into  the                                                              
condo and  pay the  monthly condo  fees, making these  assessments                                                              
especially  burdensome.  He  noted  that the  internal  costs  for                                                              
sheetrock,  tile, and  flooring  damage were  in  addition to  the                                                              
condo assessments.  Riverside condo owners  wholeheartedly support                                                              
this bill,  which would place them  on the same  emergency benefit                                                              
eligibility level as single-family homeowners.                                                                                  
                                                                                                                                
1:49:26 PM                                                                                                                    
CHAIR DUNBAR  asked who  insures the  Riverside Condo  Association                                                              
and  about the  insurer's justification  for refusing  to pay  for                                                              
the damage.                                                                                                                     
                                                                                                                                
MR. BRADFORD replied  that the insurer is State Farm.  He said the                                                              
insurance policy  states, "In Alaska,  Florida, and  several other                                                              
states, earth movement  negates the insurance." He  explained that                                                              
the insurer  does not pay  for any damage  due to earth  movement.                                                              
There was  no water on residents'  floors, so there was  no actual                                                              
flooding. However,  the river  whisked away  the soil  beneath the                                                              
building and under  the foundation. The policy  was exactly right.                                                              
He said  that it would  not have mattered  if the association  had                                                              
flood  insurance   or  not  if  there  was  earth   movement,  the                                                              
insurance would not pay.                                                                                                        
                                                                                                                                
1:50:44 PM                                                                                                                    
CHAIR DUNBAR  commented that it  is unfortunate. He  surmised that                                                              
there are  probably a  lot of  people who  think they are  covered                                                              
but are  not. It is  frightening to think  and a little  shameful.                                                              
He thanked Mr. Bradford for his testimony.                                                                                      
                                                                                                                                
1:51:15 PM                                                                                                                    
CHAIR DUNBAR opened  public testimony on SB 236;  finding none, he                                                              
closed public testimony.                                                                                                        
                                                                                                                                
CHAIR DUNBAR held SB 236 in committee.