HB 346-GRANTS TO DISASTER VICTIMS  4:54:14 PM CHAIR PRAX announced that the final order of business would be HOUSE BILL NO. 346, "An Act relating to grants to disaster victims." 4:54:36 PM REPRESENTATIVE ANDI STORY, Alaska State Legislature, as prime sponsor, presented HB 346. She began by reading the sponsor statement [included in committee packet], which read as follows [original punctuation provided]: As a state, Alaska has experienced numerous natural disasters in the past few years, including typhoons, mudslides, rockslides and floods. Many of these occurrences do not meet the requirements to receive federal disaster funds. House Bill 346 changes two things regarding state-only disasters. First, under current law, Alaskans can receive $21,000 from the state to pay for the damage experienced in the disaster. This amount has not been changed in decades. In most cases, the amount is too low to help victims replace what was lost. This bill increases that amount to $50,000 or half of the federal relief allowable, whichever amount is greater. In addition, the current statute does not permit disaster victims who are condo owners to use the grants received to pay for assessments levied by the condo association to pay for condo-wide damage. For example, if the condo buildings' foundations are damaged, the condo association will impose an assessment upon each unit owner to help pay for repairs. Although this amount is significant and causes financial distress at a time that is already overwhelming, the current statute does not allow the use of state aid for that purpose. HB 346 will permit Alaskans who own condos to use the relief grant towards the assessment they owe for condo-wide damage repair costs. I respectfully ask for support in the passage of HB 346. 4:59:13 PM JOAN WILKERSON, Staff, Representative Andi Story, Alaska State Legislature, on behalf of Representative Andi Story, prime sponsor, gave the sectional analysis for HB 346 [included in committee packet], which read as follows [original punctuation provided]: Section 1: Repeals and reenacts a previously existing section in statute without substantive changes so the format is consistent with later sections. Section 2: Increases the maximum amount of state aid to the greater of $50,000 or half of the federal maximum, which is approximately $21,000 currently. Allows those receiving a grant who are members of a condominium association to use state aid to pay for the grantee's share of damage expenses incurred by the condominium association. 5:00:27 PM REPRESENTATIVE SADDLER asked Representative Story what the relationship between private disaster insurance and state disaster grants is. REPRESENTATIVE STORY referred her answer to Angela Laflamme of the Department of Military and Veteran's Affairs. ANGELA LAFLAMME, Legislative Liaison, Department of Military & Veteran's Affairs, answered committee questions on HB 346. She said that the state disaster relief program is not currently designed to replace private insurance. 5:02:22 PM REPRESENTATIVE FIELDS asked whether it would be cheaper for the State of Alaska to "buy out" residents living in areas affected by frequent natural disasters. MS. LAFLAMME answered that the state individual assistance program does not currently cover ground movements and said that current regulations in Alaska are on par with federal disaster regulations. REPRESENTATIVE FIELDS asked whether an insurance company would consider a home destroyed by a landslide a flood claim or a ground movement claim. MS. LAFLAMME said that the statutory definition of a disaster is what would trigger a state disaster relief program. 5:05:12 PM REPRESENTATIVE STORY commented that the fixes proposed under HB 346 are directed at two specific problems and acknowledged that there is more work to be done with regard to disaster relief funds in Alaska. 5:05:49 PM WADE BRYSON, Juneau Assembly Member, gave invited testimony on HB 346. He began his testimony by speaking about the Mendenhall Rivers recent catastrophic flooding events and shared his experience as an elected official assisting and providing aide to those affected by the flood. He said the understanding of uncertainty that natural disasters pose is paramount in the understanding of the necessity of disaster preparedness and relief. He emphasized that no electoral district in Alaska is immune from disaster and said that HB 346 presents an acceptable solution for families and individuals that might inevitably be affected by a natural disaster in the future. 5:13:42 PM REPRESENTATIVE FIELDS asked whether the City and Borough of Juneau (CBJ) is working to update its land hazard maps in wake of its recent flooding events. MR. BRYSON replied that "Juneau is built on a landslide hazard" and said that the Juneau Assembly has removed some hazard areas on its current land hazard maps to allow for homeowners to better prepare for the possibility of a landslide. 5:16:01 PM CHAIR PRAX asked whether the Federal Emergency Management Agency (FEMA) was working with CBJ to help provide disaster relief to affected families and individuals along the Mendenhall River. MR. BRYSON replied that the land that is eroded away from the river bands by flooding water is considered "earth movement" and is not covered by FEMA. 5:16:48 PM SYLVIA HEINZ, Tribal Emergency Manager, Chilkoot Indian Association, gave invited testimony on HB 346. She said that disasters are increasing in their frequency and intensity and said, "It is not if a disaster gets a community, but when." She described how the 2020 Haines flooding disaster impacted that community and emphasized that the state individual assistance funds were paramount in the recovery of people affected by the event. She said that the current disaster relief funds from the state are not sufficient to get people back on their feet. She highlighted that HB 346 would have a positive effect on Alaska's economy and explained how the money would stimulate a community's local economy. She added that she was impressed with the Alaska's Division of Homeland Security and its performance in the relief and support of Alaskans affected by natural disasters. 5:23:18 PM CHAIR PRAX announced that HB 346 was held over.