ARIZONA STATE SENATE

ANNA NGUYEN

LEGISLATIVE RESEARCH INTERN

MOLLY GRAVER

LEGISLATIVE RESEARCH ANALYST

FINANCE COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

FINANCE COMMITTEE

DATE:            March 21, 2022

SUBJECT:      Strike everything amendment to H.B. 2183, relating to appropriation; flood damage fund

Purpose

Establishes the Flood Damage Fund (Fund) and appropriates $10,000,000 from the state General Fund (state GF) in FY 2023 to the Fund.

Background

The Department of Emergency and Military Affairs (DEMA) consists of the Arizona National Guard, the Division of Emergency Management and the Division of Administrated Services. The Division of Emergency Management coordinates Arizona's emergency preparedness, response and recovery efforts required to reduce the impact of disaster on people and property (DEMA; A.R.S. Title 26).

The National Flood Insurance Act of 1968 established the National Flood Insurance Program (NFIP) to enable the purchase of insurance to cover the cost of implementing measures consistent with land use and control measures for properties that: 1) are repetitive loss structures; 2) have substantially damaged structures; 3) sustained flood damage on multiple occasions, subject to the determination of the Administrator of the Federal Emergency Management Agency; and
4) have an offer of mitigation assistance under statutory programs. Flood insurance under NFIP is deemed to take effect 30 days after the date on which all obligations for the eligible coverage, including completion of the application and payments of initial premiums owed, are satisfactorily completed (42 U.S.C. § 4011).

The strike-everything amendment to H.B. 2183 appropriates $10,000,000 from the state GF in FY 2023 to the Fund.

Provisions

1. Establishes the Fund, administered by DEMA, consisting of legislative appropriations. 

2. Requires Fund monies to be used to reimburse insured individuals, if the insured:

a) filed for reimbursement under a homeowner's insurance policy and was denied; and

b) filed for reimbursement from a federal program.

3. Caps, at $100,000, the amount of monies an insured individual may receive for reimbursement.

4. Specifies that Fund monies are continuously appropriated.

5. Becomes effective on the general effective date.