Virginia House Bill HB5

Virginia 2022 Regular Session

• Introduced: 12/7/21
• Refer: 12/7/21
• Refer: 2/9/22

Caption

Flood Relief Fund; established.

Impact

The Flood Relief Fund will be a non-reverting account in the state treasury, ensuring that funds will be strictly allocated for flood relief purposes. It permits up to 175% of the property's value for claims in double distressed localities, which highlights the legislative intent to protect areas hit hardest by economic woes, such as high unemployment and poverty rates. By setting such measures, the bill underscores a response mechanism for disasters while encouraging communities to engage in flood prevention initiatives.

Summary

House Bill 5, introduced in Virginia, aims to establish a Flood Relief Fund dedicated to providing financial assistance to localities and residents affected by flood disasters. The fund will be financed through a combination of auction proceeds from carbon allowances as part of the Regional Greenhouse Gas Initiative (RGGI) and other contributions. It aims to alleviate the economic impact on communities that suffer from significant flood damage through direct financial support for property damages and recovery efforts.

Contention

The proposed bill faced various opinions during legislative discussions, mainly focused on the adequacy and sustainability of funding the Flood Relief Fund over time. Opponents expressed concerns about the potential overreliance on auction proceeds, suggesting the need for more stable funding sources. Furthermore, discussions on the bill highlighted the necessity to ensure that the aid effectively reaches the vulnerable populations who are often the most affected by flooding disasters, raising questions about the fund's administration and eligibility criteria for aid.