New proposed legislation would establish a state disaster relief fund in Massachusetts.

The bill is being sponsored by state Rep. Natalie Blais, D-Deerfield, and state Sen. Jo Comerford, D-Hampshire, Franklin & Worcester. They say Massachusetts is one of two states which does not have a permanent disaster relief fund, and state aid can only be provided for disaster relief when the Legislature and governor pass a supplemental appropriation to address a particular need.

The legislation comes just two months after severe flooding impacted parts of central and western Massachusetts.

"So, we're suggesting here in this bill that it can be distributed in emergency disaster relief by natural or human caused disaster, right?” Comerford said Tuesday at a public hearing about the bill. “And that's potentially arson, for example, at a very large scale. Payments can go directly to municipalities, to private nonprofits, to businesses and individuals, and that MEMA would have some discretion about whether to distribute these as reimbursements, or grants, or matching funds or cost shares."

Comerford said the program would be capitalized with $250 million from excess capital gains revenue which would otherwise be transferred to the state's rainy day fund.

The bill has to be admitted by the state House and Senate before going to committee.