Legislature(2015 - 2016)BARNES 124

04/02/2015 08:00 AM COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 19 BOUNDARIES OF ROAD SERVICE AREAS TELECONFERENCED
Moved CSSB 19(CRA) Out of Committee
+= HB 118 MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS TELECONFERENCED
Moved CSHB 118(CRA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         April 2, 2015                                                                                          
                           8:09 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Cathy Tilton, Chair                                                                                              
Representative Paul Seaton, Vice Chair                                                                                          
Representative Shelley Hughes                                                                                                   
Representative Benjamin Nageak                                                                                                  
Representative Lora Reinbold                                                                                                    
Representative Harriet Drummond                                                                                                 
Representative Dan Ortiz                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 19(CRA)                                                                                                  
"An Act relating to road service area boundary changes."                                                                        
                                                                                                                                
     - MOVED CSSB 19(CRA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 118                                                                                                              
"An  Act adopting  the Municipal  Property  Assessed Clean  Energy                                                              
Act; authorizing  municipalities to  establish programs  to impose                                                              
assessments  for  energy  improvements in  regions  designated  by                                                              
municipalities;  imposing  fees; and  providing  for an  effective                                                              
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 118(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  19                                                                                                                  
SHORT TITLE: BOUNDARIES OF ROAD SERVICE AREAS                                                                                   
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
01/21/15       (S)       PREFILE RELEASED 1/16/15                                                                               
01/21/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (S)       CRA                                                                                                    
03/05/15       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/05/15       (S)       Heard & Held                                                                                           
03/05/15       (S)       MINUTE(CRA)                                                                                            
03/12/15       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/12/15       (S)       Moved  CSSB 19(CRA) Out of Committee                                                                   
03/12/15       (S)       MINUTE(CRA)                                                                                            
03/16/15       (S)       CRA RPT CS  4DP  SAME TITLE                                                                            
03/16/15       (S)       DP: BISHOP, STEDMAN, HOFFMAN, EGAN                                                                     
03/18/15       (S)       TRANSMITTED TO (H)                                                                                     
03/18/15       (S)       VERSION: CSSB 19(CRA)                                                                                  
03/20/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/20/15       (H)       CRA                                                                                                    
03/24/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/24/15       (H)       Heard & Held                                                                                           
03/24/15       (H)       MINUTE(CRA)                                                                                            
04/02/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
BILL: HB 118                                                                                                                  
SHORT TITLE: MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/18/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/15       (H)       ENE, CRA, FIN                                                                                          
03/05/15       (H)       ENE AT 10:15 AM CAPITOL 106                                                                            
03/05/15       (H)       Heard & Held                                                                                           
03/05/15       (H)       MINUTE(ENE)                                                                                            
03/17/15       (H)       ENE AT 10:15 AM CAPITOL 17                                                                             
03/17/15       (H)       Heard & Held                                                                                           
03/17/15       (H)       MINUTE(ENE)                                                                                            
03/24/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/24/15       (H)       <Pending Referral>                                                                                     
03/24/15       (H)       ENE AT 10:15 AM CAPITOL 17                                                                             
03/24/15       (H)       Moved  CSHB 118(ENE) Out of Committee                                                                  
03/24/15       (H)       MINUTE(ENE)                                                                                            
03/25/15       (H)       ENE RPT CS(ENE) 7DP                                                                                    
03/25/15       (H)       DP: CLAMAN, TALERICO, TILTON, NAGEAK,                                                                  
                         WOOL, VAZQUEZ, COLVER                                                                                  
03/26/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/26/15       (H)       Heard & Held                                                                                           
03/26/15       (H)       MINUTE(CRA)                                                                                            
03/28/15       (H)       CRA AT 10:00 AM BARNES 124                                                                             
03/28/15       (H)       Heard & Held                                                                                           
03/28/15       (H)       MINUTE(CRA)                                                                                            
03/31/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/31/15       (H)       -- MEETING CANCELED --                                                                                 
04/02/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYNIEVVA MOSS, Staff                                                                                                            
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented  SB 19 on  behalf of  the sponsor,                                                            
Senator Coghill.                                                                                                                
                                                                                                                                
GENE THERRIAULT, Deputy Director                                                                                                
Energy Policy, Alaska Energy Authority (AEA)                                                                                    
Department of Commerce, Community & Economic Development (DCCED)                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Explained amendments to CSHB 118(ENE).                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:09:19 AM                                                                                                                    
                                                                                                                                
CHAIR  CATHY  TILTON  called  the  House  Community  and  Regional                                                            
Affairs  Standing   Committee  meeting  to  order   at  8:09  a.m.                                                              
Representatives   Hughes,  Nageak,   Reinbold,  Ortiz,   Drummond,                                                              
Seaton, and Tilton were present at the call to order.                                                                           
                                                                                                                                
            SB  19-BOUNDARIES OF ROAD SERVICE AREAS                                                                         
                                                                                                                                
8:10:02 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON announced  that the first order of  business would be                                                              
CS FOR SENATE BILL  NO. 19(CRA), "An Act relating  to road service                                                              
area boundary changes."                                                                                                         
                                                                                                                                
8:10:21 AM                                                                                                                    
                                                                                                                                
RYNIEVVA  MOSS,   Staff,  Senator   John  Coghill,   Alaska  State                                                              
Legislature,  speaking  on  behalf of  Senator  Coghill,  sponsor,                                                              
explained that CSSB  19(CRA) proposes changes to  the road service                                                              
area  statutes  per  the  request  of  the  Fairbanks  North  Star                                                              
Borough.    The  proposed  changes   allow  the  borough  assembly                                                              
without a  vote of the parcels  involved with the road  service to                                                              
do  the  following:    consolidate  a  parcel  split  between  two                                                              
service  areas  into the  service  area  that  has access  to  the                                                              
parcel; incorporate  an entire parcel  when a parcel  is partially                                                              
in  a  service area,  but  the  parcel  has  to have  access  only                                                              
through the service area.                                                                                                       
                                                                                                                                
8:11:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to   report  CSSB  19(CRA)  out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal  notes.    There  being  no  objection,  CSSB  19(CRA)  was                                                              
reported from  the House Community  and Regional  Affairs Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
8:12:29 AM                                                                                                                    
                                                                                                                                
The committee took an at ease from 8:12 a.m. to 8:15 a.m.                                                                       
                                                                                                                                
         HB 118-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS                                                                     
                                                                                                                                
8:15:26 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON announced  that the final order of  business would be                                                              
HOUSE  BILL  NO. 118,  "An  Act  adopting the  Municipal  Property                                                              
Assessed   Clean  Energy   Act;   authorizing  municipalities   to                                                              
establish programs  to impose assessments for  energy improvements                                                              
in  regions  designated  by  municipalities;  imposing  fees;  and                                                              
providing for  an effective date."   [CSHB 118(ENE) is  before the                                                              
committee.]                                                                                                                     
                                                                                                                                
8:15:53 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON moved  that the committee adopt Amendment  1, labeled                                                              
29-GH102\H.1, Shutts, 4/1/15, which read:                                                                                       
                                                                                                                                
     Page 1, following line 7:                                                                                                  
     Insert new bill sections to read:                                                                                          
        "* Sec. 2. AS 29.35.200(b) is amended to read:                                                                      
          (b) A first class borough may by ordinance                                                                            
     exercise the following powers on an areawide basis:                                                                        
              (1) provide transportation systems;                                                                               
              (2) provide water pollution control;                                                                              
               (3) provide air pollution control in                                                                             
     accordance with AS 46.14.400;                                                                                              
               (4) license day care facilities;                                                                                 
               (5) license, impound, and dispose of                                                                             
     animals;                                                                                                               
               (6)    establish    an   energy    improvement                                                               
     assessment program under AS 29.49.                                                                                     
        * Sec. 3. AS 29.35.210(b) is amended to read:                                                                         
          (b)  A second class borough may by ordinance                                                                          
     exercise the following powers on an areawide basis:                                                                        
              (1)  provide transportation systems;                                                                              
               (2)  license, impound, and dispose of                                                                            
     animals;                                                                                                                   
               (3)  provide air pollution control under                                                                         
     AS 46.14.400;                                                                                                              
               (4)  provide water pollution control;                                                                            
               (5)  license day care facilities;                                                                            
               (6)    establish    an   energy    improvement                                                               
     assessment program under AS 29.49."                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion purposes.                                                                         
                                                                                                                                
8:16:12 AM                                                                                                                    
                                                                                                                                
GENE  THERRIAULT, Deputy  Director, Energy  Policy, Alaska  Energy                                                              
Authority  (AEA), Department  of  Commerce,  Community &  Economic                                                              
Development  (DCCED), explained  that  Amendment  1 would  provide                                                              
clear  authority to  first and second  class  boroughs to  adopt a                                                              
Property  Assessed   Clean  Energy   (PACE)  financing   mechanism                                                              
areawide.   The change  merely adds  to the  list of things  first                                                              
and second class boroughs can do areawide.                                                                                      
                                                                                                                                
8:17:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES related her  understanding that  cities can                                                              
already  do  this  by ordinance,  that  is  areawide  within  city                                                              
boundaries.                                                                                                                     
                                                                                                                                
MR. THERRIAULT said he believes that is correct.                                                                                
                                                                                                                                
8:17:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON removed his objection.                                                                                    
                                                                                                                                
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
8:17:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HUGHES    moved   that   the    committee   adopt                                                              
[Conceptual]  Amendment  2,  labeled  3/16/2015,  Macsalka,  which                                                              
read:                                                                                                                           
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "regions designated by"                                                                                      
                                                                                                                                
     Page 1, line 14:                                                                                                           
          Delete "a region designated under this chapter"                                                                       
          Insert "the municipality"                                                                                             
                                                                                                                                
     Page 2, lines 13 - 14:                                                                                                     
          Delete "in a region designated under this                                                                             
     chapter"                                                                                                                   
          Insert "located in the municipality"                                                                                  
                                                                                                                                
     Page 3, lines 7 - 15:                                                                                                      
          Delete all material and insert:                                                                                       
               "Sec. 29.49.050. Applicability of program.                                                                     
     (a)  A  program  established  by a  borough  under  this                                                                   
     chapter shall apply on an areawide basis.                                                                                  
                    (1) The governing body of a city                                                                            
     located  within a  borough  that establishes  a  program                                                                   
     under  this  chapter  may,  by  ordinance,  opt  out  of                                                                   
     participation  in the  borough's  program.  A city  that                                                                   
     opts  out of the  program shall  forward  a copy of  the                                                                   
     ordinance to  the borough within 30 days  after adoption                                                                   
     of the ordinance.                                                                                                          
                    (2)    A   city   that   opts    out   of                                                                   
     participation  in a  program  established  by a  borough                                                                   
     may opt back into the borough's program by ordinance.                                                                      
                                                                                                                                
          (b) A program established by a city under this                                                                        
     chapter shall  apply throughout the 1  entire geographic                                                                   
     boundaries of the city.                                                                                                    
                                                                                                                                
               (c) If a borough establishes a program under                                                                     
     this   chapter  after   a   city  within   the   borough                                                                   
     establishes  a program under  this chapter, the  borough                                                                   
     succeeds  to all  rights,  powers, duties,  assets,  and                                                                   
     liabilities  of  the  city  existing  under  the  city's                                                                   
     program.                                                                                                                   
                                                                                                                                
     Page 3, line 27:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Page 3, line 28:                                                                                                           
          Delete "(E)"                                                                                                          
          Insert "(D)"                                                                                                          
                                                                                                                                
     Page 3, line 31:                                                                                                           
          Delete "(F)"                                                                                                          
          Insert "(E)"                                                                                                          
                                                                                                                                
     Page 4, line 2:                                                                                                            
          Delete "(G)"                                                                                                          
          Insert "(F)"                                                                                                          
                                                                                                                                
     Page 4, line 5:                                                                                                            
          Delete "(H)"                                                                                                          
          Insert "(G)"                                                                                                          
                                                                                                                                
     Page 4, line 7:                                                                                                            
          Delete "(I)"                                                                                                          
          Insert "(H)"                                                                                                          
                                                                                                                                
     Page 4, line 29:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Page 4, line 30:                                                                                                           
          Delete "(2)"                                                                                                          
          Insert "(1)"                                                                                                          
                                                                                                                                
     Page 5, line 4:                                                                                                            
          Delete "(3)"                                                                                                          
          Insert "(2)"                                                                                                          
                                                                                                                                
     Page 5, line 7:                                                                                                            
          Delete "(4)"                                                                                                          
          Insert "(3)"                                                                                                          
                                                                                                                                
     Page 5, line 9:                                                                                                            
          Delete "(5)"                                                                                                          
          Insert "(4)"                                                                                                          
                                                                                                                                
     Page 5, line 11:                                                                                                           
          Delete "(6)"                                                                                                          
          Insert "(5)"                                                                                                          
                                                                                                                                
     Page 8, lines 21 - 22:                                                                                                     
          Delete all material and insert:                                                                                       
          "(1) payments of contractual assessments on                                                                           
     property benefited under this chapter;"                                                                                    
                                                                                                                                
     Page 9, line 19:                                                                                                           
          Delete "region"                                                                                                       
          Insert "program"                                                                                                      
                                                                                                                                
     Page 9, line 22:                                                                                                           
          Delete "region"                                                                                                       
          Insert "municipality"                                                                                                 
                                                                                                                                
     Page 9, line 25:                                                                                                           
          Delete "region"                                                                                                       
          Insert "municipality"                                                                                                 
                                                                                                                                
     Page 10, line 9:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
8:17:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES informed the  committee that  after working                                                              
with  Mr.  Therriault  and  speaking  with  the  Matanuska-Susitna                                                              
Borough mayor,  it seemed  appropriate to  address the  concern of                                                              
choosing winners  and losers  by picking  regions.  The  amendment                                                              
will allow cities to opt out if they so choose.                                                                                 
                                                                                                                                
MR.  THERRIAULT   explained  that   the  impact  of   [Conceptual]                                                              
Amendment  2 is  that  the government  would  no  longer have  the                                                              
power to  apply PACE in  a sub region of  the borough or  the city                                                              
but  rather  would  have  to  be  the  entire  area.    Therefore,                                                              
language  referring  to  the  designation  of a  region  has  been                                                              
removed  and now  refers to  it being  areawide.   In the case  in                                                              
which a  city within a  borough wants to  opt out, they can  do so                                                              
by  passage  of  an  ordinance.    The  language  in  [Conceptual]                                                              
Amendment 2  also provides  the city assembly  the ability  to opt                                                              
in later.   He then explained that  the language on page  2, lines                                                              
3-5, of  [Conceptual] Amendment 2  addresses a situation  in which                                                              
a city  within a borough  decides to  allow PACE financing  within                                                              
its boundaries  and  then the borough  later  wants to allow  PACE                                                              
financing  as  well.   In  such  a situation,  the  borough  would                                                              
assume  the   city  program  and   take  on  the   city's  program                                                              
obligations.    The  remainder  of  [Conceptual]  Amendment  2  is                                                              
conforming language.                                                                                                            
                                                                                                                                
8:20:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES said  that [Conceptual]  Amendment 2  would                                                              
follow  the  principle  as  embodied  in [HB  146]  in  which  tax                                                              
exemptions would be areawide.                                                                                                   
                                                                                                                                
8:21:21 AM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
8:22:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES clarified that Amendment 2 is conceptual.                                                                 
                                                                                                                                
8:22:57 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON withdrew her objection.                                                                                            
                                                                                                                                
There being no further objection, Conceptual Amendment 2 was                                                                    
adopted.                                                                                                                        
                                                                                                                                
8:23:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON moved to report CSHB 118, Version 29-                                                                     
GH1021\H,  Shutts,  3/25/15, as  amended,  out of  committee  with                                                              
individual  recommendations  and   the  accompanying  zero  fiscal                                                              
note.  There  being no objection, CSHB 118(CRA)  was reported from                                                              
the House Community and Regional Affairs Standing Committee.                                                                    
                                                                                                                                
8:24:08 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Community and Regional Affairs Standing Committee meeting was                                                                   
adjourned at 8:24 a.m.                                                                                                          

Document Name Date/Time Subjects