HB 227-MUNI ENERGY IMPROVEMNT ASSESSMENT PROGRAM  3:30:50 PM CHAIR HUGHES announced the consideration of HOUSE BILL NO. 227 "An Act relating to municipal energy and resilience improvement assessment programs; and providing for an effective date." She advised that the committee would start with the consideration of amendments. 3:31:19 PM CHAIR HUGHES moved to adopt Amendment 1, work order 32- LS1028\I.11. 32-LS1028\I.11 Dunmire 4/13/22 AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR HUGHES TO: HB 227 Page 3, line 24, following "management,": Insert "snow load management," 3:31:28 PM SENATOR D. WILSON objected for discussion purposes. CHAIR HUGHES explained that Amendment 1 reflects the discussion during the previous hearing to specifically identify snow load managementas a resilience improvement project. 3:32:03 PM SENATOR D. WILSON removed his objection to the adoption of Amendment 1. CHAIR HUGHES found no further objection, and Amendment 1 was adopted. 3:32:15 PM SENATOR D. WILSON moved to adopt Amendment 2, work order 32- LS1028\I.9, on behalf of Senator Myers, 32-LS1028\I.9 Dunmire 4/14/22 AMENDMENT 2 OFFERED IN THE SENATE BY SENATOR MYERS Page 10, following line 22: Insert new bill sections to read:  "* Sec. 24. AS 29.10.200(64); AS 29.35.200(b)(6), 29.35.210(a)(14), 29.35.210(b)(6); AS 29.55.100, 29.55.105, 29.55.110, 29.55.115, 29.55.120, 29.55.125, 29.55.130, 29.55.135, 29.55.140, 29.55.145, 29.55.150, 29.55.155, 29.55.160, and 29.55.165 are repealed.  * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: CONTINUED SERVICING OF WRITTEN CONTRACTS. A municipality that has established an energy and resilience improvement assessment program under AS 29.55.100 - 29.55.165 before June 30, 2052, shall continue to service a written contract made under the energy and resilience improvement assessment program through the remainder of the contract. However, a property owner and a lender may convert a written contract made under the energy and resilience improvement assessment program to a loan if both parties agree to the conversion.  * Sec. 26. Sections 24 and 25 of this Act take effect June 30, 2052." Renumber the following bill section accordingly. Page 10, line 23: Delete "This" Insert "Except as provided in sec. 26 of this Act, this" CHAIR HUGHES objected for discussion purposes. 3:32:20 PM SENATOR D. WILSON explained that Amendment 2 adds a 30-year sunset to the program, but allows the continuation of any existing contracts. The amendment also provides the opportunity for property owners and lenders to convert these loans to conventional financing if both parties agree. CHAIR HUGHES asked whether this would be the longest sunset date in statute. SENATOR D. WILSON answered that he was not aware of any other 30-year sunsets in statute. CHAIR HUGHES asked for confirmation that municipalities would be compelled to continue to service a contract made under the energy and resilience improvement assessment program if it were written before the sunset date. SENATOR D. WILSON confirmed that was correct. CHAIR HUGHES asked the sponsor if he would like to comment on the amendment. 3:34:00 PM REPRESENTATIVE CALVIN SCHRAGE, Alaska State Legislature, Juneau, Alaska, sponsor of HB 227, stated that Amendment 2 is a little problematic. He relayed his concern about someone who might enter a 30-year contract say 10 years from now. Although the municipality would still have the authority to service the lien, it's not clear that it would continue to have the authority to apply the voluntary assessment, which is required for the program to function. He was waiting for a memo from Legislative Legal Services to alleviate his concern. He acknowledged that it was the committee's prerogative to adopt the amendment but he would point out that this is an existing program and it did not have a sunset when it became law in 2017. CHAIR HUGHES expressed her willingness to work with the drafters to ensure that a municipality could continue to administer the program for the remainder of any contract that extended beyond the 30 year sunset. She asked whether the bill had a referral to another committee. REPRESENTATIVE SCHRAGE answered that it will go to the Senate Labor and Commerce Committee next. CHAIR HUGHES restated her commitment to ensure that municipalities would be able to continue to service the loans for the duration of the contract. If the problem isn't resolved in the next committee of referral, she would work on it on the floor. 3:36:42 PM SENATOR GRAY-JACKSON asked if he had talked to anybody in the Municipality of Anchorage about his concern. REPRESENTATIVE SCHRAGE answered no; he only learned about the amendment very recently and he was hoping that Legal Services could answer some of his questions. He added that he might be more supportive if he had those answers. SENATOR GRAY-JACKSON advised him to have a conversation with Legal Services and someone at the Municipality of Anchorage before the bill is heard in Labor and Commerce so that she and the other members of that committee could try to address the issue before the bill reaches the floor. CHAIR HUGHES removed her objection; finding no further objection, Amendment 2 was adopted. 3:38:04 PM CHAIR HUGHES opened public testimony on HB 227; finding none, she closed public testimony. 3:38:47 PM SENATOR D. WILSON moved to report HB 227, work order 32-LS1028\I as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR HUGHES found no objection and SCS HB 227(CRA) was reported from the Senate Community and Regional Affairs Standing Committee.