Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


March 1, 2023


The Honorable Nick Hoheisel, Chairperson
House Committee on Financial Institutions and Pensions
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Hoheisel:
SUBJECT: Fiscal Note for HB 2320 by House Committee on Financial Institutions and
Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2320 is
respectfully submitted to your committee.
HB 2320 would create the Commercial Property Assessed Capital Enhancement Act (C-
PACE). The C-PACE board as selected by the Department of Commerce would oversee energy
efficiency, water conservation, water quality, air quality, health and renewable energy
improvement projects on qualifying properties. The Board, with oversight and approval of the
Department of Commerce, would adopt rules and regulations to administer C-PACE. In addition,
the Board would be required to (1) evaluate and adopt or reject C-PACE applications, (2) track
project progress, (3) monitor payment of annual special assessments, and (4) provide annual
reports of the program. The Board would also be authorized to impose a fee for program
administration to be assessed as part of the program application that would be paid by the property
owner. The fee for an approved application would be based on a percentage of the total finance
amount and not to exceed the lessor of 1.0 percent of such amount or $50,000.
Under C-PACE, a mortgage lender and a property owner would execute an assessment
contract whereby the property owner agrees to pay an annual assessment for up to 25 years in
exchange for financing of an energy efficiency, water conservation, water quality, air quality,
health and renewable energy improvement project. The bill would also require all mortgage
lenders to develop a written internal policy for how to process and administer C-PACE requests.
The Department of Commerce indicates it would need to hire 1.0 Program Manager FTE
position at a cost of $94,500 from the State General Fund to implement HB 2320 in FY 2024. The
Department of Revenue, Department of Health and Environment and Kansas Water Office indicate
The Honorable Nick Hoheisel, Chairperson
Page 2—HB 2320

HB 2320 would not have a fiscal effect on their operations. Any fiscal effect associated with HB
2320 is not reflected in The FY 2024 Governor’s Budget Report.
The Kansas Association of Counties indicates HB 2320 could have a negligible effect on
counties in situations when the county Register of Deeds would note the special assessment. In
addition, since county treasurers are not required to collect delinquent payments, there would be
no revenue fiscal effect. The League of Kansas Municipalities states it appears HB 2320 would
have no fiscal effect on cities.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Sherry Rentfro, Department of Commerce
Amy Penrod, Department of Health & Environment
Debra Jones, Kansas Water Office
Lynn Robinson, Department of Revenue
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties