Senate Finance reviews H.397 changes to flood response, municipal borrowing and local-option tax split

The Senate Finance Committee on May 21 reviewed H.397, a bill that would revise emergency-management rules, add voluntary buyouts for flood‑impacted properties, authorize new municipal borrowing tools and change the local‑option tax (LOT) revenue split between towns and the state.

Tucker Anderson, legislative counsel, led committee members through the bill text and section summaries. "In subsection c related to the administration of this grant program, Senate Government Operations has amended subdivision 1c to add voluntary buyouts for flood impacted or prone properties, as an acceptable use of this grant program," Anderson said. He said the change aligns with the budgeted Municipal Grand List Stabilization Fund and related buyout programs.

The bill would let municipalities carry forward unexpended line‑item budget dollars into a new unassigned fund-balance (Title 24 language noted in the draft), allow short‑term emergency borrowing tied to an all‑hazard event for terms up to five years or the useful life of the purchased asset, and add an option for level debt‑service repayment schedules for municipal borrowing. Anderson described a limit on emergency indebtedness and the five‑year example as a way to bridge towns while they wait for federal reimbursements such as FEMA…