Bill Text - HB604 (2005)

(New Title) discontinuing the use of tokens.


Revision: Jan. 21, 2010, midnight

HB 604-FN – AS AMENDED BY THE HOUSE

09Mar2005… 0249h

2005 SESSION

05-0317

06/09

HOUSE BILL 604-FN

AN ACT discontinuing the use of tokens.

SPONSORS: Rep. Dodge, Rock 9; Rep. Graham, Hills 18

COMMITTEE: Public Works and Highways

AMENDED ANALYSIS

This bill discontinues the use of tokens on the state turnpike system.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09Mar2005… 0249h

05-0317

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT discontinuing the use of tokens.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Tokens Discontinued. Amend RSA 237:11 by inserting after paragraph V the following new paragraph:

VI. Tokens shall not be used for the payment of tolls on the New Hampshire turnpike system.

2 Repeal. RSA 237:11, V(a) relative to discounts for the use of tokens on the New Hampshire turnpike system, is repealed.

3 Effective Date. This act shall take effect January 1, 2006.

LBAO

05-0317

Amended 3/28/05

HB 604 FISCAL NOTE

AN ACT discontinuing the use of tokens.

FISCAL IMPACT:

      The Department of Transportation indicates this bill, as amended by the House (House Amendment #2005-0249h), will increase state restricted turnpike fund revenue by $2,062,209 in FY 2006 and $4,159,888 in FY 2007 and each year thereafter, and decrease state restricted turnpike fund expenditures by $398,501 in FY 2006, $820,911 in FY 2007, $845,538 in FY 2008 and $870,905 in FY 2009. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department of Transportation (DOT) states this bill discontinues the use of tokens on the New Hampshire turnpike system. DOT estimates that this change will increase turnpike revenue by $2,062,209 in FY 2006 and $4,159,888 in FY 2007 and each year thereafter, and decrease turnpike fund expenditures by $398,501 in FY 2006, $820,911 in FY 2007, $845,538 in FY 2008 and $870,905 in FY 2009.

    DOT determined the revenue and expenditure fiscal impacts of this bill using the following assumptions:

      • The effective date of this bill is January 1, 2006, therefore, one-half year of fiscal impact is shown for FY 2006

      • Historically, token use has been 60% of passenger car patrons and the current token discount is 50%.

      • In FY 2004, 61.9 million transactions were paid by tokens representing $41.0 million undiscounted revenue and $20.5 discounted revenue.

      • The EZ-Pass discount for private accounts will be the same as the current token discount of 50%.

      • Revenue projections are based on the assumption that 80% of the current token users will enroll in the EZ-Pass program and receive a 50% discount.

      • The commercial charge program currently provides a 30% discount, but since commercial customers are not allowed to pay tolls with tokens, the elimination of tokens does not affect toll revenue from commercial accounts.

      • The Department estimates that it costs approximately $751,250 to manage the token discount program including the purchase of new tokens, counting tokens and other token processing costs. This cost is increased by 3% for inflation in this fiscal note.

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