CHAPTER 178
HB 551 – FINAL VERSION
27Mar2007… 0556h
05/03/07 1328s
2007 SESSION
06/01
HOUSE BILL 551
AN ACT allowing cities and towns to use capital reserve funds for debt repayment.
COMMITTEE: Municipal and County Government
This bill allows cities and towns to use capital reserve funds for debt repayment.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
27Mar2007… 0556h
05/03/07 1328s 07-0911
06/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT allowing cities and towns to use capital reserve funds for debt repayment.
Be it Enacted by the Senate and House of Representatives in General Court convened:
178:1 Municipalities; Establishment of Reserves. Amend RSA 34:1, V-VI to read as follows:
V. The acquisition of a tax map of such city; [or]
VI. Municipal and regional transportation improvement projects including engineering, right-of-way acquisition and construction costs of transportation facilities, and for operating and capital costs for public transportation[.]; or
VII. The repayment of bonded debt issued for the purpose specified in the fund, in conformance with existing Internal Revenue Service rules.
178:2 Municipalities; Expenditures of Reserve. Amend RSA 34:10 to read as follows:
34:10 Expenditures.
I. The trustees of trust funds holding said capital reserve funds in trust, as hereinbefore provided, shall hold the same until such time as the city councils shall name agents of the city to carry out the objects designated by the city councils as prescribed by RSA 34:2. Expenditures from said capital reserve funds shall be made only for or in connection with the purposes for which said fund was established, or as amended as provided by RSA 34:11.
II. Notwithstanding the prohibition of debt retirement fund establishment in RSA 33:2, capital reserve funds may be used for multiple payments under a financing agreement for the purpose for which the capital reserve was established. If the financing agreement is a lease purchase agreement, the lease purchase agreement may not contain an “escape clause” or a “non-appropriation clause.”
178:3 Municipalities; Expenditure of Reserve. Amend RSA 35:15, III to read as follows:
III.(a) Notwithstanding the prohibition of debt retirement fund establishment in RSA 33:2, capital reserve funds may be used for multiple payments [of lease/purchase agreements for the purpose stated for the capital reserve provided:] under a financing agreement for the purpose for which the capital reserve was established. If the financing agreement is a lease/purchase agreement the following shall apply:
(1) The lease/purchase agreement does not contain an “escape clause” or “non-appropriation clause”; and
(2) The lease/purchase agreement has been ratified by the legislative body by a vote by ballot of 2/3 of all the voters present and voting at an annual or special meeting.
(b) If agents have been named according to RSA 35:15, then no further vote is required to disburse funds following the initial vote which ratified the [lease/purchase] financing agreement.
178:4 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 18, 2007
Effective: August 17, 2007