HB 1606-FN-A – AS INTRODUCED
2008 SESSION
06/10
HOUSE BILL 1606-FN-A
AN ACT relative to the rate of highway tolls.
SPONSORS: Rep. Vaillancourt, Hills 15; Rep. Hinkle, Hills 19; Rep. Stepanek, Hills 6; Rep. Renzullo, Hills 27; Sen. Roberge, Dist 9
COMMITTEE: Public Works and Highways
This bill:
I. Sets the rate of highway tolls.
II. Requires legislative approval for a change in highway tolls.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2545
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to the rate of highway tolls.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Rate of Highway Tolls. Amend RSA 237:9 to read as follows:
237:9 Tolls. The toll rates for use of the New Hampshire turnpike system shall be as set forth in the toll rate schedule of the department of transportation, January 1, 2005. The commissioner of transportation, with the prior approval of the [governor and council, shall establish] legislature, may increase or decrease toll rates and other charges for use of the New Hampshire turnpike system or any part of the right-of-way and other property acquired in connection therewith. [The governor and council shall approve or reject the commissioner’s proposed toll rates and other charges within 90 days of receiving them.] The tolls collected shall be deposited with the state treasurer who shall keep the same in a separate account for the New Hampshire turnpike system and the operating expenses and maintenance costs of the system shall be paid from said account. From the balance remaining after payment of operating expenses and maintenance costs, there shall be paid the interest and principal on the bonds issued to finance the system. Fourteen days previous to the time any interest or principal is payable, on any general obligation bonds issued to finance the system, the state treasurer shall examine the existing balance and, except as otherwise provided in RSA 237:10, if such balance is insufficient to make the payment, then he shall notify the governor who shall immediately draw his warrant on the highway fund to cover any deficit and if the funds in both of the above accounts are insufficient, the governor shall draw his warrant upon the state’s general fund to the amount necessary to meet the payments. Any funds paid out from the state’s highway fund or general fund for the above purposes shall be reimbursed from the collection of tolls as soon as such funds are available. Any funds that have been or may be expended for any portion of the system by the department of transportation shall be repaid to said department when, in the opinion of the governor and council, sufficient funds are available. Any excess income may be used for further system extensions in accordance with RSA 237:5, II(m). No provision of this chapter shall constitute a covenant with bondholders with respect to the charging, collection or disposition of tolls.
2 Tolls. Amend RSA 234:24, I to read as follows:
I. The commissioner of transportation, with the prior approval of the [governor and council] legislature, shall establish toll rates and other charges for use of the eastern New Hampshire turnpike or any part of the right-of-way and other property acquired in connection therewith. [The governor and council shall approve or reject the commissioner’s proposed toll rates and other charges within 90 days of receiving them.] The tolls collected shall be deposited with the state treasurer who shall keep the same in a separate account, and the operating expenses and maintenance of the turnpike shall be paid from said account. From the balance remaining after payment of operation and maintenance, the governor, with the approval of the council, shall pay the interest and principal on the bonds issued hereunder. Fourteen days previous to the time said interest and principal are payable, the state treasurer shall examine the existing balance and if such balance is insufficient to make the payment, then he shall notify the governor who shall immediately draw his warrant on the highway fund to cover any deficit, and, if the funds in both of the above accounts are insufficient, the governor shall draw his warrant upon the state’s general fund to the amount necessary to meet the payments. The full faith and credit of the state is pledged to the payment of the principal of and the interest on the bonds as they become due and payable. Any funds paid out from the state’s general fund for the above purposes shall be reimbursed from the collection of tolls as soon as such funds are available. Any funds that have been or may be expended for the completion of the turnpike by the department of transportation shall be repaid to said department when, in the opinion of the governor and council, sufficient funds are available. Any excess income may be used for further toll road extensions in accordance with RSA 237:17, XIII. During the construction of the turnpike the governor may, if necessary, draw his warrant upon the highway fund to pay interest due on any bonds that have been issued in accordance with the provisions of this subdivision; such payment is to be repaid to the highway fund from the collection of tolls.
3 Tolls. Amend RSA 237:40 to read as follows:
237:40 Tolls. The commissioner of transportation, with the prior approval of the [governor and council] legislature, shall establish toll rates and other charges for use of the central New Hampshire turnpike or any part of the right-of-way and other property acquired in connection therewith. [The governor and council shall approve or reject the commissioner’s proposed toll rates and other charges within 90 days of receiving them.] The tolls collected shall be deposited with the state treasurer who shall keep the same in a separate account, and the operating expenses and maintenance of the turnpike shall be paid from said account. From the balance remaining after payment of operation and maintenance, the governor, with the approval of the council, shall pay the interest and principal on the bonds hereunder. Fourteen days previous to the time said interest and principal are payable, the state treasurer shall examine the existing balance and if such balance is insufficient to make the payment, then he shall notify the governor who shall immediately draw his warrant on the highway fund to cover any deficit, and, if the funds in both of the above accounts are insufficient, the governor shall draw his warrant upon the state’s general fund to the amount necessary to meet the payments. The full faith and credit of the state is pledged to the payment of the principal of and the interest on the bonds as they become due and payable. Any funds paid out from the state’s general fund for the above purposes shall be reimbursed from the collection of tolls as soon as such funds are available. Any funds that have been or may be expended for the completion of the turnpike by the department of transportation shall be repaid to said department when, in the opinion of the governor and council, sufficient funds are available. Any excess income may be used for further turnpike extensions in accordance with RSA 237:34, XIII. During the construction of the turnpike the governor may, if necessary, draw his warrant upon the highway fund to pay interest due on any bonds that have been issued in accordance with the provisions of this subdivision; such payment is to be repaid to the highway fund from the collection of tolls.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
08-2545
12/19/07
HB 1606-FN-A - FISCAL NOTE
AN ACT relative to the rate of highway tolls.
FISCAL IMPACT:
The Department of Transportation states this bill will decrease state turnpike fund revenue by $23,500,000 in FY 2009, $23,840,000 in FY 2010, $23,350,000 in FY 2011 and $23,260,000 in FY 2012, and increase state turnpike fund expenditures by $75,000 in FY 2009. There will be no fiscal impact on county and local expenditures or revenues.
METHODOLOGY:
The Department of Transportation (DOT) states this bill requires legislative approval for a change in highway tolls and the bill also decreases turnpike toll rates to the level that existed on January 1, 2005.
The legislative approval for highway toll changes is a policy issue without a direct fiscal impact, however, the decrease in turnpike toll rates to the January 1, 2005 rates are expected to have the fiscal impact as is shown in the table below.
FY 2009 |
FY 2010 |
FY 2011 |
FY 2012 | |
Toll Revenues |
(23,500,000) |
(23,840,000) |
(23,350,000) |
(23,260,000) |
Turnpike Expenditures |
||||
Signage |
30,000.00 |
|||
Software Changes |
45,000.00 |
|||
75,000.00 |
Toll Revenue Assumptions:
DOT hired Stantec Consulting Services to project the revenue increase when the toll rates were increased on October 22, 2007. These same numbers are shown above as decreased toll revenue if the toll rates were rolled back to January 1, 2005 levels as stated in the bill.
The negative annual growth rates were forecasted by Vollmer Associates, and are expected to occur beginning in FY 2011 when the Airport Access Road opens which will negatively affect the toll revenue from the Bedford Main Toll and the Merrimack Exits.