HB 365-FN-A – AS INTRODUCED
2011 SESSION
06/10
HOUSE BILL 365-FN-A
AN ACT establishing a commission to encourage broadband development and making an appropriation therefor.
SPONSORS: Rep. Rappaport, Coos 1; Rep. Pastor, Graf 9; Rep. Kaen, Straf 7; Rep. Remick, Coos 2; Rep. Townsend, Graf 10; Sen. Gallus, Dist 1
COMMITTEE: Science, Technology and Energy
This bill establishes a commission to encourage broadband development and makes an appropriation therefor.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0308
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT establishing a commission to encourage broadband development and making an appropriation therefor.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Commission to Encourage Broadband Development. Amend RSA 12-A by inserting after section 59-a the following new section:
12-A:59-b Commission to Encourage Broadband Development Established. There is hereby established a commission to encourage broadband service throughout the state of New Hampshire, particularly in areas that are poorly served or not served at all. The commission shall encourage and help finance public computer centers. The commission shall consist of the following members:
I. Two members of the house of representatives, at least one of whom shall be a member of the science, technology and energy committee, appointed by the speaker of the house of representatives; 2 members of the senate, appointed by the president of the senate; and one public member, appointed by the governor. To the extent possible, all members of the commission shall be members of the New Hampshire telecommunications advisory board.
II. Terms of office shall be 3-year staggered terms.
III. No member of the committee shall be employed by a company that is engaged in the business of providing broadband service. If members are proposed from the academic community, all academic institutions within New Hampshire shall be considered.
IV. The commission shall have one paid employee to oversee grants and loans and help prepare reports.
V. The commission shall be authorized to receive and examine applications for development from area enterprises. Development funds shall be granted by the commission in the form of low interest loans or grants, as may be determined by the commission. Area enterprises eligible to apply shall consist of public/private partnerships, but public entities may be created if no private firm applies.
VI. The commission shall elect a chairperson from among its members to facilitate meetings. Meetings shall be held at least monthly.
VII. All sponsored projects shall be completed within 2 years.
VIII. The initial term of the commission shall be 5 years. Thereafter, if 3 years pass during which there are no requests from underserved or non-served areas, all moneys in the fund to encourage broadband development established under paragraph X shall be returned to the general fund. The commission shall thereafter disband or continue at the pleasure of the director of broadband technology planning and development of the division of economic development, department of resources and economic development.
IX. On or before November 30, 2011 and 3 times a year thereafter, the commission shall report its activities to the governor, the president of the senate, and the speaker of the house of representatives.
X. There is hereby established in the office of the state treasurer a fund to encourage broadband development. The fund shall consist of amounts raised from the communications service tax above the amount so raised in 2010. The fund shall be nonlapsing, and shall be continually appropriated for the purposes of this subdivision.
2 Communications Services Tax; Administration. Amend RSA 82-A:15, I to read as follows:
I. The commissioner shall collect the taxes imposed under this chapter and interest, additions to tax, and penalties imposed[, and]. Each year the commissioner shall determine the amount raised that year in excess of the amount raised in fiscal year 2010 and shall deposit such amount in the fund to encourage broadband development established under RSA 12-A:59-b, X. The commissioner shall pay over to the state treasurer the [amount] remainder of the funds collected under this chapter.
3 Appropriation. The sum of $250,000 for the fiscal year ending June 30, 2012 is hereby appropriated to the commission to encourage broadband development for the purposes of the commission for the first year or partial year after its establishment. The amount shall be delivered to the fund for disbursement on an estimated pro-rata basis 3 times a year before each report date. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
4 New Subparagraph; Fund to Encourage Broadband Development. Amend RSA 6:12, I(b) by inserting after subparagraph (304) the following new subparagraph:
(305) Moneys deposited in the fund to encourage broadband development established under RSA 12-A:59-b, X
5 Effective Date. This act shall take effect June 30, 2011.
LBAO
11-0308
Revised 01/31/11
HB 365 FISCAL NOTE
AN ACT establishing a commission to encourage broadband development and making an appropriation therefor.
FISCAL IMPACT:
The Department of Revenue Administration and Department of Resources and Economic Development state this bill will decrease state general fund revenues, increase state restricted revenues, and may increase state restricted expenditures by $4,090,000 in FY 2012, $7,265,641 in FY 2013, $10,561,639 in FY 2014, $13,982,555 in FY 2015 and will increase state general fund expenditures by $250,000 in FY 2012. This bill may increase county and local revenue by an indeterminable amount in FY 2012 and each year thereafter. This bill will have no impact on county and local expenditures.
This bill appropriates $250,000 from the state general fund in FY 2012 to the Commission to Encourage Broadband Development.
METHODOLOGY:
The Department of Revenue Administration and Department of Resources and Economic Development state this bill establishes a Commission to Encourage Broadband Development, makes a general fund appropriation to the Commission of $250,000 in FY 2012, and establishes one paid employee for the Commission to oversee grants and loans and to help prepare reports. The Departments state this bill also establishes a fund to encourage broadband development and directs any amount of the Communication Services Tax (CST) revenues in excess of the FY 2010 revenue to be deposited in the fund. The Commission will grant development funds to area enterprises (defined as public/private partnerships or public entities) in the form of low interest loans or grants.
The Department of Resources and Economic Development states the director of broadband development will serve as the Commission’s paid employee. This position is federally funded through 2014, after which time the Department assumes the position will be paid from the fund to encourage broadband development. The Department estimates costs for the position in FY 2015 as follows (the director currently does not receive health or dental benefits from the state):
FY 2015 | |
Labor Grade 29 |
66,578 |
Social Security (6.2%) |
4,128 |
Medicare (1.45%) |
965 |
Retirement |
8,162 |
Salary and Benefit Subtotals |
$79,833 |
Current Expenses |
2,500 |
Equipment |
2,300 |
Travel |
5,000 |
Total Expenditures |
$89,633 |
The Department of Revenue Administration assumes transfer of CST revenue above FY 2010 levels will be based on FY 2011 revenues and made to the fund in FY 2012. The Department states FY 2010 CST revenues were $79,700,000. Given year-to-date revenues for FY 2011, CST revenues for FY 2011 are estimated to be $83,790,000, $4,090,000 over FY 2010 revenues ($83,790,000 less $79,700,000 = $4,090,000). Therefore, FY 2012 general fund revenues will decrease and state restricted revenues will increase by $4,090,000 while restricted fund expenditures may increase by $4,090,000. The Department states CST revenues grew an average 3.79% per year from FY 2003 to FY 2009. Given this growth rate, it is estimated general fund revenues will decrease, state restricted revenues will increase, and restricted fund expenditures may increase by $7,265,641 in FY 2013, $10,561,639 in FY 2014, $13,982,555 in FY 2015. Additionally, should county or local governments apply for broadband development grants as area enterprises, county or local revenues may increase by an indeterminable amount in FY 2012 and each year thereafter. After the initial five-year term of the Commission, if three years pass during which there are no requests from underserved or non-served areas, all money in the fund to encourage broadband development will be retuned to the general fund.