HB 1280-FN – AS INTRODUCED
2012 SESSION
06/01
HOUSE BILL 1280-FN
AN ACT relative to the sale of E-Z Pass transponders and relative to the online New Hampshire E-Z Pass service center.
SPONSORS: Rep. Burt, Hills 7; Rep. Comerford, Rock 9; Rep. Scontsas, Hills 22; Rep. Ball, Hills 9; Rep. S. Tremblay, Rock 3
This bill requires the commissioner of the department of transportation to establish a process for selling E-Z Pass transponders at various locations and to increase the services available at the online E-Z Pass service center.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-2375
06/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to the sale of E-Z Pass transponders and relative to the online New Hampshire E-Z Pass service center.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Transponder Sale Locations. The commissioner of the department of transportation shall establish a process for selling E-Z Pass transponders in various locations in the state which may include, but not be limited to, rest areas on the interstate highways, town clerk offices, and convenience stores.
2 New Hampshire Online E-Z Pass Service Center. The commissioner of the department of transportation shall make the following services available on the New Hampshire online E-Z Pass service center:
I. Change of address.
II. Online payments.
III. Debit renewals.
IV. Change of vehicle.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
12-2375
11/04/11
HB 1280-FN - FISCAL NOTE
AN ACT relative to the sale of E-Z Pass transponders and relative to the online New Hampshire E-Z Pass service center.
FISCAL IMPACT:
The Department of Transportation states this bill will increase state restricted revenue and expenditures by $216,108 in FY 2013, and $391,068 in FY 2014 and each year thereafter. There will be no fiscal impact on county or local revenue or expenditures.
METHODOLOGY:
The Department of Transportation states this bill requires it to establish a process for selling E-Z Pass transponders at various locations throughout the state and to make certain services available on its online E-Z Pass customer service center. The Department states it has already worked with its E-Z Pass vendor, ACS, to institute a pilot retail transponder sale program called E-Z Pass On-The-Go, whereby eligible retailers sell transponders programmed with a pre-paid toll amount. As part of this program, the Department has executed a memorandum of agreement with the American Automobile Association (AAA) – Northern New England to sell these pre-paid transponders and has initiated talks with the New Hampshire Liquor Commission to sell the transponders there as well. Under this pilot program, the Department purchases the transponders at the price of $30 apiece, sells them to AAA for $27 apiece, and then the transponders are sold at the retail locations to consumers at $30 apiece. This has resulted in the Department absorbing a loss to allow the retailers a $3 per unit profit. The Department states to meet the requirements called for in this bill would entail an expansion of this pilot program from its current scope of the 18 AAA locations to 52 locations in total. The expansion would include 5 department of motor vehicle (DMV) locations (Concord, Dover Point, Nashua, Manchester, Portsmouth), 4 welcome center locations (Hooksett (2), Seabrook, Salem), 7 state liquor stores (Hooksett (2), Hampton (2), Portsmouth, Salem, Nashua), 6 city/town halls (Concord, Manchester, Dover, Rochester, Nashua, Portsmouth), and 12 convenience stores (Concord (2), Manchester (2), Dover (2), Rochester (2), Nashua (2), Portsmouth(2)). All of the locations would be in close proximity to a section of the turnpike system. The Department predicts the DMV locations, the welcome centers and the state liquor stores would begin selling the transponders in FY 2013, and the city/town halls and the convenience stores would begin sales in FY 2014. At the existing 18 AAA locations, sales of the transponders average 124.667 units per location per year, and the Department expects that volume to continue into the future. Based on the sales volume of 4 of the AAA locations situated close to the turnpike system, where each location averages sales of 30 transponders per month, the Department estimates sales at each of the 34 expansion locations to reach a volume of 360 (30 units x 12 months) per year. With the expansion of the retail transponder program, the Department also assumes a decrease in the unit cost of the transponders from the current $30 each down to $27 each. Keeping the per unit prices constant, with the retailers paying $27 and consumers paying $30, the Department projects the expansion of the program will result in a zero net impact, while maintaining the $3 per unit profit for the retailers intact. Using this assumed price and cost of $27 per unit, the offsetting increases in turnpike system revenue and expenditures are as follows:
Average
Location Number of Yearly Sales Price/ FY 2014
Type Locations per Location Cost FY 2013 & after
AAA Offices 18 124.667 $27 $60,588 $60,588
DMV Offices 5 360.000 $27 $48,600 $48,600
Welcome Centers 4 360.000 $27 $38,880 $38,880
Liquor Stores 7 360.000 $27 $68,040 $68,040
Municipalities 6 360.000 $27 $0 $58,320
Convenience Stores 12 360.000 $27 $0 $116,640
Total Increase in Turnpike Revenue & Expenditures $216,108 $391,068
The Department also states the bill requires that certain individual account services related to the E-Z Pass program are offered online, specifically change of address, online payments, debit renewals, and change of vehicle functions. The Department states all of these functions are currently offered on its E-Z Pass program website, so these requirements would not have a fiscal impact.