Bill Text - SB330 (2012)

Requiring an independent financial opinion prior to the leasing of any state park property to a private entity.


Revision: Feb. 10, 2012, midnight

SB 330-FN – AS AMENDED BY THE SENATE

02/08/12 0481s

2012 SESSION

12-3011

04/09

SENATE BILL 330-FN

AN ACT requiring an independent financial opinion prior to the leasing of any state park property to a private entity.

SPONSORS: Sen. Stiles, Dist 24; Sen. Odell, Dist 8; Rep. Renzullo, Hills 27; Rep. Spang, Straf 7; Rep. Bolster, Belk 5

COMMITTEE: Energy and Natural Resources

AMENDED ANALYSIS

This bill requires the director of the division of parks and recreation to retain an independent financial consulting firm to conduct a written analysis of a lease proposal involving the leasing of state park property or operations under certain circumstances.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/08/12 0481s

12-3011

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT requiring an independent financial opinion prior to the leasing of any state park property to a private entity.

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

1 New Section; Expansion of State Park System; Financial Analysis. Amend RSA 216-A by inserting after section 3-m the following new section:

216-A:3-n Financial Analysis Required.

I. The director of the division of parks and recreation shall retain an independent financial consulting firm to conduct a written analysis of a lease proposal for the lease of state park property, operations, or management and render an opinion as to the financial viability of the lease proposal if:

(a) The lease term is for a minimum of 10 years; and

(b) The lease is for the entirety or majority of the state park or its facilities and improvements, or is for the entirety or majority of the state park operation or management; or

(c) The lease is to enable significant capital investment in the state park.

II. A proposed or existing lessee shall be liable for the cost of the financial analysis under paragraph I if so required by the director of the division of parks and recreation.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

12-3011

12/15/11

SB 330-FN - FISCAL NOTE

AN ACT requiring an independent financial opinion prior to the leasing of any state park property to a private entity.

FISCAL IMPACT:

      The Department of Resources and Economic Development states this bill may increase state restricted expenditures by an indeterminable amount in FY 2012 and each year thereafter. There is no fiscal impact on county and local revenue, or state, county and local expenditures.

METHODOLOGY:

    The Department of Resources and Economic Development states this bill requires an independent financial consulting firm to conduct a written analysis of a lease proposal before leasing any state park. The Department assumes any costs associated with a written analysis would be paid out of the park fund or paid by an interested private party seeking to lease state park property or its operations. The cost associated with the written analysis is indeterminable as it would depend on the complexity of a particular state park, the complexity of the transaction, the structure of the transaction, and the nature of the costs. An analysis would likely include a review of the park history, cash flow projections, rate analysis including discounting, capital asset analysis including cost of financing, and a comparison to other similar enterprises. The Department states to the extent the state park fund is used to pay for the required analysis, state expenditures will increase by an indeterminable amount.