HB617 (2013) Detail

(2nd New Title) increasing the rate of the road toll, establishing the New Hampshire state and municipal road and bridge account, and establishing the commission to study revenue alternatives to the road toll.


HB 617-FN-A-LOCAL – AS AMENDED BY THE HOUSE

6Mar2013… 0489h

27Mar2013… 1035h

2013 SESSION

13-0785

06/10

HOUSE BILL 617-FN-A-LOCAL

AN ACT increasing the rate of the road toll, establishing the New Hampshire state and municipal road and bridge account, and establishing the commission to study revenue alternatives to the road toll.

SPONSORS: Rep. Campbell, Hills 33; Rep. Bouchard, Merr 18; Rep. McConkey, Carr 3; Rep.?Barry, Hills 21; Rep. Tatro, Ches 15; Rep. Lovejoy, Rock 36; Rep. A. Schmidt, Sull 1; Sen. Watters, Dist 4; Sen. Pierce, Dist 5

COMMITTEE: Public Works and Highways

AMENDED ANALYSIS

This bill:

I. Establishes the New Hampshire state and municipal road and bridge account.

II. Increases the road toll for gasoline and diesel fuel.

III. Provides for adjustment in payments by the department of transportation to municipalities for highway construction and reconstruction aid when such payments are based on estimated revenue.

IV. Credits the revenue from certain unrefunded tolls resulting from the increase in the road toll to the highway and bridge betterment account.

V. Establishes a commission to study revenue alternatives to the road toll for the funding of the state’s highways and bridges.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Mar2013… 0489h

27Mar2013… 1035h

13-0785

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT increasing the rate of the road toll, establishing the New Hampshire state and municipal road and bridge account, and establishing the commission to study revenue alternatives to the road toll.

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

1 New Subparagraph; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (310) the following new subparagraph:

(311) Moneys deposited in the New Hampshire state and municipal road and bridge account established under RSA 260:32-a.

2 Levy of Tolls and Exemptions. Amend the introductory paragraph of RSA 260:32 to read as follows:

260:32 Levy of Tolls and Exemptions. There is hereby imposed a road toll of $.18 per gallon upon the sale of each gallon of motor fuel sold by distributors thereof. The road toll on gasoline shall increase to $.22 per gallon beginning July 1, 2013; to $.26 per gallon beginning July 1, 2014; and to $.30 per gallon beginning July 1, 2015. The road toll on special fuel (diesel) shall increase to $.20 per gallon on July 1, 2013; to $.22 per gallon on July 1, 2014; to $.24 per gallon on July 1, 2015; to $.26 per gallon on July 1, 2016; to $.28 per gallon on July 1, 2017; and to $.30 per gallon on July 1, 2018. The road toll shall be collected by the distributor from the purchaser and remitted to the state in the manner hereinafter set forth. All amounts collected in excess of $.18 per gallon shall be deposited on a monthly basis into the New?Hampshire state and municipal road and bridge account established in RSA 260:32-a. Provided, that the road toll shall not apply to:

3 New Section; Account Established. Amend RSA 260 by inserting after section 32 the following new section:

260:32-a Account Established. There is hereby established a separate account in the highway fund called the New Hampshire state and municipal road and bridge account. The account is to be used exclusively for the construction, reconstruction, and maintenance of state and municipal roads and bridges, including weight-restricted bridges and unnumbered roads owned by the state, to improve safe travel for motorists, create jobs, and promote commerce, tourism, and economic growth in the state. The account shall consist of the funds attributable to all road toll revenue collected in excess of $.18 per gallon, net of any block grant aid apportionment pursuant to RSA 235:23, I. The amount deposited into the New Hampshire road and bridge account is hereby exclusively and continually appropriated to the department of transportation and shall be nonlapsing.

4 Block Grant Aid; Apportionment. Amend RSA 235:23, I to read as follows:

I. Apportionment A. In each fiscal year, the commissioner shall allocate an amount not less than 12 percent of the estimated total road toll revenue and motor vehicle fees to be collected [in the preceding] during the fiscal year to a local highway aid fund. This fund shall be distributed to each city, town, and unincorporated place on a formula in which 1/2 of the amount is based on the proportion which the mileage of regularly maintained class IV and class V highways in each municipality, as of January 1 of the previous year, bears to the total of such mileage in the state; and 1/2 of the amount is based on the proportion which the office of energy and planning population estimate of each municipality bears to the latest estimate of the total population of the state as of July 1 of the year of the estimate. Since the payment is based upon estimated revenues to be received during the fiscal year, the following year's payment shall be adjusted for any overpayment or underpayment during the prior year based upon the actual audited total road toll revenues and motor vehicle fees collected. The aid to be distributed under this paragraph shall be in addition to all other state and federal aid specifically authorized by statute.

5 New Section; State Bridge Aid; State Highway Aid. Amend RSA 234 by inserting after section 4 the following new section:

234:4-a State Bridge Aid. Beginning in fiscal year 2016, the state allocation under this chapter to municipalities for state bridge aid shall be no less than $13,600,000 per year.

6 New Section; Federal and State Highway Aid; State Highway Aid. Amend RSA 235 by inserting after section 15 the following new section:

235:15-a State Highway Aid. Beginning in fiscal year 2016, the state allocation under this chapter to municipalities for state highway aid shall be no less than $3,400,000 per year.

7 Road Toll; Exception. Amend RSA 260:60 to read as follows:

260:60 Exception.

I. Notwithstanding all other laws and rules to the contrary, annually, on or before June 1, the road toll administrator shall compare the number of gallons on which refunds have been made for the preceding calendar year for motor fuel used in the propulsion of boats on inland public waters of the state, with the number of gallons of such motor fuel sold and delivered directly into the fuel tanks, or supplementary fuel tanks, of boats or outboard motors upon the inland public waters for use in such boats or outboards, based on the number of boats registered in the state at 100 gallons usage per boat, and if there is any balance of unrefunded tolls so collected, the administrator shall report the same to the comptroller who shall, on July 1, next following, except as provided in paragraph II, credit 1/2 of said balance to the general fund and credit 1/2 of said balance to the fish and game department. The funds credited to the fish and game department shall be used by said department to carry out its program and be accounted for as the fish and game fund is accounted for. Any funds credited to the fish and game department as above provided shall not lapse at the end of the fiscal year. The department shall pay monthly to the state treasurer all revenue from the aircraft landing area toll.

II. Unrefunded tolls under paragraph I that resulted from any increase in the road toll over $.18 per gallon shall be credited to the highway and bridge betterment account established in RSA?235:23-a.

8 Road Tolls; Credit Provided; Liability Insurance. Amend RSA 260:61, I to read as follows:

I. Annually, on or before June 30, the comptroller shall transfer, from road tolls collected, an amount equal to the number of licensed OHRVs and snowmobiles for the previous year times the average number of gallons consumed per year per OHRV and snowmobile times the gasoline road toll imposed under RSA 260:32, less any amount refunded for OHRV and snowmobile use for the previous year, to the fish and game department and the bureau of trails as follows. The road toll administrator shall report to the comptroller if there is a balance of unrefunded road tolls collected. The administrator shall certify the amount to the comptroller who shall credit 1/2 of such balance to the bureau of trails for use as provided in paragraph I-a, and 1/2 of such balance to the fish and game department, except that unrefunded tolls that resulted from any increase in the road toll over $.18 per gallon shall be credited to the highway and bridge betterment account established in RSA?235:23-a. For the purposes of this section, “the average number of gallons consumed per year per OHRV or snowmobile” is 100.

9 New Subdivision; Commission to Study Revenue Alternatives to the Road Toll. Amend RSA?21-J by inserting after section 47 the following new subdivision:

Commission to Study Revenue Alternatives to the Road Toll

21-J:48 Commission to Study Revenue Alternatives to the Road Toll.

I. There is established a commission to study revenue alternatives to the road toll for the funding of the state’s highways and bridges.

II.(a) The members of the commission shall be as follows:

(1) Three members of the house of representatives, appointed by the speaker of the house of representatives.

(2) Two members of the senate, appointed by the president of the senate.

(3) The commissioner of the department of revenue administration, or designee.

(4) The commissioner of the department of safety, or designee.

(5) The commissioner of the department of environmental services, or designee.

(6) The commissioner of the department of transportation, or designee.

(b) Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.

III. The commission shall study alternatives to the gas tax, through user taxes or fees, for funding improvements to the state’s highways and bridges, ensuring that all motor vehicles contribute their fair share. The committee shall consider the interim report of the commission on the taxation of alternative fuel and electric-powered motor vehicles of November 1, 2012, track the programs developed in other states, and recommend legislation when an appropriate alternative is defined.

IV. The members of the commission shall elect a chairperson from among the members. The first meeting of the commission shall be called by the first-named house member. The first meeting of the commission shall be held within 45 days of the effective date of this section. Three members of the commission shall constitute a quorum.

V. The commission shall submit annual reports of its findings and any proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1 of each year.

10 Effective Date.

I. Sections 1-8 of this act shall take effect July 1, 2013.

II. The remainder of this act shall take effect upon its passage.

LBAO

13-0785

Revised 04/02/13

Amended 03/28/13

HB 617 FISCAL NOTE

AN ACT increasing the rate of the road toll, establishing the New Hampshire state and municipal road and bridge account, and establishing the commission to study revenue alternatives to the road toll.

FISCAL IMPACT:

      The Department of Safety and Department of Transportation state this bill, as amended by the House (Amendment #2013-1035h), will increase state restricted revenues by $29,505,165 in FY 2014, $58,685,774 in FY 2015, $87,544,503 in FY 2016, and $89,416,063 in FY 2017, increase state restricted expenditures and local revenues by $3,540,620 in FY 2014, $7,042,293 in FY 2015, $19,005,340 in FY 2016 and $19,229,928 in FY 2017. There will be no impact on county revenues or county and local expenditures.

METHODOLOGY:

    The Department of Safety states this bill increases the rate for road toll and credits revenues attributable to the increases to a newly established account within the highway fund called the New Hampshire state and municipal road and bridge account.

    Road Toll and Block Grant Aid to Municipalities (Apportionment A)

    The Department of Safety states this bill will change the rate of road toll per gallon of motor fuel as follows:

    GASOLINE

     

    SPECIAL FUEL (DIESEL)

    ?

    Current

    Proposed

       

    Current

    Proposed

    FY 2014

    $0.18

    $0.22

     

    FY 2014

    $0.18

    $0.22

    FY 2015

    $0.18

    $0.26

     

    FY 2015

    $0.18

    $0.24

    FY 2016

    $0.18

    $0.30

     

    FY 2016

    $0.18

    $0.26

    FY 2017

    $0.18

    $0.30

     

    FY 2017

    $0.18

    $0.28

    FY 2018

    $0.18

    $0.30

     

    FY 2018

    $0.18

    $0.30

    FY 2019

    $0.18

    $0.30

     

    FY 2019

    $0.18

    $0.32

    The Department of Safety states as this bill requires all revenue collected from the increase in road toll, net of block grant apportionment to municipalities, to go to the newly established New Hampshire state and municipal road and bridge account. The Department also states this bill amends the block grant apportionment A statute changing the total amount of the grants from 12% of the previous year’s road toll and motor vehicles fees to 12% of the estimate of the upcoming year’s road toll and motor vehicle fees. The Department estimates this bill will increase state expenditures and local revenues and block grant aid to municipalities:

?

FY 2014

FY 2015

FY 2016

FY 2017

Total Estimated Gallons

797,436,904

793,051,001

788,689,220

784,351,429

?

?

?

?

?

Gasoline (85% of Total)

?

?

?

?

Estimated Gallons

677,821,368

674,093,350

670,385,837

666,698,714

Rate Increase

$0.04

$0.08

$0.12

$0.12

Revenue Increase

$27,112,855

$53,927,468

$80,446,300

$80,003,846

?

?

?

?

?

Diesel (15% of Total)

?

?

?

?

Estimated Gallons

119,615,535

118,957,650

118,303,383

117,652,714

Rate Increase

$0.02

$0.04

$0.06

$0.08

Revenue Increase

$2,392,311

$4,758,306

$7,098,203

$9,412,217

?

?

?

?

?

Total Increase

$29,505,165

$58,685,774

$87,544,503

$89,416,063

?

?

?

   

Block Grant Aid Increase

($3,540,620)

($7,042,293)

($10,505,340)

($10,729,928)

?

?

?

?

?

Net State Revenue Increase

$25,964,546

$51,643,481

$77,039,163

$78,686,135

    State Bridge Aid

    Under this bill, beginning in FY 2016, the allocation to municipalities for state bridge aid shall be no less than $13,600,000. Currently, this allocation is set at $6,800,000, therefore, in FY 2016 and each year thereafter, there will be an increase in state restricted expenditures of $6,800,000.

    State Highway Aid

    Under this bill, beginning in FY 2016, the allocation to municipalities for state highway aid shall be no less than $3,400,000. Currently, this allocation is set at $1,700,000, therefore, in FY 2016 and each year thereafter, there will be an increase in state restricted expenditures of $1,700,000.