Revision: Feb. 6, 2013, midnight
SB 192-FN-LOCAL – AS INTRODUCED
2013 SESSION
06/05
SENATE BILL 192-FN-LOCAL
AN ACT establishing a state infrastructure bank.
SPONSORS: Sen. Carson, Dist 14; Sen. Rausch, Dist 19; Rep. Griffin, Rock 7; Rep. Renzullo, Hills 37; Rep. Stroud, Hills 21
This bill establishes a state infrastructure bank.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0888
06/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT establishing a state infrastructure bank.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; State Infrastructure Bank. Amend RSA 21-L by inserting after section 18 the following new subdivision:
21-L:19 State Infrastructure Bank; Purpose. The general court recognizes the importance of a sound transportation infrastructure system for public safety and the state’s economic vitality. It is hereby declared to be in the public interest to promote the surface transportation infrastructure system by providing a financial vehicle to enable state and local transportation projects to proceed.
21-L:20 State Infrastructure Bank.
I. There is hereby established a state infrastructure bank (SIB), in accordance with 23 U.S.C. section 610, to advance the surface transportation system by serving as a revolving loan program to finance eligible surface transportation projects within the state of New Hampshire, in order to advance projects at an accelerated rate with favorable repayment terms. The loan repayments shall create a stream of revenue that the SIB will use to support new projects geared towards surface transportation infrastructure that leverages economic development opportunities. The purpose of the SIB is to leverage state and federal funds, accelerate priority projects, and advance economic development and local transportation needs.
II. The SIB shall be used to encourage completion of public or private surface transportation projects that contribute to multi-modal and intermodal transportation with loans and other financial assistance for all or part of the cost of an eligible project relating to surface transportation.
III. The SIB shall be used to encourage private and local participation in financing toward eligible surface transportation projects.
21-L:21 State Infrastructure Bank Fund Established. There is hereby established the state infrastructure bank fund. The fund may consist of federal and state funds, issuance of bonds for revenue, or other revenue received for the purposes of this subdivision. The fund shall be managed by the state treasurer, shall be nonlapsing, and shall be continually appropriated for the purposes of this subdivision. The state treasurer shall execute a cooperative agreement with the Federal Highway Association and/or the Federal Transit Administration/Federal Railroad Administration that specifies the requirements for both program and fund management. The state shall determine the amount of funds to be designated as advance capitalization and submit a written request to the Federal Highway Association or the appropriate U.S. Department of Transportation administration for approval. The source of funds for the advance capitalization shall be subject to review and approval by the joint fiscal committee of the general court.
21-L:22 Administration.
I. The state infrastructure bank shall be administered by the department of transportation. The department is authorized to contract with a third party for administration of the SIB fund.
II. The commissioner of the department of transportation shall adopt rules establishing guidelines for the SIB to exercise its authority under this chapter, including rules for eligibility, application, evaluation, and selection of projects to receive financial assistance, and such rules shall be exempt from the rulemaking process pursuant to RSA 541-A:21.
21-L:23 Authorization.
I. The SIB is authorized to make loans or provide other financial assistance to private or public entities towards all or part of the cost of an eligible project relating to surface transportation.
II. The SIB is authorized to provide bond or debt financing instrument security, other forms of debt financing, and methods of leveraging funds.
III. The SIB is authorized to use the following to capitalize the revolving fund: funds appropriated by the legislature, federal funds as approved by the department of transportation, funds from government entities, funds from public or private entities, proceeds from the issuance of bonds, and other lawful sources. Such funds, as part of a revolving fund, shall remain available until expended.
IV. The SIB is authorized to establish accounts as required by federal or state programs, or as it deems necessary.
V. The SIB is authorized to take all action necessary or useful to perform its functions, including but not limited to:
(a) Adopting, amending, and repealing bylaws necessary for the administration of the SIB’s affairs.
(b) Filing suit and being sued in the name of the SIB.
(c) Making loans or providing financial assistance to qualified borrowers for eligible surface transportation projects.
(d) Entering into contracts or agreements with qualified borrowers and others that are necessary to process, service, or finalize financing agreements.
(e) Entering into contracts with federal or state government agencies in order to fulfill its purpose of providing financial assistance to eligible projects.
(f) Establishing policies and procedures for administering loans or financial assistance, accounting procedures for proper accounting, and reporting as required.
(g) Establishing interest rates, repayment terms, loan origination fees, and service fees in keeping with any agreement with bond holders and in compliance with federal requirements.
(h) Leveraging funds through issuance of bonds and other indebtedness.
(i) Expending funds for administration and other costs related to the SIB, including but not limited to staff, accounting, legal, consulting, or other professional services.
(j) Establishing advisory committees, as appropriate.
(k) Collecting fees and other charges related to loans and financial assistance.
(l) Applying for and accepting any legal source of money, grants, aid, property, or service to effectuate the purpose of the SIB.
(m) Investing funds on behalf of the SIB.
(n) All things necessary or reasonable to implement the purpose of the SIB.
VI. The SIB shall not be a bank under the jurisdiction of the New Hampshire banking commission or the Treasury Department of the United States or subject to the provisions of any federal or state securities law.
VII. The department of transportation shall determine which projects are eligible under the rules and select from the eligible projects. Preference may be given to eligible projects which have local financial support.
VIII. The department of transportation shall submit an annual report to the governor, state treasurer, senate president, speaker of the house of representatives, chair of the senate finance committee, chair of senate transportation committee, chair of house of representatives finance committee, chair of house of representatives public works and highways committee, and chair of the fiscal committee of the general court.
2 New Subparagraph; Rulemaking; Exceptions. Amend RSA 541-A:21, I by inserting after subparagraph (ff) the following new subparagraph:
(gg) RSA 21-L:19-RSA 21-L:23 relative to the state infrastructure bank.
3 New Subparagraph; State Infrastructure Bank Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (310) the following new subparagraph:
(311) Moneys deposited in the state infrastructure bank fund established in RSA 21-L:20.
4 Effective Date. This act shall take effect 30 days after passage.
LBAO
13-0888
Revised 02/06/13
SB 192 FISCAL NOTE
AN ACT establishing a state infrastructure bank.
FISCAL IMPACT:
The Department of Transportation and Treasury Department state this bill, as introduced, will have an indeterminable fiscal impact on state expenditures for FY 2014 and each year thereafter. There is no fiscal impact on county and local revenues and expenditures.
METHODOLOGY:
The Department of Transportation (DOT) states this bill would establish a state infrastructure bank managed by DOT for the purpose of financing eligible surface transportation projects with favorable repayment terms. This bill would also establish the state infrastructure bank fund, a non-lapsing, continually appropriated revolving loan fund administered by the Treasury Department. DOT states it cannot determine the fiscal impact of this bill because several policy decisions have not been made, such as the total amount of funding desired to capitalize the bank, whether federal funds will be used, whether federal reauthorization will modify infrastructure bank funding requirements, or whether a dedicated source of state funding is established.
The Treasury Department states this bill will have an indeterminable fiscal impact on the Treasury Department. The Treasury Department assumes DOT will be responsible for all administration of the bank except for investment management. The Treasury Department assumes costs related to the bank’s investment management would be paid out of the fund, resulting in no incremental impact to the Treasury Department. The Treasury Department also assumes there will be some cost associated with issuing bonds, but it does not have information on which to base the timing or amount of such bond issue.