CHAPTER 238
HB 324 - FINAL VERSION
3Jan2018... 2521h
22Mar2018... 1070h
22Mar2018... 1083h
05/02/2018 1620s
2018 SESSION
17-0556
10/09
HOUSE BILL 324
SPONSORS: Rep. Abrami, Rock. 19; Rep. Vose, Rock. 9; Rep. Azarian, Rock. 8; Rep. Lovejoy, Rock. 36; Rep. D. Thomas, Rock. 5; Sen. Carson, Dist 14; Sen. Birdsell, Dist 19; Sen. D'Allesandro, Dist 20
COMMITTEE: Science, Technology and Energy
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This bill establishes a commission to study utility property valuation and recommend legislation to reform the current system of taxing utility property in New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
3Jan2018... 2521h
22Mar2018... 1070h
22Mar2018... 1083h
05/02/2018 1620s 17-0556
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
238:1 New Section; Commission to Study Utility Property Valuation. Amend RSA 72 by inserting after section 12-d the following new section:
72:12-e Commission Established; Utility Property Valuation.
I. There is established a commission to study utility property valuation and recommend legislation to reform the current system of taxing utility property in New Hampshire.
II. The commission shall be composed of 11 members, as follows:
(a) Two representatives of New Hampshire utility companies, one from an electric utility and one from a water or gas utility, appointed by the chairperson of the house science, technology and energy committee.
(b) One representative of New Hampshire municipalities, appointed by the New Hampshire Municipal Association.
(c) One representative from the department of revenue administration, appointed by the commissioner.
(d) One representative of certified municipal assessing officials, appointed by the New Hampshire Association of Assessing Officials.
(e) One retired member of the judiciary with experience in mediation and/or utility property valuation, appointed by the chair of the house municipal and county government committee, or, in the absence of an able and willing retired judge, a retired member of the public utilities commission appointed by the chair of house municipal and county government committee.
(f) Two members of the assessing standards board, consisting of the chairperson of the board, or his or her designee, and a member appointed by the board.
(g) Two members of the house of representatives appointed by the speaker of the house of representatives, one of whom is a member of the ways and means committee and one of whom is a member of the science, technology and energy committee, with each from a different major political party.
(h) One member of the senate, appointed by the president of the senate.
III. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.
IV. The commission shall:
(a) Consider defects in the current system of utility property valuation, including the use of different appraisal approaches or methodologies by different municipal assessing authorities, the disparate valuation of comparable utility property in different towns throughout the state, and the costs and other inefficiencies involved in litigating disputes over valuation between municipalities and utilities.
(b) Recommend legislation to reform the current system of municipal taxation of utility property, guided by the principles and recommendations unanimously adopted by the assessing standards board on February 16, 2018, intended to make the state’s system of utility property valuation more consistent across municipalities and yet still reflective of the full and fair market value of utility property in each municipality, to the extent reasonably possible.
(c) Consider, among other factors it deems relevant, the following questions:
(1) Whether the “unit” method or some other uniform statewide method of valuing utility property would yield fairer and more consistent results than the present system of municipal valuation under RSA 75:1.
(2) What valuation approach or combination of approaches is most likely to yield valuation results that are both consistent across municipalities and reflective of the full and fair market value of utility property in each municipality. In considering this question, the commission shall also consider whether different approaches or methods are best suited for valuing different classes of utility property, or whether a single one of the following valuation approaches or methods can be expected to produce results that are both consistent and reflective of fair market value across various municipalities and classes of utility property:
(A) The "modified net book value" cost approach as described in proposed amendment 2017-2515h;
(B) Another cost approach, such as but not limited to “reproduction cost new less depreciation;"
(C) A market or sales approach;
(D) An income approach;
(E) An approach that combines 2 or more of the above; or
(F) Some other alternative approach.
(3) Whether the department of revenue administration would require additional resources in order to effectively, fairly, and consistently appraise and value various kinds of utility property located in municipalities throughout New Hampshire, if tasked with appraising and valuing utility property throughout the state for purposes of local property taxation.
(4) What appeal process should be available to a utility or municipality that believes a valuation made by the department of revenue administration or any other appraising agency has not resulted in a fair market valuation of specified utility property.
(d) Exclude from its deliberations all generation and Federal Energy Regulatory Commission (FERC) regulated transmission properties.
V. The first meeting of the commission shall be called by the first-named house member, who shall serve as chairperson of the commission. The commission shall meet as often as necessary but no less often than monthly, and shall hear testimony from both stakeholder witnesses and from independent utility property valuation experts with experience in other states. Six members shall constitute a quorum.
VI. The commission shall report its findings and any recommendations for 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, 2018.
238:2 Prospective Repeal. RSA 72:12-e, relative to the commission to study utility property valuation, is repealed.
I. Section 2 of this act shall take effect November 1, 2018.
II. The remainder of this act shall take effect upon its passage.
Approved: June 12, 2018
Effective Date:
I. Section 2 shall take effect November 1, 2018.
II. Remainder shall take effect June 12, 2018.
| Date | Body | Type |
|---|---|---|
| Jan. 25, 2017 | House | Hearing |
| Jan. 31, 2017 | House | Exec Session |
| Nov. 1, 2017 | House | Exec Session |
| Nov. 9, 2017 | House | Exec Session |
| Jan. 3, 2018 | House | Floor Vote |
| Feb. 13, 2018 | House | Hearing |
| March 12, 2018 | House | Exec Session |
| House | Floor Vote | |
| March 21, 2018 | House | Floor Vote |
| April 4, 2018 | Senate | Hearing |
| April 26, 2018 | Senate | Floor Vote |
| April 26, 2018 | Senate | Floor Vote |
| May 2, 2018 | Senate | Floor Vote |
June 12, 2018: Signed by Governor Sununu 06/12/2018; Chapter 238; I. Sec. 2 eff. 11/1/2018; II. Rem. eff. 6/12/2018
May 23, 2018: Enrolled 05/23/2018
May 23, 2018: Enrolled (In recess 05/23/2018); SJ 18
May 10, 2018: House Concurs with Senate Amendment 1620s (Reps. Barry, Major): MA VV 05/10/2018
May 2, 2018: Ought to Pass with Amendment 2018-1620s, MA, VV; OT3rdg; 05/02/2018; SJ 15
May 2, 2018: Committee Amendment # 2018-1620s, AA, VV; 05/02/2018; SJ 15
May 2, 2018: Committee Report: Ought to Pass with Amendment # 2018-1620s, 05/02/2018; SC 19
May 2, 2018: Special Order to 05/02/2018, Without Objection, MA; 04/26/2018 SJ 14
April 26, 2018: Committee Report: Ought to Pass with Amendment # 2018-1620s, 04/26/2018; SC 18
April 4, 2018: Hearing: 04/04/2018, Room 100, SH, 09:00 am; SC 15
March 22, 2018: Introduced 03/22/2018 and Referred to Ways and Means; SJ 11
March 22, 2018: Ought to Pass with Amendment 1070h and 1083h: MA VV 03/22/2018 HJ 10 P. 48
March 22, 2018: FLAM # 2018-1083h (Rep. Lang): AA VV 03/22/2018 HJ 10 P. 48
March 22, 2018: Amendment # 2018-1070h: AA DV 225-89 03/22/2018 HJ 10 P. 47
: Committee Report: Ought to Pass with Amendment # 2018-1070h (NT) (Vote 23-0; RC)
March 21, 2018: Committee Report: Ought to Pass with Amendment # 2018-1070h (NT) for 03/21/2018 (Vote 23-0; RC) HC 11 P. 20
March 12, 2018: Executive Session: 03/12/2018 LOB 202
March 12, 2018: ==TIME CHANGE== Full Committee Work Session: 03/12/2018 01:00 PM LOB 202
March 12, 2018: ==TIME CHANGE== Full Committee Work Session: 03/12/2018 01:00 PM LOB 202
March 8, 2018: ==CANCELLED== Full Committee Work Session: 03/08/2018 01:00 PM LOB 202
Feb. 13, 2018: ==ROOM CHANGE== Public Hearing: 02/13/2018 11:00 AM LOB 210-211
Jan. 3, 2018: Referred to Ways and Means 01/03/2018 HJ 1 P. 40
Jan. 3, 2018: Ought to Pass with Amendment 2521h: MA VV 01/03/2018 HJ 1 P. 40
Jan. 3, 2018: Amendment # 2017-2521h: AA VV 01/03/2018 HJ 1 P. 40
Jan. 3, 2018: Committee Report: Ought to Pass with Amendment # 2017-2521h (NT) for 01/03/2018 (Vote 20-0; CC)
Nov. 9, 2017: ==CONTINUED== Executive Session: 11/09/2017 10:30 AM LOB 304
Nov. 9, 2017: Retained Bill Full Committee Work Session: 11/09/2017 10:00 AM LOB 304
Nov. 1, 2017: ==RECESSED== Executive Session: 11/01/2017 10:30 AM LOB 304
Nov. 1, 2017: Retained Bill Full Committee Work Session: 11/01/2017 10:00 AM LOB 304
Oct. 31, 2017: Retained Bill Subcommittee Work Session: 10/31/2017 01:00 PM LOB 304
Oct. 26, 2017: Retained Bill Subcommittee Work Session: 10/26/2017 02:00 PM LOB 304
Oct. 25, 2017: ==CANCELLED== Executive Session: 10/25/2017 02:00 PM LOB 304
Oct. 25, 2017: Retained Bill Full Committee Work Session: 10/25/2017 01:00 PM LOB 304
Oct. 25, 2017: ==CANCELLED== Executive Session: 10/25/2017 01:00 PM LOB 304
Oct. 19, 2017: Retained Bill Subcommittee Work Session: 10/19/2017 10:00 AM LOB 304
Oct. 12, 2017: Retained Bill Subcommittee Work Session: 10/12/2017 01:00 PM LOB 304
Oct. 5, 2017: Retained Bill Subcommittee Work Session: 10/05/2017 10:00 AM LOB 304
Sept. 21, 2017: Retained Bill Subcommittee Work Session: 09/21/2017 10:00 AM LOB 304
Sept. 6, 2017: Retained Bill Full Committee Work Session: 09/06/2017 01:30 PM LOB 304
: Retained in Committee
Jan. 31, 2017: Executive Session: 01/31/2017 02:45 PM LOB 304
Jan. 31, 2017: Full Committee Work Session: 01/31/2017 10:00 AM LOB 304
Jan. 25, 2017: Public Hearing: 01/25/2017 09:00 AM LOB 301-303
Jan. 5, 2017: Introduced 01/05/2017 and referred to Science, Technology and Energy HJ 3 P. 8