HB 393-FN - AS INTRODUCED
HOUSE BILL 393-FN
SPONSORS: Rep. McConkey, Carr. 3
COMMITTEE: Resources, Recreation and Development
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
485-A:51 [Replacement Fund] Reserve Account Established.
I. There is established a nonlapsing, revolving fund, known as the reserve account, to provide capital for planning, design, construction, repair, and replacement of facilities or major components of the water pollution control facilities administered under this subdivision which cannot be absorbed as regular budgetary items. Facilities include, but are not limited to: the wastewater treatment plant and associated components and access roadway, pump stations and associated components, property, or easements, sewer interceptors and associated appurtenances, property, or easements, and mobile equipment and vehicles. The [replacement fund] reserve account is to be capitalized by contributions from the members served by the facilities based on each member's projected usage of individual [the] facilities or funds granted to, borrowed, or bonded on behalf of the members benefitting from the use of said funds.
II. The [fund] reserve account shall equal 5 percent of the [equipment and other] depreciable assets of the[ treatment] facilities plus assessments described in subsequent sections. The value of the [equipment and other] depreciable assets shall be computed every 5 years, beginning in 1990, and shall be based on current replacement costs as determined by the department.
III. Each member's share of the total [fund] reserve account shall be contributed over a period of 10 years after the initial establishment of the [fund] reserve account and shall be paid as a yearly surcharge to the member's operating charges. Thereafter, each member's surcharge shall be prorated as membership and design or construction changes require.
IV. Once a member has fully funded its share of the [replacement fund] reserve account, the member shall make no further contributions until the [fund] account is utilized for construction, repair, or replacement of [a facility] facilities used by that member. Expenses for which the [fund] account is used shall be proportionally charged annually against each member's contributions to the [fund] account for the individual facilities [utilizing the fund] for which the expenses were utilized, which will subsequently be reimbursed by the individual member in each successive [years] year in addition to the member's respective yearly contribution to the [fund] reserve account over a period not to exceed 10 years, until the member's share of the [fund] reserve account is fully restored. Members may individually choose to use any credits received from other Winnipesaukee river basin program assessments to fund their reserve account assessments and may to choose to contribute more to the fund annually to meet their fund obligations.
V. If [a repair or replacement cost exceeds the value of the fund established for that particular facility] costs exceed the value of the reserve account collected from members responsible for particular facilities, the [repair] cost shall be paid out of the portion of the [fund established] reserve account collectively available for other facilities, but reimbursement to the [fund] reserve account shall always be assessed back to those individual members benefitting from the facilities based on their projected usage of the facilities needing construction, repair, or replacement. Reimbursement shall be made by the individual members in each successive year in addition to the member's respective yearly contribution to the fund based on paragraph II over a period not to exceed 10 years, until the fund is fully restored.
V-a. New or major facilities construction, repair, or replacement, defined as those projects expected to exceed 50 percent of the reserve account available balance, shall be based upon the agency's estimate of probable project cost and schedule as included in the Winnipesaukee river basin control program capital improvements plan. Funds shall be prospectively collected from the individual members that will benefit from the proposed new or major facilities over a period to be determined as appropriate for each project, not to exceed 10 years, and in consideration of alternative funding sources available to offset total project costs.
VI. As new facilities, if any, are added to the system, additional reserve account assessments shall be made to the members benefiting from these individual facilities after their construction or installation based on projected proportional use, as determined by the department[, prorated on the basis of projected use].
VII. If a new member joins the system, [the] future assessments of other members shall be [modified] adjusted to reflect the new member's proportional benefit from the facilities, and no member shall have a right to credit for any excess prior payments [ excess prior payments made by other members, if any, shall be credited to their accounts].
VIII. All contracts paid for using the [fund] reserve account that exceed the established state threshold amount shall be submitted to the governor and council for approval.
IX. This nonlapsing, revolving special purpose fund is continually appropriated to be used by the department in accordance with this subdivision. All moneys shall be deposited with the state treasurer who shall keep this money in a separate fund, notwithstanding RSA 6:12. The state treasurer shall invest the moneys deposited with him as provided by law. Interest received on investments made by the state treasurer shall also be credited to the fund. All such interest shall be added to each member's share of the fund based on each member's contribution to it.
V. The commissioner of environmental services, after notice and hearing pursuant to RSA 541-A, may impose an administrative fine not to exceed $2,000 for each offense upon any person who violates any provision of this subdivision, any rule adopted under this subdivision, or any permit or contract entered into under the authority of this subdivision. Rehearings and appeals from a decision of the commissioner under this paragraph shall be in accordance with RSA 541. Any administrative fine imposed under this section shall not preclude the imposition of further penalties under this subdivision. The proceeds of administrative fines levied pursuant to this paragraph shall be deposited by the department in the [replacement fund] reserve account established pursuant to RSA 485-A:51. The commissioner shall adopt rules, under RSA 541-A, relative to:
(132) Moneys deposited in the water pollution control facilities' [replacement fund] reserve account under RSA 485-A:51.
HB 393-FN- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
Estimated Increase / (Decrease)
[ ] General [ ] Education [ ] Highway [ X ] Other
This bill renames the Winnipesaukee River Basin Program Replacement fund to the Reserve Account. Funding for the Reserve Account will continue to come from assessments on participating municipalities proportional to the treatment, transport, and disposal of sewage benefits attributable to each municipality. This bill expands the ability of the Department of Environmental Services to assess and expend funds from the Reserve Account on behalf of communities served by this program for additional types of projects not currently covered by statute. The Department of Environmental Services cannot estimate the fiscal impact this bill will have. If additional types of projects provided for in this bill are paid for out of the Reserve Account, then state restricted expenditures would increase. Relatedly, assessments on locals would increase to ensure the Reserve Account stays fully funded pursuant to RSA 485-A:51, II. State restricted revenue would subsequently increase by an equivalent amount as the assessments are paid to the State and deposited into the Reserve Account.
Department of Environmental Services
|Feb. 1, 2017||House||Hearing|
|Feb. 1, 2017||House||Exec Session|
|Oct. 18, 2017||House||Exec Session|
|Jan. 3, 2018||House||Floor Vote|
|Jan. 5, 2017||Introduced 01/05/2017 and referred to Resources, Recreation and Development HJ 3 P. 12|
|Feb. 1, 2017||Public Hearing: 02/01/2017 10:00 AM LOB 305|
|Feb. 1, 2017||Executive Session: 02/01/2017 LOB 305|
|Retained in Committee|
|Sept. 13, 2017||Retained Bill Subcommittee Work Session: 09/13/2017 10:00 AM LOB 305|
|Oct. 18, 2017||Executive Session: 10/18/2017 10:00 AM LOB 305|
|Jan. 3, 2018||Committee Report: Inexpedient to Legislate for 01/03/2018 (Vote 16-0; CC)|
|Jan. 3, 2018||Inexpedient to Legislate: MA VV 01/03/2018 HJ 1 P. 39|