Revision: Jan. 15, 2019, 2:38 p.m.
HB 580-FN - AS INTRODUCED
2019 SESSION
19-0584
04/05
HOUSE BILL 580-FN
AN ACT relative to bonding construction projects for the department of natural and cultural resources.
SPONSORS: Rep. Danielson, Hills. 7; Rep. Suzanne Smith, Graf. 8
COMMITTEE: Public Works and Highways
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ANALYSIS
This bill permits the issuance of state bonds for the expansion of state campgrounds and requires the state park system advisory council to review and make recommendations to the commissioner of the department of cultural and natural resources regarding the expansion of state campgrounds.
This bill is a request of the department of natural and cultural resources.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0584
04/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to bonding construction projects for the department of natural and cultural resources.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Expansion of State Park System; State Park System Advisory Council. Amend RSA 216-A:3-kk, VI(f) to read as follows:
(f) Make recommendations for the expansion of state campground facilities bonded under RSA 216-A3:p to the commissioner of natural and cultural resources. The council shall also review the servicing of debt obligations relating to the campground expansion bonding prior to making any such recommendations. The commissioner shall submit approved recommendations to the capital budget overview committee. Recommendations approved by the capital budget overview committee shall be submitted to the governor and council for final approval. Recommendations may be implemented upon final approval.
(g) Submit a report of its findings 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 no later than November 1 each year.
2 New Section; Expansion of State Park System; Bonding of Campground Expansion. Amend RSA 216-A by inserting after section 3-o the following new section:
216-A:3-p Bonding of Campground Expansion. To provide funds for the expansion of state campgrounds, the state treasurer, as may be requested from time to time by the commissioner of the department of natural and cultural resources, may borrow upon the credit of the state such amounts so that the total state obligation shall at no time exceed $5,000,000 and for said purpose may issue bonds and notes at such time in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A. The department shall request and the state treasurer shall issue bonds only for such amounts from time to time as are required for the purposes of this section. Payments of principal and interest of the bonds and notes issued under this section shall be made when due from the state park account in the park fund established in RSA 216-A:3-i. In this section, "expansion of state campgrounds" shall mean the construction of new campgrounds, the expansion of existing campgrounds, or the addition of structures or improvement to existing campgrounds that would directly result in an increase in revenue.
3 Effective Date. This act shall take effect 60 days after its passage.
19-0584
Revised 1/8/19
HB 580-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to bonding construction projects for the department of natural and cultural resources.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 | |
Appropriation | $0 | $0 | $0 | $0 | |
Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - State Park fund | ||||
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METHODOLOGY:
This bill permits the issuance of up to $5 million of state bonds for expansion of state campgrounds. After reviewing the debt obligation for expansion proposals, the State Park System Advisory Council shall make recommendations for approval by the Commissioner of the Department of Natural and Cultural Resources. The Commissioner shall submit approved recommendations to the Capital Budget Overview Committee for approval. Recommendations approved by the Capital Budget Overview Committee shall be submitted to the Governor and Council for final approval.
The State Treasurer is authorized to issue bonds and notes in the name of and behalf of the State. The Treasury Department indicates if bonds were issued in the full amount of $5 million, state expenditures from the State Park Fund would increase by $125,000 in FY 2020, $542,500 in FY 2021, $527,500 in FY 2022, and $512,500 in FY 2023. The total interest over the life of the bonds would be $2.37 million. These are maximum amounts and the amount that would actually be recommended and approved for borrowing is unknown. The Department assumes the first bonds would be issued by December 2019 at a fixed coupon rate of 5%, a term of 20 years with the first principal payment in the Spring of 2020. The State typically pays 60% of the principal amount in the first 10 years and 40% over the remaining 10 years.
The Department of Natural and Cultural Resources states this bill would increase State Park Fund expenditures by an indeterminable amount, but in accordance with section 2 of the bill, the borrowing could not exceed $5 million. Prior campground projects at Jericho, Monadnock and Pawtuckaway have yielded an average increase in camping revenue of 75% by the fifth year of improvements.
AGENCIES CONTACTED:
Department of Natural and Cultural Resources and Treasury Department