Bill Text - SB54 (2019)

Relative to the road toll bond requirements for licensed fuel distributors.


Revision: Jan. 17, 2019, 3:05 p.m.

SB 54-FN - AS INTRODUCED

 

 

2019 SESSION

19-0851

11/10

 

SENATE BILL 54-FN

 

AN ACT relative to the road toll bond requirements for licensed fuel distributors.

 

SPONSORS: Sen. Bradley, Dist 3; Sen. Watters, Dist 4; Sen. Giuda, Dist 2; Sen. Feltes, Dist 15; Sen. Morse, Dist 22; Rep. Major, Rock. 14; Rep. Abrami, Rock. 19

 

COMMITTEE: Transportation

 

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ANALYSIS

 

This bill allows for an exemption for certain licensed fuel distributors from obtaining a surety bond for road toll liability.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0851

11/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the road toll bond requirements for licensed fuel distributors.

 

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

 

1  New Section; Licensed Distributors Exempt from Bond Requirement.  Amend RSA 260 by inserting after section 37 the following new section:

260:37-a  Licensed Distributors Exempt from Bond Requirement.

I.  The commissioner shall approve any distributor that has complied with all applicable requirements of this chapter for the immediately preceding 3 consecutive years as exempt from the bond requirement in RSA 260:37, provided that such distributors first provide audited financial statements for the immediately preceding 3 years and have been licensed as distributors in good standing in New Hampshire for the immediately preceding 5 consecutive years.

II.  In the event a distributor exempt under paragraph I fails to remain in compliance with this chapter, the commissioner may reimpose the bond requirement under RSA 260:37 if he or she determines that a material change in circumstances has occurred and that state road toll revenue will be unreasonably jeopardized without imposition of the bond.  The commissioner shall notify a distributor of the requirement to obtain a new bond under this paragraph in writing, and shall provide the distributor 30 days to secure a new bond.

III.  A distributor aggrieved by a decision of the commissioner under paragraph II may appeal the decision pursuant to RSA 260:6.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0851

1/10/19

 

SB 54-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the road toll bond requirements for licensed fuel distributors.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill allows for an exemption from obtaining a surety bond for road toll liability for licensed fuel distributors, if certain qualifications are met.  To the extent a distributor were to qualify, no longer carry a surety bond, and default on paying their road toll liability, there could be a decrease in state revenue.  The Department has collected a total of four bonds (all during FY 2010 and FY 2011) from defaulted companies, which would have been deemed in good standing under the provisions of this bill.

 

Also, pursuant to RSA 235:23, not less than 12 percent of the total road toll and motor vehicle fee revenue collected in the previous year is distributed to municipalities as highway block grants.  Therefore, this bill may result in an indeterminable decrease in state highway fund expenditures and local revenue in FY 2021 and each year thereafter.  

 

AGENCIES CONTACTED:

Department of Safety