Revision: Jan. 15, 2019, 12:44 p.m.
HB 538-FN-A-LOCAL - AS INTRODUCED
2019 SESSION
19-0378
10/06
HOUSE BILL 538-FN-A-LOCAL
AN ACT increasing the road toll and providing funding for state road and bridge projects.
SPONSORS: Rep. Abbott, Ches. 1; Rep. Harvey, Ches. 1; Rep. Gomarlo, Ches. 12; Rep. Swinburne, Ches. 10; Rep. Von Plinsky, Ches. 7
COMMITTEE: Public Works and Highways
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ANALYSIS
This bill increases the road toll from the current rate of 22.2 cents per gallon of motor fuel by 6 cents and dedicates the increased revenue to state road and bridge projects.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0378
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT increasing the road toll and providing funding for state road and bridge projects.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Road Toll; Rate. Amend the introductory paragraph of RSA 260:32 to read as follows:
There is hereby imposed a road toll of [$.18] $.282 per gallon upon the sale of each gallon of motor fuel sold by distributors thereof[, as adjusted according to RSA 260:32-a]. The road toll shall be collected by the distributor from the purchaser and remitted to the state in the manner hereinafter set forth. All revenues collected from [adjustments under RSA 260:32-a for] rates that exceed $.18 per gallon shall be nonlapsing and continually appropriated to, and expended exclusively by, the department of transportation in accordance with RSA 260:32-b. Provided, that the road toll shall not apply to:
2 Expenditure of Road Toll Revenues. Amend RSA 260:32-b, IV to read as follows:
IV. For the fiscal year ending June 30, [2018] 2020 and each fiscal year thereafter, expenditure of revenues collected from [adjustments under RSA 260:32-a] RSA 260:32 for rates that exceed $.18 per gallon, less required "Apportionment A" distributions under RSA 235:23, I on said revenues, shall be made for the following purposes in the following order of priority:
(a) Debt service payments for bonds issued pursuant to RSA 6:13-d.
(b) In addition to sums otherwise appropriated, $6,800,000 for state bridge aid for municipal bridges under RSA 234.
(c) All remaining funds deposited into the highway and bridge betterment account [under] and distributed as provided in RSA 235:23-a, III.
3 References Amended. Amend RSA 6:13-d to read as follows:
6:13-d Authority to Borrow; Certain Transportation Projects.
I. The state treasurer, as may be requested from time to time by the commissioner of the department of transportation, is hereby authorized to borrow upon the credit of the state not exceeding the sum of $200,000,000 and shall issue general obligation or revenue bonds, or both, in the name and on behalf of the state of New Hampshire in accordance with the provisions of RSA 6-A, to provide funds for the widening of Interstate 93 from Salem, New Hampshire to Manchester, New Hampshire. In addition, authorization is hereby granted to enter into the federal credit program known as the Transportation Infrastructure Finance and Innovation Act (TIFIA), 23 U.S.C. sections 601-609, including appropriate covenants and conditions necessary to secure favorable credit terms, including, without limitation, a pledge of revenue collected from [adjustments under RSA 260:32-a for] rates under RSA 260:32 that exceed $.18 per gallon, less required "Apportionment A" distributions under RSA 235:23, I, on said revenues and to be used for the purposes set forth in RSA 260:32-b, II(a), III(a), and IV(a).
II. Payment of principal and interest on the bonds issued under paragraph I shall be paid when due from the highway funds collected and appropriated in accordance with [RSA 260:32-a] RSA 260:32 for rates that exceed $.18 per gallon and expended in accordance with RSA 260:32-b.
4 Repeals. The following are repealed:
I. RSA 260:32-a, relative to the 2014 adjustment of the road toll rate.
II. 2014, 17:2, 17:5, and 17:6, relative to the prospective repeal of 2014 road toll adjustments.
5 Effective Date. This act shall take effect July 1, 2019.
19-0378
12/31/18
HB 538-FN-A-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT increasing the road toll and providing funding for state road and bridge projects.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $51,198,305 | $51,607,891 | $52,020,754 | $52,436,920 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ X ] Highway [ X ] Other - Highway and Bridge Betterment Account | |||
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|
|
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|
LOCAL: |
|
|
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Revenue | $0 | $6,143,797 | $6,192,947 | $6,242,491 |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill increases the road toll rate by $0.06 per gallon of motor fuel from the current rate of $0.222 per gallon of motor fuel. Revenue collected in excess of $0.18 per gallon of motor fuel shall be nonlapsing and continually appropriated to the Department of Transportation to be used for state road and bridge projects, less the minimum 12 percent “Apportionment A” allocated to local highway aid as required by RSA 235:23.
In estimating the increase in revenue, the Department of Safety assumes the consumption of motor fuel will increase by 0.8 percent each fiscal year. Using fiscal year 2018 motor fuel consumption of 839,814,300 gallons as a baseline, the Department of Safety estimates this bill will increase state and local revenue as follows:
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Gas Consumption Estimates (gallons of motor fuel) | 846,532,814 | 853,305,077 | 860,131,518 | 867,012,570 | 873,948,670 |
Increase in Road Toll Rate | N/A | $0.06 | $0.06 | $0.06 | $0.06 |
Estimated Increase In Revenues | N/A | $51,198,305 | $51,607,891 | $52,020,754 | $52,436,920 |
Local Highway Aid* | N/A | N/A | $6,143,797 | $6,192,947 | $6,242,491 |
*Pursuant to RSA 235:35 (“Apportionment A”), at least 12 percent of total road toll revenue and motor vehicle fees are distributed from the state highway fund to cities and towns pursuant to the specified formula in the following year. | |||||
It is unknown how much, or in which years, the Department of Transportation will expend from the highway and bridge betterment account from revenue recieved under this bill.
AGENCIES CONTACTED:
Department of Safety and Department of Transportation