SB635 (2020) Detail

Establishing the lakes region development authority.


SB 635-FN-A - AS INTRODUCED

 

 

2020 SESSION

20-2839

10/03

 

SENATE BILL 635-FN-A

 

AN ACT establishing the lakes region development authority.

 

SPONSORS: Sen. Morse, Dist 22; Sen. French, Dist 7; Rep. Spanos, Belk. 3; Rep. St. Clair, Belk. 9; Rep. Lovejoy, Rock. 36

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill establishes the lakes region development authority to implement the redevelopment master plan prepared by the lakeshore redevelopment planning commission.  The authority is repealed in 2026.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2839

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT establishing the lakes region development authority.

 

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

 

1  New Chapter; Lakes Region Development Authority.  Amend RSA by inserting after chapter 12-O the following new chapter:

CHAPTER 12-P

LAKES REGION DEVELOPMENT AUTHORITY

12-P:1  Declaration of Purpose.  

I.  The general court recognizes that the redevelopment of the lakes region facility is a matter of great concern for the city of Laconia, the lakes region, and the state of New Hampshire.  Therefore, the general court finds that refinement and implementation of the redevelopment master plan prepared by the lakeshore redevelopment planning commission is necessary to ensure proper planning and optimal disposition and use of the property for the benefit of the city of Laconia, the lakes region, and the state.

II.  The general court further recognizes that the economies, environment, and quality of life of the city of Laconia, the lakes region, and the state will depend on the expeditious and proper redevelopment of the lakes region facility.  Thus, it is hereby declared to be in the public interest and to be the policy of the state to foster and promote the redevelopment of the lakes region facility by implementing the redevelopment master plan prepared by the lakeshore redevelopment planning commission.

III.  It is further declared that creation of a development authority to implement the redevelopment master plan, oversee, and manage the sale and transfer of the land, buildings, and facilities at the lakes region facility, and, to the greatest extent practicable, integrate the development of the lakes region facility with nearby state resources and the master plan of the city of Laconia is in all respects for the benefit of the city of Laconia, the lakes region, and the state and for the improvement of their welfare and prosperity, including the creation and enhancement of employment and other business opportunities.  It is also the intent of the general court that the authority be empowered to assume from the lakeshore redevelopment planning commission the responsibility for completing any steps in the planning process that may remain incomplete as of July 1, 2020, and to create a development authority with the power, duties, and authority to implement all aspects of the redevelopment of the lakes region facility subject to provisions of this chapter.

12-P:2  Definitions.  In this chapter:

I.  "Authority project" means the development, construction, reconstruction, maintenance, or operation of any authority property, including all real property and tangible and intangible personal property, structures, machinery, equipment, and appurtenances or facilities which are part of lakes region facility property or used or useful in connection therewith.

II.  "Authority property" means all real property and tangible and intangible personal property, rights, and facilities located at the lakes region facility.

III.  "Appointing authorities" means the governor and executive council, the president of the senate, the speaker of the house of representatives, and the mayor and city council of the city of Laconia.

IV.  "Authority" means the lakes region development authority.

V.  "Board" means the board of directors of the authority.

VI.  "Bond" means any bond, note, or other evidence of indebtedness issued under this chapter.

VII.  "Commission" means lakeshore redevelopment planning commission established pursuant to former RSA 10:5.

VIII.  "Director" means a member of the board.

IX.  "Excess revenues" means those revenues in excess of the funds identified in the audit performed pursuant to RSA 12-P:20 required (a) to pay the costs of operating, maintaining, and repairing all property and projects of the authority, (b) to pay the costs of administering and operating the authority, including, but not limited to, all wages, salaries, benefits, and other expenses authorized by the board or the executive director, (c) to pay the principal of, and premium, if any, and the interest on the outstanding bonds of the state issued to support authority projects or operations, as the same become due and payable, (d) to create and maintain a capital improvement fund for development of authority property and authority projects to be established pursuant to RSA 12-P:19, and (e) to pay any federal or state taxes owed by the authority related to its ownership or operation of authority property or authority projects.

X.  "Lakes region facility" means all land, easements, buildings, structures, and appurtenances owned or controlled by the state of New Hampshire in the city of Laconia formerly known as the Laconia State School or subsequently acquired or transferred to the authority.

XI.  "Person" means any individual, trust, firm, joint stock company, corporation (including a government corporation), partnership, association, state (including the state of New Hampshire), municipality, commission, United States government or any agency thereof, political subdivision of the state, or interstate body.

XII.  "Revenues" means the gifts, grants, contributions, and appropriations from any source and the rents, profits, fees, charges, receipts, and other income derived or to be derived by the authority from the purchase, sale, leasing, or development of the lakes region facility and the operation of related facilities located thereon and all right to receive the same, including investment earnings and the proceeds of any borrowing hereunder or of any sale, disposition or insurance of any assets of the authority.

XIII.  "Security document" means any trust agreement, security agreement, or resolution authorizing the issuance of or securing bonds.

XIV.  "State" means the state of New Hampshire.

12-P:3  Lakes Region Development Authority Established.  

I.  There is hereby created a public instrumentality of the state, to be known as the lakes region development authority, to carry out the provisions of this chapter.  The exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of public and essential governmental functions of the state.

II.  Any resolution, vote, or contract executed, passed, or approved by or on behalf of the commission shall be binding on, shall inure to the benefit of, and shall be performed by, the authority whether so expressed or not.  All rights, title, and interest in and to all assets and all obligations and liabilities of the commission vested in or possessed by the commission on June 1, 2020, shall vest in and be possessed, performed, and assumed by the authority.  The passing of rights, remedies, duties, covenants, agreements, and obligations in accordance with this paragraph shall not increase or diminish them.

III.  Nothing in this chapter shall be construed as requiring the authority to assume, adopt, or otherwise be bound by the bylaws, votes, or decisions of the commission or any advisory committee thereof except as set forth in paragraph II.

12-P:4  Management by Board of Directors; Executive Director.  

I.  The management of the authority shall be vested in a board of 7 directors to be appointed as follows:

(a)  Two members appointed by the governor and executive council.

(b)  Two members appointed by the mayor and city council of the city of Laconia.

(c)  One member appointed by the president of the senate.

(d)  One member appointed by the speaker of the house of representatives.

(e)  One member who is nominated by majority vote of the legislative delegation of Belknap county, including any senator whose district includes Belknap county, and who is appointed by the governor, the senate president, and the speaker of the house.  The member appointed in this manner shall be a resident of Belknap county.  The member appointed in this manner may be removed from office for cause after hearing by the Belknap county legislative delegation.

II.  The governor shall appoint the chairman of the board, who shall serve in that capacity at the pleasure of the governor.  Directors shall hold office for 3 years and until their successors shall have been appointed.  State-appointed directors may be removed from office pursuant to the provisions of RSA 4:1.  Directors appointed by the city of Laconia may be removed from office for cause after hearing by the mayor and city council.

III.  Four members of the board shall constitute a quorum.  A minimum of 4 affirmative votes shall be required for any action of the board.

IV.  The directors shall serve without compensation from the authority, except for such incidental expenses determined by the board to be necessary and incurred while performing business of the authority.

V.  Directors shall be residents of the state.  No director shall be an elected public official of the state, federal government, or any political subdivision of the state or federal government.

VI.  The board shall appoint an executive director, who shall be the chief executive and administrative officer of the authority and who shall have general and active supervision and direction over the day-to-day business and affairs of the authority and its employees, subject, however, to the direction and control of the board.  The executive director shall be responsible for ensuring that all revenues and all costs associated with operating and maintaining property and projects are accounted for and shall perform all such other duties as from time to time may be assigned to the executive director by the board.  The executive director shall hold office for an indefinite term at the pleasure of the board.  The executive director shall also be the secretary of the authority, shall keep a record of the proceedings of the authority, and shall be the custodian of all books, documents, and papers filed with the authority.  The executive director shall have the power to cause copies to be made of all minutes and other records and documents of the authority.  The executive director may employ, with the consent and approval of the board, such assistants, legal counsel, and clerical and administrative staff as is directed by the board and within the limits of funds available for that purpose.  The salary of the executive director shall be established by the board.

12-P:5  Statements of Financial Interests; Content; Form.  

I.  Every member of the board shall file by July 1 of each year a verified written statement of financial interests in accordance with the provisions of this section, unless the member has already filed a statement in that calendar year.

II.  A member of the board shall not be allowed to enter into or continue his or her duties, unless the member has filed a statement of financial interests with the secretary of state.

III.  Statements of financial interests shall contain the following information:

(a)  The name, address, and type of any professional, business, or other organization in which the reporting individual was an officer, director, associate, partner, proprietor, or employee, or served in any other professional or advisory capacity, and from which any income in excess of $10,000 was derived during the preceding calendar year.

(b)  The description of any debt and the name of the creditor for all debts in excess of $5,000 owed by the reporting individual, as well as the description of any debt and the name of the debtor for all debts in excess of $5,000 owed to the reporting individual, but only if the creditor or debtor, respectively, or any guarantor of the debt, has done work for or business with the state in the preceding calendar year.  Loans issued by financial institutions whose normal business includes the making of loans of the kind received by the reporting individual, and which are made at the prevailing rate of interest and in accordance with other terms and conditions standard for such loans at the time the debt was contracted need not be disclosed.  Debt issued by publicly-held corporations and purchased by the reporting individual on the open market at the price available to the public need not be disclosed.

IV.  The statement of financial interests shall be verified, dated, and signed by the reporting individual personally.  It shall be submitted on a form prescribed by the secretary of state.

12-P:6  Disqualification of Member.  If any director, or the spouse or issue of any director, shall be interested either directly or indirectly or shall be a director, officer, or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract or other matter with the authority, including any loan to any eligible mortgagor or loan to or purchase of any loan from any lending institution, such interest shall be disclosed to the board and shall be set forth in the minutes of the board.  The member having such interest shall not participate on behalf of the authority in any proceedings or decision relating to such contract or matter.

12-P:7  Duties.  

I.  The authority assumes from the commission and shall perform the following duties:

(a)  Undertaking such studies as are deemed necessary by the authority to effect the redevelopment and future use of the lakes region facility or otherwise carry out the duties of the authority under this statute.  Any such studies shall have as a primary concern the impact of the redevelopment and future reuse of the lakes region facility on the economies, environment, and quality of life of the city of Laconia, the lakes region, and the state.

(b)  Reviewing and implementing as expeditiously as possible all options relative to the most appropriate future uses of the lakes region facility to achieve, to the extent practicable, the following goals:

(1)  Converting the lakes region facility through sale or other transfer or conveyance to non-state ownership;

(2)  Generating property tax revenues from property within the lakes region facility;

(3)  Creating jobs and promoting economic development within the city of Laconia and the lakes region;

(4)  Integrating redevelopment of the lakes region facility with the city of Laconia master plan and adjacent and nearby state facilities;

(5) Reducing the costs and other financial burdens on the state and its agencies resulting from state ownership, operation, and maintenance of the lakes region facility;

(6)  Recognizing and memorializing the prior use of the lakes region facility as the former Laconia state school; and

(7)  Returning to the state when the authority ceases to exist or, at the discretion of the board, prior to such time, an amount of funds equal to the total cost of any bonds issued by the state in support of redevelopment of the lakes region facility.

II.  The authority shall at all times act in a manner which is consistent with the public good and pursuant to this chapter shall seek to implement the redevelopment master plan for the lakes region facility.

12-P:8  Incorporation; Powers.  Notwithstanding any other provision of law, the authority shall have all of the powers necessary or convenient to carry out the purposes and provisions of this chapter, including the power:

I.  To employ or retain as independent contractors architects, engineers, attorneys, accountants, and such other advisors and employees, consultants, and agents as may be necessary in its judgment without regard to any personnel or civil service law or personnel or civil service rule of the state, to prescribe their duties and qualifications, and to fix and pay their compensation, if any.

II.  To appoint qualified individuals to serve as unpaid volunteers or advisors under such terms and conditions as it may deem necessary.  Such volunteers or advisors may be reimbursed for such incidental expenses determined by the board to be necessary and incurred while performing the business of the authority.

III.  To purchase, receive, take by grant, gift, devise, bequest, or otherwise, lease, or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with property or any interest therein, whether tangible or intangible, for its purpose.

IV.  To sell, convey, lease, rent, exchange, transfer, abandon, or otherwise dispose of, or mortgage, pledge, or create a security interest in, all or any of the property, whether tangible or intangible, at the lakes region facility or other property of the authority or any interest therein on such terms and conditions as the authority deems to be consistent with it duties under RSA 12-P:7 and without regard to any other provision of law affecting or restricting the sale, conveyance, lease, rental, exchange, transfer, abandonment or other disposal of state property, except that no real property may be made subject to a license, lease, or other rental agreement subject to a term beyond June 30, 2026, without the prior approval of the governor and the executive council.

V.  To apply for and accept gifts, loans, grants, property, funds, money, materials, labor, supplies, or services from the United States of America or its agencies or departments, the state or any state agency or any political subdivision of the state, or any other person, to carry out the terms and provisions of, or make agreements with respect to, any such gifts, loans, or grants, and to do any and all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of such gifts, loans, grants, property, funds, money, materials, labor, supplies, or services.

VI.  To make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of the powers and fulfillment of the duties of the authority under this chapter, including contracts with any person, firm, corporation, municipality, state agency, governmental unit, or other entity, foreign or domestic on such terms and conditions as the authority deems appropriate within the limits of its available funds.

VII.  To borrow money at such rate or rates of interest as the authority may determine, issue its notes or other obligations to evidence such indebtedness, and secure any of its obligations by mortgage or pledge of all or any of its property or any interest therein, tangible or intangible, whether then owned or thereafter acquired.

VIII.  To arrange for guaranties of its notes or other obligations by the federal or state government or by any private insurer or otherwise, and to pay any premiums therefor.

IX.  To issue such notes or other obligations, whether or not the income therefrom to the holders is exempt from federal income taxation.

X.  To purchase notes or other obligations of the authority at such price or prices, in such manner, and upon such terms as the authority may determine.

XI.  To invest and reinvest its funds, and take and hold property as security for the payment of funds so invested.

XII.  To procure insurance against any loss in connection with its property or projects in such amount or amounts and from such insurers, including the federal government, as it may deem necessary or desirable, and to pay any premiums therefor.  Nothing in this paragraph shall be construed as a waiver of the sovereign immunity of the state except as authorized under RSA 491:8.

XIII.  To enter into and perform contracts and agreements, whether or not they may be deemed to constitute indebtedness under applicable law, for the joint and separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, disposal of, or other participation in facilities, products, or services of any person who engages in business on property owned or controlled by the authority.

XIV.  To make any inquiry, investigation, survey, feasibility study, or other study which the authority may deem necessary to enable it to carry out effectively the provisions of this chapter.

XV.  To apply to the appropriate agencies and officials of the federal government and the state for applicable licenses, permits, or approvals of its plans or projects as it may deem necessary or advisable, and to accept such licenses, permits, or approvals as may be tendered to it by such agencies or officials, upon such terms and conditions as it may deem appropriate.

XVI.  To make bylaws and establish committees for the management and regulation of its affairs as it may deem necessary to make rules pursuant to its own procedures for the use of its projects and property and to establish and collect rentals, fees, and all other charges for the use of projects under the jurisdiction of the authority and for services or commodities sold, furnished, or supplied by the authority.

XVII.  To design, construct, maintain, operate, improve, and reconstruct such projects as shall be consistent with the purposes and provisions of this chapter and also to contract for the construction, operation, or maintenance of any parts thereof, or for services to be performed thereon, and to sell, convey, lease, rent, exchange, transfer, abandon, or otherwise dispose of, or mortgage, pledge, or create a security interest in such parts thereof and grant concessions thereon, all on such terms and conditions as the authority may determine.

XVIII.  To take such other action as it may deem necessary and advisable in the furtherance of the purposes of this chapter.

12-P:9  General Authority Power.  In addition to the duties and powers specifically enumerated in RSA 12-P:7 and RSA 12-P:8, the authority shall have every power enumerated in the laws of the state granted to the authority or  the executive director under any other provision of state law.

12-P:10  Status of Authority Employees; Entitlement to State Benefits; Reimbursement of Costs.  

I.  The authority may hire, fix, and pay compensation, prescribe duties and qualifications, and establish personnel policies without regard to any personnel or civil service law or personnel or civil service rule of the state.  The employees of the authority shall not be classified employees of the state within the meaning of RSA 21-I:49.  Any individual employed by the authority shall be an employee at will and shall serve at the pleasure of the authority.

II.  Notwithstanding any other provision of law, any employee's service with the authority shall be credited to such employee as continuous state service for all purposes, including without limitation rate of pay, determination of seniority and years of state service, longevity pay, and annual, sick, or other forms of leave.

III.  Notwithstanding the provisions of paragraph I, any individual employed by the authority, whose employment calls for 30 hours or more work in a normal calendar week, and whose position is anticipated to have a duration of 6 months or more, shall be entitled to elect to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are equivalent to those afforded to classified employees of the state.  Upon election by such individual, the authority shall pay from its revenues the state's share of such benefits.  Any remaining costs of health, dental, life insurance, deferred compensation, and retirement benefits which an individual elects to receive pursuant to this section, shall be withheld from such individual's salary as a payroll deduction.  Written notice of the availability of these benefit options shall be provided to each individual upon employment by the authority.

IV.  Notwithstanding any other provision of law, the board or the executive director may assign as necessary any employee of the authority with appropriate skills and training to perform any responsibility, task, or duty assigned by statute to the authority.

12-P:11  Local Land Use Controls.  

I.  Notwithstanding any other provision of law, any and all land use controls of the city of Laconia shall not apply to any of the property at the lakes region facility until such time as such property is transferred, conveyed, or otherwise granted to an entity or person that is not an agency or instrumentality of state or federal government or any employee or agent thereof.  Prior to such transfer, conveyance, or grant, the authority shall have the exclusive jurisdiction in adopting and establishing such land use controls for the property at the lakes region facility as it deems necessary.  In all instances, the authority shall retain the power to make the final decision regarding applicability, interpretation, and enforcement of any land use controls it may adopt.  Any land use controls enacted by the authority shall be filed in the Belknap county registry of deeds, the clerk's office for the city of Laconia, and the New Hampshire office of strategic initiatives.

II.  Any action of the authority in the exercise of its powers under this section shall be subject to a motion for rehearing and appeal in accordance with the appropriate provisions of RSA 677.  In addition to any other person deemed to be an aggrieved person, the city of Laconia and any abutters shall have standing to appeal decisions made by the authority related to implementation of any land use control adopted by the authority.

III.  The authority shall engage with the appropriate officials of the city of Laconia to develop for property to be transferred, conveyed, or otherwise granted by the authority the appropriate zoning and other ordinances and regulations as are necessary to effect the purposes of this chapter as are consistent with the state’s redevelopment master plan and the city’s master plan.

IV.  The authority, after notice and hearing and in addition to any contract right or other power, may impose an administrative fine not to exceed $2,000 for each offense upon any person who violates any provision of the authority's land use controls.  The proceeds of any administrative fine levied pursuant to this section shall be revenue of the authority.  

V.  If the authority adopts land use controls pursuant to this section, the authority shall adopt rules relative to:

(a)  A schedule of administrative fines which may be imposed under this paragraph for violations of the authority's land use controls as provided in this paragraph;

(b)  Procedures for notice and hearing prior to imposition of an administrative fine; and

(c)  Procedures for rehearings and appeals to the board.

12-P:12  Limitations on State and Local Taxation; Provision of Services.  

I.  The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the state, for their well-being and prosperity, and for the improvement of their social and economic conditions, and the authority shall not be required to pay any tax or assessment on any property or project owned by the authority under the provisions of this chapter or upon the revenues from such property or project, nor shall the authority be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf.  Nothing in this section shall be construed to exempt any transferee, lessee, or tenant of the authority from paying any recording fee, transfer tax, or other tax required by state law.

II.  Upon the sale, conveyance, or other transfer by the authority of any of its property to a nonexempt entity for any use, the city of Laconia shall subject such property and any improvements thereon, consistent with applicable state and local law, to any and all applicable property taxes of the municipality.

III.  Upon the leasing or renting by the authority of any of its property to a nonexempt entity for any use, the city of Laconia shall subject such property, consistent with applicable state and local law, to any and all applicable property taxes of the municipality as though such property were not owned by the state or authority and were held in fee simple.  Tax payments shall be made as follows:

(a)  In the case of such property rented from the authority, the renter shall pay, in lieu of real estate taxes, to the municipality in which the property is located an amount equal to the amount that would have been paid as ad valorem taxes in respect to such property, had it been owned by a nongovernmental person.

(b)  In the case of such property leased from the authority, the lessee of such property shall pay all taxes duly assessed against such property no later than the due date.  If the lessee fails to pay such duly assessed taxes by the due date:

(1)  Interest shall accrue on the unpaid taxes at a rate of 18 percent per annum from the due date until such taxes are paid;

(2)  The city of Laconia shall have a lien, subordinate only to any existing lien of the authority or the state, upon any personal property including, but not limited to, equipment owned by the lessee, which lien shall continue in force from the due date until the taxes and accrued interest are paid; and

(3)  The city of Laconia may bring suit against the lessee in any court of competent jurisdiction for the recovery of any unpaid taxes and interest, together with reasonable attorney's fees and costs.

(c)  Such tax payments shall be made at the times and in the manner prescribed for ad valorem property taxes for nongovernmental persons and shall be based on the valuation of the property determined by the city of Laconia for such purpose, subject to any equalization or proportionality factor to be applied within such municipality.  If the lessee or authority determines that any valuation made by the city is excessive, it may seek a reduction of the valuation by following the procedures prescribed in RSA 76 for the abatement of taxes.

IV.  Notwithstanding any other provision of law:

(a)  Security for all land and buildings within the lakes region facility owned by the authority shall be provided by the authority or other agencies of the state.

(b)  Primary responsibility for maintenance of the physical plant shall remain with the department of administrative services with coordination and cooperation from the authority until such time as a parcel is sold.

(c)  Until such time as the city of Laconia begins collecting municipal taxes on any property or interest in property at the lakes region facility, any police or fire services provided to the authority by the city of Laconia shall be provided and reimbursed as set forth in a contract with the authority.

(d)  At such time as the city of Laconia begins collecting municipal taxes on any property or interest in property at the lakes region facility, the city shall provide police, fire, and other municipal services to such properties on the same terms and conditions as provided by the city to all other residents and businesses within the city of Laconia shall be provided.

12-P:13  Distribution of Excess Revenues.  

I.  To the extent consistent with grants, loans, or other obligations incurred by the authority, revenues of the authority in excess of projected operating costs and capital requirements for each state biennial period may be distributed by the board, in its sole discretion, within 30 days of the end of the authority's fiscal year to the state treasurer for deposit in the general fund.

II.  Before any excess revenues are distributed pursuant to paragraph I, the authority shall reimburse in full on a pro rata basis the state and the city of Laconia for any funds provided to the authority since July 1, 2020.

III.  The annual report prepared by the authority pursuant to RSA 12-P:20 shall include a detailed explanation of any distribution of excess revenues made pursuant to this section or of any decision by the board not to make such distribution.

12-P:14  Liability of State and Limited Municipal Liability.  All obligations and liabilities incurred by the authority related to its property or projects, whether arising from bonds, contracts, or otherwise, shall be general obligations of the state backed by the full faith and credit and the taxing power of the state.  They shall not be deemed a debt of or obligation of any political subdivision thereof.

12-P:15  State Bond Guarantee.

I.  In view of the general public benefits expected to be derived from the property and projects to be undertaken pursuant to this chapter, and their contribution to the social and economic prosperity of the state and its political subdivisions, the governor and council may award an unconditional state guarantee of the principal and interest thereon of bonds issued pursuant to this chapter in support of property acquisition and projects approved by the board.  The full faith and credit of the state shall be pledged for any such guarantees of principal and interest, but the total amount of the principal of bonds guaranteed by the state under this section shall not exceed $10,000,000, plus interest.  The governor, with the advice and consent of the council, is authorized to draw a warrant for such a sum out of any money in the treasury not otherwise appropriated, for the purpose of honoring any guarantee awarded under this section.  The state's guarantee shall be evidenced on each guaranteed bond by an endorsement signed by the state treasurer in substantially the following form:

The state of New Hampshire hereby unconditionally guarantees the payment of the whole of the principal and interest thereon of the within bond and for the performance of such guarantee the full faith and credit of the state are pledged.

____________________

State Treasurer

II.  In connection with the award of a state guarantee, the governor and council may impose such terms and conditions as they may deem appropriate concerning the bonds, the use of any property or operation of any project and the revenues therefrom, and reimbursement to the state if any state funds are used to honor the guarantee.  Such terms and conditions may be contained in an agreement between the state and the authority, to be executed on behalf of the state by the governor and the state treasurer and on behalf of the authority by at least 4 directors.

III.  In lieu of a state guarantee under this section, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding the total state bond guarantee authorized in paragraph I to make a loan or loans to the authority for the purposes of this chapter and issue general obligation bonds or notes in the name of and on behalf of the state in accordance with the provisions of RSA 6-A.  The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate.

12-P:16  Operating Budget.  The authority shall comply with the requirements of RSA 9:1 through 9:9, relative to the budget.

12-P:17  Matching Grants.  Notwithstanding any other provision of law, and in addition to any other bonding authority of the state authorized under this chapter, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding $5,000,000 to make a loan or loans to the authority to be used for the purposes of matching funds for United States Economic Development Administration grants and other available grants.  General obligation bonds and notes shall be issued in the name of and on behalf of the state in accordance with the provisions of RSA 6-A.  The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate.  Payments of principal and interest on the bonds or notes issued under this paragraph shall be made when due from available funds of the authority.

12-P:18  Matching Funds.  Notwithstanding any other provision of law, and in addition to any other bonding authority of the state authorized under this chapter, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding $5,000,000 to make a loan or loans to the authority to be used solely for the purposes of matching public and private funds.  General obligation bonds and notes shall be issued in the name of and on behalf of the state in accordance with the provisions of RSA 6-A.  The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate.  Payments of principal and interest on the bonds or notes issued under this paragraph shall be made when due from available funds of the authority.

12-P:19  Lakes Region Development Authority Fund; Expenditure of Other Revenues.  

I.  For the purpose of providing a fund to be known as the lakes region development authority fund, the state treasurer shall credit to such fund any appropriation made to the authority for each fiscal year, any funds generated from any project or activity of the authority, including sale of any authority property, and any funds provided to the authority by the state pursuant to RSA 12-P:15, III.

II.  All sums so credited are appropriated to the authority:

(a)  To purchase, lease, acquire, own, improve, use, sell, convey, transfer, or otherwise deal in and with authority property, an authority project, or any interest therein, whether tangible or intangible, as otherwise authorized under this chapter;

(b)  To pay the costs of operating, maintaining, improving, and repairing all property and projects of the authority;

(c)  To pay the costs of administering and operating the authority, including, but not limited to, all wages, salaries, benefits, and other expenses authorized by the board or the executive director;

(d)  To pay the principal of, and premium, if any, and the interest on the outstanding bonds of the state related to property or projects of the authority as the same become due and payable;

(e)  To create and maintain a capital improvement fund for property and projects of the authority to be established by the board in an amount not more than $5,000,000;

(f)  To pay any taxes that may be owed by the authority related to property or projects of the authority;

(g)  To pay any excess revenues authorized pursuant to RSA 12-P:13; and

(h)  In general for the payment of all expenses incident to the management and operation of the authority as are consistent with its statutory purpose and as the board thereof may from time to time determine.

III.  This fund shall constitute a continuing appropriation for the benefit of the authority.  Any amount remaining in this fund to the credit of the authority at the close of any fiscal year shall be nonlapsing and shall be carried over and credited to its account for the succeeding year.

IV.  Money in this fund shall be paid to the state treasury of the authority on manifests approved by the governor and council in the same manner as other state claims are paid, provided that there shall be advanced to the treasurer such money as may be requested by the treasurer of the authority and approved by the governor and council, and provided further that manifests covering the money so advanced shall be submitted according to regular procedure at the earliest practicable time.

V.  The revenues received and due to the authority from all other sources, except by way of state appropriation, from whatever source derived, shall be retained by the authority and shall be used in such manner as the board may determine consistent with the provisions of this chapter or as is otherwise provided by law or by the terms and conditions incident to any gift, grant, devise, bequest, trust, or security document.

12-P:20  Audit and Annual Reports.  The accounts of the authority shall be subject to an annual audit performed by an independent certified public accountant selected by the authority.  The authority shall submit annually to all appointing authorities, to the house finance committee, the senate finance committee, the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library a detailed report of its operations and a complete financial audit for the preceding fiscal year, including financial statements prepared in accordance with generally accepted accounting principles.

12-G:21  Construction and Effect of Other Laws.  

I.  All actions and proceedings of the authority shall be governed by the provisions of RSA 91-A.

II.  Purchases and contracts of the authority may be made or let without regard to any provision of law relating to public purchases or contracts.

III.  The sale, lease, rental, conveyance, purchase, acquisition, ownership, improvement, transfer, or otherwise dealing in and with authority property, an authority project, or any interest therein, whether tangible or intangible, may be undertaken and executed as otherwise authorized under this chapter without regard to any provision of law relating to the state land or property, tangible or intangible.

IV.  The authority shall be exempt from the provisions of RSA 541-A and may adopt rules and bylaws in accordance with its own procedures, including, but not limited to, rules regulating the conduct of hearings.  The authority shall file in the office of legislative services a copy of all rules and bylaws adopted, amended, or repealed by the authority.  All such rules and bylaws shall be filed in the office of legislative services within 7 days of such adoption, amendment, or repeal.

V.  The provisions of this chapter shall be liberally construed in order to effect its purpose.

VI.  If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or applications, and to this end the provisions of this chapter are severable.

2  New Subparagraph; Application of Receipts; Lakes Region Development Authority Fund.  Amend RSA 6:12, I(b) by inserting after subparagraph (358) the following new subparagraph:

(359) Moneys in the lakes region development authority fund established in RSA 12-P:19.

3  Reference Changed; Defense and Indemnification.  Amend RSA 99-D:2 to read as follows:

99-D:2  Defense and Indemnification.  If any claim is made or any civil action is commenced against a present or former officer, trustee, official, or employee of the state or any agency thereof, including members of the New Hampshire national guard and any justice of the district, municipal, probate, superior, or supreme court, or the clerks or bail commissioners thereof, or any harbor master appointed by the Pease development authority, division of ports and harbors, or officials and employees of the New Hampshire housing finance authority, or directors, officers, and employees of the Pease development authority, members and employees of the [lakeshore redevelopment planning commission] lakes region development authority, or directors, officers, and employees of the land and community heritage investment authority seeking equitable relief or claiming damages for the negligent or wrongful acts and the officer, trustee, official, or employee requests the state to provide representation for him or her, and the attorney general, or, in the case of a claim or civil action commenced against the attorney general, the governor and council, determines that the acts complained of were committed by the officer, trustee, official, or employee while acting within the scope of official duty for the state and that such acts were not wanton or reckless, the attorney general shall represent and defend such person with respect to such claim or throughout such action, or shall retain outside counsel to represent or defend such person, and the state shall defray all costs of such representation or defense, to be paid from funds not otherwise appropriated.  In such case the state shall also protect, indemnify, and hold harmless such person from any costs, damages, awards, judgments, or settlements arising from the claim or suit.  The attorney general or governor and council shall not be required to consider the request of such person that representation be provided for him or her unless within 7 days of the time such person is served with any summons, complaint, process, notice, demand, or pleading the person shall deliver the original or a copy thereof to the attorney general or, in the case of an action against the attorney general, to the governor and council.  As a condition to the continued representation by the attorney general and to the obligation of the state to indemnify and hold harmless, such officer, trustee, official, or employee shall cooperate with the attorney general in the defense of such claim or civil action.  No property either real or personal of the state of New Hampshire shall be subject to attachment or execution to secure payment of or to satisfy any obligations of the state created under this chapter.  Upon the entry of final judgment in any action brought under this chapter, the governor shall draw a warrant for said payment out of any money in the treasury not otherwise appropriated, and said sums are hereby appropriated.  The attorney general shall have the authority to settle any claim brought under this chapter by compromise and the amount of any such settlement shall be paid as if the amount were awarded as a judgment under this chapter.  Indemnification by the state under this section shall be for the actual amount of costs, damages, awards, judgments, or settlements personally incurred by any such officer, trustee, official, or employee, and the state shall not pay any amounts for which payment is the obligation of any insurance carrier or company under a policy or policies of insurance or any other third party under a similar obligation.

4  Application of Repeal; Lapse of Funds.  RSA 12-P, the lakes region development authority, shall be in effect until its repeal on June 30, 2026.  Upon the repeal of RSA 12-P and to the extent consistent with any conditions or restrictions on the use of all or any portion of the funds of the lakes region development authority, any funds held by the authority in the lakes region development authority fund at such time as the authority ceases to exist under state law shall be used to repay any outstanding bond obligations incurred by the state pursuant to RSA 12-P and any other funds thereafter remaining shall be forfeited to the general fund of the state, and, simultaneously therewith, any property or interest in property, tangible or intangible, held or otherwise controlled by the authority prior to the lapse of the authority shall be transferred to the department of administrative services.

5 Repeal of Chapter; June 30, 2026.  RSA 12-P, relative to the lakes region development authority, is repealed.

6  Repeal.  RSA 10:5 through RSA 10:10, relative to the lakeshore redevelopment planning commission, is repealed.

7  Effective Date.

I.  Section 5 of this act shall take effect June 30, 2026.

II.  The remainder of this act shall take effect July 1, 2020.

 

LBAO

20-2839

12/31/19

 

SB 635-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing the lakes region development authority.

 

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

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill creates the Lakes Region Development Authority (the Authority) to be managed by a 7 member board of directors and an executive director appointed by such board.  The Authority shall undertake studies to effect the redevelopment and future use of the lakes region facility (the facility) and review and implement all possible options to achieve stated goals.  The  Authority may hire staff who shall not be subject to any personnel or civil service rules of the state.  The Authority shall retain the power to establish and make final decisions regarding the applicability of land use controls and  may levy and retain fines for violations of such provisions.  Property or projects owned or transferred by the authority shall be exempt from property taxes and recording fees, except that any transferee, lessee or tenant shall be subject to all applicable property taxes and recording fees upon the sale, transfer or lease of such property.  The provision of fire and police services by the City of Laconia shall be provided and reimbursed pursuant to a contract with the Authority until such time as the City begins collecting municipal taxes on any property or interest at the facility.  Primary responsibility for maintenance of the facility shall remain with the Department of Administrative Services in cooperation with the Authority until such time as a parcel is sold.

 

Revenues in excess of projected operating costs and capital requirements for each state biennial period may be distributed by the board to the state treasurer for deposit in the general fund, after reimbursement to the state and City of Laconia for any funds provided to the Authority since July 1, 2020.

 

The Governor and Executive Council may award an unconditional state guarantee of up to $10,000,000 plus interest for bonds issued in support of property acquisition and projects approved by the board.  The state treasurer is also authorized to borrow up to $5,000,000 for loans to the Authority for the provision of matching funds for United States Economic Development Administration grants and other available grants.  The state treasurer is also  authorized to issue bonds for the purpose of providing up to $5,000,000 for loans to the authority for the provision of matching public and private funds.  The nonlapsing continually appropriated Lakes Region Development Authority Fund (the fund) is created to receive any appropriations made to the Authority, any funds generated from projects or activities, including sale of property, and any other funds provided by the state.  The fund shall also be used for payment of all incident expenses related to the property and for the creation of a capital improvement fund in an amount not to exceed $5,000,000.

 

The Authority shall be repealed effective June 30, 2026.  At that time, all remaining  funds held by the Authority shall be used to repay any outstanding bond obligations incurred by the state, with the balance of any funds directed to the general fund.  Property held or controlled by the Authority shall be transferred to the Department of Administrative Services.

 

The State Treasury indicates that all obligations and liabilities incurred by the Authority related to the property and projects shall be general obligations of the state pursuant to proposed RSA 12-P:14, creating an open-ended obligation, with an indeterminable fiscal impact.  Regarding the authorization granted to Treasury to issue general obligation bonds, the total cost of borrowing $10,000,000 (interest over the life of the bond) would be $4,750,000.  The cost for borrowing an additional $10,000,000 to match federal or private funds would be $9,500,000.  Treasury is uncertain whether revenues of the Treasury would increase during fiscal years 2020 through 2023.  Assuming bonds would be issued in the fall of 2020; a fixed coupon of 5%; and amortization over 20 years with the debt service payments structured to accommodate the first principal payment in the spring of the year following the debt issuance; paying 60% of the bonded principal amount in the first 10 years and 40% during the remaining 10 years, Treasury estimates the following:

 

                                           Treasury  State Expenditures

 

FY 2020

FY 2021

FY 2022

FY 2023

State Expenditures on $10 million

$0

 

$250,000

$1,085,000

$ 1,055,000

State Expenditures on additional $10 million

$0

$500,000

$2,170,000

$ 2,110,000

Total

        $0

   $750,000

$3,255,000

 $3,165,000

 

The Department of Administrative Services (DAS) assumes the Authority will assume operation, maintenance and repair of the property beginning July 1, 2020 (FY 2021) and DAS will continue to assume primary responsibility for maintenance of the property until it is sold.  DAS assumes it will utilize funds in their current FY 2020 and FY 2021 budget to maintain the property and the Authority will pay for the costs of maintaining the property beginning on July 1, 2021 by means of a transfer (class 28) to DAS.  DAS assumes the Authority will hire an executive director, administrator IV, LG 33 beginning July 1, 2020.  The total budget for the Authority is estimated to include the executive director's salary and benefits, current expense, travel expenses, communications, transfers to general services, communications, contracts for operational services and matching funds to be utilized to match any Northern Border Commission funds and or any other federal, state or local funds.  The estimated budget for the Authority is $973,000 in FY 2021, $1,256,000 in FY 2022 and $1,263,000 in FY 2023.  Approximately $280,000 of this budgeted annual expense is to be transferred to DAS to fund the ongoing maintenance expense of the lakes region property, the Dube building and cottages.

 

AGENCIES CONTACTED:

State Treasury and Department of Administrative Services

 

Links

SB635 at GenCourtMobile
SB635 Discussion

Action Dates

Date Body Type
Jan. 22, 2020 Senate Hearing
Jan. 30, 2020 Senate Floor Vote
March 19, 2020 Senate Floor Vote

Bill Text Revisions

SB635 Revision: 7966 Date: Jan. 14, 2020, 12:46 p.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and Referred to Executive Departments and Administration; SJ 2
Jan. 22, 2020 Hearing: 01/22/2020, Room 101, LOB, 09:35 am; SC 3
Jan. 30, 2020 Committee Report: Ought to Pass, 01/30/2020; Vote 5-0; CC; SC 4
Jan. 30, 2020 Ought to Pass: MA, VV; Refer to Finance Rule 4-5; 01/30/2020; SJ 2
March 19, 2020 Committee Report: Ought to Pass with Amendment # 2020-1123s SC 11
June 16, 2020 Placed on Laid on Table Consent List and Laid on Table, MA, VV; 06/16/2020; SJ 8
June 16, 2020 Pending Motion Committee Amendment # 2020-1123s; 06/16/2020; SJ 8