HB 1429-FN-A - AS AMENDED BY THE HOUSE
8Feb2024... 0227h
2024 SESSION
24-2293
10/05
HOUSE BILL 1429-FN-A
SPONSORS: Rep. Mazur, Hills. 44; Rep. Plett, Hills. 29; Rep. Ouellet, Coos 3; Rep. Alexander Jr., Hills. 29; Rep. Carey, Merr. 1; Rep. Stone, Sull. 8; Rep. Colcombe, Hills. 30; Rep. Post, Hills. 42; Rep. Bernardy, Rock. 36; Rep. Seidel, Hills. 29; Sen. Murphy, Dist 16
COMMITTEE: Resources, Recreation and Development
─────────────────────────────────────────────────────────────────
AMENDED ANALYSIS
This bill establishes a procedure for the department of environmental services to transfer ownership of a dam and associated property to the municipality in which the dam is located, or to other associations or parties, and includes the authority of the department to make loans from a dam maintenance revolving loan fund.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
8Feb2024... 0227h 24-2293
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Department of Environmental Services; Dams; Transfer Procedures. Amend RSA 482 by inserting after section 51 the following new section:
482:51-a Dams; Transfer to Municipality or Association.
I. At least one year prior to removing any state-owned dam, the department shall offer to transfer ownership of the dam and associated property to the municipality in which the dam and impoundment created by it are located. Upon notice by the department, the governing body shall cause the legislative body to answer the question of whether the legislative body wants to accept the transfer of ownership of the dam. At the same meeting, the legislative body shall consider the issuance of any long term debt necessary to effectuate the transfer and address any deficiencies. If the legislative body votes to accept the transfer but denies issuance of the debt, the department shall consider that to be a rejection of the offer. Upon rejection of the offer by the municipality, the department shall offer to transfer ownership of the dam and impoundment created by it to any association of landowners or any interested parties, registered as a public entity in good standing and capable of issuing long term debt which have an interest in perpetuating the dam and its impoundment. Those interested parties shall have 90 days to consider whether to accept the transfer of ownership. After those 90 days have elapsed with no accepted offers for a transfer of ownership, the department may proceed with removal of the dam.
II. The procedure in paragraph I shall not apply if, upon receipt of information reasonably believed to be valid, the commissioner of environmental services believes the dam to be in imminent danger of failure and a threat to the lives and property downstream.
III. When offering a transfer of a dam under paragraph I, the department shall provide to the offerees any existing documentation regarding the dams condition, a good faith estimate of costs of necessary repairs, a list of ongoing maintenance, inspection, or licensing needed, and all other relevant information regarding the costs of taking ownership of the dam with associated property.
IV. The department shall develop by administrative rules under RSA 541-A a process by which municipalities, or other interested parties who are capable of assessing local property taxes or issuing debt, may apply for a loan necessary for the repair and maintenance of non-state-owned dams. Loans shall be funded by moneys in the dam maintenance revolving loan fund established in RSA 482:55-b.
2 New Section; Dam Maintenance Revolving Loan Fund Established. Amend RSA 482 by inserting after section 55-a the following new section:
482:55-b Dam Maintenance Revolving Loan Fund Established.
I. There is established a dam maintenance revolving loan fund to provide loans to fund the maintenance, repair, removal, or improvement of any municipally owned dam, when such maintenance, repair, removal, or improvement is required under this chapter. This fund shall be nonlapsing and shall be continually appropriated to the department for the purposes of RSA 482:51-a. No loans shall be made from this fund until the fund has accrued a balance of at least $2,500,000.
II. Loans made from the fund shall be issued at the discretion of the department of environmental services.
III. A sum equal to up to 5 percent or not more than $200,000 of the balance of the fund each year shall be set aside to pay the department costs of administering the fund. The funds set aside shall be deposited into the dam maintenance fund and shall be continually appropriated to the department exclusively for the purposes of this section and RSA 482:51-a.
IV. The department shall adopt rules for the revolving loan fund including the interest rate charged on loans and oversight of the administration of the fund. In providing loans, the department shall evaluate the risk posed by the dam, the public benefit of the dam, the private benefit of the dam to lakefront owners, the ecological impacts of the dam, the potential for contributions to needed maintenance, repair, or reconstruction, the financial resources of the applicant, and the relative cost of maintaining, repairing, or improving the dam as compared to removing or breaching the dam.
V. Sources of revenue that may be accepted and deposited into the dam maintenance revolving loan fund include:
(a) Any funds that may be appropriated from the general fund;
(b) Principal and interest received from the repayment of loans made from the fund;
(c) Grants and awards made to the state by the federal government for the purpose for which the fund was established;
(d) Interest earned from the investment of fund balances;
(e) Private gifts, bequests, and donations made to the state for the purpose for which the fund was established; and
(f) Any other funds from any public or private source intended to be used for the purpose for which the fund was established.
3 New Subparagraph; Dam Maintenance Revolving Loan Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:
(395) Moneys deposited in the dam maintenance revolving loan fund established in RSA 482:55-b.
4 Appropriation; Department of Environmental Services; Dam Maintenance Revolving Loan Fund. The sum of $1 is appropriated to the department of environmental services for deposit in the dam maintenance revolving loan fund established in RSA 482:55-b, for the purpose of providing loans under RSA 482:51-a. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
5 Effective Date. This act shall take effect July 1, 2024.
24-2293
Amended 2/23/24
HB 1429-FN-A- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2024-0227h)
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
|
| |||||
Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None
| |||||
Expenditures | $0 | Indeterminable $0 to $1 million | Indeterminable$0 to $1 million | Indeterminable $0 to $1 million | ||
Funding Source(s) | Dam Maintenance Fund & Dam Maintenance Revolving Loan Fund
| |||||
Appropriations | $0 | $1 | $0 | $0 | ||
Funding Source(s) | General Fund
| |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No | ||||||
| ||||||
Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | $0 | $0 | $0 | ||
Local Revenue | $0 | Indeterminable $1 to $1 million | Indeterminable $1 to $1 million | Indeterminable $1 to $1 million | ||
Local Expenditures | $0 | Indeterminable $1 to $1 million | Indeterminable $1 to $1 million | Indeterminable $1 to $1 million | ||
METHODOLOGY:
This bill establishes a procedure for the Department of Environmental services to transfer ownership of a dam and associated property to the municipality in which the dam is located, or to other associations or parties, and includes the authority of the Department to make loans from a dam maintenance revolving loan fund.
The Department of Environmental Services indicates the State owns 273 dams. The bill would formalize the process of transferring ownership of a dam from the State to a municipality before removing a state-owned dam. There would be state costs to assess the condition of the dam, gather documentation and to allocate staff time to facilitate the transfer. These costs are indeterminable. There will be a cost to establish administrative rules for the loan program. The loan program would not be active until the fund balance reaches $2,500,000.
The Department notes that potential exists for several transfers to be initiated or none at all within a given year. When considering a transfer, the State would engage with the municipality to assess the dam which may include engineering and environmental studies. Such costs are unknown, but the Department has found that the costs to properly assess the condition of a dam can be several hundred thousand dollars or more. The costs depend on the type of the dam, the age of the dam, the condition assessment of the dam and the dam's hazard classification. When the Department offers a dam to a municipality, Department staff may be expected to present the offer in a public meeting or attend meetings with the municipality to discuss the dam and possible transfer. Since the number of requests is unknown, these costs cannot be predicted. The bill provides for up to 5% or not more than $200,000 of the Dam Maintenance Revolving Loan Fund balance to be set aside for the Department's administration costs. Since the number and size of possible loans are not known, the cost to administer the loan program cannot be estimated. The Department has provided a range of possible state expenditures from zero to up to $1 million per year depending on number and type of dams transferred.
The impact on local expenditures and revenue cannot be determined in advance. Municipalities would also engage in a process to assess the transfer of a dam which could include engineering and environmental studies. Prior to accepting a dam the municipality may hold public meetings to seek input from it's residents. The number of public meetings is unknown and the cost of such meetings cannot be determined. The Dam Maintenance Revolving Loan Fund established by the bill would provide loans to municipalities to repair the municipally owned dams. The loan amounts and potential costs for a municipality to repay the loans are also unknown. The Department cannot predict the cost to any locality that may wish to receive a dam from the state. Such cost would depend on the particular dam and it's condition.
AGENCIES CONTACTED:
Department of Environmental Services
| Date | Amendment |
|---|---|
| Jan. 31, 2024 | 2024-0227h |
| Date | Body | Type |
|---|---|---|
| Jan. 10, 2024 | House | Hearing |
| Jan. 24, 2024 | House | Exec Session |
| Jan. 24, 2024 | House | Floor Vote |
| Feb. 20, 2024 | House | Hearing |
| Feb. 20, 2024 | House | Exec Session |
| March 6, 2024 | House | Exec Session |
| March 6, 2024 | House | Exec Session |
March 21, 2024: Refer for Interim Study: MA VV 03/21/2024 HJ 9
March 15, 2024: Committee Report: Refer for Interim Study 03/06/2024 (Vote 19-1; CC)
Feb. 28, 2024: ==CONTINUED== Executive Session: 03/06/2024 01:30 pm LOB 202-204
Feb. 28, 2024: Full Committee Work Session: 03/06/2024 09:30 am LOB 202-204
Feb. 28, 2024: Executive Session: 03/06/2024 01:30 pm LOB 202-204
Feb. 15, 2024: ==RECESSED== Executive Session: 02/20/2024 01:30 pm LOB 202-204
Feb. 15, 2024: Full Committee Work Session: 02/20/2024 01:00 pm LOB 202-204
Feb. 15, 2024: Public Hearing: 02/20/2024 11:00 am LOB 202-204
Feb. 8, 2024: Referred to Ways and Means 02/08/2024 HJ 4 P. 45
Feb. 8, 2024: Ought to Pass with Amendment 2024-0227h: MA VV 02/08/2024 HJ 4 P. 45
Feb. 8, 2024: Amendment # 2024-0227h: AA VV 02/08/2024 HJ 4 P. 43
Jan. 31, 2024: Committee Report: Ought to Pass with Amendment # 2024-0227h 01/24/2024 (Vote 19-0; RC)
Jan. 17, 2024: Executive Session: 01/24/2024 10:00 am LOB 305
Jan. 5, 2024: Public Hearing: 01/10/2024 01:00 pm LOB 305
Dec. 6, 2023: Introduced 01/03/2024 and referred to Resources, Recreation and Development HJ 1