Bill Text: NH SB54 | 2019 | Regular Session | Enrolled

New Hampshire Senate Bill 54 (Prior Session Legislation)

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

Spectrum: Slight Partisan Bill (Republican 5-2)

Status: (Passed) 2019-07-15 - Signed by the Governor on 07/10/2019; Chapter 188; Effective 01/01/2020 [SB54 Detail]

Download: New_Hampshire-2019-SB54-Enrolled.html

SB 54-FN - VERSION ADOPTED BY BOTH BODIES

02/14/2019 0194s

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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AMENDED ANALYSIS

This bill allows for the release or reduction of the surety bond for road toll liability for certain licensed fuel distributors and provides for the revocation or suspension of such fuel distributors' license in certain instances.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/14/2019 0194s 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. A distributor may request a release or reduction of the bond required pursuant to RSA 260:37 if the distributor has complied with all licensing, reporting, and payment requirements of this chapter for the immediately preceding 3 consecutive years, 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. If the commissioner or his or her designee determines that release or reduction of the bond will not unreasonably jeopardize state revenues, the bond shall be released or reduced.

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 New Section; Power to Suspend or Revoke Licenses of Distributors Exempt from Bond Requirement. Amend RSA 260 by inserting after section 39 the following new section:

260:39-a Power to Suspend or Revoke Licenses of Distributors Exempt from Bond Requirement.

I. If a distributor that has been granted a released or reduced bond pursuant to RSA 260:37-a files a false monthly report or willfully fails, neglects, or refuses to file a monthly report or pay the full amount of the road toll as required by this subdivision, the commissioner or his or her designee may immediately revoke or suspend the distributor's license.

II. The commissioner shall provide written notification of his or her decision to revoke or suspend the distributor's license. Such notification shall provide a date, time, and place at the department's bureau of hearings where the distributor may appear and show cause as to why the license should be reinstated, provided that the license shall remain revoked or suspended until otherwise ordered by a hearings examiner. Such hearing shall be held within 10 days of the date on the notification of suspension or revocation.

III. The written notification of suspension or revocation shall be presumed to have been served if sent to the last known recorded address of the licensee.

IV. Any distributor whose license remains revoked or suspended after a hearing conducted pursuant to paragraph II may appeal the hearing examiner's decision to the superior court of Merrimack County within 30 days of the date of such decision.

3 Effective Date. This act shall take effect January 1, 2020.

LBAO

19-0851

Amended 2/22/19

SB 54-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-0194s)

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

Revenue

Indeterminable

Expenditures

Indeterminable

Funding Source:

[ ] General [ ] Education [ X ] Highway [ X ] Other - Cost of Collections

*Pursuant to Part II, article 6-a of the New Hampshire constitution, any costs associated with the collection and administration of Highway Funds by the Department of Safety shall be deducted by the Department before such funds are credited to the Highway Fund as unrestricted revenue.

LOCAL:

Revenue

Indeterminable

Expenditures

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