20feb03... 0282h

04/10/03 1096s

04/10/03 1262s

24jun03... 2049CofC

2003 SESSION

03-0050

08/10

HOUSE BILL 361-LOCAL

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill permits municipalities to form regional water districts and obtain municipal bonding, and subjects the entity to regulation by the public utilities commission.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20feb03... 0282h

04/10/03 1096s

04/10/03 1262s

24jun03... 2049CofC

03-0050

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

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

281:1 Definitions. Amend RSA 33-B:1, I to read as follows:

I. "Authorized officers" means the treasurer of a municipality or regional water district and the mayor or city manager of a city, the selectmen of a town, and the commissioners or comparable officers of a village district, and the directors, commissioners, or other officers of a regional water district.

281:2 New Paragraph; Definitions. Amend RSA 33-B:1 by inserting after paragraph III the following new paragraph:

III-a. "Governing body" means the board of selectmen in a town, the board of aldermen or council in a city or town with a council, the village commissioners in a village district, or the directors of a regional water district.

281:3 Definitions. Amend RSA 33-B:1, IV to read as follows:

IV. "Legislative body" means the city council of a city, and the voters present and voting at an annual or special meeting of a town or village district, or the directors of a regional water district.

281:4 Definitions. Amend RSA 33-B:1, VI and VII to read as follows:

VI. "Revenue-producing facilities" means water works, sewerage systems, sewage treatment or disposal facilities, solid waste disposal or resource recovery facilities, parking facilities, facilities for the production, generation, transmission, or distribution of electricity or gas and any other real or personal property or interests in a municipality or regional water district owned or controlled by the municipality or regional water district, from the operation of which revenues are or are expected to be derived by the municipality, or regional water district.

VII. "Revenues" means any rates, rents, fees, charges and other receipts and moneys held or to be received by or on behalf of a municipality or regional water district from or with respect to the construction, financing, operation and disposition of a revenue-producing facility and all rights to receive the same including, without limitation, rates, rents, fees, charges and other moneys received for the use or occupancy of the facility or any part thereof or any service provided thereby, repayments of loans made in respect of the cost of the facility, grants, loans and other contributions from any governmental unit or any other person for or in respect of proceeds of the lease, sale or other disposition of the facility or any interest therein; revenues shall not include any ad valorem taxes on the real estate and personal property comprising any revenue-producing facility.

281:5 New Paragraph; Definitions. Amend RSA 33-B:1 by inserting after paragraph V the following new paragraph:

V-a. "Regional water district" means an entity formed by agreement between government units pursuant to RSA 53-A, for the purpose of providing and assuring the provision of an adequate and sustainable supply of clean water.

281:6 Issuance of Revenue Bonds. Amend RSA 33-B:2 to read as follows:

33-B:2 Issuance of Revenue Bonds. A municipality or regional water district may issue bonds or notes under this chapter for construction of revenue-producing facilities. Bonds issued by a municipality or regional water district under this chapter shall not be deemed to be a pledge of the faith and credit of the state or of the municipality or municipalities that are members of a regional water district. Except as otherwise provided in this chapter, the principal of, premium, if any, and interest on all bonds shall be payable solely from the particular funds provided therefor under this chapter. [The bonds] Bonds issued by a municipality shall be issued in such amounts as the legislative body may authorize by a [2/3] vote as required under RSA 33:8 or 9, as applicable. Bonds issued by regional water districts shall be issued in such amounts as the governing body may authorize pursuant to the regional water district's charter. Bonds of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time as determined by such index, banker's loan rate or other method as may be determined by the authorized officers, and shall mature at such time or times as may be determined by the authorized officers, except that no bond shall mature more than 40 years from the date of its issue or beyond the expiration of the expected useful life of the facilities being financed by the bonds as determined by the authorized officers. Bonds may be made redeemable before maturity at the option of the municipality or regional water district at such price or prices and under such terms and conditions as may be fixed by the authorized officers prior to the issue of bonds. The authorized officers shall determine the form and details and the manner of execution of bonds. The municipality or regional water district may sell its bonds in such manner, either at public or private sale, for such price, at such rate or rates of interest, or at such discount in lieu of interest, as the authorized officers may determine. The provisions of RSA 33:11-a, 14 and 15 shall apply to bonds issued under this chapter.

281:7 Definition. Amend RSA 35-A:3, VI to read as follows:

VI. "Governmental unit" means any county, city, town, school district, village district or other body corporate and politic having the power either to levy taxes, or to provide for rates, charges, or assessments, whether established by general law or by special statute.

281:8 New Paragraph; Definition. Amend RSA 38:1 by inserting after paragraph IV the following new paragraph:

V. "Regional water district" means any regional water district formed pursuant to RSA 53-A, for the purpose of providing and assuring the provision of an adequate and sustainable supply of clean water.

281:9 New Section; Regional Water Districts. Amend RSA 38 by inserting after section 2 the following new section:

38:2-a Establishment, Acquisition, and Expansion of Plants; Regional Water Districts. Any regional water district may:

I. Establish, expand, purchase, lease, or otherwise acquire and maintain and operate in accordance with the provisions of this chapter, one or more suitable plants for the manufacture and distribution of water for the use of municipalities that are members of the regional water district and for such other purposes as may be permitted, authorized, or directed by the commission.

II. For these purposes, purchase and hold in fee simple or otherwise lease or otherwise acquire and maintain any real or personal estate and any rights therein, including water rights.

III. Do all other things necessary for carrying into effect the purposes of this chapter.

IV. Excavate and dig conduits and ditches in any highway or other land or place, and erect poles, place wires, and lay pipes for the distribution of water in such places as may be deemed necessary and proper.

V. Change, enlarge, and extend the same from time to time when the regional water district shall deem necessary, and maintain the same, having due regard for the safety and welfare of the citizens of the member municipalities and security of the public travel.

VI. No regional water district shall have the authority to take property by eminent domain.

281:10 New Section; Regional Water Districts. Amend RSA 38 by inserting after section 3 the following new section:

38:3-a By Regional Water Districts. Any regional water district may initially establish such a plant after 2/3 of the members of the governing body of the district shall have voted affirmatively, and a majority of the constituent municipalities of the district by a majority vote of their legislative bodies have confirmed that vote. Such confirming vote shall create a rebuttable presumption that such action is in the public interest. If the vote is unfavorable, the question shall not be again submitted to the constituent municipalities within 2 years thereafter.

281:11 Public Agency Defined. Amend RSA 53-A:2 to read as follows:

53-A:2 Public Agency Defined. For the purposes of this chapter, the term "public agency" shall mean any political subdivision of this state or of any adjoining state and any quasi-municipal corporation, including but not limited to school districts, village districts, regional water districts, and special districts.

281:12 New Paragraph; Public Utility; Definitions. Amend RSA 362:4 by inserting after paragraph V the following new paragraph:

VI.(a) For purposes of this chapter, a municipal corporation shall include a regional water district.

(b) During the initial 4 years of its operation, if a regional water district seeks to alter rates other than in a manner that uniformly impacts all customers within the district, any municipality that is a member of the regional water district may seek commission review of the proposed rate change. In order for the proposed rate change to take effect, the commission must determine that the proposed rates are cost-based and that they are not unduly discriminatory.

(c) A regional water district shall adopt and enforce quality of water service standards consistent with the commission's administrative rules.

(d) With respect to regional water districts, the 15 percent benchmark employed in this section shall be calculated in relation to an average of the regional water district's relevant rates as determined by the public utilities commission.

281:13 Effective Date. This act shall take effect upon its passage.

(Approved: July 18, 2003)

(Effective Date: July 18, 2003)