CHAPTER 295

HB 1581-FN-LOCAL – FINAL VERSION

18Mar2008… 0704h

04Jun2008… 1960eba

2008 SESSION

08-2224

06/09

HOUSE BILL 1581-FN-LOCAL

AN ACT relative to the formation of stormwater utility districts.

SPONSORS: Rep. Fargo, Straf 4

COMMITTEE: Municipal and County Government

ANALYSIS

This bill permits the governing body of municipalities to construct and maintain stormwater systems.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18Mar2008… 0704h

04Jun2008… 1960eba

08-2224

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to the formation of stormwater utility districts.

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

295:1 Construction. Amend RSA 149-I:1 to read as follows:

149-I:1 Construction. The mayor and aldermen of any city may construct and maintain all main drains or common sewers, stormwater treatment, conveyance, and discharge systems, sewage and/or waste treatment, works which they adjudge necessary for the public convenience, health or welfare. Such drains [and], sewers, and systems shall be substantially constructed of brick, stone, cement, or other material adapted to the purpose, and shall be the property of the city.

295:2 Taking Land. Amend RSA 149-I:2 to read as follows:

149-I:2 Taking Land. Whenever it is necessary to construct such main drains or common sewers, stormwater treatment, conveyance, and discharge systems, sewage and/or waste treatment facilities across or on the land of any person and the city cannot obtain for a reasonable price any land or easement in land required by it, the mayor and aldermen may lay out a sufficient quantity of such land for the purpose and assess the owner's damages in the same manner as in the case of taking land for highways pursuant to RSA 230 and the owner shall have the same right of appeal, with the same procedure.

295:3 Contracts; Treatment Facilities. Amend RSA 149-I:4 to read as follows:

149-I:4 Contracts; Sewage or Waste Treatment Facilities. The mayor and aldermen of any city may lease, enter into contracts to provide, sell, or purchase stormwater treatment, conveyance, and discharge systems, and sewage or waste treatment facilities to or from any other city, town, village district or person whenever they judge the same necessary for the public convenience, health and welfare.

295:4 Bylaws and Ordinances. Amend RSA 149-I:6, I to read as follows:

I. In municipalities where the sewage or stormwater is pumped or treated, the mayor and aldermen may adopt such ordinances and bylaws relating to the system, pumping station, treatment plant or other appurtenant structure as are required for proper maintenance and operation and to promote the objectives of the sewage system or stormwater utility.

295:5 New Subdivision; Stormwater Utilities. Amend RSA 149-I by inserting after section 6 the following new subdivision:

Stormwater Utilities

149-I:6-a Definitions. In this chapter:

I. “Equivalent residential unit” or “ERU” means the fee unit basis for all fees assessed by a stormwater utility.

II. “Stormwater” means stormwater runoff from precipitation, snow melt runoff, and street wash waters related to street cleaning or maintenance, infiltration, and drainage.

III. “Stormwater utility” means a special assessment district established to generate funding specifically for stormwater management.

IV. “Stormwater utility commission” means the governing body managing the activities of the stormwater utility. When the utility encompasses more than one municipality, representation on the commission shall be proportional to the number of fee units within each jurisdiction.

149-I:6-b Stormwater Utility Authorized. The formation of a stormwater utility is hereby authorized upon approval by a majority vote of the legislative body of a municipality. In the case where a stormwater utility encompasses land within more than one municipality, the utility may be authorized by majority vote of the legislative bodies within each affected jurisdiction. Inter-municipal stormwater utilities shall be governed by a stormwater utility commission.

149-I:6-c Criteria for Stormwater Utilities. The stormwater utility shall address flood and erosion control, water quality management, ecological preservation, and annual pollutant load contained in stormwater discharge.

I. Utilities may collect reasonable fees that are directly related to the cost of providing services.

II. Properties charged assessments shall have equal opportunity to receive proportional benefit from the utility.

III. The utility shall offer credits or fee abatements based on on-site management of water quality impairment or peak runoff storage, or both. The utility shall adopt design standards to determine the amount of abatement.

IV. In assessing fees, the stormwater utility district shall forecast the annual cost of each component in the district’s stormwater management program. This forecast shall be the basis for annual assessments distributed equally among the number of fee units within the district.

V. A minimum assessment may be established for fee units based on single family residences. This equivalent residential unit (ERU) can serve as the fee unit basis for all fees. Government property and non-profit organizations shall be subject to the fee structure.

VI. Boundaries of the district are not required to coincide with municipal boundaries.

149-I-6-d System for Fee Units. Each stormwater utility commission shall establish a system for fee units based on at least one of the following property-specific attributes:

I. Total impervious area.

II. Calculated lot runoff.

III. Total lot area.

IV. Land use classification developed for assessment of fees.

295:6 Levying. Amend RSA 149-I:7 to read as follows:

149-I:7 Levying. The mayor and aldermen may assess upon the persons whose drains enter such main drains, common sewers, stormwater treatment, conveyance, and discharge systems, or treatment facilities, or whose lands receive special benefit therefrom in any way, their just share of the expense of constructing and maintaining the same or paying off any capital debt or interest incurred in constructing and/or maintaining the same.

295:7 Combined Billing Permitted. Amend RSA 149-I:9 to read as follows:

149-I:9 Combined Billing Permitted. In [cities] municipalities which assess sewer rents, or have established fees for a stormwater utility, such assessments may be combined in a bill with assessments for other municipal services.

295:8 New Section; Stormwater Utility Fund. Amend RSA 149-I by inserting after section 10 the following new section:

149-I:10-a Stormwater Utility Fund.

I. The funds received from stormwater utility fees shall be kept as a separate and distinct fund to be known as the stormwater utility fund. Such fund shall be allowed to accumulate from year to year, shall not be commingled with town or city tax revenues, and shall not be deemed part of the municipality's general fund accumulated surplus. Such fund may be expended only for stormwater treatment, conveyance, and discharge systems.

II. Except when a capital reserve fund is established pursuant to paragraph III, all stormwater utility funds shall be held in the custody of the municipal treasurer. Estimates of anticipated revenues and anticipated expenditures from the stormwater utility fund shall be submitted to the governing body as set forth in RSA 32:6 if applicable, and shall be included as part of the municipal budget submitted to the local legislative body for approval. If the municipality has a properly-established stormwater utility commission, then notwithstanding RSA 41:29 or RSA 48:16, the treasurer shall pay out amounts from the stormwater utility fund only upon order of the stormwater utility commission. Expenditures shall be within amounts appropriated by the local legislative body.

III. At the option of the local governing body, or of the stormwater utility commission if any, all or part of any surplus in the stormwater utility fund may be placed in one or more capital reserve funds and placed in the custody of the trustees of trust funds pursuant to RSA 35:7. If such a reserve fund is created, then the governing body, or stormwater utility commission if any, may expend such funds pursuant to RSA 35:15 without prior approval or appropriation by the local legislative body, but all such expenditures shall be reported to the municipality pursuant to RSA 149-I:25. This section shall not be construed to prohibit the establishment of other capital reserve funds for any lawful purpose relating to municipal water systems.

295:9 Liens and Collection of Sewer Charges. Amend RSA 149-I:11 to read as follows:

149-I:11 Liens and Collection of Sewer Charges. In the collection of sewer charges or stormwater utility fees under RSA 149-I:7 and 149-I:8, municipalities shall have the same liens and use the same collection procedures as authorized by RSA 38:22. Interest on overdue charges shall be assessed in accordance with RSA 76:13.

295:10 Correction of Assessments. Amend RSA 149-I:14 to read as follows:

149-I:14 Correction of Assessments.

I. If any error is made in any assessment under RSA 149-I:7 or RSA 149-I:8, it may be corrected by the mayor and aldermen by making an abatement and a new assessment, or either, as the case may require. The same lien, rights, liabilities and remedies shall attach to the new assessment as to the original.

II. If any error is made in any assessment under RSA 149-I:6-c or RSA 149-I:7, it may be corrected by the governing body by making an abatement or a new assessment, or both. The same lien, rights, liabilities, and remedies shall attach to the new assessment as to the original.

295:11 Assessment Not Required. Amend RSA 149-I:17 to read as follows:

149-I:17 Assessment Not Required. Nothing herein contained shall be construed to prevent any city from providing, by ordinance or otherwise, that the whole or a part of the expense of constructing, maintaining and repairing main drains, common sewers, stormwater treatment, conveyance, and discharge system, or sewage and waste treatment facilities shall be paid by such city.

295:12 Application of Chapter. Amend RSA 149-I:24 to read as follows:

149-I:24 Application of Chapter. The provisions of this chapter shall be in force in such town and village districts as may adopt the same by vote of the legislative body; and the [selectmen] governing body shall perform all the duties and possess all the powers in the town or the district, as the case may be, conferred by this chapter upon the mayor and aldermen, and the rights of all parties interested shall be settled in the same way.

295:13 Entering Without Permit. Amend RSA 149-I:22 to read as follows:

149-I:22 Entering Without Permit. Any person who digs or breaks up the ground in any street, highway, lane or alley in any city, for the purpose of laying, altering, repairing or entering any main drain, stormwater treatment, conveyance, and discharge system, or common sewer therein, without permission from the mayor and aldermen, shall be guilty of a violation.

295:14 Malicious Injury; Penalty. Amend RSA 149-I:23 to read as follows:

149-I:23 Malicious Injury; Penalty. Any person who shall wantonly or maliciously injure any part of any sewer system, stormwater treatment, conveyance, and discharge system, or sewage disposal plant shall be liable to pay treble damages to the owner thereof, and shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

295:15 Reports. Amend RSA 149-I:25 to read as follows:

149-I:25 Reports. In towns and village districts adopting this chapter, the selectmen or district commissioners, or board of sewer commissioners if any, or stormwater utility commission shall annually, at the time other town or district officers report, make a report to the municipality of the condition of the plant financially and otherwise, showing the funds of the department, the expenses and income thereof, and all other material facts. This report shall be published in the annual report of the municipality.

295:16 New Subparagraph; Application of Receipts; Stormwater Utility Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (268) the following new subparagraph:

(269) Moneys deposited in the stormwater utility fund established under RSA 149-I:10-a.

295:17 Effective Date. This act shall take effect 60 days after its passage.

Approved: June 27, 2008

Effective Date: August 26, 2008