HB649: (New Title) establishing a building permit surcharge to fund regional planning initiatives.

HB 649-FN-A - AS AMENDED BY THE HOUSE

12mar03... 0289h

2003 SESSION

03-0950

05/10

HOUSE BILL 649-FN-A

AN ACT establishing a building permit surcharge to fund regional planning initiatives.

SPONSORS: Rep. Lockwood, Merr 35; Rep. N. Johnson, Straf 68; Rep. Coes, Rock 82; Rep. Ross, Hills 44; Rep. M. Blanchard, Rock 86; Sen. Odell, Dist 8; Sen. Below, Dist 5

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill establishes a surcharge on building permits. Money collected shall be deposited the regional planning initiatives fund, a dedicated fund appropriated to the office of state planning and the university system of New Hampshire to support regional planning activities.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12mar03... 0289h

03-0950

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT establishing a building permit surcharge to fund regional planning initiatives.

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

1 Declaration of Purpose. The general court hereby reaffirms that sound land use planning and the protection and efficient use of resources is of vital importance to the ongoing economic, social, and environmental health of the state. The general court acknowledges that such planning in New Hampshire requires coordination and cooperation among and between municipal land use boards, state agencies, and regional planning commissions. In the furtherance of these goals, the following purposes of this legislation are declared:

I. To help ensure that growth and development will utilize land, resources and public infrastructure in an efficient and sustainable manner.

II. To increase the capacity and effectiveness of planning in New Hampshire and to encourage the implementation of planning principles consistent with smart growth as defined in RSA 9-B.

III. To provide necessary resources to the office of state planning to provide education and training regarding changes in the content of local and regional master plans and to assist communities and regional planning commissions in implementing these changes.

IV. To expand local access to the university system of New Hampshire's geographically referenced analysis and information transfer system (GRANIT) computer mapping resources and capabilities to produce community maps necessary to support local master planning, community development, and land conservation efforts.

2 Appropriation; Office of State Planning; University System of New Hampshire. The sum of $610,000 is appropriated from the regional planning initiatives fund established in section 3 of this act, for the biennium ending June 30, 2005, and allocated to the office of state planning and the university system of New Hampshire for the purposes and in the amounts provided in paragraphs I and II:

I. To the office of state planning:

(a) For the establishment of a statewide Grow Smart NH outreach, education and training program, the sum of $60,000 is appropriated in each fiscal year 2004 and 2005 to support one position in the office of state planning and for associated training publications, material, and supplies.

(b) For the implementation of smart growth policies through master plan updates and locally developed and approved implementing ordinances, as well as other non regulatory means, $135,000 is appropriated in each fiscal year 2004 and 2005 to support staff planners at regional planning commissions in providing technical planning assistance to member communities.

II. To the university system of New Hampshire:

(a) For the continued development and maintenance of data required for community master plans, $50,000 is appropriated in each fiscal year 2004 and 2005 for partial support of a database development specialist and associated expenses. The priority data sets to be developed and maintained with the appropriation include the conservation/public lands data layer and the soils data layer.

(b) For the development of a web-based mapping tool, $60,000 is appropriated in each fiscal year 2004 and 2005 for partial support of a staff programmer and associated hardware and software expenses, to design and implement a web-based tool to assist communities in master planning activities.

3 New Section; Building Permit Surcharge; Regional Planning Initiatives Fund. Amend RSA 676 by inserting after section 13 the following new section:

676:13-a Building Permit Surcharge; Regional Planning Initiatives Fund.

I. The municipality shall impose the following surcharge on any building permit issued by the municipality:

(a) $40 for a commercial building or a residential building encompassing more than 2 dwelling units.

(b) $15 for a residential building encompassing no more than 2 dwelling units.

(c) $5 for an outbuilding or similar structure.

II. The municipality may retain $.50 from each building permit surcharge to defray administrative processing costs and shall forward the remainder to the state treasurer for deposit in the regional planning initiatives fund, under paragraph III.

III. There is hereby established the regional planning initiatives fund, a non-lapsing, revolving special fund continually appropriated to the office of state planning and to the university system of New Hampshire in accordance with this section. The fund shall be used by the office of state planning for the establishment of statewide Grow Smart NH outreach, education, and training programs relative to regional planning initiatives. The fund shall be used by the university system of New Hampshire for the continued development and maintenance of a statewide database to assist communities with master planning activities. The balance of the fund shall not exceed $305,000 on June 30 of each year, and any amounts in excess of $305,000 shall be deposited in the general fund as unrestricted revenue.

4 New Subparagraph; Application of Receipts; Regional Planning Initiative Fund. Amend RSA 6:12, I by inserting after subparagraph (lllllllll) the following new subparagraph:

(mmmmmmmmm) Moneys deposited in the regional planning initiatives fund under RSA 676:13-a.

5 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0950

Amended 3/25/03

HB 649 FISCAL NOTE

AN ACT establishing a building permit surcharge to fund regional planning initiatives.

FISCAL IMPACT:

The Office of State Planning, and University System of New Hampshire state this bill, as amended by the House (House Amendment # 2003-0289h), will increase state restricted expenditures by $305,000 in FY 2004, $305,000 in FY 2005, and by an indeterminable amount in FY 2006 and each year thereafter. This bill will increase state restricted revenue by $228,394, and local revenue by $9,746 in FY 2004 and each year thereafter. The New Hampshire Municipal Association states this bill will increase local expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on county revenue or expenditures.

This bill appropriates $195,000 to the Office of State Planning and $110,000 to the University System of New Hampshire from the regional planning initiatives fund in FY 2004 and FY 2005.

METHODOLOGY:

The Office of State Planning states this bill establishes a surcharge on building permits which is to be deposited into the newly established non-lapsing and continually appropriated regional planning initiatives fund. Assuming the number of building permits issued will remain constant during the biennium, and municipalities will retain $0.50 of each permit issued, the Office estimates the revenue impact as follows:

Annual

Revenue

Commercial Building Permits (1,553 permits X $40) $ 62,120

Residential Building, more than 2 units (838 permits X $40) 33,520

Residential Building, 1 or 2 units (5,700 permits X $15) 85,500

Outbuilding or similar structure (11,400 permits X $5) 57,000

Subtotal $238,140

Local Retained Share (19,491 permits X $0.50) 9,746

Net State Revenue Share (Subtotal - Local Share) $228,394

The Office of State Planning states this bill appropriates $60,000 in FY 2004 and FY 2005 from the regional planning initiatives fund for the establishment of a statewide Growth Smart NH outreach, education, and training program. The appropriation is to support the costs of one position and associated training publications, materials, and supplies. This bill also appropriates $135,000 in FY 2004 and FY 2005 from the fund to support staff planners at regional planning commissions in providing technical planning assistance to member communities. The balance of the regional planning initiatives fund shall not exceed $305,000 at the end of each fiscal year, and any amount over said amount would lapse to the state general fund.

The University System states this bill will appropriate $110,000 in FY 2004 and FY 2005 from the regional planning initiatives fund for partial support of a Database Administrator, Staff Programmer, hardware, and software to develop and maintain a database relating to community planning. UNH's Institute for Earth, Oceans, and Space will provide the proposed services, and the appropriation contained in this bill would be sufficient to cover the direct costs.

The New Hampshire Municipal Association states this bill adds a local building permit fee to fund state programs that provide technical planning assistance to municipalities. The Association states the fee would be more costly to administer at the local level than is provided in the reimbursement to the municipality. The Association is unable to estimate the exact fiscal impact at this time.