HB638: relative to lease agreements entered into by the department of transportation.

HB 638-FN – AS AMENDED BY THE SENATE

04/26/07 1240s

2007 SESSION

07-0837

05/10

HOUSE BILL 638-FN

AN ACT relative to lease agreements entered into by the department of transportation.

SPONSORS: Rep. Graham, Hills 18; Rep. Chandler, Carr 1; Rep. Rausch, Rock 5; Rep. Lerandeau, Ches 6

COMMITTEE: Public Works and Highways

AMENDED ANALYSIS

This bill permits the commissioner of the department of transportation to enter into lease agreements for vehicles and equipment with the approval of the governor and council.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/26/07 1240s

07-0837

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to lease agreements entered into by the department of transportation.

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

1 Lease Agreements; Department of Transportation. Amend RSA 6:35 to read as follows:

6:35 State Leases.

I. The 10-year limitation does not apply to leases for state facility energy cost reduction projects pursuant to RSA 21-I:19-a through RSA 21-I:19-e, which shall be subject to the term limitation applicable to energy performance contracts, as defined therein. The treasurer, with the approval of the governor and council, may enter into leases of equipment at the request of any state agency or department for a term not exceeding 10 years. For purposes of this section “leases” shall include lease-purchase, sale and lease back, installment sale, or other similar agreements to acquire such equipment from time to time for various agencies or departments; provided that funding for such equipment leases was specifically approved by the legislature in a budget. Payment obligations under any lease entered into under this section shall be subject to annual appropriation and shall not be treated as debt obligations of the state. The treasurer may execute any related documents, including any document creating or confirming any security interest retained by the seller or lessor of the equipment.

II. Notwithstanding paragraph I, with the approval of the governor and council, the commissioner of the department of transportation may enter into lease agreements for vehicles and equipment.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

07-0837

Revised 03/01/07

HB 638 FISCAL NOTE

AN ACT relative to lease agreements entered into by the department of transportation.

FISCAL IMPACT:

The Department of Transportation states this bill may have an indeterminable fiscal impact on state expenditures in FY 2008 and each year thereafter. This bill will have no fiscal impact on state, county, and local revenue, or county and local expenditures.

METHODOLOGY:

The Department of Transportation states this bill would allow the Department to enter into agreements for the lease-purchase, sale and leaseback and installment sales of equipment. The fiscal impact of this bill is indeterminable due to the continually changing lease market and the variability of operating, maintenance and insurance costs for various types of equipment. Currently, the Department has been granted this opportunity to lease/purchase equipment as a footnote to their current operating budget. The Department performs a fiscal analysis for every agreement to assure that each agreement will result in a favorable result for the state. In every case, assumptions are made in regards to a specific piece of equipment and its anticipated usage and availability. This information is weighted against the cost to purchase or rent a similar piece of equipment and a decision is made whether the agreement is prudent. The exact fiscal impact cannot be determined at this time.