SB174: establishing the northern counties development authority and making an appropriation therefor.

SB 174-FN-A-LOCAL – AS INTRODUCED

2007 SESSION

07-0433

05/09

SENATE BILL 174-FN-A-LOCAL

AN ACT establishing the northern counties development authority and making an appropriation therefor.

SPONSORS: Sen. Gallus, Dist 1; Sen. Reynolds, Dist 2; Sen. Kenney, Dist 3; Rep. King, Coos 1; Rep. Theberge, Coos 4

COMMITTEE: Energy, Environment and Economic Development

ANALYSIS

This bill establishes the northern counties development authority and makes an appropriation for the purposes of the bill.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0433

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT establishing the northern counties development authority and making an appropriation therefor.

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

1 Declaration of Purpose. The general court recognizes that:

I. The North Country counties of Carroll, Coos, and Grafton have for many years suffered from economic stagnation and decline as changes in markets, competition from low wage countries, technological changes and other external forces have eroded the traditional commercial foundations of their regional economies. It further recognizes and acknowledges that it is inconsistent with the ideals and the best long term interests of the state to allow these areas and their citizens to suffer from a continual and unrelieved economic malaise while other areas of the state enjoy prosperity and quality of life that are among the best in the nation.

II. The economies, environment, and quality of life of the affected communities and ultimately the state will depend on the timely and proper development of the economies of our rural and other economically stagnant areas. It is an unhealthy condition for the overall economy and social structure of the state to exist with seemingly permanent have and have-not communities. Thus, it is hereby declared to be in the public interest and to be the policy of the state to foster and promote the development of the northern counties by implementing a comprehensive development plan for this region.

III. Creation of a development authority to implement the state’s development plan and to promote, oversee, and integrate the development of the northern areas is in all respects for the benefit of the affected communities and the state and for the improvement of their welfare and prosperity, including the creation of employment and other business opportunities.

IV. Investment in the community and commercial infrastructure of the northern counties may be critical to their development and renewed prosperity and therefore provides mechanisms for raising capital for these purposes as part of this act.

2 New Chapter; Northern Counties Development Authority. Amend RSA by inserting after chapter 12-M the following new chapter:

CHAPTER 12-N

NORTHERN COUNTIES DEVELOPMENT AUTHORITY

12-N:1 Definitions. In this chapter:

I. “Appointing authorities” means the governor and executive council, the president of the senate, and the speaker of the house of representatives.

II. “Authority” means the northern counties development authority.

III. “Board” means the board of directors of the authority.

IV. “Bond” means any bond, note, or other evidence of indebtedness issued under this chapter.

V. “Director” means a member of the board.

VI. “Authority project” or “project” means the development, construction, reconstruction, maintenance, or operation of any property of the authority related to infrastructure development, including all real property and tangible and intangible personal property, structures, machinery, equipment, and appurtenances or facilities used in connection therewith.

VII. “Authority property” or “property” means all real property and tangible and intangible personal property, rights, and facilities of the authority related to administered or operated by the authority.

VIII. “Authority revenues” means any appropriations received by the authority and any rents, profits, fees, charges, receipts, and other income of any kind derived or to be derived by the authority from the purchase, sale, leasing, development, or operation of authority property or projects and the operation of related facilities located thereon.

IX. “Excess revenues” means those revenues in excess of the funds identified in the audit performed pursuant to RSA 12-N:28 required:

(a) To pay the costs of operating, maintaining, and repairing all property and projects of the authority.

(b) To pay the costs of administering and operating the authority, including, but not limited to, all wages, salaries, benefits, and other expenses authorized by the board or the executive director.

(c) To pay the principal of, and premium, if any, and the interest on the outstanding bonds of the authority, as the same become due and payable.

(d) To create and maintain reserves established pursuant to RSA 12-N:18 or required or provided for in any resolution authorizing, or any security document securing, such bonds of the authority.

(e) To create and maintain a capital improvement fund for property and projects to be established by the board in an amount not more than $10,000,000.

(f) To pay all taxes owed by the authority related to its ownership or operation of property or projects.

X. “Northern counties” means Carroll, Coos, and Grafton counties.

XI. “Elective financing districts” mean voluntary groups of municipalities that wish to undertake infrastructure or other projects consistent with this chapter, but which are specific to those municipalities and not appropriate to funding through the authority, and which will be funded primarily by these municipalities.

12-N:2 Northern Counties Development Authority Established.

I. There is hereby created a body politic and corporate of the state, to be known as the northern counties development authority, to carry out the provisions of this chapter. Its operations shall be directed at the benefit of the northern counties of the state. The authority is hereby deemed to be a public instrumentality, and the exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of public and essential governmental functions of the state.

II. Within the authority there are created 2 funds, one to be known as the “north country fund” and the other to be known as the “administrative fund.” All funds received by the authority from any source shall be deposited into one of these 2 funds depending on the purpose of the funds. Moneys to be used in the activities of the authority in Carroll, Coos, and Grafton counties shall be deposited in the north country fund, and moneys for the general administration and operation of the authority shall be deposited in the administrative fund. The authority may use the funds to conduct the activities, administration, and operation of the authority, as provided in this chapter.

12-N:3 Management by Board of Directors; Executive Director.

I. The management of the authority shall be vested in a board of 9 directors to be appointed as follows:

(a) One member appointed by the governor and executive council.

(b) One member appointed by the president of the senate.

(c) One member appointed by the speaker of the house of representatives.

(d) Six members appointed by majority vote of the legislative delegations of Carroll, Coos, and Grafton counties with 2 from each county. The members appointed in this manner shall be residents of their respective counties.

II. The chairperson of the board and any other officers shall be elected by a simple majority of the 9 members of the board. Directors shall hold office for 3 years and until their successors have been appointed. The chairperson and any additional officers of the board shall hold office for one year with elections to be held each year. State-appointed directors may be removed from office pursuant to the provisions of RSA 4:1.

III. Five members of the board shall constitute a quorum. A minimum of 3 affirmative votes shall be required for any action of the board, except for the adoption of land use controls, which shall require 5 votes.

IV. The directors shall serve without compensation from the authority, except for such incidental expenses determined by the board to be necessary and incurred while performing business of the authority.

V. Directors shall be residents of the state. No director shall be an elected public official of the state, federal government, or any political subdivision of the state or federal government. Notwithstanding any other provision of law, public employees and appointed officials of the state and any of its political subdivisions may serve, if appointed in accordance with the provisions of this chapter, as directors of the authority.

VI. The board shall appoint an executive director, who shall be the chief executive and administrative officer of the authority and who shall have general and active supervision and direction over the day-to-day business and affairs of the authority and its officers and employees, subject, however, to the direction and control of the board. The executive director shall be responsible for ensuring that all authority revenues and all costs associated with operating and maintaining authority property and authority projects are accounted properly and shall perform all such other duties as from time to time may be assigned to the executive director by the board. The executive director shall hold office for an indefinite term at the pleasure of the board. The executive director shall also be the secretary of the authority, shall keep a record of the proceedings of the authority, and shall be the custodian of all books, documents, and papers filed with the authority and of its minute book and seal. The executive director shall have the power to cause copies to be made of all minutes and other records and documents of the authority and to give certificates under the seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates. The executive director may employ such assistants, legal counsel, and clerical, technical and administrative staff as is directed by the board and within the limits of funds available for that purpose. The executive director may from time to time, with the prior consent of the board, establish and maintain such operating divisions within the authority as he or she shall deem necessary for the proper and efficient conduct of business under this chapter and may assign such staff members to any such division. The board shall establish the salary of the executive director.

12-N:4 Statements of Financial Interests; Content; and Form.

I. Every member of the board shall file by July 1 of each year a verified written statement of financial interests in accordance with this section, unless the member has already filed a statement in that calendar year.

II. A member of the board shall not be allowed to enter into or continue his or her duties, unless the member has filed a statement of financial interests with the secretary of state.

III. Statements of financial interests shall contain the following information:

(a) The name, address, and type of any professional, business, or other organization in which the reporting individual was an officer, director, associate, partner, proprietor, or employee, or served in any other professional or advisory capacity, and from which any income in excess of $10,000 was derived during the preceding calendar year.

(b) The description of any debt and the name of the creditor for all debts in excess of $5,000 owed by the reporting individual, as well as the description of any debt and the name of the debtor for all debts in excess of $5,000 owed to the reporting individual, but only if the creditor or debtor, respectively, or any guarantor of the debt, has done work for or business with the state in the preceding calendar year. Loans issued by financial institutions whose normal business includes the making of loans of the kind received by the reporting individual, and which are made at the prevailing rate of interest and in accordance with other terms and conditions standard for such loans at the time the debt was contracted need not be disclosed. Debt issued by publicly-held corporations and purchased by the reporting individual on the open market at the price available to the public need not be disclosed.

IV. The statement of financial interests shall be completed by typewriting or hand printing, and shall be verified, dated, and signed by the reporting individual personally. It shall be submitted on a form prescribed by the secretary of state.

12-N:5 Disqualification of Member. If any director, or the spouse or issue of any director, shall be interested either directly or indirectly or shall be a director, officer, or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract or other matter with the authority, including any loan to any eligible mortgagor or loan to or purchase of any loan from any lending institution, such interest shall be disclosed to the board and shall be set forth in the minutes of the board. The member having such interest shall not participate on behalf of the authority in any proceedings or decision relating to such contract or matter.

12-N:6 Duties.

I. The authority shall perform the following duties:

(a) Assist in developing the infrastructure to support business and job development in the 3 counties of Carroll, Coos, and Grafton.

(b) Conduct a comprehensive study of all issues related to the commercial and community infrastructure and other infrastructure and development needs of the northern counties of the state. This study shall have as a primary concern the impact of essential community and commercial infrastructure on the economies, environment, and quality of life of the affected communities and the state.

(c) Review all options relative to the most appropriate methods of providing and funding the development of essential community and commercial infrastructure, including wireless telephone service and broadband internet access in those areas of the 3 counties in which the lack or inadequacy of such infrastructure is an issue.

(d) Establish, administer, and maintain elective financing districts, so as to provide a mechanism for funding local projects consistent with the purposes of this chapter which affect 2 or more municipalities and where the benefits are specific to the municipalities involved.

II. The authority shall at all times act in a manner which is consistent with the public good and, pursuant to this chapter, shall seek to implement the comprehensive plan for the development of essential community and commercial infrastructure.

12-N:7 Incorporation; Powers. The authority shall have all of the powers necessary or convenient to carry out the purposes and provisions of this chapter, including the power:

I. To sue and be sued in all courts and to initiate or participate in actions and proceedings, whether judicial, administrative, arbitrative, or otherwise.

II. To have a seal, and to alter such seal at the authority’s pleasure and to use such seal by causing it or a facsimile to be affixed or impressed or reproduced in any manner.

III.(a) To employ or retain as independent contractors, architects, engineers, attorneys, accountants, and such other advisors and employees, consultants, and agents as may be necessary in its judgment without regard to any personnel or civil service law or personnel or civil service rule of the state, to prescribe their duties and qualifications, and to fix and pay their compensation, if any.

(b) To appoint qualified individuals to serve as unpaid volunteers or advisors under such terms and conditions as it may deem necessary. Such volunteers or advisors may be reimbursed for such incidental expenses determined by the board to be necessary and incurred while performing the business of the authority.

IV. To purchase, receive, take by grant, gift, devise, bequest, or otherwise, lease, or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with property or any interest therein, whether tangible or intangible, for its purpose.

V. To sell, convey, lease, exchange, transfer, abandon, or otherwise dispose of, or mortgage, pledge, or create a security interest in, all or any of its authority property or any interest therein, except that no real property of the authority may be sold, conveyed, exchanged, transferred, or otherwise disposed of, except by license, lease, or other agreement subject to a term of not more than 7 years, without the prior approval of the governor and the executive council.

VI. To apply for and accept gifts, loans, grants, property, funds, money, materials, labor, supplies, or services from the United States of America or its agencies or departments or any state agency or any political subdivision of the state, or any other person, to carry out the terms and provisions of, or make agreements with respect to, any such gifts, loans, or grants, and to do any and all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of such gifts, loans, or grants.

VII. To purchase, take, receive, subscribe for, or otherwise acquire, hold, make a tender offer for, vote, employ, sell, lend, lease, exchange, transfer, or otherwise dispose of, mortgage, pledge, or grant a security interest in, use, or otherwise deal in and with, bonds and other obligations, shares, or other securities or interests therein issued by others, whether engaged in a similar or different business or activity.

VIII. To make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of the powers and functions of the authority under this chapter, including contracts with any person, firm, corporation, municipality, state agency, governmental unit, or other entity, foreign or domestic, provided that no contract in excess of $10,000, including contracts under paragraphs III and XV but excluding contracts and agreements entered into under paragraph V, shall be made without requests for proposals. This requirement may also be eliminated by an affirmative vote of 5 members of the board on any particular matter. Justification for eliminating the requirement shall be recorded in the minutes of the meeting.

IX. To borrow money for purposes related to authority property or authority projects at such rate or rates of interest as the authority may determine, issue its notes, bonds, or other obligations to evidence such indebtedness, and secure any of its obligations by mortgage or pledge of all or any of its authority property or any interest therein, tangible or intangible, whether then owned or thereafter acquired.

X. To arrange for guaranties of its notes, bonds, or other obligations pursuant to RSA 12-N:30 by the federal government or by any private insurer or otherwise, and to pay any premiums therefor.

XI. To issue such notes, bonds, or other obligations, whether or not the income therefrom to the holders is exempt from federal income taxation.

XII. To purchase notes, bonds, or other obligations of the authority at such price or prices, in such manner, and upon such terms as the authority may determine.

XIII. To invest and reinvest its funds, and take and hold property as security for the payment of funds so invested.

XIV. To procure insurance against any loss in connection with its authority property or projects in such amount or amounts and from such insurers, including the federal government, as it may deem necessary or desirable, and to pay any premiums therefor. Nothing in this paragraph shall be construed as a waiver of the sovereign immunity of the state except as authorized under RSA 491:8.

XV. To enter into and perform contracts and agreements, whether or not they may be deemed to constitute indebtedness under applicable law, for the joint and separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, disposal of, or other participation in facilities, products, or services of any person who engages in business on property owned or controlled by the authority.

XVI. To maintain a principal office in the state and an office or offices at such other place or places as it may determine.

XVII. To make any inquiry, investigation, survey, feasibility study, or other study which the authority may deem necessary to enable it to carry out effectively the provisions of this chapter.

XVIII. To apply to the appropriate agencies and officials of the federal government and the state for licenses, permits, or approvals of its plans, projects as it may deem necessary or advisable, and to accept such licenses, permits, or approvals as may be tendered to it by such agencies or officials, upon such terms and conditions as it may deem appropriate.

XIX. To make bylaws and establish committees for the management and regulation of its affairs as it may deem necessary, and subject to agreements with bondholders, to make rules pursuant to its own procedures for the use of its authority projects and property, including but not limited to zoning, subdivision, and site plan review regulations, and building, electric, plumbing, and fire codes, and to establish and collect rentals, fees, and all other charges for the use of projects under the jurisdiction of the authority and for services or commodities sold, furnished, or supplied by the authority.

XX. To design, construct, maintain, operate, improve, and reconstruct such projects as shall be consistent with the purposes and provisions of this chapter, including without limitation the maintenance and development of infrastructure projects and also to contract for the construction, operation, or maintenance of any parts thereof, or for services to be performed thereon, and to rent parts thereof and grant concessions thereon, all on such terms and conditions as the authority may determine.

XXI. To acquire property or rights by eminent domain as prescribed by law to achieve the public purposes of the authority. Such taking may be in the form of fee simple acquisition, lease, condominium or other structure that achieves the objectives of the authority with minimal impact upon the entity from which the right or property is taken.

XXII. To take such other action as it may deem necessary and advisable in the furtherance of the purposes of this chapter.

12-N:8 General Authority Power. In addition to the powers and duties specifically enumerated in RSA 12-N:6 and RSA 12-N:7, the authority shall have every power enumerated in the laws of the state granted to the authority, the executive director, or any administrative unit of the authority.

12-N:9 Coordination with Department of Resources and Economic Development. The authority shall coordinate its publicity efforts with the department of resources and economic development.

12-N:10 Status of Authority Employees; Entitlement to State Benefits; Reimbursement of Costs.

I. The authority may hire, fix, and pay compensation, prescribe duties and qualifications, and establish personnel policies without regard to any personnel or civil service law or personnel or civil service rule of the state. Any individual employed by the authority shall be deemed an employee at will and shall serve at the pleasure of the authority.

II. Notwithstanding the provisions of paragraph I, any individual employed by the authority whose employment calls for 30 hours or more of work in a normal calendar week, and whose position is anticipated to have a duration of 6 months or more, shall be entitled to elect to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state. Upon election by such individual, the authority shall pay from its revenues the state's share of such benefits. Any remaining costs of health, dental, life insurance, deferred compensation, and retirement benefits which an individual elects to receive pursuant to this section, shall be withheld from such individual’s salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon employment by the authority.

III. Notwithstanding any other provision of law, the authority or the executive director may assign as necessary any employee of the authority with appropriate skills and training to perform any responsibility, task, or duty assigned by law to the authority.

12-N:11 Coordination and Cooperation with Federal Agencies. Projects and property of the authority may serve the needs of various federal agencies including the Department of Defense and the Department of Homeland Security. The authority may, and is encouraged to, enter into agreements to utilize authority property in support of such agencies and may conclude agreements with them, accept property and compensation from them, and take such other actions as may achieve the mutual objectives of the authority and the federal agencies.

12-N:12 Local Land Use Controls.

I. Notwithstanding any other provision of law, any and all land use controls of the towns in which the authority may acquire or maintain property shall not apply to any of the property transferred to, conveyed to, or otherwise acquired by, the authority.

II. The authority shall adopt land use controls including, without limitation, regulations to establish zones, building codes, subdivision regulations, site plan review, and fire codes in order to implement the comprehensive development plan and infrastructure projects of the authority. All land use controls and amendments to such controls shall be enacted in accordance with rules of procedure adopted by the authority and shall include at least one public hearing. In order to adopt, amend, interpret, or override any land use control, 5 affirmative votes of the authority shall be required. All land use controls enacted by the authority shall be filed in the county registry of deeds, the clerk’s office for the towns affected, and the New Hampshire office of state planning and energy programs.

III. In adopting land use controls, the authority may adopt, in whole or in part, the land use controls of the town or towns affected. If the authority opts not to adopt the land use controls of the town or towns affected, in whole or in part, the authority shall adopt its own land use controls which are consistent with the comprehensive conversion and development plan prepared by the commission and consistent with the master plans of the counties affected.

12-N:13 Limitations on State and Local Taxation.

I. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the state, for their well-being and prosperity, and for the improvement of their social and economic conditions, and, except as provided in paragraph II, the authority shall not be required to pay any tax or assessment on any property or project owned by the authority under the provisions of this chapter or upon the revenues from such property or project, nor shall the authority be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf. Nothing in this section shall be construed to exempt any transferee, lessee, or tenant of the authority from paying any recording fee, transfer tax, or other tax required by state law.

II. All property used by the authority in its operations that is owned or occupied by a person, other than the authority or any other entity exempted from taxation under RSA 72:23, shall be taxable by the municipality in which the property is located as though such property were not owned by the exempt entity and were held in fee simple. Upon leasing or renting by the authority of any of its property to a non-exempt entity for any use, the municipality in which such property is located shall subject such property to any and all applicable property taxes of the municipality as though such property were not owned by the state or authority and were held in fee simple. Tax payments shall be made as follows:

(a) In the case of such property rented from the authority, the renter shall pay, in lieu of real estate taxes, to the municipality in which the property is located an amount equal to the amount that would have been paid as ad valorem taxes in respect to such property, had it been owned by a non-governmental person.

(b) In the case of such property leased from the authority, the lessee of such property shall pay all taxes duly assessed against such property no later than the due date. If the lessee fails to pay such duly assessed taxes by the due date:

(1) Interest shall accrue on the unpaid taxes at a rate of 18 percent per annum from the due date until such taxes are paid;

(2) The municipality in which the leased property is located shall have a lien, subordinate only to any existing lien of the authority or the state, upon any personal property including, but not limited to, equipment owned by the lessee, which lien shall continue in force from the due date until the taxes and accrued interest are paid; and

(3) The municipality may bring suit against the lessee in any court of competent jurisdiction for the recovery of any unpaid taxes and interest, together with reasonable attorney’s fees and costs.

(c) Such tax payments shall be made at the times and in the manner prescribed for ad valorem property taxes for nongovernmental persons and shall be based on the valuation of the property determined by the respective municipality for such purpose, subject to any equalization or proportionality factor to be applied within such municipality. If the lessee or authority determines that any valuation made by a municipality is excessive, it may seek a reduction of the valuation by following the procedures prescribed in RSA 76 for the abatement of taxes.

12-N:14 Distribution of Excess Revenues.

I. Subject to the limitations contained in RSA 12-N:2, excess revenues of the authority may be distributed by the board annually within 30 days of the end of the authority’s fiscal year to the state treasurer for deposit in the general fund, provided, however, that the authority may retain as capital funds for authority projects up to 50 percent of the excess revenues realized in any fiscal year.

II. Before any excess revenues are distributed pursuant to paragraph I, the authority shall provide, if able to do so, the aggregate sum of up to $450,000 to the principal regional development organizations serving Carroll, Coos, and Grafton counties, as specified by the board of directors.

III. The annual report prepared by the authority pursuant to RSA 12-N:29 shall include a detailed explanation of any distribution of excess revenues made pursuant to this section or of any decision by the board not to make such distribution.

12-N:15 Limited Liability of State and Municipalities.

I. Except as provided elsewhere in this chapter, all obligations and liabilities incurred by the authority related to property or projects, whether arising from bonds, contracts, or otherwise, shall be corporate obligations of the authority and not general obligations of the state or any political subdivision thereof, and neither the full faith and credit nor the taxing power of the state, nor any subdivision thereof is pledged to support such obligations, except as provided in RSA 12-N:30, nor shall they be deemed a debt of the state or any political subdivision thereof in determining its borrowing capacity under any applicable law.

II. Any agreement between the United States and any agency thereof and the authority shall constitute a binding agreement between the United States and the state. Any agreement between the United States and the authority obligating the state to expend funds may be satisfied in full by revenues, bond proceeds, or other funds provided by the authority in the first instance, and if such funds are insufficient, then the obligations shall be satisfied by the state from other funds. Furthermore, any agreement between the United States and the authority requiring payment of funds by the authority to purchase any property shall be satisfied in full by revenues, bond proceeds, or other funds provided by the authority, and such payment shall not require a pledge of the full faith and credit of the state, except as otherwise provided under RSA 12-N:30.

12-N:16 Issuance of Bonds. The authority may issue bonds which shall be obligations of the authority and not general obligations of the state, except as provided in RSA 12-N:30. Such bonds may be issued from time to time consistent with the purposes and provisions of this chapter, including, without limitation, financing the preacquisition costs and other costs of acquisition of any property or interest therein relating to infrastructure development projects, or for any costs incurred in undertaking any telecommunications project authorized by this chapter, or for paying or refunding any bonds issued pursuant to this section or interest thereon. The principal of, and premium, if any, and interest on all bonds shall be payable solely by the authority in accordance with the provisions of this chapter. Prior to each new issuance of bonds, the authority shall provide written notice to the state treasurer of the maximum amount of bonds proposed to be issued. The bonds shall be issued by the authority in such amounts as the board shall determine, not exceeding in the aggregate $100,000,000. 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 board, and shall mature at such time or times as may be determined by the board, except that no bonds shall mature more than 30 years from their date of issue. Bonds may be made redeemable before maturity either at the option of the authority or at the option of the holder, or upon the occurrence of specified events, at such price or prices and under such terms and conditions as may be fixed by the board prior to the issuance of the bonds. The board shall determine the form and details of the bond. Subject to RSA 93-A, the bonds shall be signed by at least 5 members of the board. The bonds may be sold 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 board may determine.

12-N:17 Security Documents. Any bonds issued pursuant to RSA 12-N:16-RSA 12-N:27 may be issued pursuant to and entitled to the benefits of a security document between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state, or by a security document directly between the authority and the purchasers of the bonds, and such security document shall be in such form and executed in such manner as may be determined by the board. Such security document may include the mortgage, pledge, or grant of a security interest in any property of the authority and may pledge or assign, in whole or in part, the revenues held or to be received by the authority, any contract or other rights to receive the revenues, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the authority, and any proceeds thereof. Such security documents may contain provisions for protecting and enforcing the rights, security, and remedies of the bondholders as may, in the discretion of the board, be reasonable and proper and not in violation of law. Such security documents may include provisions defining defaults and providing for remedies in the event of defaults, which may include the acceleration of maturities and the enforcement of any mortgage, pledge, or security interest, and covenants setting forth the duties of, and limitations on, the authority in relation to the custody, safeguarding, investment, and application of moneys, the issue of additional or refunding bonds, the fixing, revision, and collection of rates, charges, and other revenues, the use of any surplus bond proceeds, the establishment of reserves, the acquisition of any property or interest therein, or undertaking of any project, any contracts relating thereto, and subsequent amendments of such provisions and contracts. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues, or other moneys under a security document and to furnish such indemnification or to pledge such securities and issue such letters or lines of credit or credit facilities as may be required by the authority acting under RSA 12-N:16-RSA 12-N:27. Any such security document may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders.

12-N:18 Credit Facilities and Insurance. Any bonds issued pursuant to RSA 12-N:16-RSA 12-N:27 may be issued pursuant to lines of credit or other banking arrangements under such terms and conditions not inconsistent with this chapter, and under such agreements with the purchasers or makers thereof, as the board may determine to be in the best interests of the authority. In addition to other security provided in this chapter or otherwise by law, bonds issued by the authority pursuant to RSA 12-N:16-RSA 12-N:27 may be secured, in whole or in part, by insurance or by letters or lines of credit or other credit facilities issued to the authority by any bank, trust company, or other financial institution, within or without the state, and the authority may make any pledge, mortgage, assignment, or security interest in respect of its authority property and revenues as security for the reimbursement by the authority to the issuers of such letters or lines of credit, insurance, or credit facilities or any payments made thereunder.

12-N:19 Perfection and Priority of Mortgage, Pledge, or Security Interest. Any mortgage, pledge, or security interest made by the authority under RSA 12-N:16-RSA 12-N:27 shall be valid and binding and shall be deemed continuously perfected for the purposes of RSA 382-A and all other laws from the time when the mortgage, pledge, or security interest is made. The property or revenues so mortgaged, pledged, or subjected to a security interest then held or thereafter acquired or received by the authority shall immediately be subject to the lien of such mortgage, pledge, or security interest without any physical delivery or segregation thereof or further act. The lien of such mortgage, pledge, or security interest shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof. No such property or revenues may be used in a manner inconsistent with the terms governing such mortgage, pledge, or securities interest. Any agreement by which a pledge or security interest in personal property is created under RSA 12-N:16-RSA 12-N:27 shall be filed or recorded in the records of the secretary of state. Any mortgage or other agreement by which a security interest in real property is created under RSA 12-N:16-RSA 12-N:27 shall be filed with the register of deeds for the affected county.

12-N:20 Enforcement of Rights. Any owner of a bond issued under the provisions of RSA 12-N:16-RSA 12-N:27 and any trustee under a security document securing the same, except to the extent the rights given in this section may be restricted by such security document, may bring suit upon the bonds and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and enforce any and all rights under the laws of the state granted hereunder or under such security document and may enforce and compel performance of all duties required by this chapter or by such security document to be performed by the authority or by any director or officer of the authority.

12-N:21 Refunding Bonds. The authority, when authorized by the board, may issue refunding bonds for the purpose of paying any bonds issued under the provisions of RSA 12-N:16-RSA 12-N:27 at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such times prior to the maturity or redemption of the bonds being refunded as the board may determine. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other expenses from the proceeds of such refunding bonds as may be required by a security document securing the bonds. The authorization and issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect to the same shall be governed by the provisions of RSA 12-N:16-RSA 12-N:27 relating to the issue of bonds other than refunding bonds insofar as the same may be applicable.

12-N:22 Separate Funds. Any debt service fund, construction fund, debt service reserve fund, or other fund established in connection with the issuance of bonds pursuant to RSA 12-N:16-RSA 12-N:27 shall be kept separate from other moneys of the authority. The moneys deposited in any such funds, together with the income derived from any investments held as part of such funds, shall be expended without further authorization or appropriation as provided for in the security document establishing such funds. Funds for respective individual authority properties or projects shall also be held and accounted for separately, if appropriate.

12-N:23 Investment of Funds. Moneys in any fund or account created under the provisions of RSA 12-N:16-RSA 12-N:27, subject to the terms and provisions of any security document applicable thereto, may be invested. Except as otherwise provided by any such security document, obligations so purchased as an investment of money in said fund or account shall be deemed at all times to be part of said fund or account, and the interest thereon and any profit arising from the sale thereof shall be credited to said fund or account, and any loss resulting on their sale shall be charged to said fund or account, respectively.

12-N:24 Alteration of Rights of Bondholders. The state does hereby pledge to and agree with the holders of bonds issued under RSA 12-N:16-RSA 12-N:27 that the state shall not limit or alter the rights hereby vested in the authority to fulfill the terms of any agreements made with the holders of such bonds or in any way impair the rights and remedies of such holders until such bonds, together with the interest on them, with the interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The authority is authorized to include this pledge and agreement of the state in any agreement with the holders of such bonds.

12-N:25 Tax Exemption. Bonds issued pursuant to RSA 12-N:16-RSA 12-N:27 and their transfer and income, including any profit made on their sale or transfer, shall at all times be exempt from all taxation by or within the state.

12-N:26 Investment Securities. Notwithstanding any of the provisions of RSA 12-N:16-RSA 12-N:27 or any recitals in any bonds issued pursuant to RSA 12-N:16-RSA 12-N:27, all such bonds shall be deemed to be investment securities under RSA 382-A.

12-N:27 Eligible Investments. Bonds issued under the provisions of RSA 12-N:16-RSA 12-N:27 are hereby made securities in which all public officers, agencies, and authorities of the state and of its political subdivisions, insurance companies, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency, authority, or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state or any political subdivision is now or may hereafter be authorized by law.

12-N:28 Audit and Annual Reports. The accounts of the authority shall be subject to an annual audit performed by an independent certified public accountant selected by the authority. The authority shall submit annually to all appointing authorities, to the house finance committee, the senate finance committee, the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library a detailed report of its operations and a complete financial audit for the preceding fiscal year, including financial statements prepared in accordance with generally accepted accounting principles.

12-N:29 Reports on Economic Development Programs.

I. The authority shall include, as part of its annual report or as a separate report published and made available to the public annually on or before September 1, beginning September 1, 2007, the following information regarding each economic development project funded, bonded, or guaranteed by the authority:

(a) Information regarding the number of jobs to be created or saved and the related wages and benefits levels.

(b) The benefits of the program.

(c) The environmental impact of the program.

(d) The amount of the loan, grant, loan guarantee, bond guarantee, or tax incentives awarded.

II. The annual report shall also include information regarding the criteria for the investment of authority funds and the means by which the authority tracks the progress which each project makes in meeting the public benefit projection made for the project.

12-N:30 State Bond Guarantee.

I. In view of the general public benefits expected to be derived from the projects to be financed under this chapter, and their contribution to the social and economic prosperity of the state and its political subdivisions, the governor and council may award an unconditional state guarantee of the principal and interest thereon of bonds issued pursuant to RSA 12-N:16-RSA 12-N:27. The full faith and credit of the state shall be pledged for any such guarantees of principal and interest, but the total amount of the principal of bonds guaranteed by the state under this section shall not exceed $50,000,000, plus interest. The governor, with the advice and consent of the council, is authorized to draw a warrant for such a sum out of any money in the treasury not otherwise appropriated, for the purpose of honoring any guarantee awarded under this section. The state’s guarantee shall be evidenced on each guaranteed bond by an endorsement signed by the state treasurer in substantially the following form:

“The state of New Hampshire hereby unconditionally guarantees the payment of the whole of the principal and interest thereon of the within bond and for the performance of such guarantee the full faith and credit of the state are pledged.”

II. In connection with the award of a state guarantee, the governor and council may impose such terms and conditions as they may deem appropriate concerning the bonds, the use of any authority property or the operation of any authority project and the revenues therefrom, and reimbursement to the state if any state funds are used to honor the guarantee. Such terms and conditions may be contained in an agreement between the state and the authority, to be executed on behalf of the state by the governor and the state treasurer and on behalf of the authority by at least 6 directors.

III. In lieu of a state guarantee under this section, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding the total state bond guarantee authorized in RSA 12-N:30, to make a loan or loans to the authority for the purposes of this chapter relating to authority property and authority purposes, and issue general obligation bonds or notes in the name of and on behalf of the state in accordance with the provisions of RSA 6-A. The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate. Payments of principal and interest on the bonds or notes issued under this paragraph shall be made when due from available funds of the authority. The principal amount of bonds of the authority that may be guaranteed by the state under paragraph I of this section shall be reduced by the amount of bonds issued by the state under this paragraph.

12-N:31 Operating Budget. The authority shall comply with the requirements of RSA 9:1-RSA 9:9, relative to the budget.

12-N:32 Northern Counties Development Authority Matching Grants. Notwithstanding any other provision of law, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding $5,000,000 to make a loan or loans to the authority to be used for the purposes of matching funds for United States Department of Agriculture rural broadband grants, Economic Development Administration grants, and other available grants. General obligation bonds and notes shall be issued in the name of and on behalf of the state in accordance with the provisions of RSA 6-A. The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate. Payments of principal and interest on the bonds or notes issued under this paragraph shall be made when due from available funds of the authority.

12-N:33 Other Matching Funds. Notwithstanding any other provision of law, the state treasurer is authorized to borrow upon the credit of the state a sum not exceeding $10,000,000 to make a loan or loans to the authority to be used solely for the purposes of matching public and private funds, and said aggregate moneys shall be expended for infrastructure projects of the authority. General obligation bonds and notes shall be issued in the name of and on behalf of the state in accordance with the provisions of RSA 6-A. The terms and conditions of any such loan shall be determined by the state treasurer and the governor and council may impose such other conditions as they may deem appropriate. Payments of principal and interest on the bonds or notes issued under this section shall be made when due from available funds of the authority.

12-N:34 Construction and Effect of Other Laws.

I. All actions and proceedings of the authority shall be governed by the provisions of RSA 91-A.

II. Purchases and contracts of the authority may be made or let without regard to any provision of law relating to public purchases or contracts.

III. The authority shall be exempt from the provisions of RSA 541-A and may adopt rules and bylaws in accordance with its own procedures, including, but not limited to, rules regulating the conduct of hearings. The authority shall file in the office of legislative services a copy of all rules and bylaws adopted, amended, or repealed by the authority. All such rules and bylaws shall be filed in the office of legislative services within 7 days of such adoption, amendment, or repeal.

IV. The provisions of this chapter shall be liberally construed in order to effect its purpose.

V. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or applications, and to this end the provisions of this chapter are severable.

12-N:35 Elective Financing Districts.

I. The authority may authorize the formation of elective financing districts to undertake projects which support the objectives of this chapter but which are of specific benefit to a limited number of municipalities within the northern counties.

II. The authority may issue its bonds or engage in borrowing as provided in this chapter for the benefit of elective financing districts, provided that the affected municipalities obligate themselves to the payment of the costs, principal, and interest of the bonds so issued or the borrowing incurred on behalf of the elective financing district.

III. Bonds or borrowings of the authority on behalf of elective financing districts shall be considered as “pass through” obligations and shall not count against any of the bonding or borrowing authority provided in this chapter.

IV. The obligation of the municipalities to pay the costs of issuance and principal and interest on obligations under this chapter shall have the same force and effect of any municipal obligation.

V. The authority may participate in such elective financing districts to support their objectives as if it was a municipality, and shall have proportional responsibility for the costs and debt service of the elective financing district.

VI. The authority may charge a fee to recover its administrative costs of administering the elective financial district. Such fee shall approximate its actual direct costs of providing the services necessary to administer the elective financing district.

3 Appropriation from Carroll, Coos, and Grafton Counties. To provide initial capitalization for the northern counties development authority established in section 1 of this act, Carroll, Coos, and Grafton counties shall each appropriate the sum of $150,000 for the fiscal year ending June 30, 2008 and $150,000 for the fiscal year ending June 30, 2009, for deposit in the north country fund established in RSA 12-N:2 of section 2 of this act.

4 Appropriation. To provide initial capitalization for the northern counties development authority established in section 1 of this act, the sum of $450,000 for the fiscal year ending June 30, 2008 and the sum of $450,000 for the fiscal year ending June 30, 2009 are hereby appropriated to the authority for deposit in the administrative fund established in RSA 12-N:2. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.

5 Effective Date. This act shall take effect July 1, 2007.

LBAO

07-0433

1/17/07

SB 174-FN-A-LOCAL - FISCAL NOTE

AN ACT establishing the northern counties development authority and making an appropriation therefor.

FISCAL IMPACT:

The New Hampshire Municipal Association states this bill will increase state general fund expenditures by $450,000 in FY 2008, and $450,000 in FY 2009. This bill will increase county expenditures by $450,000 in FY 2008, and $450,000 in FY 2009. This bill may increase local expenditures by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on state, county, and local revenue.

This bill appropriates $450,000 in FY 2008, and $450,000 in FY 2009 from the state general fund to the northern counties development authority established by this bill.

METHODOLOGY:

The New Hampshire Municipal Association states this bill establishes a development authority for Carroll, Coos, and Grafton counties and appropriates $450,000 in both FY 2008 and 2009 from the state general fund to provide “initial capitalization” for the authority. This bill also directs Carroll, Coos, and Grafton counties to each appropriate $150,000 in both FY 2008 and 2009 (a total of $450,000 in each year) to the north country fund established by this bill. The Association states the bill provides that the authority does not have to comply with local zoning but must adopt its own zoning provisions, and exempts real property acquired by the authority from the property tax. The Association states there is potential for the authority’s zoning to be in direct conflict with the specific municipality’s zoning, which could cause confusion and require additional expenditures on the part of the municipality to clarify the situation or to challenge the authority’s land use controls that may limit what the municipality may accomplish. The exact fiscal impact is indeterminable at this time.

The Department of Resources and Economic Development states this bill will have no fiscal impact on the Department.