SB466: relative to allowing the department of transportation to erect sound barriers upon request of municipalities.

SB 466-FN - AS INTRODUCED

2024 SESSION

24-3066

11/08

SENATE BILL 466-FN

AN ACT relative to allowing the department of transportation to erect sound barriers upon request of municipalities.

SPONSORS: Sen. Chandley, Dist 11; Sen. Watters, Dist 4; Sen. Altschiller, Dist 24; Rep. B. Boyd, Hills. 12; Rep. N. Murphy, Hills. 12; Rep. Rung, Hills. 12; Rep. W. Thomas, Hills. 12

COMMITTEE: Transportation

ANALYSIS

This bill establishes 2 noise barrier programs and the noise barrier construction fund, and makes an appropriation to the fund.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-3066

11/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT relative to allowing the department of transportation to erect sound barriers upon request of municipalities.

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

1 New Subdivision; Noise Barrier Programs. Amend RSA 228 by inserting after section 15 the following new subdivision:

Noise Barrier Programs

228:15-a Programs Established.

I. The commissioner shall establish 2 programs, as follows, for the construction of noise barriers on existing highways where no improvements are programmed, and where long-term highway noise issues are not associated with recent highway projects:

(a) A program using available federal highway money for 70 percent of the cost of the barrier.

(b) A state matching grant program using general fund money for 70 percent of the cost of the barrier.

II. In order to be eligible to participate in either program, any municipality requesting a noise barrier shall be required to fund 30 percent of the cost of the barrier.

III. Municipalities shall be eligible for the state matching grant program without meeting a cost per receptor threshold.

IV. The department shall commence construction of such barriers within 90 days of receipt of confirmation from a municipality that its 30 percent share is committed to the cost of the project, federal or state matching funds are available, and all other program requirements have been satisfied on a first-come-first-served basis.

228:15-b Fund Established.

I. There is hereby established a fund to be known as the noise barrier construction fund. The fund shall consist of moneys collected under paragraph II. The fund shall be managed by the state treasurer, shall be nonlapsing, and shall be continually appropriated to the commissioner for the purposes of this subdivision.

II. The program established under RSA 228:15-a shall be funded from funds from the meals and room tax imposed under RSA 78-A, as generated by the revenue from the welcome and information centers on I-93 in Hooksett. Such money shall be deposited on a monthly basis to the fund established in paragraph I to fund the 70 percent state matching grant under RSA 228:15-b.

2 Department of Transportation; Appropriation; Noise Barrier Construction Fund. The sum of $1 is hereby appropriated to the department of transportation for the noise barrier construction fund established in RSA 228:115-b. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

3 New Subparagraph; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:

(395) Moneys deposited in the noise barrier construction fund, established under RSA 228:15-b.

4 Effective Date. This act shall take effect July 1, 2024.

LBA

24-3066

Revised 12/20/23

SB 466-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to allowing the department of transportation to erect sound barriers upon request of municipalities.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated State Impact - Increase / (Decrease)

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

General Fund - Indeterminable Decrease

Noise Barrier Construction (NBC) Fund - Indeterminable Increase

Revenue Fund(s)

General Fund

Noise Barrier Construction Fund

Expenditures

$0

General Fund - $1

NBC Fund - Indeterminable Increase

Funding Source(s)

General Fund

Noise Barrier Construction Fund

Appropriations

$0

General Fund - $1 in FY 2025

NBC Fund - Continually Appropriated "Open Warrant"

Funding Source(s)

General Fund

Noise Barrier Construction Fund

• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A

• Does this bill authorize new positions to implement this bill? [X] N/A

Estimated Political Subdivision Impact - Increase / (Decrease)

FY 2024

FY 2025

FY 2026

FY 2027

Local Revenue

$0

Indeterminable

Local Expenditures

$0

Indeterminable

METHODOLOGY:

This bill seeks to establish two programs for the construction of noise barriers on existing highways where no improvements are programmed, and where long-term highway noise issues are not associated with recent highway projects:

A program using available federal highway money for 70% of the cost of the barrier.

A state matching grant program using general fund money for 70% of the cost of the barrier.

This bill also establishes a noise barrier construction fund (NBC Fund), which shall be nonlapsing and continually appropriated with $1 from the general fund and all the meals and rooms tax (M&R Tax) imposed under RSA 78-A generated from the welcome and information centers on I-93 in Hooksett. It appears the intent of this bill is that this fund be used to fund the state matching grant program, however RSA 228:15-a, I(b), states the state matching grant program would use “general fund money” and RSA 228:15-b, II, states the “program” under RSA 228:15-a (to which could refer to both programs) shall be funded from funds from the M&R Tax.

For both programs, municipalities would apply and be required to fund the other 30% of the project. As it is unknown how much funding may be available for these programs (see below), any impact this bill may have on state and local revenue and expenditures, in FY 2025 and beyond, is indeterminable. The Department of Transportation has not provided any information relative to availability of federal funding for the federal highway funded program established in this bill.

The Department of Revenue Administration is unable to provide the amount of M&R Tax revenue generated by the operators at the welcome and information centers on the I-93 in Hooksett because the number of operators is insufficient to disclose any information according to RSA 21-J:14. However, this bill would reduce the amount of M&R revenue to be deposited into the general fund by the amount that would be deposited into the newly established NBC Fund from certain identified M&R tax revenue sources. The Department has provided the following technical comments regarding this bill:

Under current law, the disposition of M&R tax revenue is determined under RSA 78-A:26. The current disposition requires a portion of the M&R tax revenue to be deposited into the Municipal Revenue Fund (MRF) before any remainder be deposited into the general fund. Should the intent of this proposed legislation be to reduce the M&R tax revenue used to calculate the transfer to the MRF by the deposits into the newly proposed NBC Fund, the Department suggests that RSA 78-A:26 be amended accordingly. The Department also suggests that RSA 78-A:26 be amended to direct the M&R tax revenue from the welcome and information centers on I-93 in Hooksett to be deposited into the NBC Fund, before the remainder of the M&R revenue be deposited into the general fund.

Currently, M&R operators who file two or more M&R tax returns each month for a single legal entity may be permitted to file one consolidated M&R tax return. The Department would not be able to identify the M&R tax revenue from a particular location when a consolidated return is submitted for multiple locations.

The number of M&R tax operators located at the welcome and information centers on the I-93 in Hooksett is insufficient to disclose any information according to RSA 21-J:14. The journal entries that the Department would make in the state accounting system for the M&R tax revenue from the welcome and information centers on I-93 in Hooksett to be deposited into the NBC Fund may result in an impermissible disclosure.

The proposed legislation does not address the potential for amended M&R tax returns resulting in refunds or M&R tax payments that are subsequently rejected for insufficient funds. If an M&R operator files an amended M&R tax return that results in a refund, the language of the proposed legislation does not address if the NBC Fund would have the requisite monies to issue the refund. Conversely, if an M&R operator makes the monthly M&R tax payment to the Department, which is then deposited into the NBC Fund, the proposed legislation does not address how the NBC Fund, or the Department will administer the non-payment and tax notice process should that M&R tax payment subsequently be rejected for insufficient funds.

AGENCIES CONTACTED:

Department of Transportation, Department of Revenue Administration, and Treasury Department