HB 0336

AN ACT making capital appropriations to the university system of New Hampshire.

SPONSORS: Rep. J. Bradley, Carr 8; Rep. Scanlan, Graf 11; Rep. Burling, Sull 1; Rep. M. Smith, Straf 8; Rep. Henderson, Rock 20; Sen. Wheeler, Dist 21; Sen. Eaton, Dist 10; Sen. Gordon, Dist 2; Sen. O'Hearn, Dist 12; Sen. D'Allesandro, Dist 20

This bill makes a nonlapsing, bonded appropriation over multiple years for various capital projects of the university system of New Hampshire.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

I. A sum not to exceed $185,000,000 is hereby appropriated to the university system of New Hampshire for the following capital projects:

II. The university system board of trustees shall determine the timing of the respective projects and the specific dollar allocation to each from the sum available under paragraph I. The appropriation shall be nonlapsing and in addition to any other appropriation to the university system; provided, however, that the university system shall not approve actual cumulative expenditures for such purposes of more than:

I. To provide funds for the appropriation made in section 1 of this act, the state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $185,000,000 and for said purposes may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A; provided the cumulative bonds or notes shall not be issued in excess of:

II. Payments of principal and interest on the bonds and notes shall be made from the general fund of the state.

3 Oversight and Reporting Required. The university system board of trustees shall provide a report every 90 days to the governor and legislative capital budget overview committee on the progress of each of the capital projects funded from the sum appropriated and authorized in sections 1 and 2 beginning September 30, 2001 until the funds appropriated in section 1 are fully expended. Said reports shall include the current total project cost, funds encumbered, actual expenditures, and estimated completion date for each project.

I. The appropriations made for the purposes mentioned in section 1 and the sums available for these projects shall be expended by the trustees of the university system of New Hampshire. All contracts for the construction of all or any part of said buildings or facilities shall be let only after competitive sealed bids have been received and only after an advertisement calling for such bids has been published at least once in each 2 successive calendar weeks in a newspaper of general circulation in New Hampshire or in a trade journal known to be circulated among the contractors from whom bids will be sought with the state of New Hampshire or elsewhere in the area. The first publication of such advertisement shall be not less than 30 days prior to the date the bids will be received. All conditions considered, wherever possible, it is recommended that the services of New Hampshire architectural and construction firms be considered within the discretion of the trustees.

II. The appropriations made in section 1 are available for all costs incidental to the completion of the projects enumerated including the costs of the services of architects, engineers, and other consultants of such kind and capacity as the university system board of trustees, in its discretion, may wish to employ on such terms and conditions as the board determines. These moneys shall be spent under the direction of the university system board of trustees.

III. If, in the judgment of the trustees of the university system, just cause exists indicating the lowest bid should be rejected, then the contract may be awarded to the next lowest bidder, or, if the next lowest bid should be rejected, the contract may be awarded to the third lowest bidder.

IV. The board of trustees of the university system has the right to reject any and all bids and, if the lowest bid is in excess of the appropriation, the board has the right to negotiate with the low bidder or with the 3 lowest bidders for a contract for the construction upon terms considered most advantageous to the university. If only one bid is received, the board of trustees may negotiate a contract for the construction on terms considered most advantageous to the university system and to the state. Any authorization contained in this act which is at variance with the requirements of applicable federal law and regulations shall be controlled by the terms of the federal law and regulations.

V. Notwithstanding paragraphs I, III, and IV, the sums appropriated by section 1 for all or any of the projects listed in section 1 may be expended and awarded by the trustees of the university system; provided that all contracts for all or any part of the building or facilities shall follow construction management procurement procedures and guidelines. If the trustees select construction management pursuant to this paragraph, paragraphs I, III, and IV shall not apply and the trustees shall retain the right to reject or negotiate following accepted construction management practices.

The Treasury Department has determined that this bill will increase state general fund expenditures by $5,458,750 in FY 2002, by $5,308,750 in FY 2003, by $8,434,000 in FY 2004 and by $12,041,375 in FY 2005. There will be no effect on county or local expenditures or on state, county and local revenues. This bill increases general fund bonded indebtedness by $185,000,000; with the following bond issuance schedule $50 million in FY 2002-2003, $30 million in FY 2004, $35 million in FY 2005, $35 million in FY 2006 and $35 million in FY 2007.

The Treasury Department has indicated that the amount of all outstanding general obligation bonded indebtedness on behalf of and incurred by the state as of June 30, 2000 is $592,100,000. The amount of general fund bonds authorized, but unissued as of June 30, 2000 is $192,000,000.

Current Interest Bond rates are variable based on July 2000 rates and are amortized over 20 years (60% of the principal paid in the first ten years, 40% paid in the second 10 years). An estimated debt retirement schedule for all outstanding general fund bonded indebtedness, including the proposed authorization contained in this bill through FY 2005, is displayed below:

The debt service shown in the table below reflects the $50 million in FY 2003-2004 and $30 million in FY 2004 and $35 million in FY 2005 bond issues only.

FISCAL YEAR ENDING	CURRENT DEBT SERVICE	PROPOSED ADDITIONAL DEBT SERVICE	TOTAL
2001	$64,769,000	$0	$64,769,000
2002	$58,094,000	$5,458,750	$63,552,750
2003	$57,260,000	$5,308,750	$62,568,750
2004	$56,603,000	$8,434,000	$65,037,000
2005	$52,385,000	$12,041,375	$64,426,375