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Bill to close ‘‘lease of equipment’’ loophole draws wide opposition from energy firms and municipalities
Summary
HB 372 would bar use of RSA 33:7‑e lease agreements to finance building fixtures — items that become part of a structure — and would treat those financing arrangements as long‑term debt requiring higher voter thresholds.
House Bill 372 drew extended testimony March 3. Sponsor Representative Diane Power described HB 372 as a narrowly targeted measure to stop use of RSA 33:7‑e "lease agreements of equipment" for projects that effectively install fixtures that cannot practically be returned, such as boilers, insulation, flooring, windows, elevators and other building replacements. The sponsor presented examples where school districts and towns used long‑term leases with escape clauses to finance multi‑million‑dollar facility projects and argued taxpayers paid a substantial premium in interest as a result. "Taxpayers should not have to pay a premium lease interest rate for a lease with an escape clause that can't be practically exercised," Representative Power said.
Proponents from Brookline described cases where…
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