Committee backs bill to double state diversion for industrial access roads to $6 million

The Senate Committee on Economic Development adopted a strike‑and‑insert amendment and voted to report House Bill 4,007 to the full Senate with the recommendation that it do pass, with the bill first referred to the Committee on Finance. The vice chair moved the recommendation and the committee approved the motion by voice vote.

Counsel told members that the bill would amend provisions relating to the Industrial Access Road Fund. Among the substantive changes cited: increasing the amount diverted from the State Road Fund from $3,000,000 to $6,000,000 annually; increasing the maximum amount of unmatched funds awarded to $800,000 and the maximum matched funds to $300,000 per project; removing caps on the total amounts of matched and unmatched funds awarded; and expanding eligible sites to include an "approved industrial development site" as defined by the Business Ready Sites Program.

Counsel also said the bill would require the Division of Highways to approve, reject or provide comments relating to the location of an industrial access road within 90 days of submission. The strike‑and‑insert makes additional changes approved by House sponsors, permits use of the fund for signage and other directly related improvements, and exempts certain previously awarded grants from a surety‑bond requirement.

A senator asked whether the revised $300,000 matched‑fund cap could be used to draw additional matched funds; counsel explained how match funds relate to unmatched funds and that, depending on the project, a county or municipality could receive unmatched funds and then draw on match funds up to the $300,000 cap. Vice Chair (Senator from Randolph), who disclosed his employer has previously received access‑road grants and asked whether he should vote, was ruled to be a member of the class and voted; he spoke in support, saying the change "is a step in the right direction" to help create ready sites for businesses.

Supporters described the bill as a tool to attract and expand business by improving access infrastructure and enabling public‑private contributions to complete projects. The committee adopted a title amendment, approved the strike‑and‑insert language, and reported the bill to the full Senate and to Finance for further review.