CHAPTER 70
HB 1498 – FINAL VERSION
01Feb2006… 0495h
2006 SESSION
05/01
HOUSE BILL 1498
AN ACT establishing a risk management unit within the department of administrative services and relative to the rulemaking authority of the department of administrative services.
COMMITTEE: Executive Departments and Administration
This bill establishes a risk management unit within the department of administrative services. The unit has the same responsibilities as the bureau of risk management but is not part of the division of accounting services.
The bill also repeals 3 areas of rulemaking authority by the department of administrative services, 2 of which have become obsolete and one of which is addressed in statute.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01Feb2006… 0495h
06-2535
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT establishing a risk management unit within the department of administrative services and relative to the rulemaking authority of the department of administrative services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
70:1 Department of Administrative Services Units; Reference Changed. Amend the introductory paragraph of RSA 21-I:4 to read as follows:
21-I:4 Office Established. There is hereby established an office of the commissioner consisting of the following [5] 6 units:
70:2 New Paragraph; Department of Administrative Services; Risk Management Unit Added. Amend RSA 21-I:4 by inserting after paragraph V the following new paragraph:
VI. Risk Management.
70:3 New Section; Department of Administrative Services; Risk Management Unit Established. Amend RSA 21-I by inserting after section 7-b the following new section:
21-I:7-c Risk Management. There is established within the office of the commissioner of administrative services a risk management unit, which shall be under the supervision of such staff as may be employed by the commissioner of administrative services. The risk management unit shall be responsible for the following functions, in accordance with applicable laws:
I. Identifying loss exposure for all state real and personal property and for personal injury, except as otherwise provided by law, on a continuing basis.
II. Developing and operating risk reduction programs, in accordance with the loss prevention guidelines adopted pursuant to RSA 21-I:14, II.
III. Identifying cost-effective means for protecting against various types of losses, including self-funding, commercial insurance purchases and risk assumption, and recommending to the governor and the general court actions to be taken through the budget process to implement such means.
IV. Preparing bid specifications for use by the state when seeking commercial insurance.
V. After consultation with, and approval by the commissioner of administrative services, purchasing liability insurance under a fleet policy covering the operation of state-owned vehicles and motorboats, and such other insurance and surety bonds as any state department, agency or official may now or hereafter be legally authorized to secure, or required to furnish; provided, that approval shall not be granted for any such insurance or surety bonds unless the same have been negotiated for, are procured from and the premium therefor is to be paid to a resident agent of an insurance company registered and licensed to do business in this state. With the exception of any risk located outside the state, no such insurance company or resident agent, personally or by another, shall allow, give or pay, directly or indirectly, to any nonresident agent or nonresident broker any part of the commission on the sale of such insurance or surety bonds. The insurance commissioner may suspend or revoke the license of any resident agent or insurance company violating the provisions hereof.
70:4 Division of Accounting Services. Amend the introductory paragraph of RSA 21-I:8 to read as follows:
21-I:8 Division of Accounting Services. There is hereby established within the department the division of accounting services under the supervision of an unclassified director of accounting services, who shall also be known as the comptroller. The comptroller shall direct the state’s fiscal accounting systems, using generally accepted accounting principles and taking full advantage of all benefits of automated data processing applications, to the end that the fiscal affairs of all state agencies and departments will be adequately and uniformly serviced and that periodic financial and management reports will be available to serve the various needs of all state agencies and the executive and legislative branches in their decision making processes. The division shall include the following internal organizational [units] unit:
70:5 Council on the Arts; Reference Change. Amend RSA 19-A:10, III to read as follows:
III. To acquire insurance when he deems such insurance necessary for the protection of the works of art purchased, subject to the provisions of RSA [21-I:8, II(e)] 21-I:7-c, V.
70:6 Duties of the Commissioner of Health and Human Services; Reference Change. Amend RSA 161:4, III to read as follows:
III. LIABILITY INSURANCE. The commissioner of the department of health and human services or designee shall have the authority, after consultation with the insurance department and the[bureau of] risk management unit, and in accordance with the procedures established by the commissioner of administrative services under RSA [21-I:8, II(e)] 21-I:7-c, V, to purchase personal liability coverage for individuals providing care to adults receiving assistance from the department of health and human services who reside in certified residential care facilities. The amount and nature of this insurance coverage may vary in the discretion of the commissioner of administrative services.
70:7 Services for Children, Youth, and Families; Reference Change. Amend RSA 170-G:3, VI to read as follows:
VI. The commissioner shall have authority, after consultation with the insurance department and the [bureau of] risk management unit, and in accordance with the procedures established by the commissioner of administrative services under RSA [21-I:8, II(e)] 21-I:7-c, V, to purchase insurance coverage for the benefit of individuals providing foster care to children within the jurisdiction of the department. The amount and nature of this insurance coverage may vary in the discretion of the commissioner of administrative services.
70:8 Services for Children, Youth, and Families; Reference Change. Amend RSA 170-G:3, VII(b) and (c) to read as follows:
(b) No payment shall be made under subparagraph (a)(1) or (2) unless the department investigates the claim and the commissioner, or the commissioner’s designee, recommends to the [bureau of] risk management unit that the claim, or some portion of the claim, be paid. If the [bureau of] risk management unit determines that the claim meets the requirements of this paragraph and is reasonable in amount, the commissioner of administrative services, or the commissioner’s designee, shall authorize such payment.
(c) No payment shall be made under subparagraph (a)(3) unless the department investigates the claim and the commissioner, or the commissioner’s designee determines the foster parent did not act intentionally, willfully or recklessly, and recommends to the [bureau of] risk management unit that the claim, or some portion of the claim, be paid. If the [bureau of] risk management unit determines that the claim meets the requirements of this subparagraph, the attorney general shall be notified and shall select a qualified attorney to provide legal representation and defense to the claimant subject to the dollar limitations of subparagraph (a)(3), the recommendations of the [bureau of] risk management unit, and the attorney general’s own experience and expertise. The commissioner of administrative services, or the commissioner’s designee, shall authorize payment of such amounts as are approved by the attorney general.
70:9 Claims Against the State; Reference Change. Amend RSA 541-B:11-a to read as follows:
541-B:11-a Annual Report. The secretary of state shall provide annually to the [bureau of] risk management unit a copy of the annual report for the board.
70:10 Repeal of Bureau of Risk Management. RSA 21-I:8, II, establishing the bureau of risk management, is repealed
70:11 Department of Administrative Services; Rulemaking Authority. Amend the introductory paragraph of RSA 21-I:14 to read as follows:
21-I:14 Rulemaking Authority. The commissioner of administrative services shall adopt rules, pursuant to RSA 541-A, relative to the following matters, if such matters require statements of general applicability within the definition of “rule” set forth in RSA 541-A:1, XV:
70:12 New Paragraph; Duties of Commissioner of Administrative Services; Insurance Requirements for Certain State Contractors. Amend RSA 21-I:13 by inserting after paragraph XIII the following new paragraph:
IV. Establish a general liability insurance provision for standard state contracts that requires any contractor who qualifies for nonprofit status under section 501(c)(3) of the Internal Revenue Code and whose annual gross amount of contract work with the state does not exceed $500,000 to provide insurance in amounts of not less than $1,000,000 per claim or occurrence and $2,000,000 in the aggregate.
70:13 Repeal. RSA 21-I:14, III, XIV, and XV, relative to the rulemaking authority of the department of administrative services, are repealed.
70:14 Effective Date. This act shall take effect 60 days after its passage.
Approved: April 25, 2006
Effective: June 24, 2006