Bill Text - HB256 (2007)

(2nd New Title) relative to the duties and powers of town treasurers.

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Revision: Jan. 11, 2010, midnight

21Mar2007… 0170h

05/17/07 1358s

05/17/07 1668s

13Jun2007… 2125eba

2007 SESSION

07-0735

06/10

HOUSE BILL 256

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill clarifies the duties and powers of town treasurer.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21Mar2007… 0170h

05/17/07 1358s

05/17/07 1668s

13Jun2007… 2125eba

07-0735

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

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

246:1 Town Officers; Surety Bond Required. Amend the introductory paragraph of RSA 41:6, I to read as follows:

I. Town treasurers, trustees as provided in RSA 31:22 and 23, trustees as provided in RSA 53-B:8-a, I, library trustees including alternate library trustees, if any, town clerks, tax collectors and their deputies, [and] agents authorized to collect the boat fee, and persons delegated treasury functions under RSA 41:29, VI shall be bonded by position under a blanket bond from a surety company authorized to do business in this state. The bond shall indemnify against losses through:

246:2 New Paragraphs; Financial Duties. Amend RSA 41:9 by inserting after paragraph VI the following new paragraphs:

VII. The selectmen shall annually review and adopt an investment policy for the investment of public funds in conformance with applicable statutes and shall advise the treasurer of such policies.

VIII. The selectmen shall be responsible for establishing procedures to ensure that all funds paid to the town from any department shall be remitted to the treasurer at least on a weekly basis or daily whenever such funds total $500 or more. Remittances to the treasurer from the tax collector shall be in accordance with RSA 41:35 and remittances from the town clerk shall be in accordance with RSA 261:165.

246:3 Town Treasurer; Duties. Amend RSA 41:29, II-V to read as follows:

II. The treasurer shall deposit all such moneys in participation units in the public deposit investment pool established pursuant to RSA 383:22 or in [solvent banks in the state] federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state, except that funds may be deposited in federally insured banks outside the state if such banks pledge and deliver to a third party custodial bank or the federal reserve bank collateral security for such deposits[,] of the following types:

(a) United States government obligations;

(b) United States government agency obligations[,]; or

(c) Obligations of the state of New Hampshire in value at least equal to the amount of the deposit in each case. [The amount of collected funds on deposit in any one bank shall not for more than 20 days exceed the sum of its paid-up capital and surplus.]

III. The town treasurer shall keep in suitable books provided for the purpose a fair and correct account of all sums received into and paid from town treasury, and of all notes given by the town, with the particulars thereof. At the close of each fiscal year, [he] the treasurer shall make a report to the town, giving a particular account of all his or her financial transactions during the year and account balances at year end. [He] The treasurer shall furnish to the selectmen statements from [his] the treasurer’s books, and submit [his] the books and vouchers to them and to the town auditors for examination, whenever so requested.

IV. Whenever the town treasurer has in custody an excess of funds which are not immediately needed for the purpose of expenditure, the town treasurer shall[, with the approval of the selectmen,] invest the same [in obligations of the United States government,] in accordance with the investment policy adopted by the selectmen under RSA 41:9, VII. The treasurer may invest in the public deposit investment pool established pursuant to RSA 383:22, in [savings bank] deposits [of banks incorporated under the laws of the state of New Hampshire or in certificates of deposits and repurchase agreements of banks incorporated under the laws of the state of New Hampshire or in banks recognized by the state treasurer. At least yearly, the selectmen shall review and adopt an investment policy for the investment of public funds in conformance with the provisions of applicable statutes.], including money market accounts or certificates of deposit, of federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state, or in obligations fully guaranteed as to principal and interest by the United States government. The obligations may be held directly or in the form of securities of or other interests in any open-end or closed-end management-type investment company or investment trust registered under 15 U.S.C. section 80a-1 et seq., if the portfolio of the investment company or investment trust is limited to such obligations and repurchase agreements fully collateralized by such obligations.

V. [Any person who directly or indirectly receives any such funds or moneys for deposit or for investment in securities of any kind shall,] The treasurer shall insure that prior to acceptance of [such funds,] any moneys for deposit or investment, including repurchase agreements, the federally insured bank shall make available at the time of such deposit or investment an option to have such funds secured by collateral having a value at least equal to the amount of such funds. Such collateral shall be segregated for the exclusive benefit of the town. Only securities defined by the bank commissioner as provided by rules adopted pursuant to RSA 386:57 shall be eligible to be pledged as collateral.

246:4 New Paragraph; Town Treasurer. Amend RSA 41:29 by inserting after paragraph V the following new paragraphs:

VI. The treasurer may delegate deposit, investment, recordkeeping, or reconciliation functions to other town officials or employees provided such delegation is in writing and includes written procedures acceptable to the selectmen, or in the case of a town operating under RSA 37, to the town manager, and is agreeable to all parties involved. However any such delegation shall only be made to a town official or employee bonded in accordance with RSA 41:6 and rules adopted by the commissioner of revenue administration under RSA 541-A. Such delegation shall not eliminate the responsibility of the treasurer to comply with all statutory duties required by law.

VII. The treasurer shall ensure that all moneys remitted shall be deposited at least on a weekly basis, or daily whenever funds remitted from all departments collectively totals $500 or more. Such deposit function may be delegated pursuant to paragraph VI. However, failure to ensure that funds are being deposited on a timely basis as required by this paragraph shall be cause for immediate removal from office pursuant to RSA 41:26-d.

246:5 Duties of Tax Collector. Amend RSA 41:35, I to read as follows:

I. Every collector of taxes shall keep in suitable books a fair and correct account in detail of the taxes due, collected, and abated, and of all property sold for nonpayment of taxes, which books shall be public records. A tax collector shall [pay] remit all money collected to the town treasurer, or to the town treasurer’s designee as provided by RSA 41:29, VI, at least on a weekly basis, [or on a daily basis at the discretion of the commissioner of revenue administration. Such daily or weekly payments may be deferred until the] or daily whenever tax receipts total $500 or more. [He] The collector shall make final payment to the town treasurer of all moneys collected [by him] within 10 days after the close of the town’s fiscal year. Failure to [deposit] remit collections on a timely basis as required by this paragraph shall be cause for immediate removal from office under RSA 41:40. He or she shall submit [his] the tax books and lists to the treasurer and selectmen for inspection and computation when requested so to do and if they discover any errors therein they shall immediately notify the town auditors thereof; and the auditors shall promptly examine the collector’s records and make a written report to the selectmen and the department of revenue administration of their findings, conclusions and recommendations. The collector shall be at [his] a usual place of business, or any other place, at least one day each month for at least 2 hours continuously for the transaction of tax business, which time and place shall be printed upon the tax bills sent out by the collector. [He] The collector shall make a written report to the town at the end of each fiscal year which shall contain the amount of the taxes committed to him or her to collect; the amount of taxes collected, together with interest thereon; the amount of discounts allowed; the amount of taxes abated; the total amount of uncollected taxes; and an account of all sales of real estate [by him] to collect taxes. Upon written request therefor the collector shall provide the selectmen with an itemized list of the uncollected taxes at the end of the fiscal year.

246:6 Accounting for Receipts of Permit Fees. Amend RSA 261:165 to read as follows:

261:165 Accounting for Receipts of Permit Fees. Each designated city official and town clerk shall keep an account of the money received by him or her for vehicle permit fees collected. The clerk or official shall [pay] remit all fees collected to the town or city treasurer, or to the treasurer’s designee as provided by RSA 41:29, VI, at least on a weekly basis, or [more frequently at the discretion of the commissioner of revenue administration. Such payments may be deferred until the] daily whenever permit fee receipts total $500 or more. Such permit fees shall be used for the general purposes of the city or town. Failure of the city official or town clerk to [deposit] remit permit fees on a timely basis as required by this section [such funds on a weekly basis, or, if required by the commissioner of revenue administration, on a more frequent basis,] shall be cause for the immediate removal from office under RSA 41:40 of the city official or under RSA 41:16-c of the town clerk [from office. The commissioner of revenue administration shall remove the town clerk pursuant to RSA 41:16-c or city official pursuant to RSA 41:40]. Town clerks shall be paid on orders drawn on the town treasurer by the selectmen at the rate of $.50 for each permit issued.

246:7 Duties of City Treasurer. Amend RSA 48:16 to read as follows:

48:16 City Treasurer; Duties.

I. The city treasurer shall have custody of all moneys belonging to the city. The treasurer shall deposit the same in participation units in the public deposit investment pool established pursuant to RSA 383:22, or in [solvent banks in the state] federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state, except that funds may be deposited in federally insured banks outside the state if such banks pledge and deliver to a third party custodial bank or the regional federal reserve bank collateral security for such deposits[,] of the following types:

(a) United States government obligations[,];

(b) United States government agency obligations[,]; or

(c) Obligations of the state of New Hampshire in value at least equal to the amount of the deposit in each case. [The amount of collected funds on deposit in any one bank shall not at any time exceed the sum of its paid-up capital and surplus, except that a city with a population in excess of 50,000 is authorized to deposit funds in a solvent bank in excess of the paid-up capital surplus of said bank.]

II. The city treasurer shall keep in suitable books provided for the purpose a fair and correct account of all sums received into and paid from the city treasury, and of all notes given by the city, with the particulars thereof. At the close of each fiscal year, [he] the treasurer shall make a report to the city giving a particular account of all his or her financial transactions during the year and account balances at year end. [He] The treasurer shall furnish to the mayor and council statements from [his] the treasurer’s books, and submit [his] the books and vouchers to them and to the city auditors for examination, whenever so requested.

III. Whenever the city treasurer has in custody an excess of funds which are not immediately needed for the purpose of expenditure, the city treasurer shall[, with the approval of the mayor and a majority of the city council,] invest the same in accordance with the investment policy adopted by the mayor and board of aldermen or city council under RSA 47:6, II. The treasurer may invest [obligations of the United States government,] in participation units in the public deposit investment pool established pursuant to RSA 383:22, in [savings bank] deposits [of banks incorporated under the laws of the state of New Hampshire or in certificates of deposits and repurchase agreements of banks incorporated under the laws of the state of New Hampshire or in banks recognized by the state treasurer. At least yearly, the city council or board of aldermen shall review and adopt an investment policy for the investment of public funds in conformance with the provisions of applicable statutes.], including money market accounts or certificates of deposit, of federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state, or in obligations fully guaranteed as to principal and interest by the United States government. The obligations may be held directly or in the form of securities of or other interests in any open-end or closed-end management-type investment company or investment trust registered under 15 U.S.C. section 80a-1 et seq., if the portfolio of the investment company or investment trust is limited to such obligations and repurchase agreements fully collateralized by such obligations.

IV. The city treasurer shall pay out fees held pursuant to RSA 673:16, II upon the order of the local land use board or its designated agent or in the case of moneys held pursuant to RSA [674:44-a] 674:44-d upon order of the heritage commission.

V. [Any person who directly or indirectly receives any such funds or moneys for deposit or for investment in securities of any kind shall,] The treasurer shall insure that prior to acceptance of [such funds,] any moneys for deposit or investment, including repurchase agreements, the federally insured bank shall make available at the time of such deposit or investment an option to have such funds secured by collateral having a value at least equal to the amount of such funds. Such collateral shall be segregated for the exclusive benefit of the city. Only securities defined by the bank commissioner as provided by rules adopted pursuant to RSA 386:57 shall be eligible to be pledged as collateral.

246:8 Financial Supervision. Amend RSA 47:6 to read as follows:

47:6 Financial Supervision.

I. The city councils shall take proper care that no money be paid from the city treasury unless previously granted and appropriated, and shall secure a just and prompt accountability from all persons entrusted with the receipt, custody or disbursement of the money or funds of the city, or the care of its property.

II. At least yearly, the city council or board of aldermen shall review and adopt an investment policy for the investment of public funds in conformance with the provisions of applicable statutes and shall advise the treasurer of such policies.

246:9 Effective Date.

I. Section 9 of this act shall take effect upon its passage.

II. The remainder of this act shall take effect 60 days after its passage.

II. Remainder shall take effect August 27, 2007