HB 558 – AS AMENDED BY THE HOUSE
28Mar2007… 0853h
2007 SESSION
04/05
HOUSE BILL 558
AN ACT repealing the education trust fund.
SPONSORS: Rep. Weyler, Rock 8; Rep. E. Anderson, Merr 13; Rep. Kurk, Hills 7; Rep. Bettencourt, Rock 4; Sen. Gatsas, Dist 16
This bill repeals the education trust fund and provides that all sources of revenue formerly dedicated to the education trust fund shall remain in the general fund, and all disbursements formerly made from the education trust fund shall be made from the general fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
28Mar2007… 0853h
07-0934
04/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT repealing the education trust fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Reports on Status of Monthly Tax Refunds. Amend the introductory paragraph in RSA 21-J:45, I to read as follows:
I. The commissioner of the department of revenue administration shall report to the fiscal committee of the general court within 10 days after the close of each month, the status of monthly refunds pending from the [combined] general fund [and education trust fund] for the following taxes:
2 Determination of Amounts Returnable. Amend RSA 31-A:4, I to read as follows:
I. Its 1978 distribution under RSA 31-A plus its share under the equalized formula of an annual increase of 5 percent in the previous year’s aggregate distribution, through the year 1981, excluding revenue derived from RSA 77-A:20. [The amount of money which is removed from the formula for deposit in the education trust fund shall not affect the remaining municipal revenue sharing distribution.] The same amount distributed to each municipality in fiscal year 1998, excluding the amount apportioned to the school district in the 1998 property tax calculations, shall be distributed to each municipality in fiscal year 1999 and each year thereafter until the legislature revises the formula or provides additional appropriations that will affect the distribution amount.
3 Commissioner’s Warrant. Amend RSA 76:8, III to read as follows:
III. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by the statewide enhanced education tax, by distributions from the [education trust] general fund [under RSA 198:39], or by other revenue sources.
4 Tax on Meals and Rooms; Disposition of Revenue. Amend RSA 78-A:26, III to read as follows:
III. Beginning on July 1, 1999, and for each fiscal year thereafter, the department shall pay over all revenue collected pursuant to RSA 78-A:6, II-a to the state treasurer for deposit in the [education trust fund established by RSA 198:39] general fund.
5 Utility Property Tax; Administration. Amend RSA 83-F:7, I to read as follows:
I. The commissioner shall collect the taxes, interest, additions to tax and penalties imposed under this chapter and shall pay over to the state treasurer for deposit in the [education trust fund established by RSA 198:39] general fund the amount of the funds collected.
6 Charter and Open Enrollment Schools; Funding. Amend RSA 194-B:11, I(d) to read as follows:
(d) The source of funds for payments under this section shall be moneys from the [education trust fund established in RSA 198:39] general fund.
7 Appropriation for Unanticipated Funds. Amend RSA 198:20-b, II to read as follows:
II. Such money shall be used only for legal purposes for which a school district may appropriate money. No funds disbursed from the [education trust] general fund pursuant to RSA 198:42 shall, under any circumstances, emergency or otherwise, be deemed to be unanticipated money under the provisions of this section.
8 State Aid for Educational Equality; Education Trust Fund; Subdivision Heading Amended. Amend the subdivision heading preceding RSA 198:38 to read as follows:
State Aid [for Educational Equality; Education Trust Fund] to Education
9 Distribution Schedule. Amend RSA 198:42 to read as follows:
198:42 Distribution Schedule of Equitable Education Grants; Appropriation.
I. The equitable education grant determined in RSA 198:41 shall be distributed to each municipality’s school district or districts legally responsible for the education of the pupils who attend approved public schools within the district or in other districts or who attend approved programs for educationally disabled children, as the case may be, from the [education trust] general fund in 4 payments of 20 percent on September 1, 20 percent on November 1, 30 percent on January 1, and 30 percent on April 1 of each school year; provided that for a dependent school district, the grant determined in RSA 198:41 shall be distributed to the municipality, which shall appropriate and transfer the grant funds to its dependent school department.
II. For the fiscal year beginning July 1, 2005, and every fiscal year thereafter, the amount necessary to fund the grants under RSA 198:41 is hereby appropriated to the department from the [education trust fund created under RSA 198:39] general fund. The governor is authorized to draw a warrant from the [education trust] general fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the [education trust] general fund. If the balance in the [education trust] general fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of equitable education grants.
III. The department of education shall certify the amount of each grant to the state treasurer and direct the payment thereof to the school district. When a payment of a grant is made to a school district, the municipality on whose behalf the payment is made shall receive notification from the state treasurer of the amount of the payment made to its school district or districts.
IV. For the fiscal year beginning July 1, 2006, and every fiscal year thereafter, the amount necessary to fund charter school tuition payments under RSA 194-B:11, I is hereby appropriated to the department from the [education trust] general fund established under RSA 198:39. The [education trust] general fund shall be used to satisfy the state’s obligation under this paragraph. The payment shall be issued regardless of the balance of funds available in the [education trust] general fund.
10 Duties of the Department of Education and the State Board of Education. Amend RSA 198:44 to read as follows:
198:44 Duties of the Department of Education and the Board of Education. The department of education shall submit a report by December 31 to the speaker of the house of representatives and the senate president to be used for purposes of determination by the legislature of the appropriation to the [education trust] general fund. A copy of such report shall, at the same time, be given to the department of revenue administration.
11 Excess Statewide Enhanced Education Tax Payment. Amend RSA 198:46, II to read as follows:
II. The commissioner of the department of revenue administration shall collect from the municipality the excess tax and pay the excess tax over to the state treasurer for deposit in the [education trust] general fund [established by RSA 198:39].
12 Alternative Kindergarten Programs. Amend RSA 198:48-a, VII(a) to read as follows:
VII.(a) Upon the effective date of this paragraph, and for each fiscal year through June 30, 2003, an equitable education grant of $1,200 per pupil shall be distributed to school districts, from the [education trust fund created in RSA 198:39] general fund, for the education of its resident kindergarten pupils enrolled in an approved alternative kindergarten program established under this section.
13 Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:61 to read as follows:
198:61 Refund of Tax Claims. The department of revenue administration shall review a claim for tax relief filed with it and, if such claim is determined to be valid, shall certify such amount to the state treasurer within 120 days who shall pay such claims from funds in the [education trust] general fund. Such sums are hereby appropriated and the governor is authorized to draw a warrant from the [education trust] general fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the [education trust] general fund. If the balance in the [education trust] general fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of revenue administration shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the payment of valid claims. The department shall notify a claimant whose claim is rejected in whole or in part of such determination within 90 days of the department’s receipt of the claim and all required documentation.
14 Lottery; Establishment. Amend RSA 284:21-j, I to read as follows:
I. The state treasurer shall credit all moneys received from the lottery commission and all moneys received from the pari-mutuel commission under RSA 287-D and RSA 287-E, and interest received on such moneys, to a special fund from which the treasurer shall pay all expenses of the commission incident to the administration of this subdivision and all administration and enforcement expenses of the pari-mutuel commission under RSA 287-D and RSA 287-E. Any balance left in such fund after such expenses are paid shall be deposited in the [education trust fund established under RSA 198:39] general fund to be used exclusively for the purpose of state aid to education.
15 Repeal. The following are repealed:
I. RSA 6:12, I(65), relative to funds deposited into the education trust fund.
II. RSA 198:39, establishing the education trust fund.
III. RSA 77-A:20-a, relative to the distribution of funds from the business profits tax to the education trust fund.
IV. RSA 77-E:14, relative to the distribution of funds from the business enterprise tax to the education trust fund.
V. RSA 78:32, relative to distribution the of funds from the tobacco tax to the education trust fund.
VI. RSA 78-B:13, relative to the distribution of funds from the tax on transfer of real property to the education trust fund.
16 Effective Date. This act shall take effect June 30, 2007.