HB600 (2009) Detail

Relative to dedicated funds maintained by the state treasurer.


CHAPTER 163

HB 600-FN – FINAL VERSION

04Mar2009… 0352h

20May2009… 1930eba

2009 SESSION

09-0502

05/03

HOUSE BILL 600-FN

AN ACT relative to dedicated funds maintained by the state treasurer.

SPONSORS: Rep. Almy, Graf 11; Rep. Gottling, Sull 3; Rep. K. Gould, Rock 5; Sen. Hassan, Dist 23; Sen. Janeway, Dist 7

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes definitions for terms used in the accounting requirements for dedicated funds, amends the reporting requirements for such funds, and makes various technical corrections to the statutory list of dedicated accounts.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04Mar2009… 0352h

20May2009… 1930eba

09-0502

05/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to dedicated funds maintained by the state treasurer.

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

163:1 Application of Receipts. Amend the introductory paragraph of RSA 6:12, I and RSA 6:12, I(a) to read as follows:

I. The requirement that the state treasurer shall establish and maintain an account or fund separately [on the books] in the accounting records of the state shall be met by the department of administrative services in the following manner:

(a) The department of administrative services shall establish and maintain [the] an account or fund in the accounting system of the state.

163:2 Application of Receipts. The introductory paragraph of RSA 6:12, I(b) is repealed and reenacted to read as follows:

(b) Moneys received by the state treasurer, as provided in RSA 6:11, shall be accounted for in the state’s accounting system as general revenue of the state, with the exception of the following dedicated funds or accounts:

163:3 Dedicated Accounts Relative to Stewardship of the Connecticut Lakes. Amend RSA 6:12, I(b)(220) and (221) to read as follows:

(220) Moneys deposited in the Connecticut Lakes headwaters natural areas stewardship endowment account under RSA 216:9.

(221) Moneys deposited in the Connecticut Lakes headwaters [natural areas stewardship] tract road maintenance endowment [account] fund under RSA [216:9] 216:10.

163:4 New Subparagraphs; Dedicated Accounts. Amend RSA 6:12, I(b) by inserting after subparagraph (276) the following new subparagraphs:

(277) Moneys deposited into the Hampton Beach capital improvement fund established under RSA 216:3, IV(a).

(278) Moneys deposited into the mosquito control fund established under RSA 141-C:25.

(279) Moneys deposited into the dam maintenance revolving loan fund established under RSA 482:55-a.

(280) Moneys accruing to blind services through vending machine income under RSA 186-B:14.

(281) Moneys deposited into the chancellor’s scholarship endowment trust fund established under RSA 187-A:20-a, III.

(282) Moneys deposited into the AIDS drug assistance program fund established under RSA 141-F:12.

(283) Moneys deposited for the sole purpose of constructing the September 11 memorial under RSA 4:9-f.

163:5 New Paragraph; State Treasurer and State Accounts; Definitions. Amend RSA 6:12 by inserting after paragraph II the following new paragraph:

III. In this section:

(a) “Account” means a formal record in the state’s accounting system that represents, in words, money, or other unit of measurement, certain resources, claims to such resources, transactions, or other events that result in changes to those resources and claims.

(b) “Fund” means a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equity or balances and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. A fund can also be a grouping of related funds that is used to maintain control over resources that have been segregated for specific activities or objectives.

(c) “Dedicated fund or account” means moneys collected by the state from a specific source in the form of taxes, fees, licenses, fines, donations, gifts, or other sources as designated by statute, a requirement of federal law, or other legal arrangements that must be spent for a specific program or purpose.

(d) “Revolving fund or account” means a fund or account that, when initially established, is intended for repeated expending and replenishment of resources for a specific program or purpose.

(e) “Escrow fund or account” means an arrangement whereby moneys or other property are placed into the temporary safekeeping of a neutral and uninterested third party and which may be released only upon the fulfillment of certain predetermined conditions or by agreement of the interested parties.

(f) “Trust” means an arrangement, usually with a formal written agreement, contract, or will of deceased person, whereby money or other property is placed under the legal ownership and control of a person, the trustee, who is responsible for administering it, with specific instructions about how the principal or corpus is to be managed, invested, and disposed, for the benefit of others, the beneficiary or beneficiaries.

(g) “Trustee” means a person named in a trust agreement, as a trusted third party, to nominally own, protect, and manage moneys or other assets for the benefit of a beneficiary in accordance with the terms of the agreement. A trustee is usually charged with investing prudently and productively on behalf of the beneficiary and may be allowed some compensation or recovery of costs incurred in the administration of a trust. Restrictions of a trust may include, but are not limited to, commingling other moneys or assets with that of the trust, entering into any transactions with the trust, and benefiting from the trust. Only when the intention or the purpose of the trust is fulfilled may a trustee be discharged of these duties.

(h) “Agency fund or account” means an arrangement whereby moneys or other assets are received by the state as an agent for other governmental units, other organizations, or individuals and are held in a custodial capacity. The state, as a holder of these assets, agrees to remit the assets, income from the assets, or both, to a specified beneficiary at a specified time.

(i) “Custodial fund or account” means moneys or other assets owned by a person or entity but which are entrusted to and controlled by another, the custodian. The role of the custodian includes, but is not limited to, holding such moneys or other assets in safekeeping, arranging for the settlement of any purchases or sales of such assets, collecting income from investments, and providing information to the owners of such moneys or other assets.

(j) “Endowment fund or account” means moneys or other assets usually donated with a stipulation that the principal or corpus be invested and held in perpetuity or for a defined period of time and that earnings from the investments be utilized for the benefit of others.

(k) “Lapsing fund or account” means moneys in funds or accounts which, if not spent at the end of the fiscal year or biennium, revert back to the general fund.

(l) “Nonlapsing fund or account” means moneys in funds or accounts at the end of the fiscal year or biennium that do not revert back to the general fund but remain in the fund or account to be used in the next fiscal year and that are allowed to accumulate for use in future years.

163:6 Trust and Agency Funds. RSA 6:12-c is repealed and reenacted to read as follows:

6:12-c Trust and Agency Funds.

I. The definitions in RSA 6:12 shall apply to this section.

II. All moneys received or held by the state treasurer pursuant to this section shall be kept separate from any other funds and accounts and shall be administered in accordance with RSA 4:8 and the terms and conditions of the referenced trust or account:

(a) The Caroline A. Fox fund of the department of resources and economic development.

(b) The Japanese charitable fund of the state treasurer.

(c) The Matthew Elliot memorial trust fund of the division of juvenile justice services, department of health and human services.

(d) The New Hampshire veterans’ home benefit fund of the New Hampshire veterans’ home.

(e) The Sam Whidden trust of the state university system.

(f) The Harriet Huntress trust of the department of education.

(g) The Hattie Livesey trust of the department of education.

(h) The Laconia state school account.

(i) The New Hampshire hospital account.

(j) The tip-top house fund of the department of resources and economic development.

163:7 Custodial and Escrow Account. RSA 6:12-d is repealed and reenacted to read as follows:

6:12-d Custodial and Escrow Accounts.

I. The definitions in RSA 6:12 shall apply to this section.

II. All moneys received or held by the state treasurer pursuant to this section shall be kept separate from any other funds and accounts and shall be administered in accordance with the terms and conditions of the referenced account:

(a) The financial responsibility account of the department of safety.

(b) The road toll bonds account of the department of safety.

(c) The special fund for active cases account of the department of labor.

(d) The special fund for second injuries account of the department of labor.

(e) The dissolution of corporation account of the state treasurer.

(f) The foreign escheated estates account of the state treasurer.

(g) The unclaimed and abandoned property account of the state treasurer.

(h) The Guy Thompson account of the New Hampshire veterans’ home.

(i) The veterans’ home members administrative account of the New Hampshire veterans’ home.

(j) The water resources council accounts of the department of environmental services.

(k) The surety indemnification accounts of the postsecondary education commission.

(l) The racing and charitable gaming escrow account of the racing and charitable gaming commission.

(m) The agriculture escrow account of the department of agriculture, markets, and food.

163:8 Reporting Requirements for Dedicated Funds. Amend RSA 6:12-e to read as follows:

6:12-e Reporting Requirements for Dedicated Funds.

[I.] The definitions established in RSA 6:12 shall apply to this section. The administrator of each fund, account, or trust listed in RSA 6:12, RSA 6:12-b, RSA 6:12-c, and RSA 6:12-d shall complete and file a biennial report with [the state treasurer] the commissioner of administrative services on or before [January 15, 2004, and every other] September 15, 2009, and each odd-numbered year thereafter. The [treasurer] commissioner of administrative services shall forward the reports to the relevant legislative policy committees of the house and senate as indicated on said reports by the administrator of each fund, account, or trust by November 15. Each biennial report shall include, but not be limited to:

[(a)] I. Activities the fund, account, or trust is required or intended to carry out, and an identification of all revenues available to said fund, account, or trust.

[(b)] II. The amount of revenue deposited into the fund, account, or trust, and the amount expended from said fund, account, or trust during the prior 2 fiscal years.

[(c)] III. The balance of the fund, account, or trust at the close of the prior 2 fiscal years.

[II. The administrator of each fund, account, or trust may file, in lieu of the biennial report, a current report that was prepared by the administrator for other purposes provided that the report contains the information required in paragraph II.

III. The state treasurer shall provide written notice of the reporting requirements in paragraphs II and III of this section to any fund administrator who fails to file a report within 30 days of the report’s due date. The treasurer may grant, pursuant to the notice, up to a 5-month grace period for the fund administrator to comply with the provisions of paragraphs I and II of this section, after which time, if the report has not been filed, any moneys in the dedicated fund, account, or trust shall lapse to the general fund, unless the funds are otherwise ineligible for deposit in the general fund. For purposes of this section, ineligible funds include, but are not limited to, all federal funds and money held by the state on behalf of another person or entity.]

163:9 Inclusion of All Dedicated Funds, Accounts, or Trusts. Amend RSA 6:12-f to read as follows:

6:12-f Inclusion of All Dedicated Funds, Accounts, or Trusts.

I. The definitions in RSA 6:12 shall apply to this section. Any dedicated fund, account, or trust that is to be maintained separately from the general fund shall be included in RSA 6:12, RSA 6:12-b, RSA 6:12-c, or RSA 6:12-d.

II. The department to which such a dedicated fund, account, or trust is assigned in the enabling statute shall be responsible for submitting a request to the department of administrative services to open an account in the state’s financial records and for submitting a request to the state treasurer to open and separately manage a new trust and agency fund, pursuant to RSA 6:12-c, or a new custodial and escrow account, pursuant to RSA 6:12-d.

[II.] III. Beginning on [February 15, 2003, and every other] November 15, 2009, and each odd-numbered year thereafter, it shall be the responsibility of [the state treasurer, in consultation with] the commissioner of administrative services [and any other relevant department], in consultation with the relevant assigned department, to submit a report of funds, accounts, or trusts not included in RSA 6:12, RSA 6:12-b, RSA 6;12-c, or RSA 6:12-d to the [speaker of the house of representatives] chairpersons of the ways and means committees of the senate and house of representatives for introduction in the next legislative session in order to include said funds, accounts, or trusts in RSA 6:12, RSA 6:12-b, RSA 6:12-c, or RSA 6:12-d.

[III Notwithstanding any other provision of law to the contrary, any fund, account, or trust contained in the report by the treasurer pursuant to paragraph II of this section that is not included in RSA 6:12, RSA 6:12-b, RSA 6:12-c, or RSA 6:12-d within one year from the date of said report shall lapse to the general fund unless the funds are otherwise ineligible for deposit in the general fund. For purposes of this section, ineligible funds include, but are not limited to, all federal funds and money held by the state on behalf of another person or entity.]

163:10 Repeal. The following are repealed:

I. RSA 6:12, I(b)(10), relative to the weights and measures fund established in RSA 359-A:36.

II. RSA 6:12, I(b)(83), relative to the court modernization fund established in RSA 502-A:37.

III. RSA 6:12, I(b)(112), relative to the abandoned property revolving fund, established in RSA 471-A:20.

IV. RSA 6:12, I(b)(156), relative to the Maine-New Hampshire Interstate Bridge Authority trust fund, established in RSA 234:52.

163:11 Custodial and Escrow Accounts. Amend RSA 6:12-d, II(j) to read as follows:

(j) The water resources [council] project accounts of the department of environmental services.

163:12 Contingency. If HB 674-FN-A of the 2009 legislative session becomes law, section 11 of this act shall take effect at 12:01 a.m. on the effective date of section 7 of this act. If HB 674-FN-A does not become law, section 11 of this act shall not take effect.

163:13 Effective Date.

I. Section 11 of this act shall take effect as provided in section 12 of this act.

II. Section 12 of this act shall take effect upon its passage.

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

Approved: July 8, 2009

Effective Date: I. Section 11 shall take effect as provided in section 12.

II. Section 12 shall take effect July 8, 2009.

III. Remainder shall take effect September 6, 2009