HB 1613-FN – AS AMENDED BY THE SENATE
03Mar2010… 0636h
05/50/10 1770s
05/05/10 1873s
2010 SESSION
08/10
HOUSE BILL 1613-FN
AN ACT relative to the general banking laws of the state and relative to employment and retirement benefits of certain non-judicial court employees.
COMMITTEE: Commerce and Consumer Affairs
This bill:
I. Increases certain fees.
II. Allows the banking commissioner to examine certain financial institutions.
III. Requires a statement be sent to the bank commissioner when new officers are sworn in.
IV. Requires background and criminal history records checks for persons seeking to form a trust company or other banking institution.
V. Allows certain non-judicial court system employees who elected not to join the state retirement system upon the establishment of the unified court system but remained in the Manchester employees’ contributory retirement system to be permitted upon retirement to be paid for accrued, unused sick time and receive credit for such paid time in the Manchester retirement system.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03Mar2010… 0636h
05/50/10 1770s
05/05/10 1873s
10-2637
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the general banking laws of the state and relative to employment and retirement benefits of certain non-judicial court employees.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Notification of Security Breach Required. Amend RSA 359-C:20, V to read as follows:
V. Any person engaged in trade or commerce that is subject to RSA 358-A:3, I which maintains procedures for security breach notification pursuant to the laws, rules, regulations, guidances, or guidelines issued by a state or federal regulator shall be deemed to be in compliance with this subdivision if it acts in accordance with such laws, rules, regulations, guidances, or guidelines. In the case of a financial institution, as defined in RSA 359-C:3, it shall file with the bank commissioner a copy of what it is required to file with its state or federal regulator under such laws, rules, regulations, guidances or guidelines at the same time as it is filed with the regulator. The bank commissioner may adopt rules setting forth the manner of such filing with the bank commissioner.
2 Annual Audits. Amend RSA 384:43 to read as follows:
384:43 Annual Audits.
I. The board of trustees or directors of every financial institution, except credit unions, under the supervision of the bank commissioner, shall [employ] engage a certified public accountant or public accountant, at least annually, to serve as its auditor. Each financial institution shall give written notice to the bank commissioner of its engagement of an auditor at the time of its engagement and shall require its auditor to confirm the engagement in writing to the commissioner within 30 days of such engagement. Each financial institution shall give written notice to the bank commissioner of the termination of the engagement of an auditor at the time of such termination and shall require the auditor to confirm the termination in writing to the commissioner within 30 days of such termination.
II. [The auditors selected in] Any auditor engaged pursuant to paragraph I, shall examine the books, accounts and operating systems of the institution in such a manner as in [their] its judgment will result in an audit that is in agreement with generally accepted accounting standards.
III. [Institutions subject to this section may satisfy the requirements of paragraphs I and II by:
(a) Engaging an independent external accounting firm which renders an audit report and opinion consistent with the duties of the auditor described in paragraph II; or
(b) Employing an internal audit staff which conducts a continuing internal audit program, provided an independent external auditor reviews the internal audit procedures and reports to the board annually; or
(c) Entering into an arrangement with the bank commissioner, approved by the directors by duly recorded vote and by the commissioner in writing, under which the commissioner makes one examination each year of the affairs of the institution. The expense of such examination shall be chargeable to and paid by the institution. The procedure for such payment shall be the same as for payments by institutions for cost of examinations under RSA 383:11. Sums collected under this section shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the bank commissioner. Any such arrangement may be terminated by either party upon at least 30 days notice in writing.
IV.] Each financial institution shall direct its auditor to provide, and the auditor shall provide the bank commissioner with a copy of its audit report, within 60 days after each is made available to the financial institution. [Reports on the review of internal audit program shall be submitted in a format prescribed by the commissioner in a rule adopted pursuant to RSA 541-A.] All such reports, memoranda, and correspondence remain the property of the individual financial institution.
[V.] IV. The bank commissioner shall, in the course of his or her regular official examination of the institution and at such other times that he or she considers advisable, review and analyze the work and reports of such [accountants and] auditors. The auditors shall provide the commissioner with such work and reports as the commissioner may reasonably request provided such request is limited to matters that relate to the safety and soundness of the institution. If the commissioner determines that any audit is inadequate or substantially violates the provisions of this section, he or she shall report his or her findings with instructions in writing to the trustees or directors, who shall, within 30 days after receiving such report, cause the institution to comply with the report and instructions.
3 Petition. Amend RSA 386-A:4, I to read as follows:
I. A petition requesting approval of the proposed incorporation shall be filed with the bank commissioner. The petition shall be upon such form as may be prescribed by the bank commissioner and shall contain all the information required by such form, signed and verified under oath by the incorporators, to which shall be annexed a signed duplicate of the articles of agreement. An examination fee of [$1,500] $10,000 shall be paid when the petition is filed. Sums collected under this section shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the bank commissioner. The bank commissioner shall examine each petition and if he or she finds that it is duly completed, he or she shall forthwith refer the petition to the board of trust company incorporation. The bank commissioner shall then make such investigation of each petition as he or she considers expedient, for the purpose of more fully informing the board. Said board may, upon request of any interested person or corporation or at its own discretion, order a public hearing, or may approve said petition without a hearing. The petitioners shall cause to be published such notices relating to the petition as the board may order. Any petition not deemed complete may be rejected by the bank commissioner. A rejected petition may be re-filed with the bank commissioner upon such form and in such manner as prescribed by the bank commissioner and a re-filing fee of $10,000 shall be paid.
4 Petition. Amend RSA 392:5, I to read as follows:
I. A petition setting forth said organizational instrument or its terms, signed by the organizers and requesting that the board of trust company incorporation grant a charter shall be filed with the bank commissioner in the form prescribed by the commissioner. The commissioner shall designate in such form the questions, requests for information and certifications applicable only to deposit taking or lending institutions that need not be responded to by organizers of a nondepository trust company. An examination fee of [$5,000] $10,000 shall be paid when the petition is filed. Sums collected under this section shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the bank commissioner. A petition may be rejected as incomplete by the bank commissioner. A rejected petition may be re-filed with the bank commissioner upon such form and in such manner as prescribed by the bank commissioner and a re-filing fee of up to $10,000 shall be paid.
5 Approval of Voluntary Dissolution; Filing Fee. Amend RSA 392:46, III to read as follows:
III. Upon completion of all actions required under the plan of dissolution and conditions, if any, prescribed by the board of incorporation, necessary to liquidate the trust company or to effect the reorganization, the applicant shall submit a written report of its actions to the board of incorporation and the applicant’s board of directors shall certify, under oath, that it is true and correct. Following receipt of the report, the bank commissioner may examine the trust company to determine whether the commissioner is satisfied that all required actions have been taken to liquidate or reorganize the trust company in accordance with the plan of dissolution and any conditions prescribed by the board. The cost of the examination shall be paid by the applicant. Not later than 60 days after the filing of the report, the board of incorporation shall examine the report and the bank commissioner’s findings, and, if it is satisfied, shall so notify the applicant in writing that the dissolution has been completed and is final. Thereupon, the applicant shall surrender its charter to the board, and the board shall issue a certificate of dissolution to be filed with the secretary of state pursuant to RSA 392:47. If the board is not satisfied that all required actions have been taken, it shall notify the applicant in writing what additional actions shall be taken to be eligible for a certificate of dissolution. The board shall establish a deadline for the submission of evidence that the additional actions have been taken. The board may extend the deadline for good cause shown. If the applicant fails to file a supplemental report showing that the additional actions have been taken before the deadline, or submits a report that is found not to be satisfactory by the board of incorporation, the board shall notify the applicant in writing that its application is not approved, and the applicant may appeal the decision pursuant to RSA 541.
6 Election; Oath. Amend RSA 384:5 to read as follows:
384:5 Election; Oath.
I. Officers, directors [and], trustees and managers (in the case of a limited liability company,) shall be elected or appointed as frequently as the charter or bylaws of the bank or savings association may require, but not less than once every 3 years[, and they shall hold office until others are elected and qualified].
II. All officers, directors [and], trustees and managers (in the case of a limited liability company) of any bank, trust company, or savings association upon election, or appointment shall be sworn to the faithful discharge of their duties[, except that they shall be required to take an oath of office only on the first occasion of their election or appointment and shall not be required to take any such oath thereafter]. Within 30 days of the oath being administered, a certified statement signed by the director, trustee, or manager of a limited liability company stating that he or she was duly sworn into office shall be forwarded to the bank commissioner. The commissioner may adopt rules under RSA 541-A to effectuate this section.
7 Organization. Amend RSA 392:14 to read as follows:
392:14 Organization. The organizers shall adopt bylaws which may be incorporated in an operating agreement if the company is a limited liability company, and shall also elect, or cause to be elected, such directors or managers and officers as may be required by the organizational instrument or bylaws. All directors, managers, and officers so elected shall be sworn to the faithful performance of their duties in accordance with RSA 384:5. A temporary clerk or secretary shall make and attest a record of the proceedings until the clerk or secretary has been chosen and sworn, including a record of such choice and qualification.
8 Oath. Amend RSA 394-B:30 to read as follows:
394-B:30 Oath. All directors [and], members of the supervisory [and] or credit committees, [as well as] and all officers [whom such directors may elect] upon their election or appointment and at each re-election or re-appointment, shall be sworn to the faithful performance of their duties. A record of every such qualification shall be filed and preserved with the records of the corporation.
Within 30 days of the oath being administered, a certified statement signed by the director or committee member stating that he or she was duly sworn into office shall be forwarded to the bank commissioner. The commissioner may adopt rules under RSA 541-A to effectuate this section.
9 Duties; Commissioner. Amend RSA 394-B:30 to read as follows:
383:9 Duties.
I. The commissioner shall have general supervision of all banks (except national banks), trust companies, building and loan associations, credit unions, Morris plan banks, small loan companies, and other similar institutions in the state. He or she shall examine into the condition and management of all such institutions [at least] every 18 months [with the exception of highly rated institutions provided for in RSA 383:9-d], and more often when necessary in his or her judgment or when so directed by the governor. [He] The commissioner may regulate the buying or selling of securities by [savings] banks for officers, employees, or customers. He or she shall assign to the deputy commissioner and the assistants appointed under RSA 383:7 such of his duties as he or she sees fit. In accordance with RSA 383:9-d, qualified institutions may be examined less often, but at no time shall the commissioner examine into the condition and management of any institution less than every 36 months.
II. [The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the duties assigned him by paragraph I.] The commissioner may conduct an examination at any location of the institution’s operations, including any place where assets are located or where records are made, posted, or kept. The commissioner shall have the power to conduct such an examination outside the state of New Hampshire and outside the United States and its territories.
III. The commissioner shall have power to make any special examination, investigation, or visitation of any supervised institution as frequently as the commissioner deems necessary.
IV. The commissioner may adopt rules, pursuant to RSA 541-A, relative to the duties assigned him or her by this section.
10 Examination of Qualified Institutions; Nondepository Trust Companies. Amend RSA 383:9-d to read as follows:
383:9-d Examination of [Highly Rated] Qualified Institutions; Nondepository Trust Companies.
I. [The bank commissioner may, at his or her discretion, waive one 18-month examination requirement under RSA 383:9 every 6 years for institutions which have consistently been given high ratings in past examinations. The commissioner may also substitute for an 18-month examination once every 6 years a report of a federal institution examining agency whose reports regularly include a report on New Hampshire institutions.] Within any 6-year period in which 4 18-month examinations are required under RSA 383:9, the commissioner may for [highly rated] institutions qualified under paragraph II:
(a) Waive one examination;
(b) Substitute for one examination a report of a federal bank examining agency whose reports regularly include a report on New Hampshire banks; and
(c) Perform 2 examinations as required by 383:9.
II. An institution qualifies for examination treatment under paragraph I and III if:
(a) It has consistently been given high ratings in past exams;
(b) It is not currently subject to an enforcement proceeding or order; and
(c) The commissioner has deemed it prudent to apply this provision.
III. The commissioner may, at his or her sole discretion, upon the written request of a [highly-rated] nondepository trust company qualified under paragraph II, satisfy the examination requirement of RSA 383:9, including modifications under paragraph I, for such trust company through an off-premises examination of:
(a) An audit report satisfying the requirements of RSA 384:43, I and II [if it is prepared in accordance with RSA 384:43, III(a) and (b),] and a fiduciary audit conforming to applicable generally accepted auditing standards; and
(b) Such other records and information of the institution as may be required by the commissioner.
11 New Section; Affiliates of Institutions. Amend RSA 383 by inserting after section 9-h the following new section:
383:9-i Affiliates of Institutions.
I. For purposes of this section, “affiliate” shall have the same meaning as in the Federal Reserve Act sections 23A(b), as amended from time to time (12 U.S.C. section 371c(a), and the regulations adopted thereunder.
II. In the course of conducting any examination, special examination, investigation, or visitation of any institution under RSA 383:9, the commissioner shall, subject to the limitations of federal law, have the jurisdiction and power to examine any affiliate of such institution. Such an examination is limited to those issues which, in the determination of the commissioner, affect the safe and sound operation of the institution and the relationship between the institution and the affiliate.
12 Petition; Trust Companies; Criminal History Records Check. RSA 392:5, III is repealed and reenacted to read as follows:
III.(a) The department may complete a background investigation and criminal history records check on the petitioner’s organizers, officers, and directors or managers, and any person in a similar position or performing similar functions. The department may also complete a background investigation and criminal history records check on any person, including individuals, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the petitioner. If the petitioner is a subsidiary, the department may complete a background investigation and criminal history records check on the individuals who are the indirect owners, as defined in RSA 397-A:1, VIII-a.
(b) If required by the department, the persons described in subparagraph (a) shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person’s criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
(c) The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
(d) The department may require the petitioner to pay the actual costs of each background investigation and criminal history records check.
IV. The failure of a petitioner to furnish required information, data, other material, or the required fee within 30 days after a request may be considered an abandonment of the petition.
13 Petition; Banks’ Criminal History Records Check. RSA 386-A:4, II is repealed and reenacted to read as follows:
II.(a) The department may complete a background investigation and criminal history records check on the petitioner’s organizers, officers, and directors, trustees or managers and any person in a similar position or performing similar functions. The department may also complete a background investigation and criminal history records check on any person, including individuals, that owns, beneficially own, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the petitioner. If the petitioner is a subsidiary, the department may complete a background investigation and criminal history records check on the individuals who are the indirect owners as defined in RSA 397-A:1, VIII-a.
(b) If required by the department, the persons described in subparagraph (a) shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person’s criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
(c) The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
(d) The department may require the petitioner to pay the actual costs of each background investigation and criminal history records check.
III. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the petition required by paragraph I.
14 New Section; Savings Associations; Criminal History Records Check. Amend RSA 393 by inserting after section 1-b the following new section:
393:1-c Savings Associations; Criminal History Records Check.
I. The department may complete a background investigation and criminal history records check on the incorporators, officers and directors, and any person in a similar position or performing similar functions. The department may also complete a background investigation and criminal history records check on any person, including individuals, that owns, beneficially own, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the petitioner. If the petitioner is a subsidiary, the department may complete a background investigation and criminal history records check on the individuals who are the indirect owners as defined in RSA 397-A:1, VIII-a.
II. If required by the department, the persons described in paragraph I shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person’s criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
III. The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
IV. The department may require the incorporators to pay the actual costs of each background investigation and criminal history records check.
15 New Section; Credit Unions. Amend RSA 394-B by inserting after section 4 the following new section:
394-B:4-a Credit Unions; Criminal History Records Check.
I. The department may complete a background investigation and criminal history records check on the persons seeking to form a credit union, the proposed officers and directors of the credit union and any person in a similar position or performing similar functions.
II. If required by the department, the persons described in paragraph I above shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person’s criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
III. The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
IV. The department may require the incorporators to pay the actual costs of each background investigation and criminal history records check.
16 Credit Unions; Use of Funds. Amend RSA 394-B:16, I-II to read as follows:
I. It may deposit its money in any corporate credit union whose shares and deposits are insured by the National Credit Union Administration or other qualified share and deposit insurance fund deemed acceptable by the bank commissioner, and may deposit its money in any cooperative bank, building and loan association, savings bank, trust company, federal savings and loan association or national bank in New England that is federally insured [by either the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation].
II. It may invest up to the insured amount in any cooperative bank, building and loan association, savings bank, trust company, federal savings and loan association, or national bank in the United States, [which] that is federally insured [by either the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation].
17 Minimum Capital Requirements; Investment of Capital; Liquidity Requirements. Amend RSA 392:25, I to read as follows:
I. The initial capital required to organize a trust company shall be not less than $500,000. The board of trust company incorporation may require, in the exercise of its discretion based on safety and soundness factors, as set forth in paragraph IV, additional capital at such levels as it determines is necessary to protect against the risks inherent in the business of the trust company. Once organized, a nondepository trust company shall maintain a minimum level of capital required by the commissioner to operate in a safe and sound manner based upon his or her examination of the company, provided that the level of capital shall not be less than $500,000. The commissioner may, by rule, order, or declaratory ruling set liquidity requirements for such capital.
18 New Paragraph; Minimum Capital Requirements; Investment of Capital; Liquidity Requirements. Amend RSA 392:25 by inserting after paragraph X the following new paragraph:
XI. In addition to the capital required by paragraph I, the commissioner may by rule, order, or declaratory ruling set minimum liquidity requirements.
19 Consumer Complaints and Restitution. Amend RSA 383:10-d to read as follows:
383:10-d Consumer Complaints and Restitution. The commissioner shall have exclusive authority and jurisdiction to investigate and enjoin conduct that is or may be an unfair or deceptive act or practice under RSA 358-A and exempt under RSA 358-A:3, I or that may violate any of the provisions of Titles XXXV and XXXVI and administrative rules adopted thereunder. The commissioner may hold hearings relative to such conduct and may order restitution for a person or persons adversely affected by such conduct. The commissioner may issue, amend or rescind such orders as are reasonably necessary to carry out provisions of this section and chapter RSA 358-A. The commissioner may request the assistance and services of the consumer protection and antitrust bureau of the department of justice. In the instance of conduct involving an alleged criminal offense, the commissioner shall refer to the department of justice all aspects relevant to the criminal investigation and prosecution of such matter.
20 New Section; Nondepositories; Criminal History Records Check. Amend RSA 383 by inserting after paragraph 9-i the following new section:
383:9-j Nondepository Financial Institutions; Criminal History Records Check.
I. The department may complete a background investigation and criminal history records check on the person or group of persons acting in concert who acquire directly or indirectly 10 percent or more of the beneficial ownership or control of the voting shares of a nondepository financial institution, new officers, and directors and any person in a similar position or performing similar functions. If the acquirer is a subsidiary, the department may complete a background investigation and criminal history records check on the individuals who are the indirect owners as defined in RSA 397-A:1, VIII-a.
II. If required by the department, the persons described in paragraph I shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person's criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
III. The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
IV. The department may require the incorporators to pay the actual costs of each background investigation and criminal history records check.
21 New Section; Merchant Banks; Criminal History Records Check. Amend RSA 392-A by inserting after section 6 the following new section:
392-A:6-a Merchant Bank; Criminal History Records Check.
I. The department may complete a background investigation and criminal history records check on the person or group of persons acting in concert who acquire directly or indirectly 10 percent or more of the beneficial ownership or control of the voting shares, new officers, and directors and any person in a similar position or performing similar functions. If the acquirer is a subsidiary, the department may complete a background investigation and criminal history records check on the individuals who are the indirect owners as defined in RSA 397-A:1, VIII-a.
II. If required by the department, the persons described in paragraph I shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person's criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
III. The department shall submit the criminal history records release form to the New Hampshire division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
IV. The department may require the incorporators to pay the actual costs of each background investigation and criminal history records check.
22 New Paragraph; PDIP Advisory Committee; Defense and Indemnity. Amend RSA 383:24 by inserting after paragraph II the following new paragraph:
III. Any person who serves on the advisory committee shall be considered a state employee solely for the purpose of defense and indemnification from civil suits under RSA 99-D for claims arising from the performance of his or her duties under this section; provided, however, that such person shall not be indemnified from any civil suit arising out of a criminal act.
23 Certain Non-Judicial Court System Employees; Unused Sick Leave Pay; Retirement Credit.
I. Notwithstanding RSA 490:28 and administrative rules of the department of administrative services, division of personnel, Pers 1204.04, any person retiring in 2010 from full-time, non-judicial employment with the court system, and who is and has been a member of the Manchester employees’ contributory retirement system following the transfer of the person’s position to the state pursuant to the establishment of unified court system effective January 1, 1984, shall be entitled to payment of unused sick leave which shall be included in the member’s salary or wages at the member’s date of termination of employment.
II. At such termination of employment, the state shall provide payment of a sum equal to 50 percent of the number of sick leave days remaining to the employee’s credit, provided that the total number of days eligible for payment shall not exceed 60 days.
III. The board of trustees of the Manchester employees’ contributory retirement system shall include the payment of unused sick leave under paragraph II as earnings of such employee for the purpose of calculating final average earnings of the member-employee.
24 Public Deposit Investment Pool; Advisory Committee Membership. Amend RSA 383:24, I(a) to read as follows:
(a) The state treasurer, or designee.
24 Effective Date. This act shall take effect upon its passage.
LBAO
10-2637
Revised 05/12/10
Amended 05/07/10
HB 1613 FISCAL NOTE
AN ACT relative to the general banking laws of the state and relative to employment and retirement benefits of certain non-judicial court employees.
FISCAL IMPACT:
The Banking Department and the Department of Safety state this bill, as amended by the Senate (Amendment #2010-1770s), will increase state restricted revenue by an indeterminable amount in FY 2011 and each year thereafter. The Judicial Branch and New Hampshire Municipal Association state this bill, as amended by the Senate (Amendment #2010-1873s), will increase state and local expenditures by an indeterminable amount in FY 2010 and each year thereafter. This bill would have no fiscal impact on county and local revenue, or county expenditures.
METHODOLOGY:
The Banking Department states this bill amends several portions of the general banking statutes. The Department is self-funded with all the Department’s costs and expenses, including personnel, funded by fees, fines and special assessments if the fees and fines are not sufficient to cover the actual costs. The funding method for the Department, as contained in RSA 383:11, is to allocate its operating expenses, less any specific examination fees, proportionally among all chartered entities regulated by the Department. This bill increases certain fees relative to forming a de novo banking institution (from $1,500 to $10,000) or a de novo trust company (from $5,000 to $10,000), and will allow the Department to charge a fee for the examination of the report of dissolution of a trust company. This will allow the Department to recover costs from the specific entities on whose behalf the Department has incurred costs, rather than assess these costs on all entities through the Department’s general assessment. The source of the Department’s revenue will change as a result of this bill, but total revenues will remain unchanged.
This bill also requires background investigation and criminal history record checks on each proposed director, manager, or senior officer to be paid by the applicant seeking to charter de novo banks, savings associations, trust companies, or credit unions. This requirement will have no fiscal impact on the Department but may impact the Department of Safety. Based on information received from the Department of Safety, the Banking Department states the fee for a background investigation and criminal history records check is $55.25 for a fingerprint card or $44.25 for a live fingerprint scan. The Department estimates background investigation and criminal history records checks will be required for approximately 42 individuals each year, and the individuals would be responsible for any fees.
The Department of Safety states state restricted revenue will increase by an indeterminable amount as a result of the required background checks proposed in this bill. The Department states this bill will have no fiscal impact on Department expenditures. The Department is unable to estimate how many background checks will be required, but assumes the volume of background checks will be low.
The Judicial Branch states this bill will allow non-judicial employees who remained a member of the Manchester Employees' Contributory Retirement System pursuant to RSA 490:29, II upon court unification on January 1, 1984, to be paid a percentage of unused sick leave on termination of employment. The percentage stated in the bill is 50.0%, with a cap of payment for sixty days of unused sick leave. The Branch states the proposed bill applies to only one person, and that person currently earns an annual salary of $46,462.46. At that salary, the daily rate of pay is $178.70. Thus, the maximum fiscal impact of this bill to the Branch will be $10,722 ($178.70 times 60 days) if the employee terminates employment with the maximum available sick leave. The Branch also states it includes an expectation of employee accrued leave payouts in determining its budget requirements, and there may be capacity to fund this amount within its existing appropriation. Since the proposed bill requires the affected employee to retire in calendar year 2010 to receive this benefit, the increase in state expenditures could come in either FY 2010 or FY 2011.
The New Hampshire Municipal Association states this bill proposes to include a payment for unused sick leave as pensionable compensation for the computation of pension benefits from the Manchester Employees’ Contributory Retirement System. This will result in increased local expenditures for pension benefits for all employees that qualify for this payment. The Association does not have data on the number of employees affected by this change and cannot estimate the fiscal impact on the Manchester Employees’ Contributory Retirement System at this time.