HB 1672-FN – AS INTRODUCED
2010 SESSION
09/10
HOUSE BILL 1672-FN
AN ACT making appropriation additions and revenue reductions for fiscal year 2011.
SPONSORS: Rep. Packard, Rock 3; Rep. Kurk, Hills 7
This bill makes appropriation additions and revenue reductions for fiscal year 2011.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2001
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT making appropriation additions and revenue reductions for fiscal year 2011.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 2011 Operating Budget. Amend the following classes and estimated sources of funds for accounting unit 01, 38, 38, 380010, 8023 for fiscal year 2011 to read as follows:
01 GENERAL GOVERNMENT
38 STATE TREASURY
38 TREASURY- DEPT OF
380010 TREASURY DEPARTMENT
8023 SPECIAL GENERAL FUND DISTRIB FY 2011
248 Meals & Rooms Tax Distribution [58,805,057] 63,805,057
249 State Revenue Sharing 25,216,057
TOTAL [58,805,057] 89,021,114
ESTIMATED SOURCE OF FUNDS FOR
SPECIAL GENERAL FUND DISTRIB
GENERAL FUND [58,805,057] 89,021,114
TOTAL [58,805,057] 89,021,114
CLASS NOTES
248 G. The funds in this appropriation shall not be transferred or expended for any other purpose and shall not lapse until June 30, 2011.
2 2011 Operating Budget. Amend the estimated sources of funds for accounting unit 05, 95, 95, 952010, 5146 to read as follows:
05 HEALTH AND SOCIAL SERVICES
95 DEPT OF HEALTH AND HUMAN SVCS
95 HHS: COMMISSIONER
952010 OFFICE OF PROGRAM SUPPORT
5146 HEALTH FACILITIES ADMINISTRN FY 2011
ESTIMATED SOURCE OF FUNDS FOR
HEALTH FACILITIES ADMINISTRN
007 Agency Income [450,000] 0
FEDERAL FUNDS 1,740,069
GENERAL FUND [933,640] 1,383,730
TOTAL 3,123,799
3 2011 Operating Budget. Amend the estimated sources of funds for accounting unit 05, 95, 90, 902510, 5390 to read as follows:
05 HEALTH AND SOCIAL SERVICES
95 DEPT OF HEALTH AND HUMAN SVCS
90 HHS: DIVISION OF PUBLIC HEALTH
902510 BUREAU OF DISEASE CONTROL
5390 FOOD PROTECTION FY 2011
ESTIMATED SOURCE OF FUNDS FOR
FOOD PROTECTION
007 Agency Income [300,000] 0
009 Agency Income 59,012
GENERAL FUND [966,102] 1,266,102
TOTAL 1,325,114
4 Repeal. The following are repealed:
I. 2009, 144:8, relative to the cap on meals and rooms distributions to cities and towns.
II. 2009, 144:9, relative to suspension of revenue sharing distributions to cities and towns.
5 Heath Facilities; Licensure; Fees. RSA 151:5 is repealed and reenacted to read as follows:
151:5 Licenses.
I. Licenses issued hereunder shall expire one year after the date of issuance, or upon such uniform dates annually, as the department of health and human services shall prescribe by rule. Licenses shall be issued only for the premises and persons named in the application, and shall not be transferable or assignable. Licenses shall be posted in a conspicuous place on the licensed premises. Fees for an annual license shall be:
(a) Facilities with inpatient beds; $2.50 per bed per year.
(b) Laboratories; $65 per year for each category of testing licensed.
(c) Facilities without inpatient beds; $50 per year.
(d) Home health care providers; $20.00 per year.
II. “Inpatient bed” in this section means a bed held out for continuous overnight occupancy.
6 Department of Health and Human Services; Manufacture and Sale of Beverages; Rulemaking. Amend 143:6, II(a) to read as follows:
(a) Licenses, license classes, and fees under RSA 143:11 [and RSA 143:12].
7 Manufacture and Sale of Beverages. Amend RSA 143:12 to read as follows:
143:12 Registration by Nonresident Vendors. No beverage or beverage concentrate, for retail sale, manufactured out of the state, shall be sold or offered for sale within the state unless the same has first been registered by its manufacturer or by the manufacturer's agent with the department of health and human services. Such registration shall be in form similar to that provided in RSA 143:11 and shall be issued subject to suspension, revocation, and cancellation as elsewhere specified in this subdivision for licenses. An annual registration fee [established by rule under RSA 143:6, II(a)] of $140, to defray the cost of inspection and analysis of all the products of the same manufacturing plant, shall be paid to the department of health and human services by the manufacturer, importer, agent, or vendor.
8 Department of Health and Human Services; Homestead Food License. RSA 143-A:12, II is repealed and reenacted to read as follows:
II. There is hereby established a 2-level homestead license. For a level one license, a one-time fee of $25 shall be paid to the department of health and human services. The level 2 homestead license shall be based on gross sales. It shall be unlawful for a processor or a manufacturer to operate a homestead without a homestead license as required under this subdivision. The commissioner and the commissioner of the department of agriculture, markets, and food shall administer the homestead licensure required under this subdivision.
9 Department of Health and Human Services. Homestead Food License; Rulemaking. RSA 143-A:13, V is repealed and reenacted to read as follows:
V. Fees for a level 2 license, including application fees and fees for renewal.
10 Food Protection Programs. The commissioner of the department of health and human services shall provide a list of fees imposed, total fees collected, and operating costs for state fiscal year 2010 for food protection programs established in RSA 143 and RSA 143-A to the house and senate ways and means committees no later than September 1, 2010.
11 Department of Safety; Motor Vehicle Registration Fees Increased. RSA 261:141, III(g)-(o) is repealed and reenacted to read as follows:
(g) For all motor vehicles other than those in RSA 261:141, I:
0-3000 lbs. $31.20 ($2.60 per month)
3001-5000 lbs. $43.20 ($3.60 per month)
5001-8000 lbs. $55.20 ($4.60 per month)
8001-73,280 lbs. $.96 per hundred lbs. gross weight.
(h) Truck-tractors to be used in conjunction with a semi-trailer, gross weight shall include the weight of such tractors, the weight of the heaviest semi-trailer to be used therewith, and the weight of the maximum load to be carried thereby: up to 73,280 pounds $.96 per 100 pounds gross weight, over 73,280 pounds--$1.44 shall be charged for each 100 pounds gross weight or portion thereof in excess of 73,280 pounds.
(i) Each additional semi-trailer used in conjunction with such truck-tractor--$24.00.
(j) For semi-trailers or automobile utility trailers (the weight of the trailer shall include the maximum load to be carried thereby):
0-1000 lbs $3.00
1001-1500 lbs 6.00
1501-3000 lbs. 12.00
3001-5000 lbs 24.00
5001-8000 lbs. 36.00
8001 up 60 per hundred lbs. gross weight.
(k) For each semi-trailer not registered in connection with a truck-tractor, the gross weight shall include the weight of such trailer and the weight of the maximum load to be carried thereby. The registration fee shall be $.60 per hundred lbs. gross weight and such trailer shall not be registered for less than 10,000 lbs.
(l) For equipment mounted on trucks of which the equipment is an integral part of the unit and the truck is not capable of carrying freight or merchandise, the registration fee shall be 1/3 of the regular fee charged as determined by the corresponding weight chart specified in subparagraph (i).
(m) For each farm truck or combination of motor type tractor and semi-trailer used only for transportation of agricultural products produced on and meant to be used in connection with the operation of a farm or farms owned, operated, or occupied by the registrant, for the first 16,000 pounds--$24, for any additional weight above 16,000 pounds--$.74 per hundred weight.
(n) For each additional or extra semi-trailer used in connection with a motor type tractor registered for farm purposes--$24. (In the event that a farm truck registered under the $24 fee as provided in this subparagraph and thereafter registered for general use during the same registration year, such fee shall be applied toward the fee for such general registration.)
(o) For each motorcycle--$15.
12 Fee for Transfer of Motor Vehicle Registration. Amend RSA 261:141, VII(b) to read as follows:
(b) For the transfer of the registration of any motor vehicle, trailer, semi-trailer or tractor for that of another motor vehicle, trailer, semi-trailer or tractor previously registered pursuant to this chapter--[$25] $10.
13 Highway and Bridge Betterment Account. Amend 2009, 144:246 to read as follows:
244:246 Highway and Bridge Betterment Account. From the motor vehicle registration fees and surcharges collected under RSA 261:141 as amended by this act, the department of safety shall dedicate $2,000,000 for the fiscal year ending June 30, 2010 [and $15,000,000 for the fiscal year ending June 30, 2011] to the highway and bridge betterment account established in RSA 235:23-a.
14 Repeal 2011 Versions. 2009, 144:247 and 248 relative to department of safety motor vehicle registration fees, are repealed.
15 Taxation of Interest and Dividends; Who Taxable. Amend RSA 77:3, I(b) to read as follows:
(b) Partnerships, limited liability companies, associations, and trusts, the beneficial interest in which is not represented by transferable shares, whose gross interest and dividend income from all sources exceeds $2,400 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.
16 Taxation of Interest and Dividends; What Taxable. RSA 77:4, III is repealed and reenacted to read as follows:
III. Dividends, other than stock dividends paid in new stock of the partnership, limited liability company, association, or trust issuing the same, on shares in partnerships, limited liability companies, associations, or trusts the beneficial interest in which is represented by transferable shares.
17 New Sections; Taxation of Interests and Dividends; Partnerships and Limited Liability Companies. Amend RSA 77 by inserting after section 14 the following new sections:
77:14-a Partnerships and Limited Liability Companies. Partnerships and limited liability companies having a usual place of business in this state, any member of which is an inhabitant thereof, shall be subject to taxes imposed by this chapter. If any of the members of the partnership or limited liability company are not inhabitants of this state only so much of the income thereof as is proportionate to the aggregate interest of the partners or members who are inhabitants of this state in the profits of the partnership or limited liability company shall be taxed.
77:14-b Partners and Members. The tax shall be assessed on such a partnership or limited liability company by the name under which it does business, and the partners or members shall not be taxed with respect to the taxable income derived by them from such a partnership or limited liability company.
77:14-c Members of Partnership or Limited Liability Company Outside the State. An inhabitant of this state who is a member of a partnership or limited liability company having no usual place of business in this state, who receives income from such partnership or limited liability company derived from such a source that it would be taxable if received directly from such source by such partner or member, shall as to such income be subject to the taxes imposed by this chapter.
77:14-d Application of Sections. RSA 77:14-a to 14-d shall apply, so far as apt, to associations and trusts, but not to partnerships, limited liability companies, associations, and trusts the beneficial interest in which is represented by transferable shares.
18 Repeal. RSA 77:1-a, relative to definitions, is repealed.
19 Applicability. Sections 13-18 of this act shall apply for taxable periods ending on or after December 31, 2010.
20 Meals and Rooms Tax; Definition of Hotel; Campsites. Amend the introductory paragraph of RSA 78-A:3, III to read as follows:
III. “Hotel” means an establishment which holds itself out to the public by offering sleeping accommodations for rent, whether or not the major portion of its operating receipts is derived from sleeping accommodations. The term includes, but is not limited to, inns, motels, tourist homes and cabins, ski dormitories, ski lodges, lodging homes, rooming houses, furnished room houses, boarding houses, private clubs, hostels, cottages, camps, [campsites,] chalets, barracks, dormitories, and apartments. The term does not include the following:
21 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2001
Revised 01/06/10
HB 1672 FISCAL NOTE
AN ACT making appropriation additions and revenue reductions for fiscal year 2011.
FISCAL IMPACT:
The Treasury Department, Department of Health and Human Services, Department of Safety, Department of Transportation, and Department of Revenue Administration state this bill would increase state general fund expenditures by $30,966,147 in FY 2011 and by $5,000,000 in FY 2012 and each year thereafter, decrease state restricted expenditures by $750,090 in FY 2011, and decrease state highway fund expenditures by $5,364,000 in FY 2012. This bill would decrease state general fund revenue by $7,500,000 in FY 2010, $19,100,000 in FY 2011, and by an indeterminable amount in FY 2012 and each year thereafter. This bill would decrease state highway fund revenue by $44,700,000 in FY 2011, decrease state restricted revenue by $753,633 in FY 2011 and each year thereafter, and decrease local revenue by $5,364,000 in FY 2012. There will be no fiscal impact on county revenue or county and local expenditures.
This bill appropriates $30,216,057 to the Treasury Department, and $750,090 to the Department of Health and Human Services from the state general fund in FY 2011. This bill also reduces appropriations from other funds to the Department of Health and Human Services by $750,090 in FY 2011.
METHODOLOGY:
Sections 1 and 4 – Meals and Rooms Tax and State Revenue Sharing Distributions:
The Treasury Department states section 1 of this bill would increase state general fund appropriations for class 248 Meals & Rooms Tax Distribution by $5,000,000 in FY 2011. This section would also increase state general fund appropriations for class 249 State Revenue Sharing by $25,216,057 in FY 2011.
The Treasury Department states section 4 of this bill would repeal the cap on meals and rooms distributions to cities and towns, and the suspension of revenue sharing distributions to cities and towns effective July 1, 2010 (FY 2011). The appropriation for the meals and rooms tax distribution was $58,805,057 in FY 2011 based on the FY 2009 distribution. The Department states the meals and rooms distributions to cities and towns were historically estimated at approximately $5,000,000 over the previous year’s distribution. The Department estimates this section would increase state general fund expenditures by $5,000,000 in FY 2011 (which is accounted for in the appropriation contained in section 1 of the bill) and each year thereafter.
Section 4 also repeals the FY 2010-2011 biennial suspension of revenue sharing distributions to cities and towns contained in Chapter 144:9, Laws of 2009. State revenue sharing distributions have statutorily been a constant $25.2 million. This section will allow the Department to distribute the State Revenue Sharing appropriation contained in section 1 above.
Sections 2, 3, 5-10 – Health Facilities Administration and Food Protection Programs:
The Department of Health and Human Service’s Office of Operations Support (OOS) states section 2 of this bill removes the $450,090 in increased fee revenue contained in the FY 2011 appropriation for Health Facilities Administration (05-95-95-952010-5146) and restores it as state general funds, thus decreasing state restricted expenditures and increasing state general fund expenditures by such amount. The Department states section 5 of this bill would change the Health Facility Licensure fee schedule in RSA 151:5 to the level in effect in prior to FY 2010. Health Facility Licensure fees generated from the current version of RSA 151:5, Health Facility Licensure, are budgeted in FY 2010 at $450,090 as Other Funds. Reducing these fees to the level in effect in prior to FY 2010 would generate projected revenue of $60,747 that is based on actual revenue earned in FY 2009 resulting in a projected reduction of revenue in the amount of $389,343 in FY 2011.
The Department of Health and Human Services (DHHS), Division of Public Health Services (DPHS) states section 3 of this bill removes the $300,000 in increased fee revenue contained in the FY 2011 appropriation for the Food Protection Program (05-95-90-902510-5390) and restores it as state general funds, thus decreasing state restricted expenditures and increasing state general fund expenditures by such amount. The Department assumes it would have to undergo rulemaking to change fees back to what they were prior to FY 2010, resulting in a decrease of state restricted revenue of $300,000 in FY 2011 and each year thereafter. Section 7 amends RSA 143:12 by removing language that allows the registration of non-vendor fees to be set in rule and restores the $140 fee amount that was in statute prior to FY 2010 (section 6 of this bill removes a reference to this rulemaking authority from RSA 143:6, II(a)). Section 8 amends RSA 143-A:12, II by removing language that allows the level one license fee to be set in rule, and restores the one-time fee of $25 that was in statute prior to FY 2010. It also restores language that level 2 homestead licenses shall be based on gross sales. However, section 9 keeps the Department’s rulemaking authority to establish application fees and fees for renewal for level 2. The Department states they recently underwent rulemaking to increase fees for Registration of Non Vendor annual fees from $140 to $400. The former fee schedule generated approximately $29,160. The proposed fee schedule is estimated to generate approximately $83,200 (208 licensees) through state fiscal year 2019. Therefore, the Department assumes it would lose an anticipated $54,040 in other revenue since Out of State Beverages and In-State Beverages, are deposited under a special fund per RSA 143:11. In addition, the Department also under went rulemaking to increase the Homestead Level One fee from a one-time fee of $25 to an annual fee of $50. The revenue estimated for this new fee was expected to be $10,250 (205 licensees) through state fiscal year 2019. The Department also assumes this revenue would no longer be collected.
Section 10 would require DHHS to provide a report to the House and Senate Ways and Means Committees no later than September 1, 2010 on fees and operating costs for food protection programs established in RSA 143 and 143-A. This section will have no fiscal impact on the Department.
Sections 11-14 – Motor Vehicle Registration Fees and Surcharge:
The Department of Safety and Department of Transportation states section 11 through 14 of this bill would change the effective date of the expiration of the motor vehicle (MV) registration fee increase and surcharge from July 1, 2011 (FY 2012) to July 1, 2010 ( FY 2011), and would eliminate the requirement for the Department of Safety to deposit $15,000,000 of what would have been collected from the registration fee increase in surcharge in FY 2011 to the highway and bridge betterment account. The Departments estimate this bill would reduce total highway fund revenue by $44,700,000 (which includes the $15,000,000 that would have been deposited into the betterment account) in FY 2011. As a result of the decrease in highway fund revenue, highway fund expenditures and local revenue in FY 2012 for local highway aid pursuant to RSA 235:23 would decrease by approximately $5,364,000 (12% of the FY 2011 highway fund revenue decrease).
Sections 15-19 – Interest and Dividends Tax relative to Limited Liability Corporations:
The Department of Revenue Administration (DRA) states sections 15 through 19 make changes relative to Limited Liability Corporations (LLC) under the interest and dividends tax law that became effective July 1, 2009 for the taxable periods ending on or after December 31, 2009. The estimate of revenue that would be produced by these changes to the interest and dividends tax law was $15,000,000 per fiscal year. However, the FY 2010 estimate would have included consideration of the April and June 2010 estimate payments to be made for tax year 2010. As a result, although this bill is effective July 1, 2010 (FY 2011) there would be an impact in FY 2010 since no estimate payments would be made for tax year 2010 during FY 2010. The Department estimates state revenue would decrease by $7,500,000 in FY 2010 and $15,000,000 in FY 2011.
Section 20 – Meals and Rooms tax relative to Campsites:
DRA states section 20 of this bill would repeal the taxation of campsites under the meals and rooms tax effective July 1, 2010. The Department states this bill would decrease state general fund revenue by approximately $4,100,000 in FY 2011, and by an indeterminable amount in FY 2012 and each year thereafter. The Department states they could administer the proposed changes within their existing budget.