HB1534 (2012) Detail

Repealing the self-funding of the department of labor.


HB 1534-FN – AS AMENDED BY THE HOUSE

15Feb2012… 0359h

2012 SESSION

12-2071

05/01

HOUSE BILL 1534-FN

AN ACT repealing the self-funding of the department of labor.

SPONSORS: Rep. Laware, Sull 5; Rep. Mirski, Graf 10; Rep. Twombly, Hills 25; Rep. Daniels, Hills 6; Rep. D. McGuire, Merr 8; Rep. Giuda, Merr 7; Rep. Flanagan, Hills 5; Rep. Osgood, Sull 4; Sen. Sanborn, Dist 7; Sen. Luther, Dist 12; Sen. White, Dist 9; Sen. Lambert, Dist 13

COMMITTEE: Finance

ANALYSIS

This bill repeals the restricted fund established to fund operations of the department of labor from fees, licenses, certificates, and civil penalties collected by the department.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Feb2012… 0359h

12-2071

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT repealing the self-funding of the department of labor.

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

1 Reference Changes. Amend the following RSA provisions by replacing the words “department of labor restricted fund established in RSA 273:1-b” with “general fund”: RSA 157-A:10-a, I; 157-B:13-a, I; 273:11-a, I; 275-F:9, I; 277-B:12, II; 277-B:13; 281-A:4-a, I; 281-A:7, I(a)(2); 281-A:43, I(d); 281-A:43, I (e); 281-A:59, IV; 281-A:60, I(r); 281-A:70.

2 Reference Changed. Amend RSA 277-B:12, III to read as follows:

III. Any client company which does business with an unlicensed employee leasing company may be fined by the commissioner up to $1,000 per employee for each day the violation continues. Any funds collected under this section shall be deposited in the [department of labor restricted fund established in RSA 273:1-b] general fund as unrestricted revenue.

3 Reference Changed. Amend RSA 277-B:15-a, I to read as follows:

I. Employee leasing firms shall maintain a list of current and past clients which shall be available for inspection by the department of labor without notice. The list shall be submitted to the labor department on a quarterly basis. Failure to maintain an updated client list shall subject the licensee to a $1,000 fine, and a $2,500 fine and loss of license for a second or subsequent offense if deemed appropriate by the commissioner. Funds generated from fines shall be deposited in the [department of labor restricted fund established in RSA 273:1-b] general fund as unrestricted revenue.

4 Reference Changed. Amend RSA 281-A:5-d, III to read as follows:

III. Any client company which knowingly does business with an unlicensed third party administrator may, after written notification, be fined up to $1,000 per day for each day the violation continues. Any funds collected under this section shall be deposited in the [department of labor restricted fund established in RSA 273:1-b] general fund as unrestricted revenue.

5 Reference Changed. Amend RSA 281-A:43, II to read as follows:

II. A decision of the commissioner, the commissioner’s authorized representative, or the board shall take effect and shall become final, in the absence of an appeal from it, 30 days from the date of the decision. Payment of weekly compensation and entitlement to medical and vocational benefits, if necessary and so ordered by the commissioner or the board, shall begin or continue as soon as possible, but no later than 5 working days after the decision’s effective date, and shall not be terminated except in accordance with the terms of the decision or of a final court determination. If the commissioner determines that the employer or carrier has failed to comply with any order, then the commissioner may assess a penalty not to exceed $100 for each day of noncompliance, beginning on the date of notification of its assessment. Upon continued failure to comply with an order to make payment of the compensation or medical benefits, or to institute vocational rehabilitation, or to pay the penalty, or any combination thereof, the commissioner shall petition the superior court for an injunction to comply. The commissioner shall deposit [into the department of labor restricted fund established in RSA 273:1-b] with the state treasurer any penalty collected under this section.

6 Reference Changed. Amend RSA 281-A:53, I to read as follows:

I. Every employer or self-insurer shall record in sufficient detail and shall report or cause to be reported to the commissioner any injury sustained by an employee in the course of employment as soon as possible, but no later than 5 days after the employer learns of the occurrence of such an injury. If an injury results in a disability extending beyond 3 days, the employer shall file with the commissioner a supplemental report giving notice of such disability as soon as possible after such waiting period, but no later than 7 days after the accidental injury. The employer shall supply a copy of either report to the nearest claims office of the employer’s insurance carrier. A self-insurer need not file the supplemental report with the commissioner and may keep the insurance copy of the employer’s first report as a file copy. If any employer fails without sufficient cause as determined by the commissioner to file a first report as set forth in this paragraph, the commissioner shall assess a civil penalty of up to $2,500. If any employer fails to pay a civil penalty, the commissioner shall recover such penalty payment by a civil action in the superior court of the county of jurisdiction. Civil penalties owed under this section shall be paid to the commissioner, who shall deposit them [into the department of labor restricted fund established in RSA 273:1-b] with the state treasurer.

7 Reference Deleted. Amend RSA 275:57, IV to read as follows:

IV. An employer who willfully violates the provisions of this section may be assessed interest and a civil penalty of up to $1,000 per violation[, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b].

8 Reference Deleted. Amend RSA 276-A:7-a to read as follows:

276-A:7-a Civil Penalties. In addition to other penalties and remedies imposed under this chapter, the commissioner may assess a civil penalty on an employer not to exceed $2,500 for each violation of any provision of this chapter or rule adopted pursuant to this chapter[, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b]. In assessing this penalty, the commissioner shall consider the nature of the violation, the employer’s history of violations, and the employer’s good faith.

9 Reference Changed. Amend RSA 281-A:42, III to read as follows:

III. Upon failure of any insurance carrier or self-insurer to comply with either an order for payment of compensation or an assessment of a civil penalty, the commissioner shall recover either or both in a civil action in the superior court of the county of jurisdiction. Anyone owing a civil penalty under this section shall pay it to the commissioner, who shall deposit it [into the department of labor restricted fund established in RSA 273:1-b] with the state treasurer.

10 Reference Deleted. Amend RSA 281-A:23-a, VI(b) to read as follows:

(b) If the commissioner determines that a managed care program has failed to comply with the provisions of this section or the rules adopted to implement such section, but that such failure does not warrant withdrawal of approval of the program, the commissioner may, after notice to the managed care program and hearing, assess a civil penalty of not more than $100 for each such failure[, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b]. If a managed care program fails to pay such penalty, the commissioner shall recover the penalty in a civil action in the superior court of the county of jurisdiction.

11 Reference Deleted. Amend RSA 281-A:30, VII to read as follows:

VII. A carrier or self-insurer failing without sufficient cause to make payment under this section within the period specified by the commissioner shall be assessed a civil penalty of $100 for each day that the payment is overdue[, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b].

12 Reference Deleted. Amend RSA 281-A:55, V to read as follows:

V. An insurance carrier or self-insurer failing without sufficient cause to make payment under this section within the period specified by the commissioner shall be assessed a civil penalty of $100 for each day that the payment is overdue[, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b].

13 Department of Labor Restricted Fund; Lapse. Any funds remaining in the department of labor restricted fund, established in RSA 273:1-b, shall lapse to the general fund on the effective date of this act.

14 Repeal. The following are repealed:

I. RSA 273:1-a and 273:1-b, relative to department of labor restricted fund.

II. RSA 6:12, I(b)(306), relative to the department of labor restricted fund.

15 Effective Date. This act shall take effect July 1, 2013.

LBAO

12-2071

Amended 02/17/12

HB 1534 FISCAL NOTE

AN ACT repealing the self-funding of the department of labor.

FISCAL IMPACT:

      The Department of Labor states this bill, as amended by the House (Amendment #2012-0359h), will increase state general fund revenue and expenditures, and decrease state restricted revenue and expenditures by $1,400,000 in FY 2014 and each year thereafter. There is no fiscal impact on county and local expenditures or revenue.

METHODOLOGY:

    The Department of Labor states this bill repeals the self-funding of the Department. The Department assumes its revenue and expenditures for FY 2014 through FY 2016 will be similar to FY 2013 for purposes of the fiscal note. The Department states restricted revenue and expenditures will decrease, and state general fund revenue and expenditures will increase by approximately $1,400,000 in FY 2014 through FY 2016.