Revision: May 23, 2012, midnight
SB 234-FN – AS AMENDED BY THE HOUSE
02/15/12 0702s
15May2012… 2015h
2012 SESSION
05/10
SENATE BILL 234-FN
AN ACT relative to salary grades for certain executive branch positions and relative to the retirement classification of certain state officials.
SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Lambert, Dist 13
COMMITTEE: Executive Departments and Administration
This bill:
I. Establishes the salary grades for certain positions in the liquor commission, the department of information technology, and the department of administrative services.
II. Repeals authorization for certain state employees to remain eligible for group II retirement status based on their prior service and group II membership.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/15/12 0702s
15May2012… 2015h
12-2885
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to salary grades for certain executive branch positions and relative to the retirement classification of certain state officials.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Unclassified Salaries; Liquor Commission; Department of Information Technology. Amend RSA 94:1-a, I(b) by inserting in grade GG the following:
I. Liquor commission, director of marketing, merchandising, and warehousing.
II. Liquor commission, director of enforcement and licensing.
III. Liquor commission, chief operating officer.
IV. Department of information technology, chief information security officer.
2 Unclassified Salaries; Public Utilities Commission; Department of Information Technology. Amend RSA 94:1-a, I(b) by inserting in grade HH the following:
I. Public utilities commission, director of safety and security.
II. Department of information technology, director of agency software.
3 Unclassified Salaries; Department of Administrative Services. Amend RSA 94:1-a, I(b) by inserting in grade JJ the following:
I. Department of administrative services, deputy commissioner.
4 Repeal. The following are repealed:
I. RSA 206:8-a, relative to group II eligibility of the executive director of fish and game.
II. RSA 21-P:5-a, III, relative to group II eligibility of the director of homeland security and emergency management.
III. RSA 21-P:36-a, relative to group II eligibility of the assistant director of homeland security and emergency management.
IV. RSA 21-H:8-a, relative to group II eligibility of the assistant commissioner and division directors, department of corrections.
5 Applicability. The repeal of RSA 21-P:36-a in section 4 of this act shall not apply to the individual serving as the assistant director of homeland security and emergency management on the effective date of this act.
6 Effective Date. This act shall take effect upon its passage.
LBAO
12-2885
Amended 03/06/12
SB 234 FISCAL NOTE
AN ACT relative to salary grades for certain executive branch positions and relative to the retirement classification of certain state officials.
FISCAL IMPACT:
The Liquor Commission states this bill, as amended by the Senate (Amendment #2012-0702s), will increase state liquor fund expenditures by $5,716 in FY 2013, $12,015 in FY 2014, $6,490 in FY 2015 and each year thereafter. The Public Utilities Commission states this bill will increase state, county and local expenditures by an indeterminable amount in FY 2013 and each year thereafter. The Department of Resources and Economic Development states this bill will increase state general fund expenditures by $5,713 in FY 2013 and each year thereafter. The Department of Information Technology states this bill will increase state expenditures by $3,567 in FY 2013 and each year thereafter. There is no fiscal impact on state, county, and local revenue.
METHODOLOGY:
The Liquor Commission states this bill establishes unclassified salary grades for the Commission’s director of marketing, merchandising and warehousing, director of enforcement and licensing and chief operating officer. The Commission assumes salary changes to be effective July 1, 2012. The Commission states the director of marketing, merchandising and warehousing position will move from a classified labor grade of 33 to an unclassified salary grade of GG. The budgeted salary for the position is labor grade 33, step 8 (maximum). The Commission assumes the classified position will start at salary grade GG, step 4 and increase a single step each year thereafter.
FY 2013 |
FY 2014 |
FY 2015 |
FY 2016 | |
Classified position (LG 33, step 8) |
$86,990 |
$86,990 |
$86,990 |
$86,990 |
Unclassified position (LG GG, starting at step 4) |
$86,131 |
$90,606 |
$90,606 |
$90,606 |
Increase/(Decrease) |
($859) |
$3,616 |
$3,616 |
$3,616 |
Increase in Medicare, social security and retirement costs |
($152) |
$641 |
$641 |
$641 |
Total |
($1,011) |
$4,257 |
$4,257 |
$4,257 |
The Commission states the director of enforcement and licensing position will move from a classified labor grade of 28 to an unclassified salary grade of GG. The budgeted salary for the position is labor grade 28, step 6. The Commission assumes the classified position will start at salary grade GG, step 4 and increase a single step each year thereafter.
FY 2013 |
FY 2014 |
FY 2015 |
FY 2016 | |
Classified position (LG 28, starting at step 6) |
$80,629 |
$84,255 |
$88,806 |
$88,806 |
Unclassified position (LG GG, starting at step 4) |
$86,131 |
$90,606 |
$90,606 |
$90,606 |
Increase/(Decrease) |
$5,502 |
$6,351 |
$1,800 |
$1,800 |
Increase in Medicare and retirement costs |
$1,177 |
$1,359 |
$385 |
$385 |
Total |
$6,679 |
$7,710 |
$2,185 |
$2,185 |
The Commission states the director of the divisions of administration position would become the chief operating officer position, moving from a labor grade of 34 to an unclassified salary grade of GG. The budgeted salary for the position is labor grade 34, step 8. The Commission assumes the classified position will start at salary grade GG, max step, resulting in an increase of $48 each year.
The Commission states the total increase to liquor funds expenditures will be $5,716 in FY 2013, $12,015 in FY 2014, $6,490 in FY 2015, and $6,490 in FY 2016.
The Public Utilities Commission (PUC) states this bill establishes the unclassified salary grade for the PUC’s director of safety and security. The PUC assumes the salary change to be effective July 1, 2012. The PUC states the director of safety and security position will move from a classified labor grade of 31 to an unclassified salary grade of HH. The budgeted salary for the position is labor grade 31, step 7. The PUC assumes the classified position will start at salary grade HH, step 1 and increase a single step each year thereafter.
FY 2013 |
FY 2014 |
FY 2015 |
FY 2016 | |
Classified position (LG 31, starting at step 7) |
$76,187 |
$79,775 |
$79,775 |
$79,775 |
Unclassified position (LG HH, starting at step 1) |
$79,175 |
$84,054 |
$88,933 |
$93,812 |
Increase/(Decrease) |
$2,988 |
$4,279 |
$9,158 |
$14,037 |
Increase in Medicare, social security and retirement costs |
$530 |
$759 |
$1,624 |
$2,489 |
Total |
$3,518 |
$5,038 |
$10,782 |
$16,526 |
The PUC states that 50 percent of the cost will be paid for through utilities’ assessments and 50 percent of the cost will be paid using federal grant funds. To generate approximately $290,950 annually, the PUC applies an assessment rate of 0.0014567989 against annual utility revenues of approximately $199,718,708. The PUC states the impact on customer rates to cover the 50 percent of the additional assessment costs each year as it relates to this position is de minimis. To the extent the state, county or locals are utility customers they may have increased costs associated with the assessment for the additional costs.
The Department of Resources and Economic Development states this bill would allow the director of the division of forest and lands to remain in group II permanent fireman status if the individual was a permanent fireman of group II for at least 10 years and continues to meet the physical, mental, educational, and other qualifications to fight forest fires. The Department assumes this retirement change will be effective in FY 2013. The director of the division of forest and lands is in the salary group GG. The Department states the director of division of forest and lands is vacant and assumes it would be filled by the interim director who meets the group II requirements and will be paid $86,131 (salary group GG step 4) plus $300 for longevity beginning in FY 2013. The group II employer contribution is 22.89%, or $19,784 of a $86,431 salary and the group I employer contribution and social security contribution (which is not paid for group II employees) is 16.28%, or $14,071 of a $86,431 salary. The difference in cost would be an increase of $5,713 in FY 2013 and each year thereafter.
The Department of Information Technology states the chief information security officer position salary will increase from $87,576 (salary grade EE, maximum plus) to $90,606 (salary grade GG, maximum). The Department states the position is currently paid at an amount that is in excess of the maximum for salary grade EE due to a “grandfathering” of the salary when the position was transferred to the Department from the Department of Health and Human Services during the creation of the Department of Information Technology (formerly the Office of Information Technology).
FY 2013 |
FY 2014 |
FY 2015 |
FY 2016 | |
Classified position (LG 28, starting at step 6) |
$87,576 |
$87,576 |
$87,576 |
$87,576 |
Unclassified position (LG GG, starting at step 4) |
$90,606 |
$90,606 |
$90,606 |
$90,606 |
Increase/(Decrease) |
$3,030 |
$3,030 |
$3,030 |
$3,030 |
Increase in Social Security, Medicare and retirement costs |
$537 |
$537 |
$537 |
$537 |
Total |
$3,567 |
$3,567 |
$3,567 |
$3,567 |