Revision: March 30, 2012, midnight
SB 326-FN-A-LOCAL – AS AMENDED BY THE SENATE
03/28/12 1406s
2012 SESSION
08/09
SENATE BILL 326-FN-A-LOCAL
AN ACT relative to state reimbursement of towns.
SPONSORS: Sen. Sanborn, Dist 7; Rep. Bettencourt, Rock 4; Rep. O'Brien, Hills 4
This bill requires payments received from the United States, another state, or interstate flood control agency, or other source, because of loss of taxable valuation to be apportioned directly to the towns involved.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/28/12 1406s
12-3018
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to state reimbursement of towns.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Reimbursement of Towns. Amend RSA 122:4, II to read as follows:
II. Notwithstanding paragraph I, the commissioner of revenue administration shall reduce the amount of reimbursement thus determined by any amount paid or due the state on behalf of a town or city for that year by or from the United States, another state, an interstate flood control agency or other source, because of such loss of taxable valuation. Any subsequent payments received by the state from the United States, another state, an interstate flood control agency, or other source [shall first be applied to outstanding amounts due the state, and any remainder] shall be apportioned to the towns.
2 Effective Date. This act shall take effect upon its passage.
LBAO
12-3018
Revised 01/05/12
SB 326 FISCAL NOTE
AN ACT relative to state reimbursement of towns.
FISCAL IMPACT:
The Department of Revenue Administration, Department of Education, Department of Employment Security, and New Hampshire Municipal Association states this bill may have an indeterminable impact on state expenditures and will increase local revenues by $15,000 in FY 2013 and each year thereafter. There will be no impact on state and county revenues or county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill would appropriate $15,000 in state general funds per fiscal year; $7,500 for Merrimack River Flood Control Compact towns and $7,500 for the Connecticut River Flood Control Compact towns. The Department states it is unsure as to what state agency would be responsible for administering this law but believes it could be administered without additional administrative costs.
The Department of Education states its Bureau of Vocational Rehabilitation assists eligible New Hampshire citizens with disabilities by providing rehabilitation services to secure suitable employment and financial and personal independence. Additionally, the Department states its Disability Determination Service makes disability determinations for New Hampshire residents who apply for the Social Security Administration’s two disability programs. Ultimately, the Department makes payments to a multitude of vendors that provide medical records and services and some of those payments are made to the Community Colleges of Massachusetts or public medical facilities in Massachusetts. The Department states since July 1, 2009 it has paid a total of $52,961 in federal funds for said services. The Department assumes under this bill, services from Massachusetts institutions will cease July 1, 2012, however is unable to estimate the potential fiscal impact on state expenditures as it is not known what will be owed to Massachusetts institutions on that date.
The Department of Employment security states ceasing payments to Massachusetts, under section 3 of this bill, could result in New Hampshire being sanctioned by the United States Department of Labor. Specifically, the Department states it makes payments to other states in accordance with the Interstate Arrangement for Combining Employment and Wages, which totaled $9,830,859 in FY 2011, and failure to make said reimbursements could result in a federal sanction. The Department further states it makes payments to other states pursuant to the Trade Act of 1974, for a program assisting individuals, who became unemployed as a result of increased imports, return to suitable employment. The Department states at times specific training programs are only available in other states, and between November 2012 and March 2011 it paid Massachusetts state educational institutions $42,737. The Department states ceasing pay for eligible individuals is a violation of federal law and could also result in federal sanction.
The New Hampshire Municipal Association states this bill would increase revenues of municipalities in the Merrimack River and Connecticut River Flood Control Compacts, in total, by $15,000 in FY 2013 and each fiscal year thereafter.
The Department of Justice states this bill would request the Attorney General file a lawsuit against the Commonwealth of Massachusetts to recover moneys owed to New Hampshire under the Merrimack River and Connecticut River Flood Control Compacts. The Department states if such a suit were to be filed costs would be absorbed within the Department’s existing budget and there would be no fiscal impact.