Bill Text - HB486 (2013)

Making an appropriation for the purpose of paying residential care providers at the Chase Home for Children.


Revision: Feb. 4, 2013, midnight

HB 486-FN-A – AS INTRODUCED

2013 SESSION

13-0642

05/01

HOUSE BILL 486-FN-A

AN ACT making an appropriation for the purpose of paying residential care providers at the Chase Home for Children.

SPONSORS: Rep. Nordgren, Graf 12; Rep. Charron, Rock 4; Rep. Devine, Rock 4; Rep. Hagan, Rock 4; Rep. Gile, Merr 27; Rep. J. MacKay, Merr 14; Rep. Rosenwald, Hills 30; Rep. Gargasz, Hills 27; Rep. DeSimone, Rock 14; Rep. Almy, Graf 13; Sen. Odell, Dist 8; Sen. Woodburn, Dist 1; Sen. Fuller Clark, Dist 21; Sen. Reagan, Dist 17

COMMITTEE: Finance

ANALYSIS

This bill makes a supplemental appropriation to the department of health and human services for payment of residential care providers pursuant to the supreme court order in Chase Home et al. v. New Hampshire Division of Children, Youth and Families, No. 2010-548, 162 N.H. 720 (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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

13-0642

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT making an appropriation for the purpose of paying residential care providers at the Chase Home for Children.

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

1 Findings.

I. On November 22, 2011, the supreme court of New Hampshire issued an opinion on Chase Home for Children et al. v. New Hampshire Division for Children, Youth and Families, Docket No. 2010-0548, which upheld the New Hampshire superior court trial decision, Docket No. 217-2007-EQ-00487.

II. On January 6, 2012, the department of health and human services issued a letter to the New Hampshire department of justice informing them of the judgment upholding Chase Home et al. v. New Hampshire Division of Children, Youth and Families. In that letter the department of health and human services determined it did not have an appropriation from which to pay this judgment and therefore requested the judgment be submitted to the legislature under the terms of RSA 491:8.

III. On February 3, 2012, pursuant to RSA 491:8, the attorney general submitted a letter to the speaker of the New Hampshire house of representatives and the president of the New Hampshire senate, requesting an appropriation to cover the judgment in the case of Chase Home et al. v. New Hampshire Division of Children, Youth and Families.

IV. In September 2012, the department of administrative services issued unaudited preliminary financial statements for fiscal year 2012. The sum of $2,700,000 was accrued for the judgment in the case of Chase Home et al. v. New Hampshire Division of Children, Youth and Families and is reflected as a general fund liability in these financial statements.

V. On December 31, 2012, the state of New Hampshire issued its comprehensive annual financial report for the fiscal year ending June 30, 2012. The report included a liability of $2,700,000, representing the net amount of state cost for the judgment after the federal share has been recorded in the government wide statement of net assets as of June 30, 2012.

VI. As of December 31, 2012, said judgment, interests, and costs totaled $3,956,579.51, and will increase at the amount of $214.18 per day thereafter until payment in full is made.

2 Department of Health and Human Services; Appropriation for Residential Childcare Services. In addition to any other sums appropriated, the sum of $4,000,000 is hereby appropriated to the department of health and human services for the fiscal year ending June 30, 2013, and shall be made available for the sole purpose of paying the final judgment, awarded costs, and interest to certain residential care providers, which judgment was affirmed by the New Hampshire supreme court in Chase Home for Children, et al. v. New Hampshire Division for Children, Youth and Families, No. 2010-548, 162 N.H. 720 (2011) and in accordance with RSA 491:8. Of said appropriation, $2,700,000 shall be from state general funds, and $1,300,000 shall be from federal funds. The governor is hereby authorized to draw a warrant for said state general fund sum out of any money in the treasury not otherwise appropriated. Sums appropriated herein shall not lapse.

3 Effective Date. This act shall take effect upon its passage.

LBAO

13-0642

Revised 02/04/13

HB 486 FISCAL NOTE

AN ACT making an appropriation for the purpose of paying residential care providers at the Chase Home for Children.

FISCAL IMPACT:

      The Office of Legislative Budget Assistant states this bill as introduced, will have no fiscal impact on the state general fund balance in FY 2013. The Department of Health and Human Services states this bill, on a budgetary basis, will increase state expenditures by $4,000,000 in FY 2013.

      This bill appropriates $2,700,000 from the state general fund to the Department of Health and Human Services for the fiscal year ending June 30, 2013 for the purpose of this act.

METHODOLOGY:

    The Office of Legislative Budget Assistant states The New Hampshire Comprehensive Annual Financial Report for FY 2012 included an accrued general fund liability of $2.7 million to recognize the state’s legal obligation regarding the Supreme Court decision in the case “Chase Home for Children et al v. New Hampshire Division for Children, Youth and Families”. The accrual reduced the general fund balance in FY 2012. Assuming the bill becomes law in FY 2013, the accrual will be reversed when the appropriation is expended resulting in a positive adjustment to the general fund balance in FY 2013. Although this bill will increase state expenditures initially, the accrued liability will be reversed at the end of FY 2013 resulting in no net impact to the general fund.

      The Department of Health and Human Services states this bill appropriates $4,000,000 to pay the judgment in the underlying case which includes accumulated interest and costs. The Department states $1,300,000 of federal funds will be available to supplement the general fund appropriation of $2,700,000. The Department indicates the appropriation included in this bill would reduce the Department’s projected deficit for FY 2013 by $2.7 million.