Revision: May 13, 2013, midnight
SB 162-FN – AS AMENDED BY THE HOUSE
03/14/13 0737s
8May2013… 1401h
2013 SESSION
04/03
SENATE BILL 162-FN
AN ACT repealing the student tuition guaranty fund and making provisions for the disbursement of remaining funds.
SPONSORS: Sen. Stiles, Dist 24; Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20; Rep. Lovejoy, Rock 36; Rep. Copeland, Rock 19; Rep. Abrami, Rock 19; Rep. Shaw, Hills 16; Rep. Ladd, Graf 4
COMMITTEE: Health, Education and Human Services
This bill repeals the student tuition guaranty fund and requires the higher education commission to disburse all remaining funds to the private postsecondary career school responsible for contributing the funds.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/14/13 0737s
8May2013… 1401h
13-0299
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT repealing the student tuition guaranty fund and making provisions for the disbursement of remaining funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 188-G:4, relative to student tuition guaranty fund.
II. RSA 6:12, I(b)(233), relative to the student tuition guaranty fund.
2 Private Postsecondary Career Schools; Licenses and Fees. Amend RSA 188-G:2, V to read as follows:
V. A private postsecondary career school which the commission has determined requires a license shall, prior to the issuance of a license, comply with this section[,] and RSA 188-G:3[, and RSA 188-G:4].
3 Private Postsecondary Career Schools; Surety Indemnification. Amend the introductory paragraph in RSA 188-G:3 to read as follows:
188-G:3 Surety Indemnification. Before a license is issued or renewed, a school shall [meet the requirements of this section or RSA 188-G:4, by providing acceptable surety indemnification as determined] furnish surety indemnification as required in this section.
4 Student Tuition Guaranty Fund; Disbursement of Funds. The higher education commission established in RSA 21-N:8-a shall refund the balance of funds, less interest, in the student tuition guaranty fund established in RSA 188-G:4 as of the effective date of this act to the schools which were responsible for contributing such funds. The commission shall deposit any interest on such funds into the general fund.
5 Effective Date. This act shall take effect June 30, 2013.
LBAO
13-0299
Amended 05/10/13
SB 162 FISCAL NOTE
AN ACT repealing the student tuition guaranty fund and making provisions for the disbursement of remaining funds.
FISCAL IMPACT:
The Department of Education states this bill, as amended by the House (Amendment #2013-1401h), will decrease state restricted revenues by $27,000 in FY 2014 and each fiscal year thereafter, increase state general fund revenue by $2,700 in FY 2014, and increase state restricted expenditures by $391,675 in FY 2014. There will be no fiscal impact on county and local revenues or expenditures.
METHODOLOGY:
The Department of Education states this bill repeals the Department’s authority to assess annual fees designated to fund the student tuition guaranty fund, eliminates the fund and makes provisions for the disbursement of the remaining funds. The Department states the student tuition guaranty fund currently holds a balance of $394,375 and receives approximately $27,000 in annual restricted revenues derived from assessments made to career schools operating in the state. The Department states the proposed legislation’s repeal of the Department’s authority for the assessments will decrease state restricted revenues by approximately $27,000 in FY 2014 and each fiscal year thereafter. The Department states the proposed legislation’s provision to refund the balance of funds held in the student tuition guaranty fund to the schools responsible for contributing such funds will increase state restricted expenditures by $391,675 ($394,375 - $2,700) in FY 2014. The Department also notes the proposed legislation designates interest earned on assessments held in the fund to be deposited into the state’s general fund thereby increasing general fund revenue in FY 2014. The Department estimates approximately $2,700 of the $394,375 fund balance to represent interest earned on assessments.