Revision: Jan. 30, 2017, 3:43 p.m.
HB 120 - AS INTRODUCED
2017 SESSION
17-0023
10/04
HOUSE BILL 120
AN ACT relative to deposit of county unassigned fund balances in a revenue stabilization reserve account.
SPONSORS: Rep. Buco, Carr. 2; Rep. Cordelli, Carr. 4; Rep. Avellani, Carr. 5; Rep. F. McCarthy, Carr. 2; Rep. Nelson, Carr. 5; Rep. Parker, Carr. 6; Rep. J. Belanger, Hills. 27; Rep. S. Schmidt, Carr. 6; Rep. Beaulieu, Hills. 45; Rep. Comeau, Carr. 5; Sen. Woodburn, Dist 1
COMMITTEE: Municipal and County Government
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This bill allows counties to establish a revenue stabilization reserve account for depositing any fiscal year undesignated/unassigned fund balance. Moneys in the account may be transferred for offsetting a general fund operating budget deficit.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0023
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to deposit of county unassigned fund balances in a revenue stabilization reserve account.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Counties; Revenue Stabilization Reserve Account. Amend RSA 24:13 by inserting after paragraph IV the following new paragraph:
V.(a) The county convention may vote to establish and maintain a revenue stabilization reserve account. At the close of the fiscal year, any undesignated/unassigned fund balance remaining on hand at the end of any fiscal year, as determined by official audit, shall be transferred by the county treasurer to the revenue stabilization reserve account. The treasurer shall invest funds in the revenue stabilization reserve account as authorized by RSA 29:3. The interest so earned shall be deposited as unrestricted general fund revenue.
(b) At the close of the fiscal year, the county convention may also vote to transfer to said account any other unencumbered surplus funds. The revenue stabilization reserve account shall be allowed to accumulate from year to year, shall not be commingled with other county revenues, and shall not be deemed part of the general fund accumulated surplus.
(c) In the event of a general fund operating budget deficit at the close of any fiscal year, as determined by official audit, the treasurer shall notify the county executive committee and the county commissioners of such deficit and request that sufficient funds, to the extent available, be transferred from the revenue stabilization reserve account to eliminate such deficit. Such transfer may be made only when both of the following conditions have been met:
(1) A general fund operating budget deficit occurred for the most recently completed fiscal year; and
(2) General fund revenues in the most recently completed fiscal year were less than the budget estimate.
(d) The amount of said transfer shall not exceed a sum equal to the lower of the amount of the deficit in subparagraph (c)(1) or the revenue shortfall in subparagraph (c)(2). Upon receipt of approval from both the county executive committee and the commissioners, the treasurer shall immediately transfer the sums approved to the general fund surplus account.
(e) No available balance in the revenue stabilization reserve account shall be used for any purpose other than those authorized by subparagraphs (c) and (d), without the specific approval of 2/3 of the county convention.
(f) If, after the requirements of subparagraphs (b)-(e) have been met and the balance remaining in the revenue stabilization reserve account is in excess of an amount equal to 10 percent of the actual general fund unrestricted revenues for the most recently completed fiscal year, then such excess shall be transferred, without further action, to the county's general fund surplus account.
2 Effective Date. This act shall take effect 60 days after its passage.