HB405 (2017) Detail

(Second New Title) relative to the duties of the decennial retirement commission, and relative to the function and organization of the department of administrative services risk management unit and division of personnel.


CHAPTER 193

HB 405 - FINAL VERSION

 

15Feb2017... 0379h

04/27/2017   1458s

1Jun2017... 2029-EBA

2017 SESSION

17-0744

10/05

 

HOUSE BILL 405

 

AN ACT relative to the duties of the decennial retirement commission, and relative to the function and organization of the department of administrative services risk management unit and division of personnel.

 

SPONSORS: Rep. Danielson, Hills. 7

 

COMMITTEE: Executive Departments and Administration

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Adds duties to the decennial retirement commission to be established in 2017 pursuant to RSA 100-A:57.

 

II.  Establishes within the department of administrative services, risk management unit, a bureau of health and benefits, a bureau of property, casualty, and workers' compensation, and a bureau of finance.

 

III.  Clarifies the duties of the risk management unit, division of personnel, and office of the commissioner of administrative services.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Feb2017... 0379h

04/27/2017   1458s

1Jun2017... 2029-EBA 17-0744

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to the duties of the decennial retirement commission, and relative to the function and organization of the department of administrative services risk management unit and division of personnel.

 

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

 

193:1  New Subparagraphs; Decennial Retirement Commission; Duties Added.  Amend RSA 100-A:57, IV by inserting after subparagraph (h) the following new subparagraphs:

(i)  Evaluate the plan for amortization of the unfunded accrued liability of the retirement system and the impact on contribution rates.

(j)  Review the effects of retirees returning to work for retirement system employers and make recommendations for legislative changes, if necessary.

(k)  Consider the effects that changes to contribution rates have on municipalities and evaluate the options to minimize the changes.

(l)  Study the feasibility and cost of eliminating the reduction in a retiree's retirement allowance upon reaching the age of 65.

193:2  Insurance.  Amend RSA 9:27 to read as follows:

9:27  Insurance.

I.  Any agency or department of the state may, with the approval of the governor and council and within the limits of its appropriation, secure casualty or liability insurance on any property owned by the state or in connection with any program or activity of the state; provided, however, that all such purchases shall first be reviewed and approved by the risk management unit of the department of administrative services and that any insurance specifically required by law shall be carried.

II.  All casualty or liability insurance secured by an agency or department and in effect on July 1, 2017, shall be reported to the risk management unit by September 1, 2017.

193:3  New Subparagraph; Department of Administrative Services; General Functions.  Amend RSA 21-I:1, II by inserting after subparagraph (n) the following new subparagraph:

(o)  Serving as the employer for the purpose of ensuring compliance with the requirements of RSA 281-A.  

193:4  Risk Management.  RSA 21-I:7-c is repealed and reenacted to read as follows:

21-I:7-c  Risk Management.  There is established within the office of the commissioner of administrative services a risk management unit, under the supervision of an unclassified manager of risks and benefits, who shall be qualified to hold that position by reason of education and experience, and who shall perform such duties as the commissioner from time to time may authorize.  The functions of the risk management unit shall be divided across the following bureaus:

I.  The bureau of health and benefits, under the supervision of a classified administrator, who shall be responsible for the following functions, in accordance with applicable law:

(a)  Overseeing and administering the state employee and retiree group insurance programs authorized by RSA 21-I:26 through RSA 21-I:36, in accordance with administrative rules adopted pursuant to RSA 21-I:14, XIII.

(b)  Coordinating the employee and retiree benefit programs administered through the risk management unit with the benefits and programs offered through the New Hampshire retirement system and the state’s deferred compensation commission established in RSA 101-B.  

(c)  Overseeing and administering all additional employee or retiree benefit programs offered by the state, other than those related to the New Hampshire retirement system or the state’s deferred compensation commission established in RSA 101-B.  

(d)  Conducting ongoing studies of alternative financing methods and benefit offerings.

(e)  To the extent deemed necessary by the manager of risks and benefits, creating for potential incorporation into the department of administrative services manual of procedures described at RSA 21-I:14, I(b), a technical assistance manual that clearly explains procedures related to the bureau’s functions, including but not limited to procedures relating to employee and retiree benefits.

(f)  Developing and monitoring insurance and third party administrator contracts related to the state employee and retiree group insurance program in accordance with applicable law, by:

(1)  Developing bid specifications for insurance and third party administrator contracts and ensuring bid specifications are in compliance with applicable collective bargaining agreements.

(2)  Negotiating final contract terms with the vendors awarded contracts through the procurement process.

(3)  Formalizing contract agreements.

(4)  Monitoring contracts on an ongoing basis to ensure timely procurement, renewals, amendments, updates, statutory compliance, and extensions.

(5)  Ensuring that vendors comply with the requirements of contract agreements by:

(A)  Implementing, monitoring, and enforcing performance guarantees.

(B)  Receiving and analyzing state employee and retiree group insurance utilization data and statistics.

(C)  Monitoring Medicare issues to ensure compliance with federal law and programs.

(g)  Reviewing and making recommendations to the manager of risks and benefits that are intended to ensure the proper operation and long term sustainability of the bureau’s programs.

(h)  Implementing, overseeing, and administering employee wellness initiatives.

(i)  Advising the manager of risks and benefits and, upon request, the commissioner, the governor and executive council, the general court, the state retiree health plan commission established in RSA 100-A:56, the joint legislative fiscal committee established in RSA 14:30-a, and other entities regarding employee and retiree benefits program.

(j)  Ensuring that the bureau’s programs are compliant with applicable state and federal law.

(k)  Monitoring agencies’ activities for compliance with benefit program requirements.

II.  The bureau of property, casualty, and workers’ compensation, under the supervision of a classified administrator, who shall be responsible for the following functions, in accordance with applicable law:

(a)  Overseeing and administering the state’s workers’ compensation program under RSA 21-I:24 and RSA 21-I:25-a or other applicable law.

(b)  Identifying loss exposure for all state real and personal property and for personal injury, except as otherwise provided by law, on a continuing basis.

(c)  Identifying cost-effective means for protecting against various types of losses, including self-funding, commercial insurance purchases, and risk assumption, and recommending to the manager of risks and benefits actions to be taken through the budget process, or other processes, to implement such means.  

(d)  After consultation with, and approval by the manager of risks and benefits, purchasing liability insurance under a fleet policy covering the operation of state-owned vehicles and motorboats, and such other insurance and surety bonds as any state department, agency, or official may be legally authorized to secure, or required to furnish; provided that approval shall not be granted for any such insurance or surety bonds unless the same have been marketed and procured through a resident agent of an insurance company registered and licensed to do business in this state.  With the exception of any risk located outside the state, no such insurance company or resident agent, personally or by another, shall allow, give, or pay, directly or indirectly, to any nonresident agent or nonresident broker any part of the commission on the sale of such insurance or surety bonds.  The insurance commissioner may suspend or revoke the license of any resident agent or insurance company violating the provisions hereof.

(e)  Conducting ongoing studies of alternative financing methods and benefit offerings.

(f)  Overseeing the state employee workers’ compensation and commercial insurance programs, by:

(1)  Preparing bid specifications for commercial insurance and third party administrator contracts related to workers’ compensation and commercial insurance in accordance with applicable law, and ensuring bid specifications are in compliance with collective bargaining agreements.

(2)  Negotiating final contract terms with the vendors awarded contracts through the procurement process, formalizing contract agreements, and monitoring contracts on an ongoing basis to ensure timely procurement, renewals, amendments, updates, statutory compliance, and extensions.

(3)  Managing claims payments and statistical data related to workers’ compensation and commercial insurance and ensuring vendors comply with the requirements of contract agreements.

(4)  Coordinating and developing processes and procedures related to the workers’ compensation and commercial insurance programs.

(5)  Monitoring agencies’ workers’ compensation and commercial insurance activities for compliance with requirements.

(g)  To the extent deemed necessary by the manager of risks and benefits, creating for potential incorporation into the department of administrative services manual of procedures described at RSA 21-I:14, I(b), a technical assistance manual or manuals that clearly explains procedures related to the bureau’s functions.

(h)  Evaluating risks facing the state and developing and operating health, safety, loss control, and risk reduction programs, in accordance with loss prevention guidelines adopted pursuant to RSA 21-I:14, II.

(i)  Reviewing and making recommendations to the manager of risks and benefits that are intended to ensure the proper operation and long term sustainability of the bureau’s programs.

(j)  Advising the manager of risks and benefits and, upon request, the commissioner, the governor and executive council, the general court, and other entities regarding the bureau’s programs.

(k)  Ensuring that the bureau’s programs are compliant with applicable state and federal law.

III.  The bureau of finance, under the supervision of a classified administrator, who shall be responsible for the following functions, in accordance with applicable law:

(a)  Managing claims payments, vendor payments, statistical data, and financial reporting related to the risk management unit’s responsibilities.

(b)  Conducting ongoing studies of alternative financing methods and benefit offerings.

(c)  To the extent deemed necessary by the manager of risks and benefits, creating for potential incorporation into the department of administrative services manual of procedures described at RSA 21-I:14, I(b), a technical assistance manual that clearly explains procedures related to the bureau’s functions.

(d)  Establishing working rate tables for application to self-insured health benefit programs, including by coordinating and reviewing actuarial projections, considering rate alternatives and modeling, and developing full working rate tables.

(e)  Reviewing and making recommendations to the manager of risks and benefits that are intended to ensure the proper operation and long term sustainability of the bureau’s programs.

(f)  Advising the manager of risks and benefits and, upon request, the commissioner, the governor and executive council, the general court, and other entities regarding the bureau’s programs.

(g)  Ensuring that the bureau’s programs are compliant with applicable state and federal law.

(h)  Monitoring agencies’ financial activities for compliance with financial requirements of the state’s health benefit program.

193:5  Duties of the Commissioner of Administrative Services; Retiree Benefit Programs.  Amend RSA 21-I:13, IX to read as follows:

IX.  Administer all state employee and retiree benefit programs, other than those administered by the retirement system or the deferred compensation commission established in RSA 101-B, as provided by RSA 21-I:28.

193:6  Rulemaking Authority of the Commissioner of Administrative Services.  Amend RSA 21-I:14, XIII to read as follows:

XIII.  Management of the state employees and retiree group insurance program authorized by RSA 21-I:26 through 21-I:36 and the programs established in RSA 21-I:44-a and RSA 21-I:44-b.

XIII-a.  Implementation of the programs established in RSA 21-I:44-a and RSA 21-I:44-b.

193:7  Authority for Payment.  Amend RSA 21-I:24, I to read as follows:

I.  The commissioner of administrative services, through the department's risk management unit, is hereby authorized to pay such sum or sums as may be awarded [to state employees] under the provisions of RSA 281-A, and the expense of insurance and third party administrator services providing managed care programs authorized by RSA 281-A:23-a and similar services directly related to the provision and monitoring of workers' compensation benefits payable to state employees.

193:8  Authority for Payment.  Amend RSA 21-I:24, IV to read as follows:

IV.  If managed care program expenses, or other expenses directly related to the provision and monitoring of workers' compensation benefits payable to state employees, are procured by the payment of a group insurance premium or [other risk shifting method] third party administrator services, the commissioner of administrative services shall charge state agencies the cost of such general expenses in proportion to the number of agency employees who receive the services in question in the manner provided by RSA 21-I:24, II.

193:9  Procurement of Managed Care and Other Risk-Shifting Services.  Amend RSA 21-I:25-a to read as follows:

21-I:25-a  Procurement of Managed Care and Other Risk-Shifting Services.  By following the procedures of RSA 21-I:28, the commissioner of administrative services, through the department's risk management unit, and after consultation with the governor and council, may contract for or purchase insurance or third party administrator services providing managed care program services and similar services directly related to the provision and monitoring of workers' compensation benefits payable to state employees.  [Such services may be combined with one or more group health insurance contracts authorized by RSA 21-I:28.]

193:10  New Section; Administrative Cost of Programs; Obligation of Employee.  Amend RSA 21-I by inserting after section 30-e the following new section:

21-I:30-f  Administrative Cost of Certain Programs Administered by the Risk Management Unit; Obligation of Employee.  The risk management unit may use moneys in the employee benefit adjustment account, established under RSA 9:17-c, for the purposes of paying the administrative fees for the dependent care assistance program established under RSA 21-I:44-a and the medical and related expenses program established under RSA 21-I:44-b.  The risk management unit may also use such moneys in the event money must be paid to the contracting party in advance to cover the employee's medical expenses, when the employee has not contributed all of such costs from payroll deductions, provided that the employee benefit adjustment account shall be repaid when the employee fulfills his or her obligation.

193:11  Division of Personnel.  Amend the introductory paragraph of RSA 21-I:42 to read as follows:

21-I:42  Division of Personnel.  There is hereby established within the department of administrative services the division of personnel, under the supervision of an unclassified director of personnel appointed under RSA 21-I:2, who shall report to the commissioner and be responsible for the following functions in accordance with applicable laws:

193:12  Division of Personnel; Preparation of Annual Report.  Amend RSA 21-I:42, VII to read as follows:

VII.  Preparing an annual report detailing the work of the division.  This report, which shall include a narrative summary of the findings of division investigations conducted under RSA 21-I:42, IV, shall be submitted to the governor and council by the director of personnel and the commissioner of administrative services.

193:13  Rulemaking by the Director of Personnel.  Amend RSA 21-I:43, I to read as follows:

I.  The provisions of RSA 21-G:9, II(b) shall not apply to the rules adopted pursuant to this section.  It is the intent of the general court that the director of personnel shall have the sole authority to adopt and interpret, subject to the appeals process established under this chapter, the rules provided for in this section.  The commissioner shall review all proposed rules of the director and may comment on them in writing.  In the case of a vacancy in the office of the director of personnel, the commissioner of administrative services may exercise the rulemaking authority granted to the director of personnel.

193:14  Internal Organization.  Amend RSA 21-I:44 to read as follows:

21-I:44  Internal Organization.  

I.  Except as set forth in paragraph II, the commissioner of administrative services, after consultation with the director of the division of personnel, shall be responsible for establishing the internal organizational units of the division.  The commissioner and the director shall adhere to the provisions of RSA 21-G:6 in structuring the internal units of the division.

II.  There is established within the division a bureau of employee relations, under the direction of an unclassified manager of employee relations, who shall serve a 4-year term. [and who] The bureau of employee relations shall be responsible for the following functions, in accordance with applicable laws:

(a)  [Administering employee benefit programs.

(b)  Conducting ongoing studies of alternative financing methods and benefit offerings.

(c)  Administering the state employee group insurance program.

(d)]  Administering all collective bargaining agreements with classified employees.

(b)  Representing the state in collective bargaining negotiations.

[(e)] (c)  Providing professional support and assistance to the governor in the conduct of negotiations with representatives of classified employees.

[(f)] (d) Representing the state, in cooperation with the attorney general, in all grievance actions related to collective bargaining agreements before the public employee labor relations board.

(e)  Coordinating the compilation of data necessary to the collective bargaining process and the implementation of agreements.

(f)  Providing technical advice and interpretations to all state agencies for implementation and administration of collective bargaining agreements to ensure consistent policies, practices, and contract compliance.

(g)  Investigating, preparing for, and representing the state in grievance mediation and settlement negotiations.

(h)  Performing such other duties as may be assigned by the commissioner.  

III.  In order to provide for the development and implementation of programs for the training and education of state employees, there shall be an unclassified education and training officer within the division of personnel.  The education and training officer shall develop and coordinate the implementation of a training program plan for executive departments.  Any training program conducted under this plan in any department shall not be limited to employees of that department.  In addition, the education and training officer shall perform such duties as are assigned by the director.

IV.  The commissioner, after consultation with the director of personnel, shall nominate the manager of employee relations and the education and training officer who shall be appointed by the governor, with the consent of the council.  The manager of employee relations and the education and training officer shall be qualified by reason of education and experience and shall each serve a 4-year term.  The salary of the manager of employee relations and the education and training officer shall be as specified in RSA 94:1-a.

193:15  Dependent Care Assistance Program and Medical and Related Expenses Program.  Amend RSA 21-I:44-a and RSA 21-I:44-b to read as follows:

21-I:44-a  Dependent Care Assistance Program Established.  There is established a dependent care assistance program to be administered by the [division of personnel,] risk management unit of the department of administrative services with the assistance of the division of accounting services of the department of administrative services and the treasury department.  Under this program, an employee may have a certain amount of his or her salary withheld, before taxes, for the purpose of day care expenses.

21-I:44-b  Medical and Related Expenses Program Established.  There is established a medical related expenses program to be administered by the [division of personnel,] risk management unit of the department of administrative services with the assistance of the division of accounting services of the department of administrative services and the treasury department.  Under this program, an employee may have a certain amount of his or her salary withheld, before taxes, for the purpose of medical expenses.

193:16  Part-Time State Employees.  Amend RSA 98-A:6 to read as follows:

98-A:6  Working on a Part-Time Basis.  An individual working on a part-time basis shall not be eligible to utilize either sick or annual leave but at each anniversary of employment should the total working time during the preceding year amount to the equivalent of 6 months or more he or she shall be paid all accumulated annual leave not in excess of [those allowed by Per 307.03 of the rules of] that which may be allowed in rules adopted by the division of personnel.

193:17  Repeal.  The following are repealed:

I.  RSA 21-I:42, VIII, relative to oversight by the division of personnel of all employee benefit programs other than those related to the New Hampshire retirement system.

II.  RSA 21-I:44-c, relative to rulemaking authority of the division of personnel for the dependent care assistance and medical and related expenses programs.

III.  RSA 21-I:44-d, relative to the administrative cost of the programs established under RSA 21-I:44-a and RSA 21-I:44-b.

193:18  Effective Date.  

I.  Section 1 of this act shall take effect upon its passage.

II.  The remainder of this act shall take effect 60 days after its passage.

 

 

Approved: June 30, 2017

Effective Date:

I. Section 1 effective June 30,2017

II. Remainder effective August 29, 2017

 

Links

HB405 at GenCourtMobile

Action Dates

Date Body Type
Jan. 25, 2017 House Hearing
Feb. 8, 2017 House Exec Session
Feb. 15, 2017 House Floor Vote
April 19, 2017 Senate Hearing
April 19, 2017 Senate Hearing
April 27, 2017 Senate Floor Vote

Bill Text Revisions

HB405 Revision: 129 Date: July 3, 2017, 2:22 p.m.
HB405 Revision: 130 Date: June 6, 2017, 9:31 a.m.
HB405 Revision: 131 Date: April 27, 2017, 3:22 p.m.
HB405 Revision: 132 Date: March 30, 2017, 8:24 a.m.
HB405 Revision: 133 Date: Jan. 27, 2017, 1:49 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Executive Departments and Administration HJ 3 P. 11
Jan. 25, 2017 Public Hearing: 01/25/2017 02:00 PM LOB 306
Feb. 8, 2017 Executive Session: 02/08/2017 10:30 AM LOB 306
Feb. 15, 2017 Committee Report: Ought to Pass with Amendment # 2017-0379h (NT) for 02/15/2017 (Vote 19-0; CC) HC 11 P. 10
Feb. 15, 2017 Amendment # 2017-0379h: AA VV 02/15/2017 HJ 7 P. 12
Feb. 15, 2017 Ought to Pass with Amendment 0379h: MA VV 02/15/2017 HJ 7 P. 12
Feb. 16, 2017 Introduced 02/16/2017 and Referred to Executive Departments and Administration; SJ 7
April 19, 2017 Hearing: 04/19/2017, Room 101, LOB, 09:15 am; SC 19
April 19, 2017 Hearing: 04/19/2017, Room 101, LOB, 09:30 am, on proposed amendment # 2017-1390s; SC 19
April 27, 2017 Committee Report: Ought to Pass with Amendment # 2017-1458s, 04/27/2017; Vote 5-0; CC; SC 20
April 27, 2017 Committee Amendment # 2017-1458s, AA, VV; 04/27/2017; SJ 15
April 27, 2017 Ought to Pass with Amendment 2017-1458s, MA, VV; OT3rdg; 04/27/2017; SJ 15
May 18, 2017 House Concurs with Senate Amendment 1458s (Rep. McGuire): MA VV 05/18/2017 HJ 16 P. 6
May 31, 2017 Enrolled Bill Amendment # 2017-2029e Adopted, VV, (In recess of 05/31/2017); SJ 19
June 1, 2017 Enrolled Bill Amendment # 2017-2029e: AA VV 06/01/2017 HJ 17 P. 149
June 8, 2017 Enrolled (In recess 06/08/2017); SJ 20
June 8, 2017 Enrolled 06/08/2017 HJ 18 P. 9
June 30, 2017 Signed by Governor Sununu 06/30/2017; Chapter 193; I. Sec. 1 eff. 6/30/2017 ; II. Rem. eff. 8/29/2017