Revision: Feb. 17, 2017, 9:43 a.m.
SB 245-FN-A - AS INTRODUCED
2017 SESSION
17-0985
08/10
SENATE BILL 245-FN-A
AN ACT relative to the financial sustainability of the unemployment compensation fund.
SPONSORS: Sen. Feltes, Dist 15; Sen. Lasky, Dist 13
COMMITTEE: Commerce
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This bill raises the threshhold amount in the unemployment compensation fund which triggers changes in the minimum rate and the inverse minimum rate.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0985
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to the financial sustainability of the unemployment compensation fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Minimum Rate. Amend RSA 282-A:82, II-III to read as follows:
II. There shall be subtracted in any calendar quarter from every employer's contribution rate one percent whenever the unemployment compensation fund equals or exceeds [$275,000,000] $300,000,000 throughout the next preceding calendar quarter.
III. There shall be subtracted in any calendar quarter from every employer's contribution rate 1.5 percent whenever the unemployment compensation fund equals or exceeds [$300,000,000] $325,000,000 throughout the next preceding calendar quarter.
2 Inverse Minimum Rate. Amend RSA 282-A:82-a, II-III to read as follows:
II. There shall be added in any calendar quarter to every such employer's contribution rate one percent whenever the unemployment compensation fund fails to equal or exceed [$275,000,000] $300,000,000 throughout the next preceding calendar quarter.
III. There shall be added in any calendar quarter to every such employer's contribution rate .5 percent whenever the unemployment compensation fund fails to equal or exceed [$300,000,000] $325,000,000 throughout the next preceding calendar quarter.
3 Effective Date. This act shall take effect October 1, 2017.
17-0985
1/30/17
SB 245-FN-A- FISCAL NOTE
as introduced
AN ACT relative to the financial sustainability of the unemployment compensation fund.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Unemployment Compensation Trust Fund | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill increases the solvency thresholds for the Unemployment Compensation Trust Fund (Trust Fund) and fund balance reductions (FBR) as follows:
| Current Law | Proposed Bill |
| $250 million = FBR of 0.5% | $250 million = FBR of 0.5% |
| $275 million = FBR of 1.0% | $300 million = FBR of 1.0% |
| $300 million = FBR of 1.5% | $325 million = FBR of 1.5% |
This bill will increase restricted revenue deposited in the Trust Fund by an indeterminable amount. The revenue is derived from unemployment taxes paid by private employers in New Hampshire. New Hampshire Employment Security states that by increasing the 1 percent FBR to $300 million and the 1.5 percent FBR to $325 million, the Trust Fund will grow by $14.9 million in FY 2018 and $17.8 million in FY 2019. The Department estimates that quarter one of 2018, quarter four of 2018, and quarter one of 2019 would be impacted. The FBR for these quarters would be reduced from 1.0 percent, as is currently forecasted, to 0.5 percent as a result of this bill. Other quarters would remain the same based on current projections.
The State and 92 percent of counties and municipalities would not be impacted by this bill because they reimburse for unemployment compensation benefits. The remaining 8 percent of counties and municipalities that elect to be contributory members may experience increased expenditures.
AGENCIES CONTACTED:
New Hampshire Employment Security