Revision: Dec. 13, 2017, 1:35 p.m.
HB 1803-FN - AS INTRODUCED
2018 SESSION
18-2337
05/03
HOUSE BILL 1803-FN
AN ACT relative to payroll deductions for government employees.
SPONSORS: Rep. Marple, Merr. 24; Rep. Itse, Rock. 10; Rep. Sylvia, Belk. 6; Rep. Spillane, Rock. 2; Sen. Reagan, Dist 17
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill provides that the state shall not provide any accounting service or payroll deduction on behalf of a private corporation or organization.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2337
05/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to payroll deductions for government employees.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Statement of Findings. The general court finds that nongovernmental entities are taking economic advantage of the state by using state accounting services without paying for such accounting services. Furthermore, the general court finds that taxpayers should not be subsidizing private interest business expenses.
2 New Section; Salaries of State Employees; Payroll Deductions. Amend RSA 99 by inserting after section 7 the following:
99:7-a Accounting Services and Payroll Deductions. No state agency or entity shall provide any accounting service or other expenditure of time or benefit, including implementation of a payroll deduction, for any nongovernmental corporation, including nonprofit corporations and private organizations.
3 Effective Date. This act shall take effect 60 days after its passage.
18-2337
12/13/17
HB 1803-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to payroll deductions for government employees.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various Government Funds | |||
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METHODOLOGY:
This bill would prohibit any state entity from providing any accounting service or payroll deduction on behalf of a private corporation or organization.
The Department of Administrative Services assumes this bill is directed at deductions for non-State sponsored benefit plans only, thereby excluding health, dental, retirement, garnishments, deferred compensation, supplemental life insurance and health care flexible spending accounts. The remaining deductions to which the bill may apply would include: United Way, Supplemental Insurances, Union Dues / Agency Fees, and other deductions negotiated in collective bargaining. Payroll deductions are managed through several areas of the Department as well as in other State agencies. The Department assumes eliminating certain payroll deductions may allow for staffing resources to be realigned, but would not impact the overall time and resources required to process the statewide payroll.
The Judicial Branch states, other than payroll deductions, the Branch cannot determine what the applicability of the proposed bill would be to the Branch. The Branch does not anticipate any fiscal impact on the Branch would exceed $10,000.
The Legislative Branch indicates the impact on the Branch’s budget would be minimal. It is unclear if existing payroll deductions would be reversed. It is not possible to determine the number of payroll deductions that would no longer be executed or requested by employees. Any potential time savings would be absorbed by other job functions.
The Community College System of New Hampshire (CCSNH) assumes this bill would not apply to CCSNH since RSA 99, which would be amended by the bill, involves payment of State employees. The CCSNH is established as a “body corporate and politic” and its administration, including payroll, is outside of the State’s administrative structure. The CCSNH indicates there would be no fiscal impact on its operations.
The University System of New Hampshire states, in the context of RSA 99 and the proposed legislation, the University System is not a State agency and, as such, would not be affected by the passage of this bill.
The New Hampshire Retirement System (NHRS) indicates the fiscal impact of this bill is indeterminable. The NHRS states RSA 275:48 allows agencies to withhold amounts from payroll with written authorization of the employee. The fiscal impact cannot be determined because it is not clear how NHRS would administer payroll.
AGENCIES CONTACTED:
Department of Administrative Services, Judicial Branch, Legislative Branch, Community College System of New Hampshire, University System of New Hampshire and New Hampshire Retirement System