SB542 (2018) Detail

Relative to the use of funds in the revenue stabilization reserve account for public health emergencies.


SB 542-FN - AS INTRODUCED

 

 

2018 SESSION

18-2957

05/01

 

SENATE BILL 542-FN

 

AN ACT relative to the use of funds in the revenue stabilization reserve account for public health emergencies.

 

SPONSORS: Sen. Woodburn, Dist 1; Sen. Watters, Dist 4; Sen. Soucy, Dist 18; Sen. Hennessey, Dist 5; Sen. Lasky, Dist 13; Sen. Feltes, Dist 15; Sen. Cavanaugh, Dist 16; Sen. Fuller Clark, Dist 21; Rep. Shurtleff, Merr. 11; Rep. Rosenwald, Hills. 30; Rep. Wallner, Merr. 10

 

COMMITTEE: Finance

 

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ANALYSIS

 

This bill permits the state to use funds in the revenue stabilization reserve account to address a public health emergency declared by the governor or general court.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2957

05/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the use of funds in the revenue stabilization reserve account for public health emergencies.

 

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

 

1  Name of Act.  It is the intent of the general court that this act be known as the "responding effectively to a severe crisis using emergency funds (RESCUE) act."

2  New Section; Public Health Emergency Declaration.  Amend RSA 4 by inserting after section 45 the following new section:

4:45-a  Public Health Emergency Declaration.

I.  The purpose of a public health emergency declaration shall be to enable use of funds from the revenue stabilization reserve account, as established in RSA 9:13-e.

II.  The governor shall have the power to declare a public health emergency by executive order if the governor finds a disease, disorder, or illness that:

(a)  Demands immediate action to preserve public health or to protect the safety and welfare of the inhabitants of this state; and

(b)  Reaches such a dimension or degree of destructiveness as to require an invocation of the provisions of this section.

III.  The general court shall have the same power to declare a public health emergency by concurrent resolution of the house of representatives and senate.

IV.  An executive order or concurrent resolution declaring a public health emergency shall specify:

(a)  The disease, disorder, or illness that brought about the emergency;

b)  The conditions that demand immediate action to preserve public health or to protect the safety and welfare of the inhabitants of this state;

(c)  The dimension or degree of destructiveness that requires invocation of a public health emergency declaration; and

(d)  Detailed recommendations for appropriations to meet the expenditure needs of the emergency.

V.(a)  A public health emergency shall terminate automatically and any unused funds appropriated from the revenue stabilization reserve account for the purpose of the emergency shall be transferred back to the revenue stabilization reserve account at the close of the fiscal biennium after its declaration.

(b)  If the governor finds that maintaining the public health emergency is no longer justified, the governor shall issue an executive order terminating the public health emergency and any unused funds appropriated from the revenue stabilization reserve account for the purpose of the emergency at the time of the termination of the public health emergency shall be transferred back to the revenue stabilization reserve account.

(c)  The general court may terminate a public health emergency by concurrent resolution adopted by a majority vote of each chamber.  Any unused funds appropriated from the revenue stabilization reserve account for the purpose of the emergency at the time of the adoption of a concurrent resolution terminating the public health emergency shall be transferred back to the revenue stabilization reserve account.  The governor's power to renew a public health emergency declaration shall terminate upon the adoption of a concurrent resolution under this subparagraph; provided, however, that such resolution shall not preclude the governor from declaring a new public health emergency for different circumstances under paragraph II.

3  New Paragraph; Revenue Stabilization Reserve Account.  Amend RSA 9:13-e by inserting after paragraph III the following new paragraph:

III-a.  In the event of a public health emergency declaration under RSA 4:45-a, the governor, if declared by executive order, or the prime sponsor of the concurrent resolution, if declared by concurrent resolution, shall notify the fiscal committee of the general court of such declaration and request that sufficient funds, to the extent available, be transferred from the revenue stabilization reserve account and appropriated according to the recommendations of the declaration.  Such transfer and appropriations may be made only with the prior approval of the fiscal committee of the general court.  Upon receipt of approval from the fiscal committee, the comptroller shall immediately transfer the sums so approved.  The total amount of all transfers and appropriations for public health emergencies for a fiscal biennium shall not exceed a sum equal to 10 percent of the balance in the revenue stabilization reserve account as reported in the most recent comprehensive annual financial report (CAFR).

4  Revenue Stabilization Reserve Account.  Amend RSA 9:13-e, IV to read as follows:

IV.  No available balance in the revenue stabilization reserve account shall be utilized for any purpose other than those authorized by paragraphs II, [and] III, and III-a, without the specific approval of 2/3 of each house of the general court and the governor.

5  Effective Date.  This act shall take effect upon its passage.

 

LBAO

18-2957

12/28/17

 

SB 542-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the use of funds in the revenue stabilization reserve account for public health emergencies.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

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            [    ] Highway           [ X ] Other - Revenue Stabilization Reserve Account

 

METHODOLOGY:

This bill permits the withdrawal of funds from the Revenue Stabilization Reserve Account (Rainy Day Fund) to address a public health emergency declared by the Governor or by the General Court.  The public health emergency shall contain detailed recommendations for appropriations to meet the expenditure needs of the emergency.   A public health emergency so declared by the Governor via Executive Order or the prime sponsor of the concurrent resolution, if declared by concurrent resolution, shall notify the Legislative Fiscal Committee of the General Court of such declaration and request that sufficient funds, to the extent available, be transferred from the Rainy Day Fund and appropriated pursuant to the recommendations of the declaration.  Such transfer and  appropriations may be made only with the prior approval of the Legislative Fiscal Committee.  The funds requested cannot exceed an amount equal to 10 percent of the balance in the Rainy Day Fund as reported in the most recent comprehensive annual financial report (CAFR). A public health emergency shall terminate automatically at the close of the fiscal biennium after its declaration and any unused funds shall be transferred back to the Rainy Day Fund.  A public health emergency may be terminated by Executive Order of the Governor or concurrent resolution of the General Court adopted by both bodies.

 

The Treasury Department indicates there is no impact on expenditures and revenues of the Treasury, as budgeted, nor is any fiscal impact anticipated at the local or county level.  The Treasury Department notes that rating agencies may view this bill as an added factor exerting pressure on the reserve levels held in the Rainy Day Fund, however, it is not anticipated that passage of this legislation would result in immediate negative rating actions.

 

The Department of Administrative Services (DAS) administers the Rainy Day Fund and indicates the administrative needs of this legislation can be addressed within existing resources.  DAS is unable to predict the cost of future public health emergencies, therefore the fiscal impact to the State is indeterminable.  

 

The Department of Health and Human Services (DHHS) anticipates no immediate fiscal impact related to this legislation but future costs are indeterminable as every public health emergency is different, costs can vary significantly, and such emergencies are infrequently declared.  

 

AGENCIES CONTACTED:

Treasury Department, Department of Administrative Services, and Department of Health and Human Services

 

 

Links

SB542 at GenCourtMobile

Action Dates

Date Body Type
Jan. 30, 2018 Senate Hearing
Feb. 15, 2018 Senate Floor Vote
Feb. 15, 2018 Senate Floor Vote

Bill Text Revisions

SB542 Revision: 2884 Date: Jan. 9, 2018, 8:56 a.m.

Docket


Feb. 15, 2018: Inexpedient to Legislate, RC 14Y-10N, MA === BILL KILLED ===; 02/15/2018; SJ 4


Feb. 15, 2018: Special Order to the Call of the Chair, Without Objection, MA; 02/15/2018; SJ 4


Feb. 15, 2018: Committee Report: Inexpedient to Legislate, 02/15/2018; SC 7


Jan. 30, 2018: Hearing: 01/30/2018, Room 103, SH, 01:15 pm; SC 5


Jan. 3, 2018: Introduced 01/03/2018 and Referred to Finance; SJ 2