Revision: March 27, 2018, 10:11 a.m.
SB 544-FN - AS AMENDED BY THE SENATE
02/22/2018 0615s
2018 SESSION
18-2997
08/10
SENATE BILL 544-FN
SPONSORS: Sen. Daniels, Dist 11
COMMITTEE: Finance
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AMENDED ANALYSIS
This bill allows for annual transfers of certain money from the general fund to the fire standards and training and emergency medical resources fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/22/2018 0615s 18-2997
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 General Provisions; Fire Standards and Training and Emergency Medical Services Fund. Amend RSA 21-P:12-d to read as follows:
21-P:12-d Fire Standards and Training and Emergency Medical Services Fund.
I. There is established in the office of the state treasurer a separate, nonlapsing fund to be known as the fire standards and training and emergency medical services fund from which the state treasurer shall pay expenses incurred in the administration of the division of fire standards and training and emergency medical services, under RSA 21-P:12-a, the division of fire safety, under RSA 21-P:12, the division of homeland security and emergency management, and the position of fireworks inspector, under RSA 160-C:17. If the expenditure of additional funds over budget estimates was unanticipated and is necessary for the proper functioning of the division of fire standards and training and emergency medical services, the division of fire safety, or the division of homeland security and emergency management, the commissioner of the department of safety may transfer funds, with the prior approval of the fiscal committee of the general court, from this fund to the department of safety for such purposes.
II. On May 1 of each year, the state treasurer shall transfer an amount equal to 2 percent of the total amount collected pursuant to RSA 400-A:32, RSA 405:29, RSA 406-B:11, RSA 406-B:16, and RSA 406-B:17 in the preceding state fiscal year, from the general fund into the fire standards and training and emergency medical services fund established in paragraph I, provided however, the year-end balance of the fire standards and training and emergency medical services fund shall not exceed $2,000,000.
2 Effective Date. This act shall take effect 60 days after its passage.
18-2997
Amended 3/20/18
SB 544-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2018-0615s)
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 | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Fire Standards and Training and Emergency Medical Services Fund | |||
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METHODOLOGY:
This bill requires, on May 1st of each year, a General Fund transfer to the Fire Standards and Training and Emergency Medical Services Fund (“Fire Fund”) in an amount equal to two percent of the total amount collected pursuant to RSA 400-A:32, RSA 405:29, RSA 406-B:11, RSA 406-B:16, and RSA 406-B:17 in the preceding state fiscal year, provided the year-end balance of the Fire Fund shall not exceed $2,000,000. It is unclear how, if at all, the $2,000,000 year-end balance "cap" would impact the calculated transfer amount as the transfer must occur two months before year-end.
The following table illustrates the estimated General Fund transfer to the Fire Fund, based on projected revenues:
Estimate Using Projected Revenues | |
Revenue Collections RSA 400-A:32, RSA 405:29, RSA 406-B:11, RSA 406-B:16, and RSA 406-B:17 | $114,600,000 |
Transfer Amount (2%) From General Fund to Fire Fund) | $2,292,000 |
Potential Retaliatory Tax Impact
In addition to aforementioned General Fund transfer to the Fire Fund, there could be an additional impact on General Fund revenue as a result of the retaliatory tax provisions. Except for Hawaii, all states have laws that include retaliatory tax provisions (New Hampshire’s retaliatory law is RSA 400-A:35). Insurance taxation is determined on a state level, and established by each state. For New Hampshire, when another state impose taxes, fines, penalties, licenses, fees, and other obligation that New Hampshire does not impose, then New Hampshire retaliates by imposing an identical charge. When New Hampshire and the other state both impose a tax, fee, assessment, or obligation, the two amounts charged are compared. If New Hampshire’s tax, fee, assessment or obligation is less than the other state’s tax, fee, assessment, or obligation, the difference between the two amounts is the retaliatory amount which is charged to the other state’s insurer and paid to New Hampshire by those out of state insurers. When a specific tax, fee, assessment, or obligation levied by New Hampshire is greater than the specific tax, fee, assessment, or obligation levied by the other state, the difference is calculated as zero and the company does not pay a retaliatory amount to New Hampshire. New Hampshire received $1.4 million in FY 2016 and $1.3 million in FY 2017 as a result of retaliatory taxes and assessments collected for fire related charges imposed by other states. This bill may have an impact on state revenues collected on a retaliatory basis. If this bill were to be interpreted as creating a fire tax embedded in the premium tax, effectively the premium tax would be treated as having been decreased and a fire tax would be treated as having been imposed in those years when revenue is transferred to the fire fund. For informational purposes, if this change were to be interpreted as such, had this bill been in effect during FY 2016 and FY 2017 and a transfer to the fire fund had occurred, it is estimated the retaliatory amount collected in New Hampshire would have been reduced by as much as approximately $346,000 and $442,000, respectively.
AGENCIES CONTACTED:
Department of Safety and Insurance Department