Revision: June 6, 2019, 8:33 a.m.
HB 110-FN-A - AS AMENDED BY THE SENATE
HOUSE BILL 110-FN-A
SPONSORS: Rep. Rogers, Merr. 28
COMMITTEE: Executive Departments and Administration
This bill requires that the administrative and professional cost of the fiscal analysis of proposed legislation done by the retirement system be reimbursed from general funds not otherwise appropriated. The bill also removes provisions for the department of corrections to reclassify jobs for the retirement system.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/15/2019 1941s 19-0020
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Retirement System; Administration; Cost of Assessment of Proposed Legislation. Amend RSA 100-A:14 by inserting after paragraph XIII the following new paragraph:
XIII-a. Notwithstanding the requirements of paragraph XIII, the cost to the retirement system of the actuarial and professional assessment of proposed legislation required by RSA 14:44 shall be initially paid from assets of the retirement system, but shall be submitted to the governor for reimbursement. Not later than 30 days after the adjournment of each legislative session, the governor shall reimburse the retirement system for such costs. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
IX. If there is any doubt as to the proper classification of a job in the retirement system, the trustees shall determine whether the person holding the job is an employee, teacher, permanent policeman, or permanent fireman as defined in RSA 100-A:1; provided, however, that a 2/3 vote shall be required to classify the job in group II, and further provided that in the case of a newly-created job held by more than one person, the job shall be classified in group I unless it is explicitly placed in group II by the legislation creating the job in the case of a state job, or by a majority vote of the legislative body of the political subdivision in the case of a political subdivision job. For the purposes of this paragraph, an increase in the number of persons holding a given job with a given employer shall not be considered as creation of a new job. No job shall be reclassified from group I to group II of the retirement system without legislation specifically authorizing a transfer from group I to group II.
3 Contingency. If HB 116-FN of the 2019 regular legislative session becomes law, then section 2 of this act shall take effect July 1, 2020. If HB 116-FN of the 2019 regular legislative session does not become law, then section 2 of this act shall not take effect.
I. Section 2 of this act shall take effect as provided in section 3 of this act.
II. The remainder of this act shall take effect 60 days after its passage.
HB 110-FN-A- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2019-1941s)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ ] Highway [ ] Other
This bill requires the administrative and professional cost of the fiscal analysis of proposed legislation done by the New Hampshire Retirement System (NHRS) be reimbursed from general funds not otherwise appropriated. The NHRS states the expenditures associated with this bill are indeterminable. The NHRS is unable to project the number of retirement-related bills that would be filed in a legislative session, the level of complexity, or whether actuarial or professional fees would be required to determine the fiscal impact. Similar costs from the past two fiscal years (FY 2017 and FY 2018), excluding NHRS staff time or software implementation costs, have ranged from approximately $22,000 to $47,000.
This bill also includes a contingency provision that limits the application of HB 116 of the 2019 regular session. If HB 116 becomes law, the adjustments made to RSA 100-A:3, IX will be repealed effective July 1, 2020. HB 116 allows for an exception to the current method of determining the proper classification in the New Hampshire Retirement System, applicable only for existing positions within the Department of Corrections. The possible number of such positions that may be recommended for reclassification by the Department of Corrections, confirmed by the Division of Personnel, and approved by NHRS is indeterminable. The possible transfers from Group I to Group II status of some employees may increase costs for the NHRS employer contribution rate by an indeterminable amount. The contingency limits the use of this method until July 1, 2020, when it reverts to the current statute, requiring legislation for reclassifying a job from Group I to Group II status.
New Hampshire Retirement System and Department of Corrections