Bill Text - HB503 (2019)

Prohibiting state employees from providing accounting services on behalf of a third party.


Revision: Jan. 15, 2019, 9:51 a.m.

HB 503-FN - AS INTRODUCED

 

 

2019 SESSION

19-0145

05/04

 

HOUSE BILL 503-FN

 

AN ACT prohibiting state employees from providing accounting services on behalf of a third party.

 

SPONSORS: Rep. Marple, Merr. 24; Rep. Harrington, Straf. 3; Rep. Spillane, Rock. 2

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill prohibits a state employee from implementing or administering any accounting service or payroll deduction on behalf of a third party.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0145

05/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT prohibiting state employees from providing accounting services on behalf of a third party.

 

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

 

1  New Subdivision; State Employees; Third Party Accounting Services.  Amend RSA 99 by inserting after section 26 the following new subdivision:

Accounting Services for Third Parties

99:27  State Employees; Accounting Services for Third Parties.  No state employee shall implement or administer any accounting service or payroll deduction on behalf of a third party.  Any person who knowingly violates this section will be subject to personal liability and immediate removal from his or her position.

2  Effective Date.  This act shall take effect January 1, 2020.

 

LBAO

19-0145

Redraft 1/11/19

 

HB 503-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT prohibiting state employees from providing accounting services on behalf of a third party.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   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

 

METHODOLOGY:

This bill would prohibit a state employee from implementing or administering any accounting service or payroll deduction on behalf of a third party.

 

The Department of Administrative Services (DAS) states this bill may prevent the State from processing payments for court-ordered garnishments.  DAS is unable to quantify the potential fines or penalties the state may incur.  DAS assumes the legislation is directed at deductions for non-State sponsored benefit plans only, thereby excluding: Health, Dental, Retirement, Deferred Compensation, Supplemental Life and Flexible Spending Account deductions and associated accounting.  To the extent this would relieve the administrative burden associated with management of certain payroll deductions, the bill would reduce expenditures by an indeterminable amount in FY 2020 and in each year thereafter.  The Department indicates eliminating certain payroll deductions may allow staffing resources to be realigned but would not significantly impact the overall time and resources required for processing 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 DAS operates the statewide payroll system, including the establishment and management of payroll deductions for use by agency/branch payroll staff.  The Branch assumes the elimination of payroll deductions may allow staff resources to be realigned and would have little to no impact on the Branch.

 

AGENCIES CONTACTED:

Department of Administrative Services, Judicial Branch and Legislative Branch