Revision: Dec. 15, 2023, 3:44 p.m.
HB 1613-FN - AS INTRODUCED
2024 SESSION
24-2417
08/10
HOUSE BILL 1613-FN
SPONSORS: Rep. Meuse, Rock. 37; Rep. McWilliams, Merr. 30; Rep. W. Thomas, Hills. 12; Rep. N. Murphy, Hills. 12
COMMITTEE: Ways and Means
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ANALYSIS
This bill establishes a trust fund for money from soil and water environmental contamination court settlements.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2417
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Soil and Water Contamination Settlement Fund. Amend RSA 126-A by inserting after section 79-a the following new section:
126-A:79-b Soil and Water Contamination Settlement Trust Fund Established.
I. There is hereby established the New Hampshire soil and water contamination settlement trust fund that shall be kept distinct and separate from all other state funds. Any funds or proceeds received by the attorney general on behalf of the state or its citizens as a result of any civil judgment or settlement of a claim, suit, petition, or other action regarding damages from environmental contamination of soil and water shall be deposited into the trust fund.
II. Once the funds have been deposited, the attorney general shall promptly report to the fiscal committee of the general court any money received under this section. All reports under this paragraph shall include, but shall not be limited to:
(a) The date of the judgment or settlement.
(b) The reason for the judgment or settlement.
(c) The purpose for which the judgment or settlement is to be used.
(d) The amount of the judgment or settlement.
(e) An accounting of the allocation of each judgment or settlement.
III. The state treasurer shall be the trustee of the trust fund, and shall invest the trust fund in accordance with RSA 6:8. Any earnings on trust fund moneys shall be added to the trust fund. Money in the fund shall be appropriated by the general court to address expenses and damages related to the specific type of contamination addressed by the settlement, including the remediation of the contamination, testing of soil and water for contamination, health monitoring for individuals at risk for or otherwise impacted by the contamination, and further investigation by the department of environmental services relevant to the specific type of contamination addressed by the settlement.
IV. If after a period of 2 years, any funds from a specific settlement remain in the fund and have not been spent to address eligible expenses and damages, the funds remaining from that settlement may be transferred for immediate use to the solid waste management fund and/or the drinking water and groundwater trust fund.
V.(a) This section shall only apply to environmental contamination settlements received by the attorney general where the disposition of funds has not been previously directed in statute by an act of the legislature. Settlements not included under the scope of this section include, but are not limited to, those eligible to be directed to the solid waste management fund under RSA 149-R and the drinking water and groundwater trust fund under RSA 6-D:1.
(b) This section shall not apply to fines received by the attorney general in criminal cases, penalty assessment funds, drug forfeiture funds, fines or civil penalties authorized by state law as a result of enforcement actions taken by state agencies or the attorney general, and money received on behalf of a victim or the state as restitution.
2 Effective Date. This act shall take effect 60 days after its passage.
24-2417
12/12/23
HB 1613-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Revenue Fund(s) | Settlement revenue deposited into the newly-created special fund, which may previously have gone into the state general fund. | |||||
Expenditures | $0 | $237,000 | $232,000 | $240,000 | ||
Funding Source(s) | General Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] Yes • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill establishes the New Hampshire Soil and Water Contamination Settlement Trust Fund. All proceeds received by the attorney general as a result of any judgment or settlement of a claim, suit, petition, or other action regarding damages from environmental contamination of soil and water shall be deposited into the fund, but only in instances in which the disposition of funds has not been previously directed in statute or by an act of the legislature. Settlements not included under the scope of the bill include, but are not limited to, those directed to the Solid Waste Management Fund under RSA 149-R and the Drinking Water and Groundwater Trust Fund under RSA 6-D:1. The bill states that money in the fund shall be appropriated by the legislature to address expenses and damages related to the specific type of contamination addressed by the settlement, including the remediation of the contamination, testing of soil and water for contamination, health monitoring for individuals at risk for or otherwise impacted by the contamination, and further investigation by the Department of Environmental Services relevant to the specific type of contamination addressed by the settlement. The bill further states that if, after a two year period, any funds from a specific settlement remain in the trust fund and have not been spent to address eligible expenses and damages, the funds remaining from that settlement may be transferred for immediate use to the Solid Waste Management Fund and/or the Drinking Water Groundwater Trust Fund.
Although the bill does not establish clear administrative responsibilities, the Department of Health and Human Services (DHHS) assumes that since it amends RSA 126-A:79, DHHS will be responsible for administration of the trust fund. DHHS anticipates needing both a Program Manager (Administrator I, LG 27) and a Financial Manager (Business Administrator II, LG 24) to oversee the program. Since the bill is silent on administrative costs, DHHS assumes that both of these positions will be generally funded, at the following costs:
| FY 2025 | FY 2026 | FY 2027 |
Administrator I (Step 5) |
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| |
Salary | $ 74,300 | $ 74,300 | $ 77,700 |
Benefits | $ 38,400 | $ 38,400 | $ 39,200 |
Miscellaneous | $ 11,900 | $ 9,500 | $ 9,500 |
Position Total | $ 124,600 | $ 122,200 | $ 126,400 |
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Bus. Administrator II (Step 5) |
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| |
Salary | $ 65,300 | $ 65,300 | $ 68,100 |
Benefits | $ 36,500 | $ 36,500 | $ 37,100 |
Miscellaneous | $ 10,400 | $ 8,000 | $ 8,000 |
Position Total | $ 112,200 | $ 109,800 | $ 113,200 |
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Grand Total | $ 236,800 | $ 232,000 | $ 239,600 |
Since revenues to the trust fund will consist of the proceeds received by the State as a result of any civil judgment or settlement of a claim, suit, petition or other action regarding damages from environmental contamination of soil and water, it is not possible to calculate state revenues or expenditures from the Trust Fund at this time, however DHHS has provided an estimated range of $0 - $250 million based on previous settlements received in NH for MtBE contamination.
The Department of Environmental Services (DES) states that it administers numerous compliance, enforcement, and remediation programs that collect penalties and recover costs associated with environmental contamination. To the extent that any funds collected are currently deposited into the state general fund but would now be deposited into the special fund created by the bill, the bill may have an impact on DES. DES assumes that appropriation of moneys from the fund for the allowable uses would not necessarily be proportional to the agencies or programs from which the revenues were derived, thereby resulting in budget shortfalls for those programs.
AGENCIES CONTACTED:
Department of Heath and Human Services and Department of Environmental Services