Revision: May 31, 2024, 12:05 p.m.
HB 2024 - AS AMENDED BY THE SENATE
28Mar2024... 0961h
05/23/2024 2002s
05/23/2024 2194s
05/23/2024 2187s
05/23/2024 2167s
2024 SESSION
24-3142
11/05
HOUSE BILL 2024
SPONSORS: Rep. McConkey, Carr. 8
COMMITTEE: Public Works and Highways
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AMENDED ANALYSIS
This bill:
I. Adopts the 2025-2034 10-year transportation plan.
II. Adds certain projects to the 2025-2034 10-year transportation improvement plan.
III. Removes certain projects from the 2025-2034 10-year transportation improvement plan.
IV. Increases funding for certain projects in the 2025-2034 10-year transportation.
V. Requires that all rail removed from a portion of the Conway Branch rail line be used to offset construction costs of the portion's rail bed.
VI. Adds a speed limit of 45 miles per hour on rural highways.
VII. Establishes a retirement system benefit for group II members who retire due to a violent act injury.
VIII. Makes a capital appropriation to the department of corrections toward the replacement of the New Hampshire state prison for men.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
28Mar2024... 0961h
05/23/2024 2002s
05/23/2024 2194s
05/23/2024 2187s
05/23/2024 2167s 24-3142
11/05
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 State 10-Year Transportation Improvement Plan. The legislature hereby adopts the plan known as the “State of New Hampshire Ten Year Transportation Improvement Plan 2025-2034" submitted by the governor to the legislature pursuant to RSA 228:99 and RSA 240 and encourages expeditious implementation of the projects shown therein.
2 Claremont; Project Added. The project named Claremont, project number 27691, NH 12A, bridge rehabilitation carrying NH 12A over Sugar River shall be included in the 2025-2034 10-year transportation improvement plan with $1,700,000 in 2025.
3 Londonderry; Project Added. The project named Londonderry, project number 41715, operational and capacity improvements at the intersection of NH 28 & Stonehenge Road shall be included in the 2025-2034 10-year transportation improvement plan with $3,900,000 in 2025.
4 North Hampton; Project Added. The project named North Hampton, project number 24457, superstructure replacement of bridge carrying US 1 over Boston and Maine RR (red list bridge), shall be included in the 2025-2034 10-year transportation improvement plan with $5,600,000 in 2025.
5 North Hampton; Project Added. The project named North Hampton, project number 43938, culvert replacement of an approximate 4’ x 4’ concrete/stone box culvert, shall be included in the 2025-2034 10-year transportation improvement plan with $1,000,000 in 2025.
6 New Castle, NH 1B Causeway; Project Restored. The project named New Castle NH 1B Causeway, project number 44493, modifications to the portion of Route 1B that runs from Goat Island to New Castle Island, said project having been inadvertently removed, shall be included in the 2025-2034 10-year transportation improvement plan.
7 Charlestown; Project Added. The project named Charlestown, project number 41478, construction on Cheshire Bridge carrying NH 11 over the Connecticut River between Charlestown, NH and Springfield, VT, provided that public access to the bridge is not closed until January 1, 2027, at the earliest, with the department and town to consider various project options, shall be included in the 2025-2034 10-year transportation improvement plan.
8 Milford; Project Added. Preliminary engineering for a median barrier project along the Milford Bypass if deemed feasible; such project shall be included in the 2025-2034 10-year transportation improvement plan with funding of $2,000,000 in 2033.
9 Hampton; Turnpike System; Project Added. Comprehensive capital needs evaluation on the turnpike system, including all electronic tolling (AET) in Hampton. The project shall be included in the 2025-2034 10-year transportation improvement plan with $2,000,000 for design and engineering for AET in Hampton in 2028.
10 University of New Hampshire; Project Added. Two compressed natural gas (CNG) buses. The project shall be included in the 2025-2034 10-year transportation improvement plan with $1,800,000 in 2025 and 2027, funded with FTA funds. The programmatic project named FTA 5307 is reduced by $1,800,000 in 2025 and 2027.
11 Projects Removed. The following projects shall be removed from the 2025-2034 10-year transportation improvement plan as said projects were withdrawn, combined with other projects, or advanced in prior years:
I. The project named Goffstown, project number 41597, said project being withdrawn by the local public agency.
II. The project named Manchester-Hooksett, project number 42753, said project being previously advanced.
III. The project named Merrimack, project number 41588, said project being withdrawn and combined with Merrimack, project number 29174, said combination being requested by the local public agency.
IV. The project named Moultonborough, project number 41580, said project being withdrawn by the town.
V. The project named Salem, project number 42884, said project being previously advanced.
VI. The project named statewide red list bridges, project number 40817, said project funds being transferred to the Bow-Concord, project number 13742.
VII. The project named Surry, project number 41470, said project being withdrawn by the local public agency.
VIII. The project named Waterville Valley, project number 43734, project being withdrawn by the local public agency.
IX. The project named Hudson, project number 42108, said project being withdrawn from the 2025-2034 10-year transportation improvement plan by the town of Hudson.
12 Project Funding. The funding for the following projects in the 2025-2034 10-year transportation improvement plan is increased as stated:
I. The project named Bow-Concord, project number 13742, is amended to increase the funding by an additional $97,500,000 and to include funds transferred from the statewide red list bridges, project number 40817.
II. The project named Charlestown, project number 40667, is amended to increase the funding by an additional $3,000,000.
III. The project named Concord, project number 41468, is amended to increase the funding by an additional $1,700,000.
IV. The project named Cornish, project number 44417, is amended to increase the funding by an additional $1,300,000.
V. The project named Derry-Londonderry, project number 13065B, is amended to increase the funding by an additional $4,500,000.
VI. The project named Dover, project number 41824, is amended to increase the funding by an additional $7,700,000.
VII. The project named Dover-Somersworth-Rochester, project number 29604, is amended to increase the funding by an additional $15,900,000.
VIII. The project named Hampton, project number 40797, is amended to increase the funding by an additional $2,300,000.
IX. The project named Manchester, project number 16099 (Exits 6 & 7), is amended to increase the funding by an additional $4,900,000.
X. The project named Manchester, project number 16099A (Exit 6), is amended to increase the funding by an additional $5,100,000.
XI. The project named Manchester, project number 16099B (Exit 7), is amended to increase the funding by an additional $2,500,000.
XII. The project named Nashua-Merrimack-Bedford, project number 13761A, is amended to increase the funding by an additional $1,500,000.
XIII. The project named Portsmouth, project number 43760, is amended to increase the funding by an additional $6,400,000.
XIV. The project named Statewide Programmatic Corridor Study is amended to increase the funding for the corridor studies in 2025 by $700,000 for a total of $1,400,000.
13 Salvage Rail to Offset Trail Construction Cost. Any and all rail removed from a portion of the so-called Conway Branch rail line between the rail crossing at Center Ossipee/Moultonville Road to the rail crossing at route 113 in Madison shall be salvaged as either relay rail or steel salvage. The revenue generated shall be used to remove the rail for trail construction in that section of the Conway Branch rail bed.
14 Basic Rule and Maximum Limits. Amend RSA 265:60 to read as follows:
265:60 Basic Rule and Maximum Limits.
I. No person shall drive a vehicle on a way at a speed greater than is reasonable and prudent under the conditions and having regard to the actual and potential hazards then existing. In every event speed shall be so controlled as may be necessary to avoid colliding with any person, vehicle, or other conveyance on or entering the way in compliance with legal requirements and the duty of all persons to use due care.
II. Where no hazard exists that requires lower speed for compliance with RSA 265:60, I, the speed of any vehicle not in excess of the limit specified in this section or established as hereinafter authorized shall be prima facie lawful, but any speed in excess of the limit specified in this section or established as hereinafter authorized shall be prima facie evidence that the speed is not reasonable or prudent and that it is unlawful:
(a) In a posted school zone, at a speed of 10 miles per hour below the usual posted limit from 45 minutes prior to each school opening until each school opening and from each school closing until 45 minutes after each school closing.
(b) 30 miles per hour in any business or urban residence district as defined in RSA 259:118;
(c) 35 miles per hour in any rural residence district as defined in RSA 259:93, and on any class V highway outside the compact part of any city or town as defined in RSA 229:5, IV;
(d) 45 miles per hour in any unimproved rural highway as defined in RSA 259:116-a.
[(d)] (e) 55 miles per hour in other locations, except as provided in (e);
[(e)] (f) 65 miles an hour on the interstate system, the central New Hampshire turnpike and the eastern New Hampshire turnpike in locations where said highways are 4-lane divided highways or other divided highways of 4 or more lanes, except that the speed limit on the portion of I-93 from mile marker 45 to the Vermont border shall be 70 miles per hour.
[(f)] (g) On a portion of a highway where officers or employees of the agency having jurisdiction of the same, or any contractor of the agency or their employees, are at work on the roadway or so close thereto as to be endangered by passing traffic, at a speed of at least 10 miles per hour below the usual posted limit. The speed shall be displayed on signs as required by RSA 265:6-a.
[(g)] (h) For a vehicle equipped with a transponder, 25 miles per hour through a toll booth or gate that is equipped with a transponder reader for automated toll collection except for an open road tolling lane and except that at toll booths staffed by toll collectors drivers whose vehicles are not equipped for automated tolling shall come to a full stop at the toll booth so that the attendant may collect the toll.
[(h)] (i) In the toll collection area of an open road tolling lane, at a speed greater than is reasonable and prudent for the conditions and actual and potential hazards existing at the time or greater than a per se maximum speed of 65 miles per hour, whichever is less.
III. The limits specified in subparagraphs II[(e)](f) and II[(g)](h) shall be the maximum lawful speed and no person shall drive a vehicle on said ways at a speed in excess of such maximum limit. The prima facie speed limits set forth in this section may be altered as authorized in RSA 265:62.
IV. The driver of every vehicle shall, consistent with requirements of paragraph I, drive at an appropriate reduced speed when approaching and crossing an intersection or railway grade crossing, when approaching and going around a curve, when approaching a hillcrest, when traveling upon any narrow or winding roadway, and when special hazard exists with respect to pedestrians or other traffic by reason of weather or highway conditions.
V. The fines for violation of subparagraphs II(a)-[(d)] (e) shall be as follows:
Miles per hour above the limit specified:
1-10 $50
11-15 75
16-20 100
21-25 200
26+ $350
The fines listed in this paragraph shall be plus penalty assessment.
VI. The fines for violations of subparagraph II[(e)](f) shall be as follows:
Miles above the 65 mph limit:
1-5 $65
6-10 100
11-15 150
16-20 250
21+ 350
Miles above the 70 mph limit:
1-5 $65
6-10 100
11-15 200
16-20 300
21+ 400
15 New Section; Unimproved Rural Highway. Amend RSA 259 by inserting after section 259:116 the following new section:
259:116-a Unimproved Rural Highway. "Unimproved Rural Highway" means the territory contiguous to a 2-lane highway not comprising a business district, urban residence district, or rural residence district, but where reduced speeds are warranted due to highway geometry, lack of paved shoulders, or low-density presence of driveways and other accesses to the public way.
16 Establishment of State Speed Zones. Amend RSA 265:62, II to read as follows:
II. Notwithstanding the provisions of paragraph I and RSA 265:60, II, or any other law to the contrary, upon recommendation of the commissioner of transportation and a determination by the governor and council that it is in the public interest to conserve motor vehicle fuels or to conform with other national goals, the governor and council may establish temporary prima facie speed limits upon any part, including, but not limited to, the ways specified in RSA 265:60, II[(e)] (f), of the state highway system outside the compact part of cities and towns. Such temporary speed limits shall become effective when appropriate signs giving notice of the limits thereby established are erected.
17 New Subparagraphs; Violent Accidental Disability Retirement Allowance. Amend RSA 100-A:6, II by inserting after subparagraph (d) the following new subparagraphs:
(e)(1) Upon the application of a group II member in service or of the member's employer, any member shall be retired by the board of trustees on a violent accidental disability retirement allowance where the member has been totally and permanently incapacitated for duty as the result of a purposeful, hostile, and violent attack upon such member in the line of duty. In this section, a "purposeful, hostile, and violent attack" means a physical attack with a deadly weapon, as defined in RSA 625:11, V, and done with conscious intent and with such force that it results in the infliction of serious bodily injury, as defined in RSA 625:11, VI.
(2) The provisions of subparagraph (e)(1) shall apply provided that:
(A) The member is found to be mentally or physically incapacitated for the further performance of duty and that such incapacity is likely to be permanent;
(B) The member did not intend for injury to result from the member's conduct; and
(C) The incapacitating event has been determined by the commissioner of safety to meet the criteria of a violent attack under this section and certified to the retirement system on a form approved by the board of trustees. Solely for the purpose of making this determination and notwithstanding any other law to the contrary, the commissioner of safety may obtain any records held by any state or municipal official regarding the circumstances, cause, or manner of violent injury disability. The commissioner of safety may consult with the labor commissioner and may disclose any information or records obtained in the course of his or her inquiry. Any records held by the commissioner of safety pursuant to this section shall not be subject to the right-to-know law, RSA 91-A, and shall not be subject to disclosure in any civil action.
(D) The injury has been found to be compensable by the employer, the employer's insurance carrier, or the commissioner of labor pursuant to RSA 281-A:43.
(3) If the board of trustees is unable to grant violent accidental disability retirement benefits after review of medical and factual information submitted by the member and by a physician designated by the board, then the member shall be entitled to a hearing before the board in order to determine whether the member qualifies for disability retirement benefits. The hearing before the board may be designated to a presiding officer. The presiding officer designated by the board shall not be the same person who made an initial disability determination and recommendation to the board based on the medical and factual information submitted by the member and physician as stated above.
(f) Upon violent accidental disability retirement, the group II member shall receive a violent accidental disability retirement allowance equal to the member's earnable compensation during their last 12 months of active service at the date of the member's disability or an annual allowance of $75,000, whichever is greater.
18 Retrospective Application for Benefit. Members who retired under accidental disability on or after July 1, 2018 shall have 90 days from the effective date of this act to file application for violent accidental disability benefits under section 1 of this act and, if approved, such members' benefit shall be modified effective to the date of the application for violent accidental disability retirement benefits.
19 Maximum Benefit Limitation; Reference Added. Amend RSA 100-A:6-a to read as follows:
100-A:6-a Maximum Retirement Benefit. Notwithstanding any other provision of this chapter to the contrary, for members who commenced service before July 1, 2009, or have attained vested status prior to January 1, 2012, a member's initial calculation of the retirement benefit granted under the provisions of RSA 100-A:5 or RSA 100-A:6 shall not exceed 100 percent of the member's highest year of earnable compensation. For members who commenced service on or after July 1, 2009, and have not attained vested status prior to January 1, 2012, a member's maximum retirement benefit granted under the provisions of RSA 100-A:5 or RSA 100-A:6 shall not exceed the lesser of 85 percent of the member's average final compensation or $120,000. Nothing in this section shall affect the ability of a member to receive disability benefits pursuant to RSA 100-A:6, II(b) and (c) or RSA 100-A:6, II(e) and (f). This provision shall not limit the application of supplemental allowances.
20 Disability Retirement Benefits. Amend RSA 100-A:6, III(b)(4) to read as follows:
(4) The provisions of subparagraph (b)(1) shall not apply to a group II accidental disability beneficiary whose total of years of service as a member in group II plus years of accidental disability retirement is at least 20 years, as determined by the board, and who has attained the age of 45, or a group II violent accidental disability beneficiary, regardless of age or years of service. Any such accidental disability or violent accidental disability beneficiary shall receive retirement allowance benefits under this section without reduction for gainful occupation.
21 Benefits Upon Member's Death After Retirement - Group II Members. Amend RSA 100-A:12, II to read as follows:
II. Upon the death of a group II member who has retired on or after April 1, 1987, or upon the death of a group II member who has filed an application for retirement benefits with the board of trustees after January 1, 1991, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member's estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600 if the member retired before July 1, 1988, and if the member is married on the date of such member's retirement, there shall be paid to such surviving spouse an allowance to continue until the spouse's death or remarriage equal to 50 percent of the member's service, ordinary disability, [or] accidental disability, or violent accidental disability retirement allowance payments. For any person who is a group II member as of June 30, 1988, and who retires on or after July 1, 1988, the lump sum payment shall be $10,000. For any person who becomes a member of group II on or after July 1, 1988, and on or prior to July 1, 1993, the lump sum payment shall be $3,600. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be terminally funded.
22 New Subparagraph; New Hampshire Retirement System; Medical Benefits; Payment by Retirement System; Group II. Amend RSA 100-A:52, I by inserting after subparagraph (g) the following new subparagraph:
(h) Any member retired on a violent accidental disability retirement allowance pursuant to RSA 100-A:6, II(e).
23 New Hampshire Retirement System; Medical Benefits; Payment by Retirement System; Group II. Amend RSA 100-A:52, II to read as follows:
II.(a) For the fiscal year beginning July 1, 2011, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under paragraph I who is not entitled to Medicare benefits, shall be $375.56 per month, and on account of each person qualified under paragraph I who is entitled to Medicare benefits, shall be $236.84 per month. The rate payable under this paragraph shall not be increased.
(b) Notwithstanding subparagraph (a), for the fiscal year beginning July 1, 2024, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under subparagraph I(h) as result of a violent accidental disability who is not entitled to Medicare benefits, shall be $1,000 per month, and on account of each person qualified under subparagraph I(h) who is entitled to Medicare benefits, shall be $630.63 per month. The rate payable under this paragraph shall not be increased.
24 New Hampshire Retirement System; Medical Benefits; Application. Amend RSA 100-A:55, I to read as follows:
I. The additional benefits provided under RSA 100-A:52 shall apply to persons who are active or retired members of group II as of June 30, 2000; to persons who prior to July 1, 1988, had completed no less than 20 years of group II creditable service, but who for reasons other than retirement or death ceased to be a group II member prior to attaining the age of 45, and who, as of July 1, 1993, are eligible for vested deferred retirement benefits; [and] to persons who are group II permanent policemen or permanent firemen members on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty who become permanent policemen members of group II before July 1, 2005 or permanent firemen members of group II before July 1, 2005; and to persons who are group II permanent policemen or permanent firemen members retired under a violent accidental disability. Such additional benefits shall not apply to other persons who become members of group II after the dates stated in this paragraph, without future legislation to include them. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be terminally funded.
25 Medical Insurance Benefits; Retired Group II Employees. Amend RSA 21-I:30, VII(b) to read as follows:
(b) Dies or retires and is eligible for accidental death, [or] accidental disability, or violent accidental disability retirement benefits, regardless of the state employee's age or number of years of creditable service; or
26 Replacement of the New Hampshire State Prison For Men; Appropriation and Bonds Authorized.
I. There is hereby appropriated $40,000,000 to be deposited in the New Hampshire state prison fund under 21-H:17 for architectural, engineering, programming, and design and construction documents for a replacement correctional facility of the New Hampshire state prison for men.
II. To provide funds for the appropriation in paragraph I, the state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $40,000,000 and for said purpose may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A.
27 Effective Date.
I. Sections 14-16 shall take effect January 1, 2025.
II. Sections 17-25 shall take effect July 1, 2024.
III. Section 26 shall take effect 30 days after its passage.
IV. The remainder of this act shall take effect upon its passage.
24-3142
Amended 5/30/24
HB 2024- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENTS #2024-2002s, #2024-2194s, #2024-2187s, and #2024-2167s)
This bill contains four separate subject matters, which are discussed below:
SECTIONS 1 – 13
These sections, relative to the state 10-year transportation improvement plan, will have no direct impact on state, county, and local revenue or expenditures.
SECTIONS 14 – 16
These sections, relative to adding a speed limit of 45 miles per hour on rural highways, will have the following estimated impacts:
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
Estimated State Impact - Increase / (Decrease) | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
Revenue | Indeterminable | |||
Revenue Fund | Highway Fund | |||
Expenditures | Indeterminable | |||
Funding Source | General Fund | |||
Appropriations | $0 | $0 | $0 | $0 |
Funding Source | None | |||
| ||||
| ||||
Estimated Political Subdivision Impact - Increase / (Decrease) | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
County Revenue | $0 | $0 | $0 | $0 |
County Expenditures | Indeterminable | |||
Local Revenue | $0 | $0 | $0 | $0 |
Local Expenditures | Indeterminable | |||
METHODOLOGY:
This bill adds, deletes, or modifies a criminal penalty, or changes statute to which there is a penalty for violation. Therefore, this bill may have an impact on the judicial and correctional systems, which could affect prosecution, incarceration, probation, and parole costs, for the state, as well as county and local governments. A summary of such costs can be found at: https://gencourt.state.nh.us/lba/Budget/Fiscal_Notes/JudicialCorrectionalCosts.pdf
AGENCIES CONTACTED:
Judicial Branch, Judicial Council, Department of Justice, Department of Corrections, New Hampshire Association of Counties, and New Hampshire Municipal Association
SECTIONS 17 – 25
These sections, relative to disability pensions for public safety employees who are victims of violence, will have the following estimated impacts:
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
|
| |||||||||
Estimated State Impact - Increase / (Decrease) | ||||||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||||||
Revenue | $0 | DAS: is Unable to Estimate Impact | DAS: is Unable to Estimate Impact | DAS: is Unable to Estimate Impact | ||||||
Revenue Fund(s) | General Fund | |||||||||
Expenditures | $0 | NHRS: Indeterminable Increase due to System Upgrades | NHRS: $400,000 Assumptions are Scalable | NHRS: $410,000 Assumptions are Scalable | ||||||
DAS: is Unable to Estimate Impact | DAS: is Unable to Estimate Impact | DAS: is Unable to Estimate Impact | ||||||||
Funding Source(s) | General Fund
| |||||||||
Appropriations | $0 | $0 | $0 | $0 | ||||||
Funding Source(s) | General Fund | |||||||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||||||
| ||||||||||
Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||||||
Revenue | $0 | $0 | $0 | $0 | ||||||
Expenditures | $0 | NHRS: Indeterminable Increase due to System Upgrades | NHRS:$1,080,000 Assumptions are Scalable | NHRS:$1,110,000 Assumptions are Scalable | ||||||
*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local government, therefore the fiscal impact is shown together as political subdivisions.
METHODOLOGY:
This bill establishes a new violent accidental disability retirement benefit for group II members. The new benefits includes a violent accidental disability retirement allowance equal to the member's earnable compensation during their last 12 months of active service at the date of the member's disability or an annual allowance of $75,000, whichever is greater. Additionally, it provides a medical subsidy benefit of $1,000 per a month for persons not entitled to medicare benefits and $630.63 per a month for persons entitled to medicare benefits. Eligible Group II state employees would also be entitled to state retiree medical insurance.
The New Hampshire Retirement System's actuary provided valuations based upon data used in the annual actuarial valuation as of June 30, 2021. The valuation assumes an annual rate of interest of 6.75 percent, wage inflation of 2.75 percent per year and uses the entry-age actuarial cost valuation method. Contribution rates for fiscal years 2024 and 2025 are certified and will remain unchanged. However, actual FY 2026-2027 employer rates will be based on the actuarial valuation of June 30, 2023 and are currently unknown at this time, so only the net impact of the estimated allocation of this benefit is shown below.
Additionally, as the bill's provisions includes existing group II accidental disability retirees who retired on or after July 1, 2018 and have 90 days from enactment of the statute to apply for the new benefit as well as any disabilities occurring in the future, the actuary assumed 10% of disabilities occurring in the line of duty for Police members (32 members) would be a result of violence and 1% for Fire members (1 member).
Lastly, the bill would affect benefit levels for current eligible members already in pay status. The actuary currently has no data available concerning the member’s annual rate of earnable compensation at the time of accidental disability retirement, so an assumed annual rate of earnable compensation for these members is projected to be 5% higher than their average final compensation, which was used to determine their benefits.
State Impact
| Net Impact of Proposal |
Employees | 0.00% |
Police | 0.38% |
Fire | 0.03% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
Employees | - | - | $0 | $0 |
Police | - | - | $400,000 | $410,000 |
Fire | - | - | $0 | $0 |
TOTAL | $0 | $0 | $400,000 | $410,000 |
Political Subdivisions Impact
Increase (Decrease) in Employer Pension Rates as a Percent of Payroll | |
| Net Impact of Proposal |
Employees | 0.00% |
Teachers | 0.00% |
Police | 0.38% |
Fire | 0.03% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
Employees | - | - | $0 | $0 |
Teachers | - | - | $0 | $0 |
Police | - | - | $1,030,000 | $1,060,000 |
Fire | - | - | $50,000 | $50,000 |
TOTAL | $0 | $0 | $1,080,000 | $1,110,000 |
The NHRS actuary projects an increase in the actuarial accrued liability of $9.2 million for increase for the pension portion and $1.2 million for medical subsidy payments for a total of $10.4 million, based on the provisions in the bill which will be amortized over a fixed period of no longer than 20-years.
Lastly, the NHRS states there will be an indeterminable increase in expenditures in FY 2025 due to administrative costs relating to the reprogramming of the pension administrative system.
The Department of Administrative Service state they are unable to calculate an estimated fiscal impact due to several factors.
1. The bill mentions subsidies for medical insurance to be provided to employers for such retirements, but lacks clarification on funding sources and administrative procedures for these subsidies.
2. The bill does not clearly define the eligible population (police, fire, all Group IIs). Definitions vary under other RSAs pertaining to work related injuries or death.
3. There is a conflict in law related to the amount charged to state retirees for their health benefit premium. The premium contributions paid by State of NH retirees is defined in RSA 21-I:30 for both non-Medicare (20%) and Medicare (10%) retirees. If the intention of the bill was to provide a medical subsidy benefit to offset the premium paid by State retirees, then there is a conflict in law.
4. RSA 21-I:43-a “Compensation for State Employees Injured in the Line of Duty” states that the executive head of the agency of the employee injured in the line of duty determines if the injury was due to a hostile pr overt act. This bill names the Commissioner of Safety as the one who can deem an incident as a violent act. It is possible that the two different commissioner opinions of eligibility do not match which could result in a dispute over benefit eligibility.
Furthermore, the Department cannot anticipate the number of eligible Group II members affected by violent act injuries, nor predict how their dependents and their medical/pharmacy claims would influence overall expenses resulting in an indeterminable impact to State expenditures and revenues.
AGENCIES CONTACTED:
New Hampshire Retirement System and Department of Administrative Services
SECTION 26
This section, making a capital appropriation to the department of corrections toward the replacement of the New Hampshire state prison for men, will have the following estimated impacts:
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | General Fund
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Expenditures | $0 | $4,600,000 | $4,468,000 | $4,336,000 | ||
Funding Source(s) | General Fund
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Appropriations | $0 | $40,000,000 | $0 | $0 | ||
Funding Source(s) | General Fund
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
METHODOLOGY:
This bill appropriates $40,000,000 to the New Hampshire State Prison Fund for the purpose of architectural, engineering, programming, and design and construction documents for a replacement facility of the men's state prison. The bill allows the State Treasurer to borrow on the credit of the State a sum not exceeding $40,000,000 and issue bonds and notes.
To determine the potential increase in general fund expenditures the Treasury Department makes the following assumptions:
Based on these assumptions, the Department has calculated the total cost to bond would be $40,000,000 of principal and $20,900,000 of interest over the life of the bond. General fund expenditures would increase by $4,600,000 in FY 2025, $4,468,000 in FY 2026 and $4,336,000
AGENCIES CONTACTED:
Treasury Department