Bill Text: NH SB406 | 2018 | Regular Session | Enrolled
Bill Title: Requiring background checks for access to Internal Revenue Service federal tax information.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2018-05-17 - Signed by the Governor on 05/15/2018; Chapter 0052; Effective 01/01/2019 [SB406 Detail]
Download: New_Hampshire-2018-SB406-Enrolled.html
SB 406-FN - VERSION ADOPTED BY BOTH BODIES
2018 SESSION
18-2817
05/04
SENATE BILL 406-FN
AN ACT requiring background checks for access to Internal Revenue Service federal tax information.
SPONSORS: Sen. Reagan, Dist 17; Sen. Carson, Dist 14; Rep. McGuire, Merr. 29
COMMITTEE: Ways and Means
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ANALYSIS
This bill requires state employees who have access to federal tax information from the Internal Revenue Service to complete a background investigation and criminal record check.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2817
05/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT requiring background checks for access to Internal Revenue Service federal tax information.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Organization of Executive Branch; Powers and Duties of Commissioners. Amend RSA 21-G:9 by inserting after paragraph VI the following new paragraph:
VII. The commissioner is authorized to require federal and state background investigations on any employee, candidate for employment, contractor or subcontractor of the department that has or will have access to federal tax information for the purpose of determining that individual's suitability to access federal tax information as required by Internal Revenue Code section 6103(p)(4) and any subsequent amendments thereto. The background investigations shall be conducted in accordance with Internal Revenue Code section 6103(p)(4) and shall include, but not be limited to, a fingerprint-based criminal record check of national crime information databases. For the criminal record check authorized under this paragraph, the department shall submit the individual's fingerprints to the department of safety, division of state police, for forwarding to the Federal Bureau of Investigation. Upon completion of the criminal record check, the division of state police shall forward the results to the department. The commissioner may adopt rules to effectuate the purposes of this section pursuant to RSA 541-A.
2 Department of Revenue Administration; Duties of Commissioner; Background Checks. Amend RSA 21-J:3-a to read as follows:
21-J:3-a [Employee Candidate] Background Checks.
I. The commissioner of the department of revenue administration may require a background investigation and a criminal history records check on any candidate for employment in a position in the department prior to a final offer of employment. The commissioner may request only a state records check or both a federal and state records check, to be conducted through the division of state police. The commissioner may extend a conditional offer of employment to a candidate, with a final offer of employment subject to a successfully completed criminal history records check.
I-a. The commissioner of the department of revenue administration may require a background investigation and a criminal history records check on any current employee of the department for the purpose of determining that employee's suitability to access confidential tax information, including federal tax information. The commissioner may request only a state records check or both a federal and state records check, to be conducted through the division of state police.
II. A candidate for employment in a position in the department or a current employee required by the commissioner to submit to a background investigation and a criminal history records check shall submit to the commissioner a notarized criminal history records release form, as provided by the division of state police, which authorizes the release of the person's criminal records, if any. The candidate or employee shall submit with the release form a complete set of fingerprints taken by a law enforcement agency as directed by the commissioner. In the event that the first set of fingerprints is invalid due to insufficient pattern and a second set of fingerprints is necessary in order to complete the criminal history records check, [the] any conditional offer of employment shall remain in effect. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the commissioner may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where a candidate or employee has lived during the past 5 years.
III. To obtain a state records check only, the commissioner or his or her designee shall submit a state criminal history records release form to the division of state police. To obtain both the federal and the state records check, the commissioner or his or her designee shall submit the criminal history records release form and applicant finger print card to the division of state police, which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall report any criminal conviction information to the commissioner or his or her designee. The commissioner or his or her designee may submit fingerprint information electronically, in accordance with procedures established by the division of state police. The department shall maintain the confidentiality and security of all criminal history records information received pursuant to this paragraph.
IV. The commissioner may require the candidate or employee to pay the actual costs of the background investigation and the criminal history records check.
V. For purposes of this section, the terms "candidate" and "employee" shall include any contractor, subcontractor, vendor, or other person performing work, including unpaid work or as a volunteer, at the department of revenue administration.
3 Effective Date. This act shall take effect January 1, 2019.
18-2817
11/30/17
SB 406-FN- FISCAL NOTE
AS INTRODUCED
AN ACT requiring background checks for access to Internal Revenue Service federal tax information.
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 Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Criminal History Record Check Fees | |||
METHODOLOGY:
This bill authorizes Executive Branch commissioners to require federal and state background investigations on any employee, candidate for employment, contractor or subcontractor of a department that has or will have access to federal tax information (FTI). The bill also authorizes the Commissioner of Revenue Administration to require a background investigation and a criminal history records check on any current employee of the Department to determine that employee's suitability to access confidential tax information, including FTI .
The Department of Revenue Administration states the bill applies the same check to existing employees as is currently done with candidates for employment. The Department states the proposed legislation is required by IRS Publication 1075, which outlines the various security measures an agency must take to protect FTI and now requires all new employees who will access such information to be subject to a federal background check. Publication 1075 also requires existing employees with access to this information to be re-checked every ten years. Without the authority to complete federal background investigations on employee candidates and existing employees with access to FTI, the IRS may no longer provide FTI to the agency. The Department indicates the failure to enact this legislation could result in an indeterminable decrease to General Fund and Education Trust Fund revenues due to the FTI component of the Department's discovery, audit and compliance activities. The Department indicates there would be no meaningful increase in expenditures to the Department due to the small number of impacted positions that would now be subject to the new federal background check requirements. The Department does not have sufficient information to forecast the impact on other state agencies and the potential increase in expenditures.
The Department of Safety indicates revenue will increase to the Division of State Police from NH/FBI Criminal History Records Information requests and fees from all state employees that will be subject to the new required background checks. The amount of such revenue is indeterminable, however the Department assumes that at a minimum, one full-time Counter Clerk II, LG 9 position will be required to process the increased number of requests. The total salary and benefits for this position are $25,000 in FY 2019 due to the effective date of January 1, 2019, $52,000 in FY 2020, $55,000 in FY 2021 and $57,000 in FY 2022.
The Department of Administrative Services states it cannot estimate the number of state agencies or employees that may be impacted by this legislation, thus the impact on state revenues and expenditures are indeterminable.
AGENCIES CONTACTED:
Departments of Revenue Administration, Safety and Administrative Services
