Bill Text: NH SB544 | 2018 | Regular Session | Amended
Bill Title: Transferring department of safety funds to the fire standards and training and emergency medical services fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-06-14 - Signed by the Governor on 06/08/2018; Chapter 0235; Effective 06/08/2018 [SB544 Detail]
Download: New_Hampshire-2018-SB544-Amended.html
SB 544-FN - AS AMENDED BY THE HOUSE
02/22/2018 0615s
19Apr2018... 1409h
2018 SESSION
18-2997
08/10
SENATE BILL 544-FN
SPONSORS: Sen. Daniels, Dist 11
COMMITTEE: Finance
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AMENDED ANALYSIS
This bill provides for a transfer of department of safety funds which would lapse on July 1, 2019 to the fire standards and training and emergency medical services fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/22/2018 0615s
19Apr2018... 1409h 18-2997
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Safety; Transfer of Funds. For the biennium ending June 30, 2019, and contingent upon approval of the fiscal committee of the general court, the sum of $130,000 of funds that would otherwise lapse, shall be transferred from sums appropriated to the department of safety pursuant to 2017, 155 and 156, to the fire standards and training and emergency medical services fund established in RSA 21-P:12-d.
2 Effective Date. This act shall take effect upon its passage.
18-2997
Amended 3/20/18
SB 544-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2018-0615s)
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 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Fire Standards and Training and Emergency Medical Services Fund | |||
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METHODOLOGY:
This bill requires, on May 1st of each year, a General Fund transfer to the Fire Standards and Training and Emergency Medical Services Fund (“Fire Fund”) in an amount equal to two percent of the total amount collected pursuant to RSA 400-A:32, RSA 405:29, RSA 406-B:11, RSA 406-B:16, and RSA 406-B:17 in the preceding state fiscal year, provided the year-end balance of the Fire Fund shall not exceed $2,000,000. It is unclear how, if at all, the $2,000,000 year-end balance "cap" would impact the calculated transfer amount as the transfer must occur two months before year-end.
The following table illustrates the estimated General Fund transfer to the Fire Fund, based on projected revenues:
Estimate Using Projected Revenues | |
Revenue Collections RSA 400-A:32, RSA 405:29, RSA 406-B:11, RSA 406-B:16, and RSA 406-B:17 | $114,600,000 |
Transfer Amount (2%) From General Fund to Fire Fund) | $2,292,000 |
Potential Retaliatory Tax Impact
In addition to aforementioned General Fund transfer to the Fire Fund, there could be an additional impact on General Fund revenue as a result of the retaliatory tax provisions. Except for Hawaii, all states have laws that include retaliatory tax provisions (New Hampshire’s retaliatory law is RSA 400-A:35). Insurance taxation is determined on a state level, and established by each state. For New Hampshire, when another state impose taxes, fines, penalties, licenses, fees, and other obligation that New Hampshire does not impose, then New Hampshire retaliates by imposing an identical charge. When New Hampshire and the other state both impose a tax, fee, assessment, or obligation, the two amounts charged are compared. If New Hampshire’s tax, fee, assessment or obligation is less than the other state’s tax, fee, assessment, or obligation, the difference between the two amounts is the retaliatory amount which is charged to the other state’s insurer and paid to New Hampshire by those out of state insurers. When a specific tax, fee, assessment, or obligation levied by New Hampshire is greater than the specific tax, fee, assessment, or obligation levied by the other state, the difference is calculated as zero and the company does not pay a retaliatory amount to New Hampshire. New Hampshire received $1.4 million in FY 2016 and $1.3 million in FY 2017 as a result of retaliatory taxes and assessments collected for fire related charges imposed by other states. This bill may have an impact on state revenues collected on a retaliatory basis. If this bill were to be interpreted as creating a fire tax embedded in the premium tax, effectively the premium tax would be treated as having been decreased and a fire tax would be treated as having been imposed in those years when revenue is transferred to the fire fund. For informational purposes, if this change were to be interpreted as such, had this bill been in effect during FY 2016 and FY 2017 and a transfer to the fire fund had occurred, it is estimated the retaliatory amount collected in New Hampshire would have been reduced by as much as approximately $346,000 and $442,000, respectively.
AGENCIES CONTACTED:
Department of Safety and Insurance Department
