HB 0170

CHAPTER 158

HB 170-FN-A - FINAL VERSION

SPONSORS: Rep. McGuirk, Ches 1; Rep. Almy, Graf 14; Rep. Dokmo, Hills 14; Rep. J. Pratt, Ches 2; Rep. Mock, Carr 3; Sen. Gordon, Dist 2; Sen. Roberge, Dist 9; Sen. Below, Dist 5; Sen. Pignatelli, Dist 13; Sen. Disnard, Dist 8

III. Provides for the costs of administration of the retirement system to be a charge upon retirement system funds.

IV. Provides for the method of funding payments for certain group I members of the New Hampshire retirement system.

V. Establishes an administrative fund for the land and community heritage investment authority and adds certain powers and duties of the authority.

VI. Provides that the initial funding mechanism and appropriation for the telecommunications planning and development initiative shall not lapse until June 30, 2003.

VII. Permits the commissioner of the department of health and human services to fill authorized unfunded positions.

VIII. Requires that $1,500,000 from the tobacco use prevention fund lapse to the general fund.

IX. Increases the rate of the business enterprise tax and the business profits tax and decreases the rate of the education property tax.

X. Increases the rate of the intrastate communications services tax and repeals the tax exemption for certain real estate transfers.

XI. Provides for an amnesty period on payment of penalties and interest on unpaid taxes owed to the state.

XIII. Establishes the division of community services within the department of revenue administration and enables certain purchases and positions relating to assessing enforcement.

XIV. Provides specific time lines and abatement and appeal procedures for property assessments.

XV. Increases kindergarten adequacy payments to pupils enrolled in new public kindergarten programs or an approved alternative kindergarten program.

XVI. Establishes a committee to study the development of a new budget system; extends the lapse date of an appropriation to the department of administrative services; and makes the appropriation available to the study committee.

XVII. Amends the provisions of law relating to the revenue stabilization account for the biennium ending June 30, 2001.

XVIII. Enables additional revenues to be made available for certain health and human services programs.

XIX. Makes an appropriation to the postsecondary education commission for administration of the granite state scholars program.

XX. Requires approval by the fiscal committee of the general court and the governor and council prior to submission to the public utilities commission of plans for the administration of system benefits charge funds which are in the custody of the treasurer pursuant to a request of the public utilities commission.

XXII. Authorizes a longevity payment for the deputy commissioner of the department of health and human services.

XXIII. Authorizes the commissioner of the department of health and human services to establish certain unclassified positions as necessary for the biennium ending June 30, 2003.

XXIV. Requires valuations of taxable property every 5 years, and certification of municipal assessments by the commissioner of revenue administration of compliance with state assessing standards.

XXV. Requires the department of regional community-technical colleges and Pease development authority to enter into a lease agreement and provides for reductions in Pease development authority's debt to the state as payment for the premises.

XXVII. Makes certain technical corrections in the tax laws to conform with the Internal Revenue Code.

XXVIII. Makes a capital appropriation to the community-technical college system for computer system upgrades at Claremont.

XXIX. Establishes a low and moderate income homeowners property tax relief program.

XXX. Repeals the prospective repeals of the education property tax and certain related laws.

XXXI. Provides that the state shall fully fund school building aid payments owed to school districts for fiscal year 2001 and makes an appropriation from general fund revenues for this purpose.

XXXII. Grants pay raises to state employees, judicial employees, and legislative employees.

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

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

158:1 Rate of Tax for Biennium Ending June 30, 2003; Intrastate and Interstate Communications Services Tax. Notwithstanding RSA 82-A:3 and RSA 82-A:4, for the period beginning July 1, 2001 and ending June 30, 2003, the rate of tax shall be 7 percent on the gross charge for communications services purchased at retail from a retailer.

158:2 Prospective Repeal Date Extended for Exemption of Wooden Poles Under RSA 72:8-b. Amend 1998, 304:6, I as amended by 1999, 163:7 to read as follows:

158:3 New Section; Department of Resources and Economic Development; Travel and Tourism Development; Travel and Tourism Development Fund. Amend RSA 12-A by inserting after section 43 the following new section:

I. There is hereby established in the office of the state treasurer a fund to be known as the travel and tourism development fund. Any appropriations received shall be deposited in the fund. Moneys in the fund and any interest earned on the fund shall be used for the purpose of promoting and developing appropriate travel and tourism initiatives through the division of travel and tourism development and shall not be used for any other purpose. The director of travel and tourism development shall oversee expenditures from the fund. The moneys in the fund shall be non-lapsing and shall be continually appropriated to the department of resources and economic development.

II. The commissioner of resources and economic development shall prepare an annual report to be presented no later than December 1 of each year to the president of the senate, the speaker of the house of representatives, and the governor and council, and filed with the state library. The report shall detail the specific activities supported by, and expenditures from, the fund during the past year.

158:4 New Subparagraph; Travel and Tourism Development Fund. Amend RSA 6:12, I by inserting after subparagraph (dddd) the following new subparagraph:

(eeee) Moneys received for deposit in the travel and tourism development fund established by RSA 12-A:43-a, I.

158:5 Retirement System; Definition of Employee. Amend RSA 100-A:1, V to read as follows:

V. "Employee" shall mean any regular classified or unclassified officer or employee of the state or any department, commission, institution or agency of the state government by which an employee is paid through the office of the state treasurer, or employees of the general court who work on a full-time basis and are eligible for other state benefits, but whose salary is calculated on a per diem basis or any employee of the retirement system or of any of the groups authorized to participate [~~in the retirement system~~] under this chapter but excluding any person who is a teacher, permanent policeman, or permanent fireman as defined in this section, or who is a member or attache of the general court or member of the executive council.

158:6 Retirement System; Administrative Cost Assessment. RSA 100-A:14, XIII is repealed and reenacted to read as follows:

XIII. Administrative Cost Assessment. Other provisions of law notwithstanding, the cost of administration of the retirement system as provided in this section shall be a charge upon the funds of the retirement system. The amount of administrative expense recorded monthly by the department of administrative service, division of accounting services, shall be paid to the state treasurer by the board of trustees. The board shall biennially review the administrative expenses for the previous biennium and shall submit in a budget for legislative appropriation, those amounts that the board, in its reasonable discretion, may deem necessary for the efficient operation of the system. Administrative balances accrued prior to June 30, 2001 shall be retained by the retirement system and expended for ongoing operations.

158:7 Retirement System; Management of Funds. Amend RSA 100-A:15, IV to read as follows:

IV. The board of trustees is authorized to engage the services of legal counsel for special investment, federal, and tax matters and[~~, with the approval of the attorney general,~~] to engage outside counsel for other matters. The payment for services provided in this paragraph shall be a charge upon the funds of the New Hampshire retirement system.

158:8 New Hampshire Retirement System; Payment by Retirement System-Group I; Amend RSA 100-A:52-a to read as follows:

100-A:52-a Payment by Retirement System; Group I [~~Teachers and Political Subdivision Employees~~].

I. The New Hampshire retirement system shall pay the cost for permanent group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits, in the employer-sponsored plan provided for active employees of a retiree's former employer, subject to the provisions of this section, for the following persons:

(a) Any person, who has at least 20 years of creditable service as a group I member if age 60 or older, or at least 30 years of creditable service as a group I member if age 55-59, retired on or before July 1, 2004 as a group I [~~teacher member or political subdivision employee~~] member of the New Hampshire retirement system on service or ordinary disability retirement, provided that such person shall be entitled to retirement on the basis of group I creditable service, or any person retired on or before July 1, 2004, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 20 years of creditable service as a group I member.

(b) Any person who has completed no less than 20 years of group I creditable service, but who for reasons other than retirement or death ceased to be a group I [~~teacher member or political subdivision employee~~] member prior to attaining the age of 60, and who, as of July 1, 2004, receives a vested deferred retirement allowance and who subsequently attains the age of 60.

(c) Any person who has completed no less than 20 years of group I creditable service and who retired as a group I [~~teacher member or political subdivision employee~~] member prior to age 60, and who subsequently attains the age of 60, or any person who has completed no less than 30 years of group I creditable service and who retired as a group I [~~teacher member or political subdivision employee~~] member prior to age 55, and who subsequently attains the age of 55.

(d) The surviving spouse of a deceased retired group I [~~teacher member or political subdivision employee~~] member who met the qualifications of subparagraphs (a), (b) or (c), or of a deceased member who died while in service as a group I [~~teacher member or political subdivision employee~~] member, provided that such surviving spouse was covered as the member's spouse in the employer-sponsored plan before the member's death and is entitled to a monthly allowance under RSA 100-A:8, 100-A:9, or 100-A:13.

(e) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member's spouse, or the qualified surviving spouse.

(f) The surviving spouse and children of a deceased [~~teacher or~~] group I [~~political subdivision employee~~] member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:

(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and

(2) Such surviving spouse shall cease to be qualified upon the remarriage of the surviving spouse; and

(3) No surviving spouse or child shall be qualified or continue to be qualified under this subparagraph while receiving or eligible to receive medical insurance or health care benefits from any employer's sponsored plan.

(g) Any group I [~~teacher member or political subdivision employee~~] member retired on or before July 1, 2004 on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty.

I-a. Notwithstanding the provision of RSA 100-A:4, III-b, for the purpose of calculating creditable service for eligibility for medical benefits payment under paragraph I, each full year of job-sharing service of a teacher in a job-sharing position shall be calculated at 1/2[;] of one year of such service credit.

II. However, for the fiscal year beginning July 1, 2000, 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, and on account of each person qualified under paragraph I who is entitled to medicare benefits, shall be the same as the amount provided in RSA 100-A:52, II for group II retirees. As of July 1, 2000 and on each July 1 thereafter, the maximum amount payable by the retirement system as provided in this paragraph shall be increased by 8 percent, compounded on previous increases.

III. In the case of group I members retired from employment by political subdivisions of the state, the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided through the former employer for qualified persons. If the cost of the premium for any eligible person under paragraph I shall exceed the maximum under paragraph II, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.

III-a. As of January 1, 2002, in the case of group I members retired from state employment before July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the balance shall be paid by the state as provided in RSA 21-I:26-36.

III-b. As of January 1, 2002, in the case of group I members retired from state employment on or after July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the state shall pay its portion as provided in RSA 21-I:26-36. If the cost of the premium for any retired group I member and spouse, surviving spouse, or any other person entitled to benefits under paragraph I shall exceed the maximum under paragraph II, and the state does not elect to pay the excess cost above the amount to be paid under RSA 21-I:26-36, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The state may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.

IV. There shall be no age limit to participate in the employer sponsored medical and health plan provided in paragraph I, and there shall be no physical examination or health statement required for such coverage, provided, however, that if an eligible retired group I [~~teacher member or political subdivision employee~~] member of the retirement system fails to apply for such coverage within the time required by the insurance contract, the insurer may require satisfactory evidence of insurability as a condition for becoming insured.

V. Any group I teacher member retired before January 1, 2000, or other eligible person under paragraph I, who would have been eligible for medical benefits under this section if this section had been in effect on the member's date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member's former employer and of receiving benefits under this section, provided that such eligible person shall apply to the employer for such benefits before January 1, 2002. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer's plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer's group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.

VI. Any group I political subdivision employee member retired before January 1, 2001, or other eligible person under paragraph I, who would have been eligible for medical benefits under this section if this section had been in effect on the member's date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member's former employer and of receiving benefits under this section, provided that such eligible person shall apply to the employer for such benefits before January 1, 2003. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer's plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer's group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.

VII. The retirement system shall notify all group I teacher and political subdivision employee retirees and surviving spouse beneficiaries, who are currently drawing monthly allowances from the retirement system, of their possible right to re-join and active-employee medical insurance or health plan and to receive benefits under this section.

VIII. Any person who is eligible to receive group insurance or other medical benefits under the provisions of this section, but who does not need and who declines such benefits because they would be duplicative of coverage under any employer-sponsored plan, shall nevertheless continue to be eligible and, upon ceasing to be eligible for the other coverage, shall be permitted to receive the benefits allowable under this section without any waiting period.

158:9 New Section; New Hampshire Retirement System; Method of Financing; Group I State Employees. Amend RSA 100-A by inserting after section 53-c the following new section:

I. The benefits provided under RSA 100-A:52-a shall be provided by a 401(h) subtrust of the New Hampshire retirement system. The 401(h) subtrust shall be funded by allocating 25 percent of future group I state employer contributions made for group I state employees in accordance with RSA 100-A:16 to the subtrust until such time as the benefits are fully funded. Thereafter, the subtrust shall receive only that portion of each year's contribution as is necessary to keep the benefits fully funded.

II. All contributions made to the retirement system to provide medical benefits under RSA 100-A:52-a shall be maintained in a separate account, the 401(h) subtrust. All funds and accumulated interest shall not be used for or diverted to any purpose other than to provide said medical benefits. Similarly, none of the funds accumulated to provide the retirement benefits set forth in this chapter may be used or diverted to provide medical benefits under RSA 100-A:52-a. The funds, if any, providing medical benefits under RSA 100-A:52-a may be invested pursuant to the provisions of RSA 100-A:15.

158:10 New Paragraph; New Hampshire Retirement System; Medical Benefits; Application. Amend RSA 100-A:55 by inserting after paragraph I-b the following new paragraph:

I-c. It is the intent of the legislature that future group I state employee members eligible after July 1, 2004 shall be included under the provisions of RSA 100-A:52-a only if the total cost of such inclusion can be terminally funded from the special account established in RSA 100-A:16, II (h).

99-D:2 Defense and Indemnification. If any claim is made or any civil action is commenced against a present or former officer, trustee, official, or employee of the state or any agency thereof, including members of the New Hampshire national guard and any justice of the district, municipal, probate, superior, or supreme court, or the clerks or bail commissioners thereof, or any harbor master appointed by the New Hampshire port authority, or officials and employees of the New Hampshire housing finance authority, or directors, officers, and employees of the Pease development authority, or directors, officers, and employees of the land and community heritage investment authority seeking equitable relief or claiming damages for the negligent or wrongful acts and the officer, trustee, official, or employee requests the state to provide representation for him or her, and the attorney general, or, in the case of a claim or civil action commenced against the attorney general, the governor and council, determines that the acts complained of were committed by the officer, trustee, official, or employee while acting within the scope of official duty for the state and that such acts were not wanton or reckless, the attorney general shall represent and defend such person with respect to such claim or throughout such action, or shall retain outside counsel to represent or defend such person, and the state shall defray all costs of such representation or defense, to be paid from funds not otherwise appropriated. In such case the state shall also protect, indemnify, and hold harmless such person from any costs, damages, awards, judgments, or settlements arising from the claim or suit. The attorney general or governor and council shall not be required to consider the request of such person that representation be provided for him or her unless within 7 days of the time such person is served with any summons, complaint, process, notice, demand, or pleading [he] the person shall deliver the original or a copy thereof to the attorney general or, in the case of an action against the attorney general, to the governor and council. As a condition to the continued representation by the attorney general and to the obligation of the state to indemnify and hold harmless, such officer, trustee, official, or employee shall cooperate with the attorney general in the defense of such claim or civil action. No property either real or personal of the state of New Hampshire shall be subject to attachment or execution to secure payment of or to satisfy any obligations of the state created under this chapter. Upon the entry of final judgment in any action brought under this chapter, the governor shall draw [~~his~~] a warrant for said payment out of any money in the treasury not otherwise appropriated, and said sums are hereby appropriated. The attorney general shall have the authority to settle any claim brought under this chapter by compromise and the amount of any such settlement shall be paid as if the amount were awarded as a judgment under this chapter. Indemnification by the state under this section shall be for the actual amount of costs, damages, awards, judgments, or settlements personally incurred by any such officer, trustee, official, or employee, and the state shall not pay any amounts for which payment is the obligation of any insurance carrier or company under a policy or policies of insurance or any other third party under a similar obligation.

158:12 New Subparagraphs; Additional Powers and Duties. Amend RSA 227-M:5, VIII by inserting after subparagraph (c) the following new subparagraphs:

(d) Employ or retain as independent contractors architects, engineers, attorneys, accountants, and other advisors and employees, consultants, and agents as may be necessary in its judgment without regard to any personnel or civil service law of the state to prescribe their duties and qualifications and to fix and pay their compensation if any.

(e) Appoint qualified individuals to serve as unpaid volunteers under such terms and conditions as it deems necessary. Said volunteers or advisors may be paid a stipend and/or reimbursed for any incidental expenses determined by the authority to be necessary and incurred while performing the business of the authority.

158:13 New Section; Administrative Fund Established. Amend RSA 227-M by inserting after section 7 the following new section:

I. There is established in the office of the state treasurer a fund to be known as the land and community heritage investment program administrative fund into which the state treasurer shall credit any revenue generated pursuant to RSA 261:97-b, I-a. For the biennium ending June 30, 2003 there shall also be deposited, on a monthly basis, interest income generated on appropriations made to the land and community heritage investment program trust fund pursuant to RSA 227-M:7. The total revenues generated to the administrative fund from these 2 sources for each year of said biennium shall not exceed $335,000.

II. All sums so credited shall be appropriated to the authority for the following purposes:

(a) To pay the costs of administering and operating the authority, including, but not limited to, all wages, salaries, benefits, and other expenses authorized by the board or the executive director. The authority may enter into a contract or agreement for provision of services to withhold on a monthly basis all payroll and benefit costs for employees.

(b) In general for the payment of all expenses incident to the management and operation of the authority as are consistent with its statutory purpose and as the board or the executive director thereof may from time to time determine.

III. This fund shall constitute a continuing appropriation for the benefit of the authority. Any amount remaining to the credit of the authority at the close of any fiscal year, and any interest accrued, shall be nonlapsing and shall be carried over and credited to the fund for the succeeding year.

158:14 New Section; Land and Community Heritage Investment Program; Authority Employees. Amend RSA 227-M by inserting after section 6 the following new section:

I. The authority may hire, fix, and pay compensation, prescribe duties and qualifications, and establish personnel policies without regard to any personnel or civil service law or personnel or civil service rule of the state. The employees of the authority shall not be classified employees of the state within the meaning of RSA 21-I:49. Any individual employed by the authority shall be deemed an employee at will and shall serve at the pleasure of the authority.

II. Notwithstanding the provisions of paragraph I, any individual employed by the authority whose employment calls for 30 hours or more work in a normal calendar week, and whose position is anticipated to have a duration of 6 months or more, shall be entitled to elect to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state provided, however, that the election is made in writing within 30 days of the start of employment. Upon election by such individual, the authority shall pay from its revenues the state's share of such benefits. Any remaining costs of health, dental, life insurance, deferred compensation, and retirement benefits which an individual elects to receive pursuant to this section, shall be withheld from such individual's salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon employment by the authority.

158:15 New Paragraph; Department of Resources and Economic Development; Telecommunications Planning and Development Initiative; Initial Funding; Appropriation Nonlapsing. Amend 2000, 298:5 by inserting after paragraph IV the following new paragraph:

V. The initial funding mechanism and the appropriation made pursuant to this section shall not lapse until June 30, 2003.

158:16 Authority to Fill Unfunded Positions; Department of Health and Human Services. Notwithstanding any other provision of law, the commissioner of the department of health and human services may fill any authorized unfunded positions during the biennium ending June 30, 2003, provided that the total expenditures shall not exceed the amount appropriated for personal services, permanent and personal services, unclassified.

158:17 Certain Tobacco Use Prevention Fund Moneys; General Fund. Notwithstanding any provision of law to the contrary, $1,500,000 from the tobacco use prevention fund, established in RSA 126-K:15, shall lapse to the general fund on July 1, 2001.

76:3 Education Property Tax. An annual education property tax at the uniform rate of [~~$6.60~~] $5.80 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.

158:19 Business Profits Tax; Rate of Tax Amended. Amend RSA 77-A:2 to read as follows:

77-A:2 Imposition of Tax. A tax is imposed at the rate of [8] 8.5 percent upon the taxable business profits of every business organization.

158:20 Business Profits Tax; Distribution of Funds Amended. Amend RSA 77-A:20-a, I to read as follows:

I. The commissioner shall determine the additional amounts of revenue produced by an increase of [~~one~~] 1.5 percent in the rate of tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

158:21 Business Enterprise Tax; Rate Increase. Amend RSA 77-E:2 to read as follows:

77-E:2 Imposition of Tax. A tax is imposed at the rate of [~~1/2~~] 3/4 of one percent upon the taxable enterprise value tax base of every business enterprise. [~~A 2/3 majority of those present and voting of each house of the general court shall be necessary to increase the tax rate under this section.~~]

158:22 Business Enterprise Tax; Returns; Filing Thresholds Amended. Amend RSA 77-E:5, I to read as follows:

I. Every business enterprise having gross business receipts in excess of [~~$100,000~~] $150,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than [~~$50,000~~] $75,000, shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States corporation tax return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner. All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.

158:23 Business Enterprise Tax; Distribution of Funds Amended. Amend RSA 77-E:14, I to read as follows:

I. The commissioner shall determine the additional amounts of revenue produced by an increase of [~~.25~~] .50 percent in the rate of tax imposed by RSA 77-E:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

158:24 Tax on Transfer of Real Property; Declaration of Consideration Amended. Amend RSA 78-B:10, III (a) to read as follows:

(a) Transfers exempted by RSA 78-B:2, except transfers exempted by RSA 78-B:2, IX[~~, XIV, and XVII~~].

158:25 Imposition of Tax; Intrastate Communications Services; Rate Changed. Amend RSA 82-A:3 to read as follows:

82-A:3 Imposition of Tax; Intrastate Communications Services. A tax is imposed upon intrastate communications services furnished to a person in this state and purchased at retail from a retailer by such person, at the rate of [3] 4.5 percent of the gross charge therefor. However, such tax is not imposed on any communications services to the extent a tax on such services may not, under the Constitution and statutes of the United States, be made the subject of taxation by the state.

158:26 Imposition of Tax; Interstate Communications Services; Rate Changed. Amend RSA 82-A:4 to read as follows:

82-A:4 Imposition of Tax; Interstate Communications Services. A tax is imposed upon interstate communications services furnished to a person in this state and purchased at retail from a retailer by such person, at the rate of [3] 4.5 percent of the gross charge when such service is originated in this state and terminated outside this state or originated outside this state and terminated in this state. To prevent actual multi-state taxation of communications services that are subject to taxation under this section, any taxpayer, upon proof that that taxpayer has paid a tax in another state on such services, shall be allowed a credit against the tax imposed in this section to the extent of the amount of such tax properly due and paid in such other state. However, such tax is not imposed on communications services to the extent such services may not, under the Constitution and statutes of the United States, be made the subject of taxation by the state.

I. RSA 78-B:2, XIV, relative to the exception from the tax on transfer of real property for transfers of title pursuant to a merger, consolidation or other reorganization qualifying as a tax-free reorganization.

II. RSA 78-B:2, XVII, relative to the exception from the tax on transfer of real property for transfers of title from certain entities.

158:28 Applicability. Sections 19 and 21 of this act shall apply to returns and taxes due on account of taxable periods ending on or after July 1, 2001. In the case of any business organization or enterprise which has elected a 52-53 week taxable period under section 441(f) of the United States Internal Revenue Code and the fiscal year of which ends on the last day of the week nearest to June 30, 2001, the taxable period shall be deemed to have ended on June 30, 2001, for the purposes of this act.

158:29 Tax Amnesty. Notwithstanding the provisions of any other law, with respect to taxes administered by the department of revenue administration, an amnesty from the assessment or payment of all penalties and interest greater than 7 percent per annum shall apply with respect to unpaid taxes reported and paid in full during the period from December 1, 2001, through and including February 15, 2002, regardless of whether previously assessed. This amnesty shall only apply to taxes due but unpaid on or before February 15, 2002.

158:30 New Subparagraph; Purchase of Supplies; Exemptions; Assessing Enforcement Contractors. Amend RSA 21-I:18, I by inserting after subparagraph (l) the following new subparagraph:

(m) Purchases of services from private contractors by the department of revenue administration with respect to the establishment of assessing enforcement procedures.

158:31 New Section; Department of Revenue Administration; Division of Community Services Established. Amend RSA 21-J by inserting after section 10 the following new section:

21-J:10-a Division of Community Services. There is established within the department the division of community services, under the supervision of an unclassified director of community services who shall be responsible for providing technical support and assistance to municipalities.

158:32 Compensation of State Officers; Salaries Established; Director of Community Services. Amend RSA 94:1-a, I by inserting in group M the following:

158:33 Authority to Establish Positions; Department of Revenue Administration. Notwithstanding any other provision of law, the commissioner of the department of revenue administration is authorized to establish positions necessary to implement assessing enforcement procedures.

158:34 Betterment Assessments; Liens Created. Amend RSA 231:30 to read as follows:

231:30 Liens For Assessments. All assessments made under the provisions of RSA 231:29 shall create a lien upon the lands on account of which they are made, which shall continue following the assessment until fully discharged in accordance with the terms set by each governing board or in compliance with any court judgment. Such assessments shall be subject to interest and such other charges as are applicable to the collection of delinquent taxes.[ ~~The landowner shall have the same right of appeal and follow the same procedures as are applicable to the assessment of taxes.~~]

158:35 Betterment Assessments; Abatement and Appeal. RSA 231:32 is repealed and reenacted to read as follows:

I. Any person aggrieved by a betterment assessment made pursuant to RSA 231:29 may, within 2 months of the notice of tax date and not afterwards, apply in writing to the selectmen or assessors for an abatement of the betterment assessment.

II. Upon receipt of an application under paragraph I, the selectmen or assessors shall review the application and shall grant or deny the application in writing within 6 months after the notice of tax date.

III.(a) If the selectmen or assessors neglect or refuse to abate the betterment assessment, any person aggrieved may either:

(1) Appeal in writing to the board of tax and land appeals, upon payment of a $65 filing fee; or

(b) The appeal to either the board of tax and land appeals or superior court shall be filed within 8 months of the notice of tax date and not afterwards.

IV. For purposes of this section, "notice of tax date" means the date the taxing jurisdiction mails the betterment assessment tax bill.

V. Each betterment assessment tax bill shall require a separate abatement request and appeal.

158:36 Alternative Kindergarten Programs. Amend RSA 198:48-a, VII(a) to read as follows:

VII. (a) Upon the effective date of this paragraph, and for each fiscal year through June 30, 2003, an adequate education grant of [~~$750~~] $1200 per pupil shall be distributed to school districts, from the education trust fund created in RSA 198:39, for the education of its resident kindergarten pupils enrolled in an approved alternative kindergarten program established under this section.

158:37 Public Kindergarten Programs; Per Pupil Reimbursement. Amend 1999, 65:9, I(a) as amended by 2000, 289:2 to read as follows:

I.(a) If a school district implements a public kindergarten program during school year [~~1998-1999~~] 1999-2000 through school year 2002-2003 inclusive, the school district maintaining such a kindergarten program shall receive reimbursement at the rate of [~~$750~~] $1200 per pupil from the education trust fund created in RSA 198:39 for each fiscal year through June 30, 2003.

158:38 Lapse Date Extended to June 30, 2003. The appropriation made to the department of administrative services, division of plant and property management, bureau of general services in 1999, 226:1, II, A, 8 for executive/legislative budget system is hereby extended to June 30, 2003.

I. There is established a committee to study the development of a new budget system.

(2) Three members of the house of representatives, appointed by the speaker of the house of representatives.

(b) Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

III. The committee shall study the development of a new budget system. The committee shall coordinate its activities with the department of administrative services and the legislative budget assistant.

IV. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

V. The committee shall report its findings and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2002.

158:40 Budget System Appropriation; Availability. The department of administrative services shall make the appropriation made to the department of administrative services, division of plant and property management, bureau of general services in 1999, 226:1, II, A, 8 for executive/legislative budget available to the committee to study the development of a new budget system established by this act.

158:41 Revenue Stabilization Reserve Account; Distribution Amended. Amend RSA 9:13-e, II to read as follows:

II. There is hereby established within the general fund general ledger a revenue stabilization reserve account. At the close of the fiscal biennium ending June 30, 2001, and at the close of each fiscal biennium thereafter, any surplus, as determined by the official audit performed pursuant to RSA 21-I:8, I(h) shall be transferred by the comptroller [~~in the following manner: 50 percent~~] to a special nonlapsing revenue stabilization reserve account [~~and 50 percent to the health care fund established pursuant to RSA 167:70~~]; provided, however, that in any single fiscal year the total of such [~~transfers~~] transfer shall not exceed 1/2 of the total potential maximum [~~balances~~] balance allowable under paragraph V [~~and RSA 167:74, III~~]. The comptroller is hereby directed to establish the revenue stabilization reserve account in which to deposit any money received from a general fund operating budget surplus. The state treasurer shall invest funds in this account as authorized by RSA 6:8. The interest so earned shall be deposited as unrestricted general fund revenue.

158:42 Education Trust Fund Budget Deficit; Transfer of Funds. In the event of an education trust fund budget deficit at the close of the fiscal biennium ending June 30, 2001 as determined by the official audit performed pursuant to RSA 21-I:8, I(h), the comptroller shall notify the fiscal committee and the governor of such deficit and request that sufficient funds, to the extent available, be transferred from the general fund operating surplus to eliminate such deficit.

158:43 Additional Revenues; Department of Health and Human Services. Notwithstanding any provision of the law to the contrary, the legislative fiscal committee and the governor and council may authorize the commissioner of the department of health and human services to accept and expend additional revenues, in excess of or in addition to the budgeted amounts, from any source, which become available to the department. Such additional revenues shall be available to the department of health and human services to supplement funds in the following programs and services: provider payments, provider rate increases, and any other program or service that requires deficit reduction or for which revenue has been specifically obtained to improve program operations, provided that such improvements do not increase legislatively-approved eligibility levels. The legislature recognizes the importance of emergency medical transportation of Medicaid patients. In establishing priorities for the expenditure of these supplemental funds, the legislature expects the department to give important provider payment consideration to the municipal and private emergency medical services providers.

158:44 Repeal. 1999, 225:45, relative to reports of productivity gains from investments in information technology, is repealed.

158:45 Postsecondary Education Commission; Granite State Scholars; Appropriations for Fiscal Years 2002 and 2003.

I. Notwithstanding any provision of RSA 188-D to the contrary, the postsecondary education commission shall expend funds appropriated for fiscal years 2002 and 2003 to PAU 06, 01, 01, 95 either for scholarships to students qualifying for granite state scholar designation or to match gifts and contributions to participating institutions for purposes of the granite state scholars program.

II. To the extent the postsecondary education commission elects to expend the appropriations for scholarships, the commission shall award scholarships directly to students qualifying for granite state scholar designation under RSA 188-D:39, I. The commission shall adopt rules under RSA 188-D:8-a, III for awarding the scholarships.

III. To the extent the postsecondary education commission elects to expend the appropriations to match gifts and contributions to participating institutions for purposes of the granite state scholars program, the commission shall, notwithstanding RSA 188-D:41, provide a match of up to 100 percent of each gift and contribution. In addition, a participating institution shall, in the year following the receipt of the state match, disburse as scholarships to granite state scholars an amount equal to ½ of the state match received by the institution.

158:46 Maintenance of Funds Collected Pursuant to Electric Utility Restructuring Orders; Plans for Administration. Amend RSA 6:12-b to read as follows:

6:12-b Maintenance of Funds Collected Pursuant to Electric Utility Restructuring Orders. On request of the public utilities commission, the state treasurer shall maintain custody over funds collected by order of the public utilities commission consisting of only that portion of the system benefits charge directly attributable to programs for low income customers as described in RSA 374-F:4, VIII(c). All funds received by the state treasurer pursuant to this section shall be kept separate from any other funds and shall be administered in accordance with terms and conditions established by the public utilities commission. Plans for the administration of such funds shall be approved by the fiscal committee of the general court and the governor and council prior to submission to the public utilities commission. Appropriations and expenditures of such funds in fiscal years 2002 and 2003 shall be approved by the fiscal committee of the general court and the governor and council prior to submission to the public utilities commission. For each biennium thereafter, appropriations and expenditures of such funds shall be made through the biennial operating budget.

158:47 Rehiring; Laid-Off State Employees. The provisions of 1990, 261:1, as amended by 1991, 4:10 and 355:103, relative to rehiring of laid-off state employees, shall apply to any person laid-off between July 1, 2001, and June 30, 2003, as a result of any state law, regardless of the funding source for the person's position. The head of each department or agency shall submit the names and classification of individuals laid-off from July 1, 2001, to June 30, 2003, to the director of the division of personnel within 10 days of the layoff.

158:48 Longevity Payment Authorized; Department of Health and Human Services. Notwithstanding any provision of law to the contrary, payment is hereby authorized in the amount of $3,000 for longevity to position 9U201, deputy commissioner, department of health and human services for the years 1994 through 1999. Funding for the longevity payment shall be from appropriations made to the department of health and human services in the 2000-2001 operating budget for positions which are not filled.

158:49 Commissioner of Health and Human Services; Authority to Establish Positions. For the biennium ending June 30, 2003, the commissioner of health and human services may exercise the authority granted by RSA 126-A:9, II(a) as necessary to support and carry out the purposes of any laws enacted to transfer the youth development center and the youth services center to the department of health and human services and to establish a juvenile justice services unit within the department. The commissioner may establish up to 3 positions pursuant to the authority granted by this section; the establishment of any additional position by the commissioner pursuant to the authority granted by this section shall require the approval of the fiscal committee of the general court.

158:50 New Paragraphs; Board of Tax and Land Appeals; Authority; Duties. Amend RSA 71-B:5 by inserting after paragraph III the following new paragraphs:

IV. To hear and determine all matters relating to orders for reassessment properly brought pursuant to RSA 71-B:16.

V. To hear and determine petitions filed by the commissioner of revenue administration pursuant to RSA 21-J:11-a, II(b). The board shall give such petitions priority for scheduling hearings and for final rulings. In addition to the standards utilized by the commissioner of revenue administration in the certification of assessments pursuant to RSA 21-J:11-a, the board shall consider the criteria in a RSA 71-B:16-a. The board's decision on such petitions shall be final, subject to appeal to the supreme court. Any appeal shall be filed with the clerk of the supreme court within 20 days after the date the decision is issued. The supreme court shall give any appeal it hears under this section priority in the court calendar.

158:51 Appraisal of Taxable Property; How Appraised. RSA 75:1 is repealed and reenacted to read as follows:

75:1 How Appraised. The selectmen shall appraise open space land pursuant to RSA 79-A:5, open space land with conservation restrictions pursuant to RSA 79-B:3, land with discretionary easements pursuant to RSA 79-C:7, residences on commercial or industrial zoned land pursuant to RSA 75:11, earth and excavations pursuant to RSA 72-B, and all other taxable property at its market value. Market value means the property's full and true value as the same would be appraised in payment of a just debt due from a solvent debtor. The selectmen shall receive and consider all evidence that may be submitted to them relative to the value of property, the value of which cannot be determined by personal examination.

75:7 Oath. The selectmen and assessors shall take and subscribe upon the copies or original inventories and assessments of both resident and nonresident taxes, furnished by them to the town clerks in their respective towns, to be recorded in the clerk's records, the following oath, which may be subscribed before any justice of the peace or notary public: We, the selectmen and assessors of __________, [do solemnly swear that in making the inventory for the purpose of assessing the foregoing taxes we appraised all taxable property at its full value, and as we would appraise the same in payment of a just debt due from a solvent debtor. So help us God] certify under the penalty of perjury that in making the inventory for the purpose of assessing the foregoing taxes, all taxable property was valued in accordance with RSA 75:8, to the best of our knowledge and belief.

158:53 Annual Revised Inventory. RSA 75:8 is repealed and reenacted to read as follows:

I. Annually, and in accordance with state assessing standards, the assessors and selectmen shall adjust assessments to reflect changes so that all assessments are reasonably proportional within that municipality. All adjusted assessments shall be included in the inventory of that municipality and shall be sworn to in accordance with RSA 75:7.

II. Assessors and selectmen shall consider adjusting assessments for any properties that:

158:54 New Section; Appraisal of Taxable Property; Five-Year Valuation. Amend RSA 75 by inserting after section 8 the following new section:

75:8-a Five-Year Valuation. At least as often as every fifth year, beginning with the first year the commissioner of the department of revenue administration certifies a municipality's assessments pursuant to RSA 21-J:3, XXVI, the assessors and/or selectmen shall value all real estate within the municipality so that the assessments are valued in accordance with RSA 75:1.

158:55 New Paragraph; Department of Revenue Administration; Duties of Commissioner. Amend RSA 21-J:3 by inserting after section XXV the following new paragraph:

XXVI. Review each municipality's assessments once within every 5 years and certify the assessments of the municipality if such assessments are valued in accordance with RSA 75:1. In carrying out the duty to certify the assessments of property, the commissioner shall follow the procedures set forth in RSA 21-J:11-a.

158:56 New Sections; Department of Revenue Administration. Amend RSA 21-J by inserting after section 11 the following new sections:

I. The commissioner shall certify that the assessments of a municipality comply with the provisions of RSA 75:1 when the commissioner determines that:

(a) Level of assessments and uniformity of assessments are within acceptable ranges as prescribed by state assessing standards by considering, where appropriate, an assessment-to-sales-ratio study conducted by the department for the municipality;

(b) Assessment practices substantially comply with applicable statutes and rules;

(e) Assessments of various types of properties are reasonably proportional to other types of properties within the municipality.

II. If the commissioner does not certify that the assessments of a municipality comply with RSA 75:1, the commissioner shall order in writing those corrective actions, including the time for completion, deemed necessary to assess the municipality's property in accordance with RSA 75:1; and:

(a) If the governing body of the municipality agrees with the commissioner's determination, the municipality shall complete the corrective actions within the time prescribed by the commissioner.

(b) If the governing body of the municipality does not agree with the commissioner's determination not to certify its assessments, with the corrective actions ordered, or the time allowed for completion, the commissioner shall petition the board of tax and land appeals to order that the municipality's property is not assessed in accordance with RSA 75:1 and to order such corrective action necessary to ensure that the municipality's assessment are in accordance with RSA 75:1.

III. The commissioner shall adopt rules under RSA 541-A relative to acceptable ranges of level of assessments and uniformity of assessments, procedures for review of assessment practices, and procedures and forms for the commissioner's certification of assessments. Rules adopted by the commissioner under this paragraph shall remain effective until the assessing standards board adopts rules under RSA 21-J:14-b, II.

IV. The assessing standards board shall study and recommend to the legislature whether municipalities should be reimbursed for expenses incurred as a result of changes in assessment practices resulting from legislation enacted in response to the judicial interpretation of part 2, article 6 of the New Hampshire constitution in Evelyn Sirrell et al v State of New Hampshire et al and, if reimbursement is appropriate, shall recommend a formula for implementation of a reimbursement program.

I. The commissioner of revenue administration shall adopt a schedule so that each city, town, and unincorporated place has its assessments reviewed within 5 years of April 1, 2002, and shall notify each city, town, and unincorporated place, within 60 days of passage of this act, of the property tax year for which their initial certification review shall occur.

II. The department shall offer training and technical assistance to municipal officials to assist in complying with the provisions of RSA 75:8, RSA 75:8-a, and RSA 21-J:11-a.

III. The commissioner of revenue administration shall report in its annual report, the number of communities assisted and the types of assistance and training provided pursuant to RSA 21-J:10, RSA 21-J:11, and RSA 21-J:11-b, II.

158:57 Setting of Tax Rates by Commissioner. Amend RSA 21-J:35, I to read as follows:

I. The commissioner of revenue administration shall compute and establish the tax rate of each town, city, or unincorporated place. Any decision by the commissioner not to certify the assessments of a municipality pursuant to RSA 21-J:11-a shall not delay or otherwise affect the setting of the tax rate for that municipality.

73:10 Real Estate. Real and personal property shall be taxed to the person claiming the same, or to the person who is in the possession and actual occupancy thereof, if such person will consent to be taxed for the same; but such real estate shall be taxed in the town in which it is situate. Any decision by the commissioner not to certify the assessments of a municipality pursuant to RSA 21-J:11-a shall not affect the obligation of the taxpayer to pay property taxes otherwise lawfully assessed.

80:4 Powers of Collector. Every collector, in the collection of taxes committed to him and in the service of his warrant, shall have the powers vested in constables in the service of civil process, which shall continue until all the taxes in his list are collected. Any decision by the commissioner not to certify the assessments of a municipality pursuant to RSA 21-J:11-a shall not affect the authority of the tax collector to issue tax bills and to exercise all powers contained in this chapter for the collection of taxes.

158:60 Petition for Order of Reassessment; SB 193 Provision Amended. Amend RSA 21-J:9-b to read as follows:

21-J:9-b Petition for Order of Reassessment. The commissioner, in petitioning for an order of reassessment pursuant to RSA 21-J:3, XXV, may consider any information that indicates that property in a city, town, or unincorporated place is valued disproportionately to other property within that municipality in determining whether to petition the board of tax and land appeals to issue an order for reassessment. Additionally, the commissioner shall petition the board of tax and land appeals to issue an order for reassessment of property if the following criteria are met:

I. The commissioner's most recent annual sales-assessment ratio study indicates that the coefficient of dispersion exceeds 20 employing a 95-percent level of confidence, provided however that if the sample size for a sales-assessment ratio study is less than 30, the commissioner may use a level of confidence as low as 70 percent;

II. The municipality has not [~~conducted a full revaluation within 6 years~~] complied with the provisions of RSA 75:8-a[~~; and~~].

[~~III. A municipality has not contracted for a full revaluation of the property within such municipality to be effective no later than the tax year following such determination.~~]

158:61 Certification Required; SB 193 Provision Amended. Amend RSA 21-J:14-f, I to read as follows:

I. Every person, whether working individually, for a firm or corporation, or as a municipal [~~or department of revenue administration~~] employee, making appraisals of a municipality for tax assessment purposes, except elected officials making appraisals pursuant to RSA 75:1, shall be certified by the department. Department of revenue employees shall be certified at the level appropriate to their duties. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to qualifications for certification, standards for continuing education, and standards for revocation or suspension of certification. Rules adopted by the commissioner under this paragraph shall remain effective until the assessing standards board adopts rules under RSA 21-J:14-b, I(c).

158:62 Property Taxes; What Taxes Assessed; Expenses of Reassessment; SB 193 Provision Amended. Amend RSA 76:5 to read as follows:

76:5 What Taxes Assessed. The selectmen shall seasonably assess all state and county taxes for which they have the warrants of the commissioner of revenue administration and county treasurers respectively; all taxes duly voted in their towns; and all school and village district taxes authorized by law or by vote of any school or village district duly certified to them; and all sums required to be assessed by RSA 33 and RSA 21-J:9-c. Any decision by the commissioner not to certify the assessments of a municipality pursuant to RSA 21-J:11-a shall not affect the authority of the selectmen to assess taxes.

158:63 Initial Assessment Review Schedule. The commissioner of revenue administration shall adopt a schedule so that each city, town, and unincorporated place has its assessments reviewed within 5 years and shall notify each municipality, within 60 days of passage of this section, of the property tax year for which their initial certification review shall occur. The department shall offer training and technical assistance to municipal officials to assist in complying with the provisions of RSA 21-J:11-a, as inserted by this act.

158:64 Contingency. If SB 193 of the 2001 legislative session becomes law, then section 60 of this act shall take effect at 12:01 a.m. on the effective date of section 17 of SB 193. If SB 193 of the 2001 legislative session becomes law, then section 61 of this act shall take effect at 12:01 on the effective date of section 2 of SB 193. If SB 193 of the 2001 legislative session becomes law, then section 62 of this act shall take effect at 12:01 a.m. on the effective date of section 18 of SB 193. If SB 193 does not become law, then sections 60-62 of this act shall not take effect.

158:65 Repeal. RSA 86:6, relative to taxable property under and tax rate of the legacies and successions tax, is repealed.

158:66 Applicability. Section 65 of this act shall apply only to estates established as the result of deaths occurring on or after January 1, 2003.

158:67 Lease Agreement Required; Pease Development Authority; Department of Regional Community-Technical Colleges. The department of regional community-technical colleges and Pease development authority shall enter into a lease agreement in which the department shall occupy the first floor, consisting of 71,243 square feet, of 320 Corporate Drive in Portsmouth. In exchange, the state shall reduce by $1,068,644 per year, starting with the commencement of the lease on July 1, 2001, Pease development authority's debt owed to the state relative to start-up funding costs under RSA 12-G:27-b through 12-G:27-d; 1991, 355:110, as amended by 1992, 260:11; 1992, 260:12, as amended by 1993, 358:3; 1994, 415:1; and 1995, 307:10. The lease term shall be 2 years or until such time as the debt owed to the state relative to the authority's start-up funding costs has been exhausted. The lease may be extended subject to the approval of the capital budget overview committee and the governor and council.

158:68 Department of Resources and Economic Development. Amend section 1 of HB 25-FN-A of the 2001 legislative session by replacing paragraph XI, D and the total state appropriation paragraph XI with the following:

The project for which sums are appropriated in subparagraph XI, D for Cannon Mountain aerial tram, upgrade drive and control system, may be done on a force account basis by the department of resources and economic development as provided in RSA 228:4, I(c), notwithstanding the dollar limit for such projects provided in RSA 228:4, I(c).

II-c. The state treasurer shall pay the expenses of investor education conducted pursuant to RSA 421-B:26, IV out of the investor education fund consisting of the funds collected pursuant to RSA 421-B:26, I, II, and III. The investor education fund shall be nonlapsing and continually appropriated for the purpose of paying the expenses of investor education, except that, as provided in RSA 421-B:26, IV, the fund shall at no time exceed [~~$800,000~~] $725,000.

158:70 Administrative Penalty; Investor Education Funds. Amend RSA 421-B:26, IV to read as follows:

IV. All moneys collected as an administrative penalty under this chapter and all moneys collected pursuant to RSA 421-B:31, I(h) shall be credited to an investor education fund to be maintained by the state treasurer. Funds in excess of [~~$800,000~~] $725,000 at the end of each fiscal year shall be credited to the general fund. The secretary of state, after deducting administrative costs, shall use moneys credited to that fund to provide information to residents of this state about investments in securities, to help investors and potential investors evaluate their investment decisions, protect themselves from unfair, inequitable, or fraudulent offerings, choose their broker-dealers, agents, or investment advisers more carefully, be alert for false or misleading advertising or other harmful practices, and know their rights as investors.

I. If the failure to pay is not due to [~~willful neglect or intentional disregard of laws or rules, but without intent to defraud~~] fraud, the penalty shall be equal to 10 percent of the amount of the nonpayment or underpayment. This penalty shall not be applied in any case in which the failure to pay was due to reasonable cause and not willful neglect of the taxpayer.

158:72 New Subparagraph; Business Profits Tax; Definition of United States Internal Revenue Code. Amend RSA 77-A:1, XX by inserting after subparagraph (k) the following new subparagraph:

(l) For all tax years beginning after January 1, 2000, the United States Internal Revenue Code of 1986 in effect on December 31, 2000.

158:73 Appropriation; Community-Technical College System; Computer System Upgrades - Claremont. Amend 2001, HB 25-FN-A by inserting in paragraph IV of section 1 the following:

158:74 Total Adjusted. 2001, HB 25-FN-A, 1, IV, total state appropriation paragraph IV, is repealed and reenacted to read as follows:

158:75 Total Adjusted. 2001, HB 25-FN-A, 1, total state appropriation section 1, is repealed and reenacted to read as follows:

158:76 Bond Authorized; Total Adjusted. 2001, HB 25-FN-A, 8, I, is repealed and reenacted to read as follows:

I. To provide funds for the total of the appropriations of state funds made in sections 1, 3, and 4 of this act, the state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $72,651,700 and for said purposes may issue bonds and notes in the names and on behalf of the state of New Hampshire in accordance with the provisions of RSA 6-A.

158:77 Retirement System; Administration. Amend RSA 100-A:14, V to read as follows:

V. The board of trustees [~~may~~] shall have the full power to employ and compensate such classified employees on such terms as may be necessary as charges upon the funds of the retirement system. It may also engage such actuarial, medical, and like services as may be required to transact the business of the system. The compensation for such special services, and all other expenses of the board necessary, hereto, shall be paid at such rates and in such amounts as the board shall approve.

158:78 Retirement System; Executive Director. Amend RSA 100-A:44 to read as follows:

100-A:44 Appointment; Removal. The board of trustees of the retirement system shall have the full power to appoint and compensate an executive director [~~who shall hold office during good behavior. The board may remove the executive director for cause~~] to perform such duties on such terms as it may require.

158:79 Executive Director Salary; Director of Finance. Amend RSA 100-A:47 and 47-a to read as follows:

100-A:47 Salary. The annual salary of the executive director shall be [~~that prescribed by RSA 94:1-4~~] set at such rates as the board of trustees may deem necessary to attract and retain a suitably qualified individual.

100-A:47-a Appointment; Duties; and Compensation. The executive director of the retirement system shall nominate a director of finance for appointment by the board of trustees. The director of finance shall assist the board of trustees in the management of retirement system funds. The director of finance shall report directly to the board of trustees or to a person or persons designated by the board and shall serve at their pleasure. The director of finance shall be qualified to hold the position by reason of education and experience. The annual salary for the director of finance shall be [~~that prescribed by RSA 94:1-a, I, Group M~~] set at such rates as the board of trustees may deem necessary in order to attract and retain a suitably qualified individual.

158:80 New Subdivision; Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198 by inserting after section 55 the following new subdivision:

I. "Commissioner" means the commissioner of the department of revenue administration.

II. "Homestead" means the dwelling owned by a claimant or, in the case of a multi-unit dwelling, the portion of the dwelling which is owned and used as the claimant's principal place of residence and the claimant's domicile for purposes of RSA 654:1. "Homestead" shall not include land and buildings taxed under RSA 79-A or land and buildings or the portion of land and buildings rented or used for commercial or industrial purposes. In this paragraph, the term "owned" includes:

III. "Household income" means the sum of the adjusted gross income for federal income tax purposes of the claimant and any adult member of the claimant's household who resides in the homestead for which a claim is made. "Household income" shall also include all income of any trust through which the claimant holds equitable title, or the beneficial interest for life, in the homestead.

IV. "Tax relief" means the low and moderate income homeowners property tax relief provided in this subdivision.

V. "New Hampshire household" means any person filing a federal income tax return as head of household or 2 or more adults who jointly share the benefit of the homestead. "New Hampshire household" shall not include those adults who share the homestead under a landlord-tenant relationship.

VI. "Dependent" means a person residing in a homestead who is claimed as a dependent for federal income tax purposes.

I. Pursuant to the provisions of this subdivision, eligible claimants shall be granted tax relief following the effective date of this subdivision.

II. Residents shall apply to the department of revenue administration for such tax relief.

(a) Owns a homestead or interest in a homestead subject to the education property tax;

(b) Resided in such homestead on April 1 of the year for which the claim is made, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile; and

IV. All or a portion of an eligible tax relief claimant's state education property taxes, RSA 76:3, shall be rebated as follows:

(a) Multiply the total local assessed value of the claimant's property by the percentage of such property that qualifies as the claimant's homestead;

(b) Multiply $100,000 by the most current local equalization ratio as determined by the department of revenue administration;

(c) Multiply the lesser of the amount determined in subparagraph (a) or (b) by the current state education property tax rate as shown on the tax bill under RSA 76:11-a;

(d) Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant:

(2) If a head of a New Hampshire household or a married person and total household income is:

(e) The amount determined by subparagraph (d) is the allowable tax relief in any year.

V. If a homestead is owned by 2 or more persons as joint tenants or tenants in common, and one or more of such joint owners do not principally reside at such homestead, tax relief applies to the proportionate share of the homestead value that reflects the ownership percentage of the claimant. Only one claim may be filed for a single homestead.

VI. Complete applications for state tax relief shall be filed with the department of revenue administration between May 1 and June 30 following the due date of the final tax bill as defined in RSA 76:1-a for state education property taxes. If an otherwise qualified claimant shall satisfy the commissioner that such claimant was prevented by accident, mistake, or misfortune from filing a complete application on or before June 30, the commissioner may receive the complete application at a later date and grant the relief for that tax year.

VII. Each claimant shall provide a copy of his or her federal income tax return and a copy of the federal income tax return for each adult member of the claimant's household for the corresponding tax period. Claimants and adult household members who were not required to file a federal tax return for the immediately prior tax period may submit an affidavit to such effect in lieu of a tax return which document shall include the affiant's social security number. A claimant who asserts ownership in a homestead because he or she holds equitable title, or the beneficial interest for life, in the homestead shall also submit a copy of the document creating such interest and a copy of the federal tax return, if any, for the immediately prior tax period, of the trust holding legal title to the homestead. Any documents submitted shall be considered confidential, and protected under RSA 21-J:14.

VIII. The provisions of RSA 359-C shall not apply to the documents required to be submitted under this section.

I. The commissioner shall adopt rules, under RSA 541-A, relative to the administration of the tax relief provisions of this subdivision.

II. The commissioner shall approve and provide forms relative to the administration of this subdivision.

(b) Sections for information concerning the claimant, the claimant's household, the property for which tax relief is sought, and such other information as is reasonably necessary to determine the accuracy of the claim;

(d) A place for the claimant's signature with a certification by the claimant that the claim is made in good faith and that the facts contained in the claim are true.

IV. The commissioner shall publicize notice of the tax relief provisions in a suitable manner.

I. Any person who files a claim for tax relief under this subdivision with fraudulent intent and any person who assisted in the preparation or filing of the claim or supplied information upon which the claim was prepared shall be guilty of a misdemeanor.

II. The commissioner may assess and collect the amount of any sums granted for property tax relief relative to a fraudulent or erroneously paid claim for tax relief including interest provided under RSA 21-J:28 and an additional penalty of 25 percent for the erroneous amount of such claim or an additional penalty of the greater of 25 percent or $1,000 for a fraudulent claim.

I. Whenever the commissioner refuses to grant a claimant a tax relief claim, the claimant may appeal in writing within 30 days of notice of such refusal to the board of tax and land appeals.

II. The board of tax and land appeals may reverse or affirm, in whole or in part, or modify the decision appealed from when there is an error of law or when the board finds the commissioner's action to be arbitrary or unreasonable.

198:61 Refund of Tax Claims. The department of revenue administration shall review a claim for tax relief filed with it and, if such claim is determined to be valid, shall certify such amount to the state treasurer within 120 days. The state treasurer shall pay the claim to the claimant from funds in the education trust fund. The department shall notify a claimant whose claim is rejected in whole or in part of such determination within 90 days of the department's receipt of the claim and all required documentation.

158:81 Education Property Tax Hardship Relief; Repeal Date Changed. Amend 1999, 338:25, II to read as follows:

158:82 Repeal. RSA 198:50-55, relative to education property tax hardship relief, is repealed.

158:83 Department of Administrative Services; Purchase of Supplies; Exemptions. Amend RSA 21-I:18, I(l) to read as follows:

(l) Purchases of services from private contractors by the department of revenue administration with respect to the administration of [~~education property tax hardship relief~~] low and moderate income homeowners property tax relief claims [~~under RSA 198:50-55~~].

158:84 Repeal of Prospective Repeals of Education Property Tax and Adequate Education Grant Determination Provisions. The following are repealed:

I. 1999, 338:21, relative to the repeal of RSA 76:3, RSA 198:40, and RSA 198:41.

158:85 Fiscal Year 2001 School Building Aid Payments. Notwithstanding RSA 198:15-e, the state shall provide the sum of $2,000,000 which shall be used to fund 100 percent of school building aid payments to be disbursed to the school districts of the state in fiscal year 2001.

158:86 Appropriation. The sum of $2,000,000 for the fiscal year ending June 30, 2001 is hereby appropriated to the department of education for the purpose of providing 100 percent funding of school building aid payments for fiscal year 2001. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

158:87 Classified Salaries; December 28, 2001. RSA 99:1-a is repealed and reenacted to read as follows:

99:1-a Salaries Established. The salary ranges for all classified state employees commencing December 28, 2001, shall be established as follows:

1 14,839.50 15,268.50 15,717.00 16,185.00 16,692.00 17,218.50 17,706.00 18,213.00

2 15,268.50 15,717.00 16,185.00 16,692.00 17,218.50 17,706.00 18,213.00 18,759.00

3 15,717.00 16,185.00 16,692.00 17,218.50 17,706.00 18,213.00 18,759.00 19,344.00

4 16,185.00 16,692.00 17,218.50 17,706.00 18,213.00 18,759.00 19,344.00 20,728.50

5 16,692.00 17,218.50 17,706.00 18,213.00 18,759.00 19,344.00 20,728.50 21,528.00

6 17,218.50 17,706.00 18,213.00 18,759.00 19,344.00 20,728.50 21,528.00 22,366.50

7 17,706.00 18,369.00 19,149.00 19,929.00 20,728.50 21,528.00 22,366.50 23,322.00

8 18,369.00 19,149.00 19,929.00 20,728.50 21,528.00 22,366.50 23,322.00 24,238.50

9 19,149.00 19,929.00 20,728.50 21,528.00 22,366.50 23,322.00 24,238.50 25,213.50

10 19,929.00 20,728.50 21,528.00 22,366.50 23,322.00 24,238.50 25,213.50 26,227.50

11 20,728.50 21,528.00 22,366.50 23,322.00 24,238.50 25,213.50 26,227.50 27,319.50

12 21,528.00 22,366.50 23,322.00 24,238.50 25,213.50 26,227.50 27,319.50 28,587.00

13 22,366.50 23,322.00 24,238.50 25,213.50 26,227.50 27,319.50 28,587.00 29,776.50

14 23,322.00 24,238.50 25,213.50 26,227.50 27,319.50 28,587.00 29,776.50 31,102.50

15 24,238.50 25,291.50 26,344.50 27,456.00 28,587.00 29,776.50 31,102.50 32,409.00

16 25,291.50 26,344.50 27,456.00 28,587.00 29,776.50 31,102.50 32,409.00 33,832.50

17 26,344.50 27,456.00 28,587.00 29,776.50 31,102.50 32,409.00 33,832.50 35,256.00

18 27,456.00 28,587.00 29,776.50 31,102.50 32,409.00 33,832.50 35,256.00 36,777.00

19 28,587.00 29,776.50 31,102.50 32,409.00 33,832.50 35,256.00 36,777.00 38,356.50

20 29,776.50 31,102.50 32,409.00 33,832.50 35,256.00 36,777.00 38,356.50 40,365.00

21 31,102.50 32,409.00 33,832.50 35,256.00 36,777.00 38,356.50 40,365.00 42,159.00

22 32,409.00 33,832.50 35,256.00 36,777.00 38,356.50 40,365.00 42,159.00 44,050.50

23 33,832.50 35,334.00 36,933.00 38,610.00 40,365.00 42,159.00 44,050.50 46,059.00

24 35,334.00 36,933.00 38,610.00 40,365.00 42,159.00 44,050.50 46,059.00 48,126.00

25 36,933.00 38,610.00 40,365.00 42,159.00 44,050.50 46,059.00 48,126.00 50,290.50

26 38,610.00 40,365.00 42,159.00 44,050.50 46,059.00 48,126.00 50,290.50 52,533.00

27 40,365.00 42,159.00 44,050.50 46,059.00 48,126.00 50,290.50 52,533.00 54,931.50

28 42,159.00 44,050.50 46,059.00 48,126.00 50,290.50 52,533.00 54,931.50 57,934.50

29 44,050.50 46,059.00 48,126.00 50,290.50 52,533.00 54,931.50 57,934.50 60,703.50

30 46,059.00 48,126.00 50,290.50 52,533.00 54,931.50 57,934.50 60,703.50 63,550.50

31 48,126.00 50,407.50 52,845.00 55,263.00 57,934.50 60,703.50 63,550.50 66,592.50

32 50,407.50 52,845.00 55,263.00 57,934.50 60,703.50 63,550.50 66,592.50 69,634.50

33 52,845.00 55,263.00 57,934.50 60,703.50 63,550.50 66,592.50 69,634.50 72,676.50

34 55,263.00 57,934.50 60,703.50 63,550.50 66,592.50 69,634.50 72,676.50 75,718.50

35 57,934.50 60,703.50 63,550.50 66,592.50 69,634.50 72,676.50 75,718.50 78,760.50

The salary ranges provided herein for academic positions shall apply to those state employees in academic positions who work for an academic year which does not exceed 180 working days. Those academic employees working more than an academic year shall receive a pro rata increase in their salary based upon the number of additional working days per year. The intent of this section is to adjust the salaries of employees in academic positions. It is not intended to cause changes in academic work schedules.

158:88 Classified Salaries; December 27, 2002. RSA 99:1-a is repealed and reenacted to read as follows:

99:1-a Salaries Established. The salary ranges for all classified employees commencing December 27, 2002 shall be established as follows:

1 15,132.00 15,580.50 16,029.00 16,516.50 17,023.50 17,569.50 18,057.00 18,583.50

2 15,580.50 16,029.00 16,516.50 17,023.50 17,569.50 18,057.00 18,583.50 19,129.50

3 16,029.00 16,516.50 17,023.50 17,569.50 18,057.00 18,583.50 19,129.50 19,734.00

4 16,516.50 17,023.50 17,569.50 18,057.00 18,583.50 19,129.50 19,734.00 21,138.00

5 17,023.50 17,569.50 18,057.00 18,583.50 19,129.50 19,734.00 21,138.00 21,957.00

6 17,569.50 18,057.00 18,583.50 19,129.50 19,734.00 21,138.00 21,957.00 22,815.00

7 18,057.00 18,739.50 19,539.00 20,319.00 21,138.00 21,957.00 22,815.00 23,790.00

8 18,739.50 19,539.00 20,319.00 21,138.00 21,957.00 22,815.00 23,790.00 24,726.00

9 19,539.00 20,319.00 21,138.00 21,957.00 22,815.00 23,790.00 24,726.00 25,720.50

10 20,319.00 21,138.00 21,957.00 22,815.00 23,790.00 24,726.00 25,720.50 26,754.00

11 21,138.00 21,957.00 22,815.00 23,790.00 24,726.00 25,720.50 26,754.00 27,865.50

12 21,957.00 22,815.00 23,790.00 24,726.00 25,720.50 26,754.00 27,865.50 29,152.50

13 22,815.00 23,790.00 24,726.00 25,720.50 26,754.00 27,865.50 29,152.50 30,381.00

14 23,790.00 24,726.00 25,720.50 26,754.00 27,865.50 29,152.50 30,381.00 31,726.50

15 24,726.00 25,798.50 26,871.00 28,002.00 29,152.50 30,381.00 31,726.50 33,052.50

16 25,798.50 26,871.00 28,002.00 29,152.50 30,381.00 31,726.50 33,052.50 34,515.00

17 26,871.00 28,002.00 29,152.50 30,381.00 31,726.50 33,052.50 34,515.00 35,958.00

18 28,002.00 29,152.50 30,381.00 31,726.50 33,052.50 34,515.00 35,958.00 37,518.00

19 29,152.50 30,381.00 31,726.50 33,052.50 34,515.00 35,958.00 37,518.00 39,117.00

20 30,381.00 31,726.50 33,052.50 34,515.00 35,958.00 37,518.00 39,117.00 41,164.50

21 31,726.50 33,052.50 34,515.00 35,958.00 37,518.00 39,117.00 41,164.50 42,997.50

22 33,052.50 34,515.00 35,958.00 37,518.00 39,117.00 41,164.50 42,997.50 44,928.00

23 34,515.00 36,036.00 37,674.00 39,390.00 41,164.50 42,997.50 44,928.00 46,975.50

24 36,036.00 37,674.00 39,390.00 41,164.50 42,997.50 44,928.00 46,975.50 49,081.50

25 37,674.00 39,390.00 41,164.50 42,997.50 44,928.00 46,975.50 49,081.50 51,304.50

26 39,390.00 41,164.50 42,997.50 44,928.00 46,975.50 49,081.50 51,304.50 53,586.00

27 41,164.50 42,997.50 44,928.00 46,975.50 49,081.50 51,304.50 53,586.00 56,023.50

28 42,997.50 44,928.00 46,975.50 49,081.50 51,304.50 53,586.00 56,023.50 59,085.00

29 44,928.00 46,975.50 49,081.50 51,304.50 53,586.00 56,023.50 59,085.00 61,912.50

30 46,975.50 49,081.50 51,304.50 53,586.00 56,023.50 59,085.00 61,912.50 64,818.00

31 49,081.50 51,421.50 53,898.00 56,374.50 59,085.00 61,912.50 64,818.00 67,918.50

32 51,421.50 53,898.00 56,374.50 59,085.00 61,912.50 64,818.00 67,918.50 71,019.00

33 53,898.00 56,374.50 59,085.00 61,912.50 64,818.00 67,918.50 71,019.00 74,119.50

34 56,374.50 59,085.00 61,912.50 64,818.00 67,918.50 71,019.00 74,119.50 77,220.00

35 59,085.00 61,912.50 64,818.00 67,918.50 71,019.00 74,119.50 77,220.00 80,320.50

158:89 Salary Wages for Councilors and Commissioners; December 28, 2001. RSA 94:1-a, II is repealed and reenacted to read as follows:

II. The salary wages for the positions set forth below shall be as follows commencing

158:90 Salary Wages for Councilors and Commissioners; December 27, 2002. RSA 94:1-a, II is repealed and reenacted to read as follows:

II. The salary wages for the positions set forth below shall be as follows commencing

158:91 Classified Increases; December 28, 2001. RSA 99:3 is repealed and reenacted to read as follows:

99:3 Increase in Salary. Notwithstanding the provisions of RSA 273-A or any other provision of law to the contrary, classified employees of the state as of December 28, 2001, shall be placed in the corresponding steps in the new salary ranges as their length of service justifies and their salaries shall be in accordance with the salary scales set forth in RSA 99:1-a, provided that any employee in classified service on December 28, 2001 shall be placed in a labor grade that is one number higher than the labor grade in which such person had been placed as of December 27, 2001. Notwithstanding any other provision of law, any legislative enactment in effect on December 28, 2001 designating a person or position at a specific labor grade shall hereby be deemed amended as designating such person or position at a labor grade that is one number higher than the labor grade in which such person had been designated by such enactment as of December 27, 2001. The provisions hereof shall not be construed as affecting so-called longevity payments which shall be in addition to the regular salary scale.

158:92 Classified Increases; December 27, 2002. RSA 99:3 is repealed and reenacted to read as follows:

99:3 Increase in Salary. Notwithstanding the provisions of RSA 273-A or any other provision of law to the contrary, classified employees of the state as of December 27, 2002, shall be placed in the corresponding steps in the new salary ranges as their length of service justifies and their salaries shall be in accordance with the salary scales set forth in RSA 99:1-a. Notwithstanding any other provision of law, any legislative enactment in effect on December 28, 2001 designating a person or position at a specific labor grade shall hereby be deemed amended as designating such person or position at a labor grade that is one number higher than the labor grade in which such person had been designated by such enactment as of December 27, 2001. The provisions hereof shall not be construed as affecting so-called longevity payments which shall be in addition to the regular salary scale.

158:93 Judicial Salaries; December 28, 2001. RSA 491-A:1 is repealed and reenacted to read as follows:

491-A:1 Salaries Established. The salaries for the positions set forth below shall be as follows:

158:94 Judicial Salaries; December 27, 2002. RSA 491-A:1 is repealed and reenacted to read as follows:

491-A:1 Salaries Established. The salaries for the positions set forth below shall be as follows:

158:95 Judicial Employees; December 28, 2001. All judicial employees shall receive 4.25 percent salary increases on December 28, 2001.

158:96 Judicial Employees; December 27, 2002. All judicial employees shall receive 2 percent salary increases on December 27, 2002.

158:97 Legislative Employees; December 28, 2001. Legislative employees shall receive 4.25 percent salary increases effective December 28, 2001, if such increases are approved by the appointing authority.

158:98 Legislative Employees; December 27, 2002. Legislative employees shall receive 2 percent salary increases effective December 27, 2002, if such increases are approved by the appointing authority.

158:99 Manager of Safety, Training, and Injury Prevention; Labor Grade Changed. Amend RSA 281-A:64-b to read as follows:

281-A:64-b Manager of Safety, Training, and Injury Prevention. There is created within the department of labor the classified full-time position of manager of safety, training, and injury prevention who shall be under the direction of the labor commissioner. The position shall be at labor grade [24] 25. The manager shall be responsible for mandatory workplace safety programs and for the development of effective multi-media workplace safety programs which shall be available to all employers.

158:100 Allied Health Professionals; Supervisory Position; Labor Grade Changed. Amend RSA 328-F:3, II to read as follows:

II. The governing boards' chairpersons or their appointees shall make up the board of directors of the office of licensed allied health professionals. The board of directors shall, subject to the rules of the division of personnel, have authority to establish and fill a supervisory position at labor grade [20] 21 and technical and clerical positions to run the office's business in an efficient manner.

158:101 Compensation for Certain State Officers; Unclassified State Employees; December 28, 2001. RSA 94:1-a, I is repealed and reenacted to read as follows:

(b) The salary ranges in subparagraph (a) shall be for the positions set forth in the following grades:

(c)(1) For attorney positions in the department of justice, except for the attorney general and deputy attorney general, the following shall apply commencing on December 28, 2001:

(2) The attorney general shall have the authority to place all attorneys of the department of justice in the appropriate position within the overall range, above, at, or below the market anchor salary. A market anchor designation for a position is the reference point within the overall range to aid in salary management and recruitment when done at a level other than entry level. The attorney general shall consider the following criteria in considering compensation for department attorneys:

(F) Demonstration of an increased frequency of undertaking the type and complexity of work normally associated with the next position level.

(3) Designation of position, salary levels, and salary increases for attorneys in the department of justice shall be determined by the attorney general, subject to approval of the governor and council, within appropriations made to the department of justice. The provisions of RSA 94:3 shall not apply to attorney positions governed by this subparagraph.

158:102 Compensation of State Officers; Unclassified State Employees; December 27, 2002; Two Percent Increase. RSA 94:1-a, I(a) is repealed and reenacted to read as follows:

158:103 New Paragraph; Consulting Contract. Amend RSA 21-I:13 by inserting after paragraph XII the following new paragraph:

XIII. Have the authority to contract with an outside consulting group knowledgeable in the area of employee compensation of state officers, for the purpose of the commissioner's duty under RSA 94:3-b, in an amount not to exceed $20,000 annually. The cost of such contract shall be funded from the salary adjustment fund.

158:104 Department of Justice; Appointment of Positions. Amend RSA 21-M:3, IV and V to read as follows:

IV. The attorney general may designate [~~no more than 10 assistant attorneys general to serve as~~] senior assistant attorneys general. Senior assistant attorneys general [~~shall~~] may serve as bureau chiefs and in such other positions as the attorney general may determine. Senior assistants shall serve in that capacity at the pleasure of the attorney general. Notwithstanding any other provision of law, the positions in this section shall be funded within appropriations made to the department of justice for each biennium and through the salary adjustment fund, as needed.

V. The attorney general [~~shall~~] may designate [~~2 assistant attorneys general to serve as~~] associate attorneys general. Associate attorneys general [~~shall~~] may serve as directors of the divisions of public protection and legal counsel and shall serve in that capacity at the pleasure of the attorney general.

94:3-b Salary Adjustment for Recruitment or Retention. Notwithstanding any other provisions of law to the contrary, upon the request of an appointing authority [~~approved~~] submitted to the commissioner of administrative services for review and evaluation and upon approval by the fiscal committee of the general court, the governor and council is hereby authorized and empowered upon a finding by them that it is in the best interests of the state and is necessary in order to recruit and retain or recruit or retain qualified personnel to increase the salary ranges of unclassified positions.

158:106 Increases in Salary; Other Non-Classified or Unclassified Employees. All other nonclassified or unclassified employees not covered by the provisions for salary increases in this act shall be granted a salary increase of 4.25 percent effective December 28, 2001 and an additional salary increase of 2 percent effective December 27, 2002.

158:107 Authority for New or Omitted Positions or Technical Corrections. The commissioner of the department of administrative services shall have the authority to submit any unclassified positions created in any act which becomes law during the 2001 legislative session or any existing unclassified position omitted from RSA 94:1-a as amended by this act, or technical corrections to agree with the final report of the consultant, after consultation with the consultant on employee compensation for state officers, to the fiscal committee for approval of the proper placement of the unclassified position in the salary structure for state officers.

158:108 Appropriation. The following sums are appropriated from the following sources for the purposes of sections 87-107 of this act for the fiscal years ending June 30, 2002 and June 30, 2003:

The governor is authorized to draw a warrant for said sums out of the appropriate funds.

I. RSA 12-A:4-c, relative to the assistant to the commissioner of resources and economic development.

II. RSA 126-A:9, II(a), relative to establishment of unclassified positions by the commissioner of health and human services.

III. RSA 162-A:5-a, II, relative to the salary of the executive director of the business finance authority.

IV. RSA 260:7, relative to the road toll administrator, financial responsibility administrator, and assistant to the director of motor vehicles.

158:110 New Section; New Hampshire Retirement System; Payment by Retirement System-Group I; Amend RSA 100-A by inserting after section 52-a the following new section:

(a) Any person, who has at least 20 years of creditable service as a group I member if age 60 or older, or at least 30 years of creditable service as a group I member if age 55-59, retired on or before July 1, 2004 as a group I member of the New Hampshire retirement system on service or ordinary disability retirement, provided that such person shall be entitled to retirement on the basis of group I creditable service, or any person retired on or before July 1, 2004, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 20 years of creditable service as a group I member.

(b) Any person who has completed no less than 20 years of group I creditable service, but who for reasons other than retirement or death ceased to be a group I member prior to attaining the age of 60, and who, as of July 1, 2004, receives a vested deferred retirement allowance and who subsequently attains the age of 60.

(c) Any person who has completed no less than 20 years of group I creditable service and who retired as a group I member prior to age 60, and who subsequently attains the age of 60, or any person who has completed no less than 30 years of group I creditable service and who retired as a group I member prior to age 55, and who subsequently attains the age of 55.

(d) The surviving spouse of a deceased retired group I member who met the qualifications of subparagraphs (a), (b) or (c), or of a deceased member who died while in service as a group I member, provided that such surviving spouse was covered as the member's spouse in the employer-sponsored plan before the member's death and is entitled to a monthly allowance under RSA 100-A:8, 100-A:9, or 100-A:13.

(e) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member's spouse, or the qualified surviving spouse.

(f) The surviving spouse and children of a deceased group I member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:

(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and

(2) Such surviving spouse shall cease to be qualified upon the remarriage of the surviving spouse; and

(g) Any group I member retired on or before July 1, 2004 on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty.

II. Notwithstanding the provision of RSA 100-A:4, III-b, for the purpose of calculating creditable service for eligibility for medical benefits payment under paragraph I, each full year of job-sharing service of a teacher in a job-sharing position shall be calculated at 1/2 of one year of such service credit.

III. However, for the fiscal year beginning July 1, 2000, 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, and on account of each person qualified under paragraph I who is entitled to medicare benefits, shall be the same as the amount provided in RSA 100-A:52, II for group II retirees. As of July 1, 2000 and on each July 1 thereafter, the maximum amount payable by the retirement system as provided in this paragraph shall be increased by 8 percent, compounded on previous increases.

IV. In the case of group I members retired from employment by political subdivisions of the state, the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided through the former employer for qualified persons. If the cost of the premium for any eligible person under paragraph I shall exceed the maximum under paragraph III, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.

V. As of January 1, 2002, in the case of group I members retired from state employment before July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the balance shall be paid by the state as provided in RSA 21-I:26-36.

VI. As of January 1, 2002, in the case of group I members retired from state employment on or after July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the state shall pay its portion as provided in RSA 21-I:26-36. If the cost of the premium for any retired group I member and spouse, surviving spouse, or any other person entitled to benefits under paragraph I shall exceed the maximum under paragraph III, and the state does not elect to pay the excess cost above the amount to be paid under RSA 21-I:26-36, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The state may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.

VII. There shall be no age limit to participate in the employer sponsored medical and health plan provided in paragraph I, and there shall be no physical examination or health statement required for such coverage, provided, however, that if an eligible retired group I member of the retirement system fails to apply for such coverage within the time required by the insurance contract, the insurer may require satisfactory evidence of insurability as a condition for becoming insured.

VIII. Any group I teacher member retired before January 1, 2000, or other eligible person under paragraph I, who would have been eligible for medical benefits under this section if this section had been in effect on the member's date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member's former employer and of receiving benefits under this section, provided that such eligible person shall apply to the employer for such benefits before January 1, 2002. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer's plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer's group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.

IX. Any group I political subdivision employee member retired before January 1, 2001, or other eligible person under paragraph I, who would have been eligible for medical benefits under this section if this section had been in effect on the member's date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member's former employer and of receiving benefits under this section, provided that such eligible person shall apply to the employer for such benefits before January 1, 2003. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer's plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer's group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.

X. The retirement system shall notify all group I teacher and political subdivision employee retirees and surviving spouse beneficiaries, who are currently drawing monthly allowances from the retirement system, of their possible right to re-join and active-employee medical insurance or health plan and to receive benefits under this section.

XI. Any person who is eligible to receive group insurance or other medical benefits under the provisions of this section, but who does not need and who declines such benefits because they would be duplicative of coverage under any employer-sponsored plan, shall nevertheless continue to be eligible and, upon ceasing to be eligible for the other coverage, shall be permitted to receive the benefits allowable under this section without any waiting period.

158:111 New Section; New Hampshire Retirement System; Method of Financing; Group I State Employees. Amend RSA 100-A by inserting after section 53-c the following new section:

I. The benefits provided under RSA 100-A:52-b shall be provided by a 401(h) subtrust of the New Hampshire retirement system. The 401(h) subtrust shall be funded by allocating 25 percent of future group I state employer contributions made for group I state employees in accordance with RSA 100-A:16 to the subtrust until such time as the benefits are fully funded. Thereafter, the subtrust shall receive only that portion of each year's contribution as is necessary to keep the benefits fully funded.

II. All contributions made to the retirement system to provide medical benefits under RSA 100-A:52-b shall be maintained in a separate account, the 401(h) subtrust. All funds and accumulated interest shall not be used for or diverted to any purpose other than to provide said medical benefits. Similarly, none of the funds accumulated to provide the retirement benefits set forth in this chapter may be used or diverted to provide medical benefits under RSA 100-A:52-a. The funds, if any, providing medical benefits under RSA 100-A:52-b may be invested pursuant to the provisions of RSA 100-A:15.

158:112 New Paragraph; New Hampshire Retirement System; Medical Benefits; Application. Amend RSA 100-A:55 by inserting after paragraph I-b the following new paragraph:

I-c. It is the intent of the legislature that future group I state employee members eligible after July 1, 2004 shall be included under the provisions of RSA 100-A:52-b only if the total cost of such inclusion can be terminally funded from the special account established in RSA 100-A:16, II (h).

158:113 Contingency. If SB 111-FN of the 2001 legislative session becomes law, then sections 110 and 111 of this act shall take effect 60 days after the effective date of SB 111-FN and section 112 of this act shall take effect January 1, 2002 and sections 8-10 of this act shall not take effect. If SB 111-FN of the 2001 legislative session does not become law, then sections 8 and 9 of this act shall take effect 60 days after the passage of this act and section 10 of this act shall take effect January 1, 2002 and sections 110-112 of this act shall not take effect.

I. Sections 46, 50-59, 63, 71, 72, and 84 of this act shall take effect 60 days after its passage.

II. Sections 34, 35, 38-42, 48, 64, 85, 86 and 113 of this act shall take effect upon its passage.

IV. Sections 8-10 and 110-112 of this act shall take effect as provided in section 113 of this act.

VIII. Sections 87, 89, 91, 93, 95, 97, 99, 100, 101, and 103-109 of this act shall take effect December 28, 2001.

IX. Sections 88, 90, 92, 94, 96, 98, and 102 of this act shall take effect December 27, 2002.

XI. The remainder of this act shall take effect July 1, 2001.

(Approved: Enacted in accordance with Article 44, Part II of N.H. Constitution, without signature of the Governor, July 5, 2001)

(Effective Date: I. Sections 46, 50-59, 63, 71, 72, and 84 shall take effect September 3, 2001.

II. Sections 34, 35, 38-42, 48, 64, 85, 86 and 113 shall take effect July 5, 2001.

VIII. Sections 87, 89, 91, 93, 95, 97, 99, 100, 101, and 103-109 shall take effect December 28, 2001.

IX. Sections 88, 90, 92, 94, 96, 98, and 102 shall take effect December 27, 2002.