HB 0608

CHAPTER 241

HB 608-FN-LOCAL - FINAL VERSION

AN ACT reducing the education property tax rate and relative to the calculation of adequate education grants.

SPONSORS: Rep. Hess, Merr 37; Rep. Kurk, Hills 48; Sen. O'Hearn, Dist 12; Sen. Clegg, Dist 14

I. Provides that the calculation of the statewide cost of an adequate education shall be indexed to the northeast regional consumer price index for all urban consumers.

II. Reduces the education property tax rate from $5.80 to $4.92 for the 2004 fiscal year and from $4.92 to $3.24 for the 2005 fiscal year, and establishes a formula for calculating the tax rate for the 2006 fiscal year and thereafter.

III. Changes the payment for transportation costs for fiscal year 2004 to include 100 percent of the total cost of transporting pupils in kindergarten through grade 8 to and from school.

IV. Changes the definition of average daily membership in residence for the purpose of calculating state aid for educational adequacy.

V. Provides $10,000,000 for targeted education grants which shall be made to municipalities in the 2004 fiscal year.

VI. Beginning July 1, 2005, establishes a new education funding formula for municipalities and sets forth criteria whereby municipalities may receive local equalized aid, targeted per pupil aid, and state enhanced education aid for pupils in the public schools.

VII. Beginning July 1, 2005, establishes a new procedure for determining the statewide cost of an adequate education.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT reducing the education property tax rate and relative to the calculation of adequate education grants.

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

I. The general court recognizes the inherent imprecision and subjectivity involved in determining the cost of providing the opportunity for an adequate education. In the exercise of its constitutional authority and discretion, to provide the opportunity for pupils to obtain an adequate education, the general court has adopted an average costing methodology. The general court recognizes that this costing methodology may produce spending pressures and results that may not accurately reflect the cost of continuing to provide adequate educational opportunity over time. As a result, the general court finds that changing the base cost per pupil by reference to the consumer price index is the most appropriate way to calculate changes in the cost of an adequate education.

II. The general court further finds that the local portion of the cost of education is primarily funded through a local tax on property. Resident homeowners use personal income to pay their property tax bills. In municipalities that have less industry, and fewer rental properties or vacation homes, resident homeowners bear most of the burden in paying the local property tax. Targeted education grants will assist those municipalities that have less other property and less income in relation to home values in providing additional education services.

241:2 Education Property Tax; Fiscal Year 2004 Rate Reduced. Amend RSA 76:3 to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate of [~~$5.80~~] $4.92 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.

241:3 New Subparagraph; School Money; Definitions. Amend RSA 198:38, VII by inserting after subparagraph (d) the following new subparagraph:

(e) Each pupil who is home educated pursuant to a program approved under RSA 193-A shall be added as follows:

(1) 0.1 for each home educated pupil participating in a public school activity; and

(2) An additional 0.15 for each academic course taken in a public school, provided that no co-curricular activity, as defined by the department of education, shall count as an academic course under this subparagraph.

241:4 Consumer Price Index Adjustments to the Base Cost Per Pupil Calculation. For the 2004 fiscal year, the base cost per pupil shall be adjusted by the average annual percentage rate of inflation for the 4 immediately preceding calendar years.

241:5 School Money; Determination of Per Pupil Adequate Education Cost and Adequate Education Grant. Amend RSA 198:40, III to read as follows:

III. For [~~each~~] the 2004 fiscal year, the statewide cost of an adequate education for all pupils shall be calculated by multiplying the average base per pupil cost of an adequate education by the statewide weighted average daily membership in residence of pupils and then adding [70] 100 percent of [~~total statewide~~] transportation costs as defined in RSA 198:38, XI.

241:6 School Money; State Aid for Educational Adequacy. Amend RSA 198:38, XI to read as follows:

XI. "Transportation costs" means the [~~costs~~] cost of transporting pupils in kindergarten through grade 8, except for educationally disabled children as defined in RSA 186-C:2, I, to and from school [~~and other school activities~~] as reported by school districts on the [~~MS-25~~] DOE-25 form.

241:7 School Money; Determination of Adequate Education Grants. Amend RSA 198:41, I(b) to read as follows:

(b) Add to the product of subparagraph (a), [70] 100 percent of the municipality's apportioned transportation [~~cost~~] costs as defined in RSA 198:38, XI;

241:8 New Section; Targeted Education Grants. Amend RSA 198 by inserting after section 45 the following new section:

(a) "Median family income" and "median home value" shall be as defined in the most recent census data published for New Hampshire counties and municipalities by the United States Census Bureau, United States Department of Commerce. County values shall be used for unincorporated places not reported in the census data.

(b) "Total equalized valuation" shall mean the most recent available total equalized valuation, including utilities and railroads, as determined by the department of revenue administration.

(c) "Adjustment percentage" shall mean the percentage which will result in a total targeted education grant distribution in a fiscal year that will match, as nearly as possible without exceeding, the appropriation in such fiscal year for targeted education grants.

II. The department of education shall annually calculate each municipality's targeted education grant as set forth in this paragraph.

(a) The department of education shall calculate the statewide average per pupil target amount as follows:

(3) Multiply the result by the statewide total equalized valuation and divide the product by the statewide average daily membership in residence. The result shall be the statewide average per pupil target amount.

(4) Multiply the statewide average per pupil target amount by 2 and multiply the result by the adjustment percentage.

(b) The department of education shall calculate the local valuation per pupil as follows:

(1) Multiply the average median family income in the municipality by 0.5 percent; and

(3) Multiply the result by the total equalized valuation in the municipality and divide the product by the average daily membership in residence in the municipality. The result shall be the local per pupil amount.

(c) The department of education shall subtract the amount obtained in subparagraph (b) from the amount obtained in subparagraph (a) and multiply the difference by the adjustment percentage. The result, if greater than zero, shall be multiplied by the average daily membership in residence in the municipality and shall be distributed to the municipality as a targeted education grant.

III. The sum of $10,000,000 for the 2004 fiscal year, shall be appropriated to the education trust fund established in RSA 198:39 for the purpose of providing targeted education grants to school districts. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.

IV. Targeted education grants made under this section shall be distributed in accordance with RSA 198:42.

241:9 School Boards, Teachers; Definitions Amended. RSA 189:1-d is repealed and reenacted to read as follows:

I. "Attendance" means full-time participation in a program of instruction under the direction of a teacher employed by the school district. Educationally disabled home educated pupils educated at school district expense under the direction of a teacher employed by the school district shall be included.

II. "Membership" means pupils of whom attendance is expected, whether a pupil is present or absent on any given day.

III. "Average daily membership in attendance" means the aggregate half-day membership of pupils attending schools operated by a school district divided by the number of half-days of instruction offered. The average daily membership in attendance for preschool and kindergarten pupils shall be divided by the number of instructional days offered to higher-level elementary grades.

IV. "Average daily membership in residence" means the average daily membership in attendance of pupils who are legal residents of the school district pursuant to RSA 193:12 or RSA 193:27, IV and are attending any public school, or who are attending any charter school or private school program approved by the department of education at the expense of the school district.

I. Previously, state funding of education has relied primarily on a formula establishing a base cost per pupil, which was then distributed to school districts based on the number of pupils. The general court is adopting an alternative approach in order to account for the diversity of communities present in our state. The general court is the branch of government that is closest to the people, and the branch of government that most clearly understands the specific local factors that support or hinder local efforts to administer schools. Specifically, the general court finds family income, family educational achievement, the existence of crime, existing educational infrastructure, as well as intangible factors such as social capital, affect the ability of local schools to provide educational opportunity to their students. The general court finds that local property values reflect these factors.

II. Accordingly, in order to ensure that all local school districts provide pupils with an opportunity to acquire an adequate education the general court, in the exercise of its broad discretion, adopts this education funding distribution formula that expressly recognizes the difficulties faced by communities with low property values. Accordingly, the general court has determined that the most equitable method to provide educational opportunity to our children is to target aid to those communities with low property values. The general court has further determined that targeting additional aid to those districts that face challenges related to poverty, the provision of special education services, and the need for English as a second language instruction, is the most appropriate manner in which to provide educational opportunities.

241:11 Statewide Enhanced Education Tax. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Statewide Enhanced Education Tax. An annual statewide enhanced education tax at the uniform rate of $3.24 on each $1,000 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.

241:12 Statewide Enhanced Education Tax. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Statewide Enhanced Education Tax. Beginning July 1, 2005, and every fiscal year thereafter, the uniform statewide enhanced education tax rate shall be set at a rate which shall raise $363,677,547 based on the most recent available state equalized valuation, and such rate shall be 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. The commissioner of the department of revenue administration shall set the rate which shall be effective for the fiscal year in which the calculation is made.

241:13 Assessment; Commissioner's Warrant; Commissioner's Report. Amend RSA 76:8 and 76:9 to read as follows:

I. The commissioner of revenue administration shall annually calculate the proportion of statewide enhanced education [~~property~~] tax to be raised by each municipality by multiplying the uniform education property tax rate by the total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII for the preceding year, except property taxable under RSA 82 or RSA 83-F.

II. The commissioner shall issue a warrant under the commissioner's hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess statewide enhanced education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

III. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by the statewide enhanced education [~~property~~] tax, by distributions from the education trust fund under RSA 198:39, or by other revenue sources.

76:9 Commissioner's Report. The commissioner of revenue administration shall report to the governor, the speaker of the house of representatives, the president of the senate, and the commissioner of education each year on or before October 1, a statement of the statewide enhanced education [~~property~~] tax warrants to be issued for the tax year commencing April 1 of the succeeding year.

83-F:9 Exemption From [~~State~~] Statewide Enhanced Education [~~Property~~] Tax. Persons and property subject to taxation under this chapter shall not be subject to tax under RSA 76:3; provided, however, that nothing in this chapter shall be construed to exempt such persons or property from local school, municipal, district, or county taxation under RSA 76.

241:15 School Money; Education Trust Fund. Amend the introductory paragraph of RSA 198:39, I to read as follows:

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities' school districts pursuant to RSA 198:42, and to provide statewide enhanced education [~~property~~] tax hardship relief under RSA [~~198:55~~] 198:61. The state treasurer shall deposit into this fund immediately upon receipt:

241:16 School Money; Education Trust Fund. Amend RSA 198:39, I(g) to read as follows:

(g) The full amount of excess statewide enhanced education [~~property~~] tax payments from the department of revenue administration pursuant to RSA 198:46.

241:17 State Aid for Educational Adequacy; Definitions. RSA 198:38 is repealed and reenacted to read as follows:

II. "School district" means school district as defined in RSA 194:1 or RSA 195:1.

III. "Elementary school" means a school with any of the grades kindergarten through 8.

VI. "Educationally disabled child" or "educationally disabled pupil" means an educationally disabled child as defined in RSA 186-C:2, I.

VII. "Average daily membership in attendance" means average daily membership in attendance as defined in RSA 189:1-d, III.

VIII. "Average daily membership in residence" and "resident pupils" mean the average daily membership in residence as defined in RSA 189:1-d, IV, except that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day. Children who are home schooled pursuant to a home education program approved by the department in accordance with RSA 193-A shall not be included in this definition.

IX. "Transportation cost" means the cost of transporting pupils in grades kindergarten through grade 8 to and from school as reported by school districts on the DOE-25 form.

X. "Pupils eligible for free or reduced-price meals" means pupils in a school district in grades 1 through 12 who are eligible to receive free or reduced-price meals.

XI. "Calculated rate" means the total revenue raised statewide by the local education tax multiplied by 1,000, and then divided by the total statewide equalized valuation.

241:18 State Aid for Educational Adequacy; Local Equalization Aid; Per Pupil Valuation. RSA 198:40 is repealed and reenacted to read as follows:

198:40 Local Equalization Aid. Beginning July 1, 2004, and every fiscal year thereafter, local equalization aid shall be calculated by the department as follows:

I. The total statewide equalized valuation of all municipalities including utilities, as determined by the department of revenue administration, shall be divided by the total statewide average daily membership in residence. The result shall be the statewide average equalized valuation per pupil.

II. The equalized valuation of all property in a municipality including utilities, as determined by the department of revenue administration, shall be divided by the average daily membership in residence in the municipality. The result shall be the local equalized valuation per pupil.

III. Eligibility for local equalization aid under this paragraph shall be determined as follows:

(a) If a municipality's local equalized valuation per pupil as calculated in paragraph II is equal to, or greater than, the statewide average equalized valuation per pupil as calculated in paragraph I, no local equalization aid shall be available.

(b) If a municipality's local equalized valuation per pupil as calculated in paragraph II is less than the statewide average equalized valuation per pupil as calculated in paragraph I, the municipality shall be entitled to receive local equalization aid in an amount equal to the following: subtract the local equalized valuation per pupil as calculated in paragraph II from the statewide average equalized valuation per pupil as calculated in paragraph I. This amount shall be multiplied by the calculated rate, and the product shall be divided by 1,000. The result shall be multiplied by the average daily membership in residence in such municipality and shall be available to a municipality as local equalization aid.

241:19 New Sections; Targeted Per Pupil Aid; State Enhanced Education Aid. Amend RSA 198 by inserting after section 40 the following new sections:

I. A municipality with a local equalized valuation per pupil as calculated in RSA 198:40, II, which is less than or equal to 200 percent of the statewide average equalized valuation per pupil, as calculated in RSA 198:40, I, shall be eligible to receive targeted per pupil aid for such municipality's transportation costs as reported on the DOE-25 form, and for such municipality's educationally disabled pupils, pupils eligible for free or reduced-price meals, and English for speakers of other languages which shall be determined by multiplying the statewide average equalized valuation per pupil, as calculated in RSA 198:40, I, by the calculated rate. The product shall be divided by 1,000 resulting in a per pupil amount which shall be available to a municipality as follows:

(a) The per pupil amount calculated in paragraph I shall be multiplied by the average daily membership in residence of educationally disabled pupils in the municipality. This amount shall be available as targeted aid for educationally disabled pupils in the municipality.

(b)(1) For the 2005 fiscal year, the per pupil amount calculated in paragraph I, less $300, shall be multiplied by the average daily membership in residence eligible to receive a free or reduced-price meal in grades 1 through 12 in the school district. This amount shall be available as targeted aid for pupils eligible to receive free or reduced-price meals in the municipality.

(2) For the 2006 fiscal year and every fiscal year thereafter, the per pupil amount calculated in paragraph I shall be multiplied by the average daily membership in residence eligible to receive a free or reduced-price meal in grades 1 through 12 in the school district. This amount shall be available as targeted aid for pupils eligible to receive free or reduced-price meals in the municipality.

(c) The per pupil amount calculated in paragraph I shall be multiplied by the average daily membership in attendance receiving English for speakers of other languages services in the municipality. This amount shall be available as targeted aid for pupils in the municipality receiving English for speakers of other languages. In this subparagraph "average daily membership in attendance" shall be as defined in RSA 189:1-d, III.

(d) A municipality eligible to receive targeted per pupil aid under this paragraph shall also receive 100 percent of transportation costs in such municipality.

II. A municipality with a local equalized valuation per pupil, as calculated in RSA 198:40, II, which is greater than 200 percent of the statewide average equalized valuation per pupil as calculated in RSA 198:40, I shall not receive targeted per pupil aid under this section.

198:40-b State Enhanced Education Aid. Beginning July 1, 2004, and every fiscal year thereafter, state enhanced education aid shall be calculated by the department as follows:

I. Divide the total statewide equalized valuation of all municipalities excluding utilities, as determined by the department of revenue administration, by the total statewide average daily membership in residence. The result shall be the statewide average equalized valuation per pupil.

II. Divide the equalized valuation of all property in a municipality excluding utilities, as determined by the department of revenue administration, by the average daily membership in residence in the municipality. The result shall be the local equalized valuation per pupil.

III. Eligibility for state enhanced education aid under this paragraph shall be determined as follows:

(a) If a municipality's local equalized valuation per pupil as calculated in paragraph II is greater than or equal to the statewide average equalized valuation per pupil as calculated in paragraph I, no state enhanced aid shall be available.

(b) If a municipality's local equalized valuation per pupil as calculated in paragraph II is less than the statewide average equalized valuation per pupil as calculated in paragraph I, the municipality shall be entitled to receive state enhanced education aid in an amount equal to the following: subtract the local equalized valuation per pupil as calculated in paragraph II from the statewide average equalized valuation per pupil as calculated in paragraph I. This amount shall be multiplied by the statewide enhanced education tax imposed statewide in the fiscal year in which this calculation is made, and the product shall be divided by 1,000. The result shall be multiplied by the average daily membership in residence in such municipality and shall be available to a municipality as state enhanced education aid.

IV.(a) In any fiscal year, if the amount raised by the statewide enhanced education property tax in any municipality, except an unincorporated place or a town with an average daily membership in residence of one or less, exceeds the amount necessary to fund all local education costs, excluding repayment of bond principal and construction costs, as determined in such municipality's duly adopted school district budget, the excess shall be remitted to the department of revenue administration on or before March 15 of the tax year in which the excess occurs.

(b) The amount of such excess to be remitted shall not include any income derived from the investment of funds by the municipal treasurers under RSA 41:29 and RSA 48:16. Any funds remaining after full payment of the excess tax required in subparagraph (a) shall become available for unrestricted use by the municipality.

(c) The commissioner of the department of revenue administration shall collect from the municipality the excess tax and pay the excess tax over to the state treasurer for deposit in the education trust fund established in RSA 198:39.

(d) The commissioner of the department of revenue administration shall calculate the excess amount owed by each municipality pursuant to subparagraph (a).

V. In any fiscal year, a municipality shall appropriate all state enhanced education aid funds received under this section to pay for local education costs before raising any additional local education tax revenues locally.

I. Beginning July 1, 2004, and every fiscal year thereafter, the total state aid for education shall be determined as follows:

(a) The sum total of all local equalization aid as calculated under RSA 198:40 paid to all municipalities statewide; plus

(b) The sum total of all targeted aid as calculated under RSA 198:40-a paid to all municipalities statewide; plus

II. In each fiscal year, the total aid calculated in paragraph I shall be adjusted by adding the average annual rate of inflation, as measured by the most recent available northeast region consumer price index for all urban consumers as published by the Bureau of Labor Statistics, United States Department of Labor. The resulting sum, expressed as a percentage, shall be added to 100 percent to yield an adjustment factor. The total state aid for education from the immediately preceding year shall be multiplied by the adjustment factor and the product shall be the adjusted total state aid for education.

III. In each fiscal year, the commissioner of the department of revenue administration shall determine, to the nearest cent, the statewide enhanced education tax rate that will match, as nearly as possible without exceeding, the amount raised statewide by the statewide enhanced education tax in fiscal year 2005.

IV. In any fiscal year in which the total state aid for education as calculated under this section would exceed the total state aid for education distributed to municipalities in the immediately preceding fiscal year as adjusted pursuant to paragraph II of this section, the total state aid for education shall be reduced to the amount distributed to municipalities in the immediately preceding fiscal year, as adjusted pursuant to paragraph II of this section, and the amount of the excess shall be deducted from each municipality's state enhanced education aid distributed under RSA 198:40-b on a pro rata basis. If in any fiscal year the total state enhanced education aid distributed to municipalities is insufficient to offset the excess, the remaining excess shall be deducted from each municipality's transportation aid on a pro rata basis.

241:20 Determination of Education Grants. RSA 198:41 is repealed and reenacted to read as follows:

I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the education grant for the municipality by adding all sums received by a municipality under RSA 198:40, RSA 198:40-a, and RSA 198:40-b, and subtracting from this sum the amount of the tax warrant issued by the commissioner of the department of revenue administration reported pursuant to RSA 76:9 for the next tax year.

II. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the education grant for each municipality as the lesser of the two following calculations:

(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

241:21 School Money; Distribution of Education Grants. Amend RSA 198:42, II to read as follows:

II. For the fiscal year beginning July 1, 1999, and every fiscal year thereafter the amount necessary to fund the grants under RSA [~~198:41~~] 198:40-c is hereby appropriated from the education trust fund created under RSA 198:39 to the department of education according to the following formula: from the amount calculated in accordance with RSA [~~198:40, III,~~] 198:40-c, subtract the aggregate amount of the statewide enhanced education [~~property~~] tax warrants to be issued by the commissioner of revenue administration for municipalities reported pursuant to RSA 76:9 for the next tax year. The governor is authorized to draw a warrant from the education trust fund to satisfy the state's obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of [~~adequate~~] education grants.

241:22 Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, III(a) to read as follows:

(a) Owns a homestead or interest in a homestead subject to the statewide enhanced education [~~property~~] tax;

241:23 Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, IV(c) to read as follows:

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

241:24 Excess Education Property Tax Payment; Subdivision Heading Amended. Amend the subdivision heading immediately preceding RSA 198:46 to read as follows:

241:25 Excess Education Property Tax Payment. Amend RSA 198:46, I to read as follows:

I. Municipalities for which the statewide enhanced education [~~property~~] tax exceeds the amount necessary to fund an adequate education determined by RSA [~~198:40~~] 198:40-c shall assess and remit such excess amount to the department of revenue administration on or before March 15 of the tax year in which the excess occurs.

241:26 Excess Education Property Tax Payment; Forms. Amend RSA 198:47 to read as follows:

198:47 Forms. The commissioner shall approve and provide forms relative to the reporting and remitting of excess statewide enhanced education [~~property~~] tax by the municipalities.

241:27 Alternative Kindergarten Programs. Amend RSA 198:48-a, VII-VIII to read as follows:

VII.(a) [~~Upon the effective date of this paragraph, and for~~] For each fiscal year through June 30, 2003, an adequate education grant of $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.

(b) Once pupils enrolled in an approved alternative kindergarten program have been counted in the average daily membership in residence, school districts shall receive, for each such pupil, an adequate education grant calculated in accordance with [~~RSA 198:40 through RSA 198:42~~] RSA 198:41.

VIII. Notwithstanding the provisions of this section, alternative kindergarten programs which were approved and in effect prior to April 29, 1999 may continue to operate and shall continue to receive per pupil adequate education grant amounts in accordance with RSA [~~198:40 through RSA 198:42~~] 198:41.

241:28 Committee Established. There is established a committee to study and make recommendations concerning the method of distribution of education aid under existing law and any additional methods of distribution as may be deemed necessary by the committee.

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

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

241:30 Duties. The committee shall study and make recommendations concerning the method of distribution of education aid under existing law and any additional methods of distribution as deemed necessary by the committee.

241:31 Chairperson; Quorum. 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 house 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.

241:32 Report. 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 15, 2005.

I. If any provision of sections 1-9 of this act is declared to be contrary to the New Hampshire constitution or the applicability thereof to any agency, person, or circumstance is held invalid, then the provisions of sections 10-27 shall take effect immediately upon the determination of such invalidity and shall remain in effect thereafter.

II. If any provision of sections 10-27 of this act is declared to be contrary to the New Hampshire constitution or the applicability thereof to any agency, person, or circumstance is held invalid, then the provisions of sections 1-9 shall take effect immediately upon the determination of such invalidity and shall remain in effect thereafter.

241:34 Repeal. RSA 198:45-a, relative to targeted education grants, as inserted by section 8 of this act, is repealed.

(Approved: Enacted in accordance with Article 44, Part II, N.H. Constitution, without signature of the Governor, July 8, 2003)

II. Section 12 shall take effect July 1, 2005

III. Remainder shall take effect July 1, 2004)