Committee Summary for House Finance Division I (02/21/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:02:58.400 - 12:17:04 PM	General Working Session	Unclear

Unclear: DJ Beton Court, Commissioner of the New Hampshire Insurance Department Information Only00:02:58.400 - 12:17:04 PM; Commissioner DJ Beton Court of the New Hampshire Insurance Department provided an overview of the department's budget and operations during the working session. He highlighted that the department's total budget is approximately $15.5 million, which is self-funded through an assessment on insurance companies based on their written premium in New Hampshire, totaling over $8 billion. He discussed the department's regulatory approach, emphasizing collaboration with the industry due to New Hampshire's small market share. Beton Court also mentioned the department's staffing, noting 88 authorized positions with 8 vacancies, and the unfunding of three positions following a budget reduction exercise mandated by Governor Cunu. He addressed the current 'hard market' in the insurance industry and the department's efforts to balance resource needs without overburdening the industry. Additionally, he mentioned a rebate of $2.6 million to the industry from the previous fiscal year's budget surplus, which would reduce the next year's assessment. The commissioner introduced his team, including Jennifer Smith, Jason Dexter, Ted Perkins, and Amy Doam, and emphasized the department's focus on succession planning and the importance of retaining subject matter experts.
Unclear: Unnamed Representative Information Only00:09:33.440 - 12:23:39 PM; An unnamed representative sought clarification on the $2.6 million rebate mentioned by Commissioner Beton Court. The representative questioned how this rebate would affect the assessments in the upcoming fiscal year, expressing confusion about the increase in expenses and revenue for fiscal year 25. The commissioner explained that the increase in personnel lines was due to filling previously unfilled positions as part of succession planning efforts. He noted that the rebate from the previous fiscal year would reduce the next assessment but could not commit to the exact figure for the upcoming year's surplus. The representative acknowledged the low cost of regulation relative to the total premiums in New Hampshire and expressed difficulty in finding fault with the department's approach.
Unclear: Representative People Information Only00:16:29.440 - 12:30:35 PM; Representative People asked questions regarding specific budget line items, including transfers to OIT and staffing in the financial examination division. Commissioner Beton Court clarified that the increase in transfers to OIT was likely due to personnel costs rather than moving to the cloud, although he was not certain. He also explained the unfunding of positions across different divisions, including fraud and tax units, and reassured that the department still maintains adequate coverage for fraud and examination. He highlighted the ability to bring in outside contractors for examinations, with costs billed directly to the examined companies. Beton Court further detailed the types of examinations conducted by the department, including statutory financial examinations and market conduct exams triggered by consumer complaints.
Unclear: Representative Mik Information Only00:22:26.000 - 12:36:32 PM; Representative Mik discussed the employment compensation budget, specifically highlighting a reduction of about $400,000 in the state flexibility cycle two fund. They noted that the positions associated with this fund have also been eliminated, leading to a significant increase in the overall budget for the upcoming year. They questioned if the budget should be closer to $13 million annually for 2026 and 2027 rather than the proposed $15 million, considering the absence of previous expenses.
Unclear: Unnamed Speaker Information Only00:23:11.400 - 12:37:17 PM; The speaker responded to Representative Mik's concerns about the budget increase, explaining that the increase was partly due to a 12% rise in state employee compensation from the last budget. They also mentioned that the current budget reflects a 4% reduction requested the previous summer and fall, with some adjustments made based on anticipated needs for the next biennium.
Unclear: Unnamed Speaker Information Only00:23:58.880 - 12:38:04 PM; The speaker elaborated on the use of the $393,000 from the consultant line of the Y Flex Grant, which was fully expended on consultant contracts rather than on New Hampshire Insurance Department employees. They confirmed that the grant has been closed.
Unclear: Unnamed Speaker Information Only00:24:45.799 - 12:38:51 PM; The speaker addressed Representative Mik's question about the overall budget increase from $12 million to more than $15 million, explaining that the $15 million figure includes a 4% cut and the non-funding of three to four positions. They clarified that the temporary position was to help transition someone into a new role.
Unclear: Unnamed Speaker Information Only00:26:18.520 - 12:40:24 PM; The speaker confirmed oversight over about 30% of the health insurance market in New Hampshire, excluding Medicare, Medicaid, and self-funded arrangements. They clarified that all fully insured health insurance, including individual, small group, and large group markets, falls under their jurisdiction.
Unclear: Unnamed Speaker Information Only00:27:06.159 - 12:41:12 PM; The speaker noted that the insurance premium tax rate was last changed around 2010, with the motivation being to lower rates to attract more insurance companies to New Hampshire. They mentioned that the competitive market suggests this strategy has been effective.
Unclear: Unnamed Speaker Information Only00:27:51.440 - 12:41:57 PM; The speaker explained that insurance premium tax revenue and fines go to the general fund, not retained by the department. They mentioned a proposal to retain some fines to offset enforcement division costs, which was not included in the governor's budget.
Unclear: Unnamed Speaker Information Only00:30:10.200 - 12:44:16 PM; The speaker clarified that the department's funding comes from assessments on insurance companies based on the premium they write in New Hampshire. They noted that these assessments fund the department's operations, separate from the insurance premium tax that goes into the general fund.
Unclear: Unnamed Speaker Information Only00:30:56.120 - 12:45:02 PM; The speaker detailed that around 1,300 licensed companies in the state are assessed based on the premiums they write. The assessment is sent out annually in September, and any credits are not money that could have gone to the general fund.
Unclear: Unnamed Speaker Information Only00:31:43.200 - 12:45:49 PM; The speaker explained that the insurance premium tax goes directly to the general fund, with different rates for health insurance (2%) and property casualty (1.25%). They confirmed that fines and enforcement fees also go to the general fund.
Unclear: Unnamed Speaker Information Only00:32:28.440 - 12:46:34 PM; The speaker addressed concerns about auto repair rates and insurance assessments, stating that the department does not typically get involved in rate negotiations between shops and insurance companies. They mentioned an exception where they intervened in a contract negotiation between St. Joseph's Hospital in Nashua and Anthem.
Unclear: Unnamed Speaker Information Only00:34:03.080 - 12:48:09 PM; The speaker discussed the use of aftermarket parts in auto repairs and the department's role in ensuring fair practices. They noted that complaints from independent repair places have stabilized and decreased after a key complainant sold their shop.
Unclear: Unnamed Speaker Information Only00:37:54.160 - 12:52:00 PM; The speaker clarified the calculation of the assessment on insurance companies, which is based on the amount of premium written in New Hampshire. They explained that the assessment rate is adjusted annually to cover the department's budget, and any excess is credited back to the companies.
Unclear: Unnamed Speaker Information Only00:56:25.960 - 1:10:31 PM; The speaker responded to questions about potential funding sources for a proposed home resiliency and mitigation fund, mentioning that they explored using surplus lines registration fees but found them insufficient. They noted that statutory authority would be needed to use assessment funds for such a program.
Unclear: Commissioner George Kadas, Deputy Commissioner Rich Lers, Business Administrator Jill Ruels Information Only01:04:04.079 - 1:18:10 PM; Commissioner Kadas and his team provided an overview of the Department of Employment Security's budget, noting that it is primarily funded by federal grants and a small percentage from employer taxes. They discussed the impact of the pandemic on staffing and unemployment claims, and the department's plans to migrate to a cloud-based system for unemployment benefits.
Unclear: Jay Bucky, Executive Director of the Judicial Council Information Only01:35:37.760 - 1:49:43 PM; Jay Bucky discussed the Judicial Council's responsibilities and budget, highlighting the importance of adequately funding the New Hampshire Public Defender to meet constitutional obligations and manage high case loads effectively. They also mentioned the need for additional financial staff to improve the agency's operations and the increasing costs of assigned counsel, guardians ad litem, and contract counsel.
Unclear: Representative Leishman Information Only01:46:51.840 - 2:00:57 PM; Representative Leishman questioned the difference between the governor's recommended budget and the Judicial Council's recommendation, asking if the council was expected to seek additional funds from the fiscal committee if needed. The response clarified the importance of upfront funding for the public defender due to its contractual nature.
Unclear: Representative Leishman Information Only01:56:18.840 - 2:10:24 PM; Representative Leishman questions the funding for legal services, noting a discrepancy between historical spending and the governor's proposed budget. He highlights that legal services have been underfunded, leading to a reliance on more expensive assigned counsel rather than public defenders. He discusses the economic implications of underfunding and the necessity to provide counsel as per constitutional requirements.
Unclear: Jay Information Only01:57:06.520 - 2:11:12 PM; Jay responds to Representative Leishman, explaining that the current funding proposal might require them to seek additional funds later in the biennium. He also discusses the high percentage of cases that settle versus those that go to trial, and the challenges with public defender staffing and turnover.
Unclear: Representative E Information Only01:57:51.679 - 2:11:57 PM; Representative E discusses the cost-effectiveness of hiring public defenders versus contract attorneys, pointing out the high turnover rate and the need for stable employment conditions. He compares the situation to the hiring of traveling nurses in hospitals, suggesting that proper funding could lead to better financial outcomes.
Unclear: Representative L Information Only02:01:46.639 - 2:15:52 PM; Representative L questions the rationale behind under-hiring attorneys, given the increasing case loads. He argues that hiring to the appropriate level would be a more fiscally responsible decision.
Unclear: Chief Justice Information Only02:05:07.280 - 2:19:13 PM; The Chief Justice presents the judicial branch's budget, highlighting the increase in personnel costs due to COLAs, benefits, and additional staff based on a case load study. He discusses the impact of the governor's budget on their operations, including potential court closures and the need to manage within reduced funding.
Unclear: Representative Ms Information Only02:18:21.080 - 2:32:27 PM; Representative Ms questions the implementation of bail reform and its associated costs, seeking clarity on the budget numbers and the impact of the governor's proposed cuts. He also discusses the potential savings from using magistrates instead of judges.
Unclear: Donna Raymond Information Only02:22:21.240 - 2:36:27 PM; Donna Raymond, the chief finance person for the court, responds to questions about the budget, particularly regarding the costs associated with House Bill 318 and the magistrates. She provides detailed budget figures and discusses the implications of proposed cuts.
Unclear: Representative Le Information Only02:23:55.479 - 2:38:01 PM; Representative Le expresses concerns about the potential closure of specific court houses, such as Claremont, and discusses the broader impact of budget cuts on the judicial system. He questions the governor's awareness of the cuts' impact and the efficiency of the court system.
Unclear: Mark Howard Information Only02:42:24.000 - 2:56:30 PM; Mark Howard, Chief Judge of the Superior Court, explains the case count methodology and the nature of criminal cases, emphasizing that each case requires individual attention regardless of the number of charges.
Unclear: Ellen Christo Information Only02:43:56.800 - 2:58:02 PM; Ellen Christo, the administrative judge of the Circuit Court, provides statistics on the types of cases handled by the circuit court, including criminal and civil cases. She clarifies the role of magistrates and the potential for savings by using them more extensively.
Unclear: Representative Wer Information Only02:37:46.319 - 2:51:52 PM; Representative Wer discusses the possibility of increasing filing fees to offset some of the court's costs and questions the efficiency of the court system compared to other dispute resolution bodies. He also inquires about the feasibility of using more magistrates to reduce costs.
Unclear: Nina Gardner Information Only03:02:16.840 - 3:16:22 PM; Nina Gardner, the chairman of the judicial Council, informs the committee of an error in the judicial Council's budget, noting a discrepancy that would increase their budget from $37 million to $39 million. She emphasizes the importance of this correction for their operations.