Committee Summary for Joint Committee on Dedicated Funds (05/21/2025)

Bill/Time	Type	Title	Sponsor
HB2 00:04:15.519 - 9:03:11 AM	General Working Session	relative to state fees, funds, revenues, and expenditures.	Weyler, Kenneth(R)[B+]2024

HB2: Senator Gray Information Only00:04:15.519 - 9:03:11 AM; Senator Gray discussed an amendment that would allow the governor to manage the dedicated funds, indicating a potential committee of conference if the Senate passes this amendment. This would shift decision-making power from the departments to the governor.
HB2: Chair Information Only00:05:40.720 - 9:04:36 AM; The chair announced the start of the joint committee on dedicated funds meeting, mentioned the replacement of committee members, and outlined the agenda which included hearing from multiple departments and agencies on their dedicated funds.
HB2: Representative Information Only00:09:54.040 - 9:08:50 AM; A representative questioned the clarity on fee increases intended to compensate for the 5% administrative fee on dedicated funds, noting that fee increases in the House version of the budget were not specifically linked to these dedicated funds.
HB2: Representative Molly Oppose00:11:14.399 - 9:10:10 AM; Representative Molly expressed concern that the dedicated funds were being raided without proper consideration, comparing the current situation to the more thorough approach during the Great Recession in 2008.
HB2: Tammy Valancort, Department of Education Information Only00:12:38.800 - 9:11:34 AM; Tammy Valancort, CFO of the Department of Education, requested exemptions for four dedicated fund accounts. She explained that the printing revolving fund is not fee-driven but used for copier expenses, and detailed other funds including teacher certification, vending stand set aside, and public school infrastructure.
HB2: Steve Applebee, Department of Education Information Only00:13:48.560 - 9:12:44 AM; Steve Applebee discussed the teacher certification fund, noting that it is self-funded by fees charged to educators. He mentioned that a 5% administrative fee would result in an immediate fee increase passed on to educators.
HB2: Rich Salo, Department of Education Information Only00:16:11.199 - 9:15:07 AM; Rich Salo explained the vending stand set aside fund, part of the Randall Shepard program, which requires federal approval for any changes to the set aside, complicating the imposition of an administrative fee.
HB2: Kim McKay, New Hampshire Veterans Home Oppose00:21:22.000 - 9:20:18 AM; Kim McKay, along with Paul Lloyd, chairman of the board of managers, requested exemptions for three dedicated funds at the Veterans Home. They argued that these funds, derived from donations, bequests, and veterans' personal income, directly benefit veterans and should not be subject to an administrative fee, as it could deter donations and affect veterans' quality of life.
HB2: Seth Saraki, New Hampshire Banking Department Information Only00:27:52.640 - 9:26:48 AM; Seth Saraki, representing the New Hampshire Banking Department, discussed the consumer credit administration license fund. He emphasized that this fund is used responsibly to manage the operations of the consumer credit division and to keep exam fees low for consumer credit businesses. He argued that applying a 5% administrative charge to this fund would be inconsistent with the statutory framework established in RSA 383:11, IV, which directs the use of the fund to reduce fees collected from consumer credit licensees. Saraki also mentioned that the fund's use has allowed for a reduction in exam fees from a potential $1,431 to $575, and he expressed concerns about the long-term impact of the 5% charge on the fund's sustainability and the ability to keep fees low.
HB2: Kathleen Carr, Department of Justice Information Only00:33:00.440 - 9:31:56 AM; Kathleen Carr, Director of Administration for the Department of Justice, testified about four dedicated funds requesting exemptions from the 5% administrative charge. She detailed the medical legal investigative fund, which covers all death investigations in New Hampshire, funded entirely by fees without general funds, and mentioned the necessity of a fee increase due to rising costs since the last increase in 2007. She also discussed the internet crimes against children fund, which is 100% general funds and supports the Portsmouth Police Department's task force against online predators. Lastly, she described the victim's assistance fund, which supports victims of crime as a payer of last resort and noted that its revenues have not met expenditures in recent years.
HB2: Kathleen Carr, Department of Justice Information Only00:33:00.440 - 9:31:56 AM; Kathleen Carr from the Department of Justice concluded her testimony on dedicated funds before the timestamp provided.
HB2: Unknown Speaker Information Only00:40:21.760 - 9:39:17 AM; The speaker expressed concerns about the number of approved claims, approximately 11,000, each capped at $50,000, with multiple layers of caps. The claims are for crime-related expenses, and they last for the life of the victim but rarely reach the cap. The speaker highlighted the vulnerability to these claims until they are examined for crime-relatedness.
HB2: Unknown Speaker Information Only00:41:13.920 - 9:40:09 AM; The speaker continued discussing the claims, emphasizing they are within the rules and seldom reach the cap. The speaker also mentioned that some of the funding comes from required restitution payments by incarcerated individuals and penalty assessments, mostly from speeding tickets and similar offenses.
HB2: Unknown Speaker Information Only00:42:36.599 - 9:41:32 AM; The speaker discussed the federal equitable sharing fund, which is exempted because its use is strictly regulated by the US Attorney General for the Department of Justice. The fund cannot be used for administrative fees or personnel, only for specific purposes such as hardware and software. The speaker noted that involvement with the federal government in these matters is decreasing.
HB2: Unknown Speaker Information Only00:45:14.400 - 9:44:10 AM; The speaker elaborated on the restrictions of federal funds and mentioned that state forfeitures require reaching a $100,000 mark before funds are allocated to police standards and training. The speaker also clarified that federal funds are strictly for the Department of Justice.
HB2: Amy Newbury, Department of Safety Information Only00:46:23.200 - 9:45:19 AM; Amy Newbury, the Director of Administration at the Department of Safety, discussed five funds they wish to add to the exemption list. The E911 fund, regulated by the FCC, and the watercraft safety fund, regulated by the US Coast Guard, would be adversely affected by a 5% administrative fee. She also mentioned the fire fund, which requires additional funding and would be further strained by the fee. The plate fund supports license plate production and distribution, and the criminal records fund supports fingerprinting equipment, both of which would be impacted by the fee.
HB2: Unknown Speaker Information Only00:52:42.640 - 9:51:38 AM; The speaker continued discussing the funds, mentioning the potential delay in license plate reissuance if the plate fund were subject to the 5% fee. The criminal records fund supports live scan machines for fingerprinting, and the fee would impact the maintenance of these machines.
HB2: Meg Stone, Department of Energy Information Only00:55:51.280 - 9:54:47 AM; Meg Stone from the Department of Energy discussed the energy efficiency fund, which is funded by the auction of carbon allowances. She sought clarification on how the 5% fee would apply to the fund's waterfall distribution, which supports various energy efficiency programs.
HB2: Paul Breen, Pease Development Authority Information Only00:59:33.040 - 9:58:29 AM; Paul Breen, Executive Director of the Pease Development Authority, along with Susie Analone, Director of Finance, discussed the airport fund established under RSA 12G. They argued that applying a 5% fee would be considered airport revenue diversion by the FAA and DoD, conflicting with federal grant obligations. The fund supports operations and capital improvements at the former Pease Air Force Base. Breen explained the financial operations, including the need for a new air traffic control tower and the revenue sources, primarily from ground leases and federal grants.
HB2: Adam Crapo, Department of Environmental Services Information Only01:10:13.640 - 10:09:09 AM; Adam Crapo, Assistant Commissioner at the Department of Environmental Services, along with Sue Carlson, the Chief Operations Officer, discussed nine dedicated funds they wish to exclude from the 5% assessment. These funds include those for hazardous waste cleanup, leaking underground storage tanks, air resources, brownfields, aquatic resources, water pollution control, PAS response, drinking water groundwater trust, and water resources project custodial funds. Each fund's purpose and the potential adverse impact of the fee were explained, emphasizing federal obligations and the funds' intended uses.
HB2: Danielle Chandonet, Director of Finance for DOT Information Only01:22:27.920 - 10:21:23 AM; Danielle Chandonet, Director of Finance for the Department of Transportation (DOT), sought clarification on the language of HB2. She questioned whether the revenues mentioned in the bill referred to new revenues starting in fiscal year 2026 or all existing revenues in the fund. She also discussed four items related to dedicated funds: the highway surplus account, the special railroad fund, a revolving loan fund for class 3 and the COG railway, and the public employee memorial fund. She explained that the highway surplus account is used strictly for highway-related activities, the special railroad fund supports maintenance and repairs on state-owned rails with potential fee increases due to deferred maintenance, the revolving loan fund uses state credit for low-interest loans, and the public employee memorial fund is supported by memorial donations.
HB2: Nathan White, Chief Financial Officer with the Department of Health and Human Services Information Only01:29:36.480 - 10:28:32 AM; Nathan White, Chief Financial Officer with the Department of Health and Human Services, discussed four dedicated accounts that should be considered for exemption under HB2. The first two accounts, the Ryan White HIV/AIDS program and the WIC food rebates program, are federal programs with restrictions on how the funds can be used. The third account, the grant in aid to healthcare providers fund, supports the state loan repayment program and does not generate new revenue. The last account, the public health services special fund, supports the food protection program and has a statutory cap on deposits, with the majority of the revenue coming from restaurant licensing fees.
HB2: Diana Jurus, Executive Director of OPLC Information Only01:34:57.719 - 10:33:53 AM; Diana Jurus, Executive Director of the Office of Professional Licensure and Certification (OPLC), stated that the OPLC is entirely self-funded by a non-lapsing dedicated fund. She highlighted that using any part of the licensing fees for purposes other than regulating the licenses would violate statute 310:52. Additionally, she noted that the health professionals program administration fund, which is currently exempted in HB2, has an incorrect statutory reference that needs to be updated.
HB2: Jason Dexter, Assistant Commissioner, New Hampshire Insurance Department Information Only01:38:53.280 - 10:37:49 AM; Jason Dexter, Assistant Commissioner of the New Hampshire Insurance Department, discussed their dedicated fund under RSA 400-A:39. He highlighted statutory conflicts with HB2, noting that the fund's purpose is solely to operate the insurance department and that any available funds are used to offset the next year's assessment. He also mentioned potential constitutional issues raised by industry regarding the fund being considered a general tax. Additionally, he addressed the issue of motor vehicle record (MVR) fees, noting that they did not observe a decline in industry requests despite the fee increase.
HB2: Richard Levers, Deputy Commissioner with Employment Security Information Only01:46:11.920 - 10:45:07 AM; Richard Levers, Deputy Commissioner with Employment Security, discussed five dedicated funds related to his department. Two funds, the unemployment compensation trust fund and the unemployment compensation and employment services administrative fund, are already exempted under HB2. He focused on the contingent fund, which supports the department's administration and helps maintain low employer tax rates through a waterfall mechanism to the trust fund. He noted that in 2024, about 10.5 million of the fund's revenue supported department operations, while 3.5 million went back to the trust fund. He also mentioned the training fund, which has been discussed previously.
HB2: Richard Levers, Deputy Commissioner with Employment Security Information Only01:46:11.920 - 10:45:07 AM; Richard Levers provided an overview of the training fund, which receives $6 million annually and supports employer-provided training and training for individuals in Medicaid, SNAP, or TANF programs. The unused portion of the fund waterfalls back to the unemployment compensation trust fund. He explained that the fund's revenue varies year-to-year due to changes in unemployment compensation tax rates and the number of employers.
HB2: Unnamed Representative Information Only01:53:56.239 - 10:52:52 AM; An unnamed representative inquired about the absence of the $6 million training fund revenue on a report. Richard Levers confirmed that the statute requires the $6 million allocation to the training fund and any unused portion returns to the unemployment compensation trust fund. He mentioned that last year, about $800,000 was unused and returned.
HB2: Representative Wer Information Only01:57:16.159 - 10:56:12 AM; Representative Wer asked about the lack of detail on fund 98 regarding the waterfalling of funds. Richard Levers explained that there is always an amount that waterfalls back to the trust fund since 2019, and it should be mentioned to provide a complete picture. The representative noted that the report only shows an ending balance of $23,516,780, which seems available for other uses.
HB2: Unnamed Speaker Information Only01:58:14.800 - 10:57:10 AM; An unnamed speaker discussed the New Hampshire paid family medical leave program, which has two new dedicated funds (374 and 375) that stabilize the individual premium for workers unable to get coverage through their employer. The stabilization fund ensures the premium remains at $5 a week. MetLife has not yet requested funds from this stabilization fund, and currently, about 23,000 workers are covered under the program.
HB2: Unnamed Speaker Information Only02:00:48.239 - 10:59:44 AM; The speaker provided statistics on the coverage of the paid family medical leave program, noting that around 23,000 workers are covered, with 8,000 to 9,000 being executive branch employees, 13,000 through their employers, and about 1,500 individuals purchasing coverage independently. This represents approximately 3% of the state's workforce. The speaker also mentioned that advertising funds for the program had been removed from the Department of Administrative Services budget.
HB2: Commissioner Bettencourt Information Only02:01:55.920 - 11:00:51 AM; Commissioner Bettencourt commented on the uptake of the paid family medical leave program, stating that over 20,000 lives insured after two full years of operation exceeded expectations for a new voluntary product.
HB2: Representative W Information Only02:03:01.360 - 11:01:57 AM; Representative W inquired about the state's performance in insurance coverage compared to other states and whether the assessments might drive insurance companies away. The response indicated that unemployment compensation in New Hampshire has a low tax burden, making it attractive to employers, but there was no specific data on insurance company movement due to assessments.
HB2: Dana Mipelli Information Only02:04:39.760 - 11:03:35 AM; Dana Mipelli, representing the Department of Administrative Services (DAS), highlighted accounts created specifically for debt service, noting that if these funds are insufficient, the general fund would have to cover the debt service. She mentioned that any excess funds remain in the accounts until needed for debt service, using the Revenue Information Management System (RIMS) account as an example.
HB2: Dana Mipelli Information Only02:06:50.599 - 11:05:46 AM; Dana Mipelli further explained the revenue stabilization account and pointed out that some funds listed in RSA 612 are not exempted from the 5% assessment, such as those of the Lottery Commission, Fish and Game Department, and others. She clarified that these funds are not included in the dedicated fund reporting but are still subject to the law.
HB2: Unnamed Speaker Information Only02:10:27.440 - 11:09:23 AM; The speaker discussed the complexities of dedicated funds and the challenges in understanding the flow of excess funds and interest. They noted that the Senate is handling the issue differently by sending it to the governor, and expressed skepticism about achieving the expected financial gains from the dedicated funds.