On Tuesday, March 29, at 3:00 p.m. in LOB Room 103, the Senate Transportation Committee will hear testimony on HB 1109, shifting the authority of municipalities to authorize municipal roads for use by OHRVs from the governing body to the legislative body. 

OHRV use on municipal roadways has long been an issue for municipalities, municipal officials, and legislators representing municipalities on or near trails. Several years ago, the rules pertaining to opening up or closing down municipal roads to OHRV use changed. Recognizing that the issue of OHRV use of municipal roads is of serious concern to affected municipalities, the legislature amended RSA 215-A:6, IX to read: 

“Pursuant to RSA 215-A:15, and following a duly noticed public hearing advertised at least 14 days in advance in a public location in the city or town and notification to abutters by verified mail pursuant to RSA 21:53, city or town councils and boards of selectmen may authorize the use of sidewalks and class IV, class V or class VI highways and bridges, or portions thereof, for use by OHRVs.”

HB 1109 as amended by the House keeps the notice and hearing requirements, but shifts the authorizing authority to the legislative body. In relevant part, it says: 

“By a majority vote of the legislative body of a city or town at any legal meeting after notice and hearing, and following notification to abutters by verified mail pursuant to RSA 21:53, a city or town may authorize the use of class IV, class V, and class VI highways for use by OHRVs.” 

NHMA does not have a position on the bill, but we know that this is a contentious local issue and invite our members to contact the Senate Transportation Committee to express their opinion.

There are sixteen bills dealing with the New Hampshire Retirement System (NHRS) this year, and we have analyzed those that would affect municipal employers and employees in past Bulletins.  A variety of bills have an effect on employer contribution rates, create a change in benefits to current members or retirees, or impose a non-compliance penalty for employers who do not file information necessary to process a member’s retirement application in a timely manner. 

On Wednesday, the House Finance Committee held a work session on HB 1417, which proposes to reinstate a portion (7.5 percent) of the state contribution to the local employer’s share of the NHRS cost for teachers, police, and firefighters. This bill would provide an estimated $27.7 million in local relief in fiscal year 2023 alone. Unfortunately, the committee recommended the bill as Inexpedient to Legislate by an 11-10 vote.   

However, based on the close committee vote, which included bipartisan support for the bill, there is still a chance to reverse the committee recommendation when the bill goes to the floor of the House on March 31. Members are encouraged to contact their representatives before Thursday and explain how important the restoration of the state contribution is to local budgets and to taxpayers. With your support, the full House overturned a previous committee vote, and it can be done again. Please ask your representative to vote “no” on the committee recommendation of Inexpedient to Legislate and then vote to pass HB 1417.  

 HB 1535, as originally written, would provide a 1.5 percent cost-of-living-adjustment (COLA) to all NHRS retirees who have been retired at least 5 years by July 1, 2023, on the first $30,000 of the retiree’s annual allowance. The bill was amended to require the state to pay $79.1 million, which is the cost to terminally fund this legislation, taking the burden off municipalities and property taxpayers.  On March 17, the House passed the amended bill and it was referred to the House Finance Committee, where another amendment was introduced.  As amended the bill would now make a one-time payment of $500 to NHRS members who receive a pension under $30,000 and have been retired for 5 years as of July 1, 2022. This bill further authorizes the governor to draw $11.75 million from the state treasury to fund the COLA payment. On Wednesday, an 18-3 vote of the committee recommended the bill as Ought to Pass with Amendment. 

HB 1587 changes the calculation of compensation paid in excess of the full base rate of pay under the definition of Average Final Compensation for Group II members hired on or after July 1, 2011, or who had not attained vested status prior to January 1, 2012. Over the course of this legislative session, several amendments have been proposed to address the middle tier employees who were affected by the changes made to the retirement system over a decade ago. While this bill, as amended, requires the state to terminally fund the proposal through general fund surplus funds from the “current biennium,” we are waiting for a fiscal note to determine whether any increase to the employer contribution rates will result from this legislation. On Wednesday, the House Finance Committee recommended the bill as Ought to Pass with Amendment in a 21-1 vote. 

HB 1318 establishes a penalty for noncompliance for employers who do not submit the information necessary to calculate and finalize member benefits and ensure calculations are correct upon filing a retirement application. NHMA opposes any legislation that assesses a penalty against our members.  This bill was requested by the New Hampshire Retirement System and as amended, a $200 daily penalty for non-compliance can be assessed for delayed reporting.  NHRS would be required to send a 30-day notice prior to assessing a penalty to any employer who misses the deadline. It was noted during the public hearing that the penalty can be waived in cases of extenuating circumstances.  On Wednesday, the Senate Executive Departments and Administration Committee voted 5-0, Ought to Pass with Amendment. 

SB 434 would recalculate a Group I retiree’s annuity by changing the time of the 10 percent NHRS pension reduction from age 65 to the member’s full retirement age under Social Security (up to age 67 depending on year of birth).The fiscal note for this bill estimates that it will increase the actuarial accrued liability by $44.2 million, which will increase the employer contribution rates for group I members (teachers and employees) over the next 18 years as that cost is paid off. (This bill does not affect group II police and firefighters, since they do not pay into Social Security or receive benefits.) On March 17, the Senate, on a voice vote, passed the bill. The bill was referred to the Senate Finance Committee, which has recommended that the bill be referred to Interim Study. The full Senate will vote on that recommendation next Thursday, March 31. 

SB 363 allows Group II members who began service between January 1, 2001 and December 31, 2011 to receive service credit for not less than one year and not more than four years of non-qualified service. As amended, a Group II member’s purchase of the service credit is limited to the amount which will reduce the minimum age of retirement to the previous minimum age of 45. The bill further states that the member is to pay the costs to reduce certain transition provision requirements for retirement. NHRS estimates that there will be a fiscal impact due to the accrued liability and therefore will nominally increase employer contribution rates. On March 17, the Senate passed the bill as amended and referred it to the Senate Finance Committee. 

HB 1079 would have increased the annual number of hours a retiree may work for a retirement system employer to an average of 32 hours a week (1,664 hours annually) and eliminated the initial 28-day restriction on such part-time employment after retiring. On March 12, on a voice vote, the House adopted a committee recommendation of Inexpedient to Legislate, so unfortunately this bill is dead. 

HB 1549 proposed a special duty exemption for retired Group II police members and would have allowed them to work special duty law enforcement details and not have the special duty hours count against the annual limit on part-time hours. NHMA supported this bill as work force shortages in law enforcement are an issue state-wide. On March 1, the House killed this bill on a voice vote. 

HB 1590 would have established a procedure for members of the retirement system to vote to withdraw from participation for its Group I employees hired after the effective date of the vote, without having to pay their share of the unfunded liability. On February 16, the House voted the bill Inexpedient to Legislate, 287-57.