SB301: relative to pooled risk management programs for municipalities and public entities.

SB 301-FN – AS INTRODUCED

2006 SESSION

06-2718

01/10

SENATE BILL 301-FN

AN ACT relative to pooled risk management programs for municipalities and public entities.

SPONSORS: Sen. Clegg, Dist 14; Sen. Green, Dist 6; Rep. Currier, Merr 5; Rep. Hunt, Ches 7

COMMITTEE: Banks and Insurance

ANALYSIS

This bill clarifies the information and document disclosure requirements of pooled risk management programs.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2718

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to pooled risk management programs for municipalities and public entities.

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

1 New Section; Pooled Risk Management Programs. Amend RSA 5-B by inserting after section 7 the following new section:

5-B:8 Pooled Risk Management Programs; Meetings and Business Records.

I. In this section:

(a) An “affiliate” of, or person “affiliated” with, a specific person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

(b) “Control,” including the terms “controlling,” “controlled by” and “under common control with,” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the exercise of voting power, by contract other than a commercial contract for goods or management services, or otherwise. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or more of the voting power of any other person.

(c) “Person” is a corporation, a partnership, an association, a joint stock company, a trust, a limited liability company, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert.

II. Notwithstanding any provision of law to the contrary, a person who maintains a pooled risk management program providing goods or services to or for the benefit of its members shall not be required to open any of their meetings or disclose any business records or other information to the general public, or their competitors unless the person is an “affiliate” of, or “affiliated” with, another person.

III. A person who maintains a pooled risk management program providing goods or service to or for the benefit of its members shall be deemed to be a member of an insurance holding company system and shall be subject to the registration and other requirements of RSA 401-B if the person is an “affiliate” of, or “affiliated” with, another person, regardless of whether either person is an insurer.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2718

Revised 2/28/06

SB 301 FISCAL NOTE

AN ACT relative to pooled risk management programs for municipalities and public entities.

FISCAL IMPACT:

The Insurance Department has determined this bill may increase state restricted revenue and expenditures and local and county expenditures by an indeterminable amount in FY 2006 and each year thereafter. This bill will have no fiscal impact on county and local revenue.

METHODOLOGY:

The Department states this bill changes information and document disclosure requirements of pooled risk management programs, and deems certain persons as a member of an insurance holding company system subject to requirements of RSA 401-B. The Department assumes this bill will expand the current application of RSA 401-B, resulting in more entities needing to file with the Department, and the Department reviewing more filings. The Department states it cannot determine how many new entities will be subject to RSA 401-B under this bill. To the extent there are new filings, state restricted revenue from filing fees will increase by an indeterminable amount. The Department further states it may need additional personnel to review filings, which may increase state restricted expenditures by an indeterminable amount. The Department indicates to the extent entities maintaining pooled risk management programs that benefit counties and local governments are affected by this bill, there may be increased costs that are passed on to county and local governments, which may increase county and local expenditures by an indeterminable amount.