HB1210 — Version 100

23march00.....3656h

18may00.....4619-EBA

2000 SESSION

00-2475

08/09

HOUSE BILL 1210-LOCAL

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill allows municipalities and counties to raise and appropriate money from any source for capital reserve funds, other than money given for charitable purposes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23march00.....3656h

18may00.....4619-EBA

00-2475

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

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

224:1 Purpose. The general court recognizes the importance of capital reserve funds as financial planning tools for political subdivisions. It is the purpose of this legislation to make sure that political subdivisions are able to place funds into capital reserve funds, which are essentially municipal savings accounts, no matter what the source of those funds. The capital reserve fund laws have been interpreted by the department of revenue administration as allowing capital reserve funds to contain only funds raised through taxation and unencumbered surplus. In order that municipalities have the flexibility to maximize the benefits of capital reserve financial planning, funds from any source, other than money given for charitable purposes, should be allowed into a capital reserve fund.

224:2 Capital Reserve Funds for Cities; Establishment of Reserves Authorized. Amend the introductory paragraph of RSA 34:1 to read as follows:

34:1 Establishment of Reserves Authorized. Any city may raise and appropriate money as provided by RSA 34:2, from any source other than money given to the city for charitable purposes, for the establishment of a capital reserve fund for the financing of all or part of the cost of:

224:3 Capital Reserve Funds for Cities; Payments Into Fund. Amend RSA 34:3, I to read as follows:

I. There may be paid into any such capital reserve fund such amounts as may from time to time be raised and appropriated therefor, from any source other than money given to the city for charitable purposes, within the limits as provided in RSA 34:4.

224:4 Capital Reserve Funds of Counties, Towns, Districts, and Water Departments; Payments Into Fund. Amend RSA 35:5 to read as follows:

35:5 Payments into Fund. There may be paid into any such capital reserve fund, except as provided in RSA 35:7, such amounts as may from time to time be raised and appropriated therefor, from any source other than money given to the town, district, or county for charitable purposes. Such amounts shall be within the limits as provided in RSA 35:8, and any such town, district or county may also vote to transfer to said fund, under a proper article in the warrant in the case of a town or district, any of its unencumbered surplus funds remaining on hand at the end of any fiscal year.

224:5 Capital Reserve Funds of Counties, Towns, Districts, and Water Departments; Appropriation. Amend RSA 35:12 to read as follows:

35:12 Appropriation. Whenever the vote of the town is to [raise and] appropriate any sum for the capital reserve fund, the same duties shall devolve upon the town clerk, selectmen, and town treasurer, as specified in RSA 35:11, except that the order must be drawn, and the sum transferred on or before December 31 following the vote, or, in the case of an optional fiscal year town, after July 1, but no later than June 30, of the fiscal year for which the sum was appropriated.

224:6 Effective Date. This act shall take effect 60 days after its passage.

(Approved: June 1, 2000)

(Effective Date: July 31, 2000)