New Hampshire School Boards Association
Legislative Bulletin
January 16, 2009
Legislative Meetings and Hearings Have Begun!
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Hearings Begin for the 2009 Legislative Session
Legislative committees have begun the process of public hearings and debate on proposed legislation. The House Education Committee this week held hearings on bills that would: allow members of the school board to choose, by a simple majority, to add one or more nonvoting student members (HB 74), require a financial literacy component within the high school economics course (HB 123), determine where charter school pupils are counted in ADM-Residence (HB 169), and make charter schools eligible for grants for leased space (HB 169).
In the House Judiciary Committee, NHSBA opposed HB 135, requiring a court to invalidate an action of a public body or agency taken at a meeting held in violation of the provisions of RSA 91-A (Right-to-Know Law). Current law does not mandate a court to invalidate such action; instead, the court may invalidate any action "if the circumstances justify such invalidation." HB 135 would require invalidation for even the most minor technical violations. Courts already have the power to exercise such punitive action when deemed necessary, but also have the leeway to not invalidate an action when the circumstances do not justify such a sanction.
ACTION ITEM
Please contact the House Judiciary Committee Chair and express your opposition to this bill. The Right to Know Law is comprehensive and complex. Local boards consist of volunteers exercising their best judgment in conducting their business. It may sometimes be difficult to be sure how the law applies in certain situations, but currently the courts are unlikely to penalize a board if their actions cause no harm. This bill requires a harsh punishment even when good-faith efforts may slightly miss the mark, such as in technical requirements of posting notices. The proposed change is unnecessary.
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NHSBA also opposed HB 114 in the Municipal & County Govt. Committee. This bill would make the first deliberative session of a SB 2 district meeting an informational meeting only by prohibiting the transaction of any business; only discussion would be allowed. Voters would be unable to amend the budget or any warrant articles.
ACTION ITEM
Please contact the Municipal & County Govt. Committee Chair and express your opposition to this bill. The legislative body has been duly noticed and convened for the first deliberative session and should not be prohibited from taking action. Many times budget adjustments, based on new information, are made at this session, as well as technical corrections to certain warrant articles.
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New Retirement Spiking Provision: Delayed Implementation Proposed
The new retirement law (HB 1645) that passed last spring contains a provision requiring employers to pay more to NHRS for retirement bonus and incentive provisions that boost an employee's pension. When such end-of-career payment packages increase an employee's three-year average base pay by more than 125%, employers are to be assessed the actuarial cost of the excess benefit. This requirement will take effect upon the next negotiated contract.
These "bonus" payments are made at the end of an employee's career, boosting the pension benefit that the employee will receive without corresponding actuarially required contributions. The Retirement System builds a 7% loading factor into all employer contribution rates to fund the long-term impact of these higher pension benefits. Thus all employers are sharing in the cost, regardless of whether or not they even offer such a bonus payment.
The legislative intent of this provision was to stop the requirement that all employers share equally in costs that may be attributable to only some employers. Without interfering with the practice, the goal was simply to assess costs to those who provided the benefit. However, due to unintended consequences on how the rule was implemented, and interpretations of when the rule would be assessed, legislative leaders are proposing a delay in the implementation of the "125% Rule". HB 223 stipulates that the NH Retirement System shall not assess these charges on any employer until December 1, 2009. While the bill has yet to be scheduled for a hearing, it is anticipated to occur soon and be "fast-tracked" through the legislative process.
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NHSBA Delegate Assembly - Saturday, January 17, 2009
Be sure to attend the 2009 NHSBA Delegate Assembly on Saturday, January 17th. Morning "Hot Topic" Session Updates will be offered on labor relations (non-renewal, evergreen statute), right to know law and retirement issues. NSBA Associate Executive Director Michael Resnick will review and preview Federal education legislation, followed by action on NHSBA proposed resolutions. Call 603-228-2061 for more details or to register; or email terry@nhsba.org.
For the complete text of any bill, go to the general court web site and enter the bill number, e.g. HB114, SB38 or CACR2 (no spaces!), and make sure the Session Year is 2009.
For more information on specific legislation, please call Dean Michener, NHSBA Director of Governmental Affairs at 603-228-2061, or email: deanm@nhsba.org.
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Dean Michener
NHSBA Director of Governmental Affairs
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