Panel endorses revised SB 297 to clarify oversight of public-entity risk pools

The committee voted to advance Senate Bill 297, a measure that clarifies regulatory boundaries between the Secretary of State and the Department of Insurance for public‑entity risk pools and that adds reserve and transparency safeguards for member‑owned pools.

Representative Miles moved the amendment and described it as a compromise designed to preserve the RSA 5‑B model for member‑owned pools while creating clear rules for pools that elect a different corporate structure and therefore would be regulated as insurance companies under RSA 420‑R. The amendment incorporates a prior Carson amendment requested by the Senate and adds statutory language that distinguishes the two regimes.

Lisa Duquette, executive director of SchoolCare, testified in opposition to shifting pools to insurance‑department oversight in a way that she said could impose duplicative regulatory costs and jeopardize tax‑exempt status for governmental pools. Duquette told the committee that SchoolCare serves more than 100 public entities and provides about $250 million annually in employee benefits; she said the insurance‑department licensing model could create examination fees, higher reserve requirements and additional accounting burdens that ultimately would be borne by political subdivisions and taxpayers.

Supporters of the amendment, including members who worked with both the Secretary of State’s office and the Insurance Department, said the revision strengthens accountability and gives regulators tools to intervene early if a pool becomes underfunded. The amendment retains member‑ownership and assessability rules for RSA 5‑B pools and adds steps the Secretary of State can use when a pool shows signs of insolvency.

The committee voted to advance the amendment in subcommittee and later voted the bill out of committee as amended. The full committee recorded a roll‑call vote in favor and placed the bill on the consent calendar (committee roll call recorded 16–0). Committee members said the changes aim to protect taxpayers while preserving options for different corporate forms.

Duquette’s testimony and subsequent questioning by Representatives Spear and Gibbs focused on concrete cost drivers: examination fees, dual accounting (statutory and GAAP), reserve requirements and the potential for tax reclassification of pools. Committee members asked for fiscal notes and acknowledged differing preferences among town governments and the New Hampshire Municipal Association.

With the amendment adopted, pools that remain organized under RSA 5‑B will retain Secretary of State oversight and member protections; pools that choose the RSA 420‑R corporate form will be subject to Insurance Department licensing and regulation under that statute.