HB 1491, as amended by the Senate, establishes a new Chapter 420-R in the New Hampshire Revised Statutes to regulate political subdivision risk management programs, which provide insurance and risk management solutions for entities like cities, towns, and school districts. The bill outlines eligibility and reporting requirements, oversight and enforcement authority, and financial standards for these programs. It includes provisions for tax exemptions, ensuring that compliant programs are not subject to state taxation or insurance regulation. Key definitions are provided, and the bill clarifies that self-insurance arrangements will not be classified as insurance companies, thus exempting them from certain regulatory requirements, including the premium tax under RSA 400-A:32 and assessments under RSA 400-A:39.

The legislation mandates that political subdivision risk management programs secure a surety bond between $1,000,000 and $5,000,000, with the option to post cash as surety. It requires commissioner approval for program establishment, including a detailed management plan, and prohibits personal benefits for employees or officials beyond their salaries. The bill also imposes strict financial reporting requirements and penalties for non-compliance, while allowing the commissioner to take control of programs under specific circumstances. Additionally, it establishes investment guidelines to ensure financial stability, prohibits high-risk investments, and repeals RSA 420-R:5, III, which previously governed these programs, with the repeal effective July 1, 2029. The remaining provisions of the act will take effect on July 1, 2026.

Statutes affected:
Introduced: 5-B:1, 5-B:2, 5-B:3, 5-B:4, 5-B:5, 420-E:2, 420-G:11, 402-H:11-b
As Amended by the Senate: 420-R:5
HB1491 text: 5-B:1, 5-B:2, 5-B:3, 5-B:4, 5-B:5, 402-H:1, 420-E:2, 420-G:11, 402-H:11-b