The bill SB 661-FN amends the existing law governing pooled risk management programs in New Hampshire, specifically RSA 5-B, to enhance oversight and operational standards. Key provisions include granting the Secretary of State the authority to mandate the abatement of insufficient assets or seek receivership for a pooled risk management program. It also requires that participating members be assessed on a pro rata basis to address deficiencies identified through actuarial calculations. The governing board is mandated to exercise a standard of care in their management, and contingency reserve standards are established to ensure adequate reserve levels. The bill also introduces new definitions and provisions related to the administration of pooled risk management, assessments, and the establishment of a member equity stabilization fund, while repealing and reenacting RSA 5-B.

Additionally, the bill mandates that pooled risk management programs file an informational report with the Department of State and pay an annual fee of $250. It grants the Secretary of State exclusive authority to enforce compliance, investigate violations, and impose penalties, including administrative fines up to $5,000. The bill emphasizes the establishment of financial safeguards, requiring annual audits by independent accountants and the creation of written bylaws. It clarifies that pooled risk management programs are not classified as insurance companies, ensuring liability protection for participating political subdivisions. The act will take effect 60 days after passage, with a projected fiscal impact of saving the state over $250,000 annually, although it may lead to increased costs for municipalities participating in pooled health plans.

Statutes affected:
Introduced: 5-B:2, 5-B:5, 5-B:6