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February 1, 2013
Feb 04, 2013

Hi Presidents and Legislative Contacts,

 

We are finishing up another crazy week at the state house. I’d like to just give you a heads up on what Kayla and I are working on, and where we stand with some bills.

 

We have some good news:

 

  • The collective bargaining bill (SB 37) that dramatically tipped the scales towards management, has been killed in the Senate ED&A committee. It will now go to the Senate floor, where it will be expected to die. Thank you to members who called their State Senators urging them to vote “No” on SB 37.
  • A bill (HB 279) which established a pilot program for New Hampshire citizen emergency response teams has been killed in committee, and will head to the house floor next week where it is expected to die. Although this bill had good intensions, New Hampshire’s Homeland Security already had systems in place to address this issue.
  • We reached a consensus on HB 123, the “fire man’s rule.” We worked with the committee to form an amendment that everyone agreed upon. The bill, as amended, preserves the rule as originally conceived while allowing the right to sue for cause of action not directly sprung from the particular emergency. This bill was passed unanimously in committee, and should have no problem on the House floor.
  • The Labor Committee, chaired by Representative (and member) Andy White, heard about three hours of public testimony on the “Right to Work” (HB 323) on Wednesday. While a handful of people who testified supported the bill (like former speaker O’Brien) the majority opposed it. President Lang was the final speaker on this bill. It will be voted on in committee next week.
  • Also heard this week was a bill (HB 178) relating to binding arbitration. We supported this bill, and President Lang testified on its behalf. The bill is going to subcommittee, where we will continue to work with the representatives.
  • On Wednesday we headed to the Senate to hear SB 78, relative to the New Hampshire Municipal Association. This bill, which has our full support, is sponsored by Senator Soucy. Testimony took about an hour and 45 minutes, and will be voted on next week. This bill is particularly important because today it was announced that the LGC’s Executive Director,  Maura Carroll, is stepping down. Check out the seacoast online article hereand below.

Regarding weekly conference calls -- from the folks I heard back from the overall feelings was that they would prefer receiving the updates through email only, so we will not be holding the weekly conference calls this session. With that being said, I am always available by phone for those who would like to discuss the updates or ask questions.

Have a great weekend,
Casey

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Concord  — The executive director of the troubled municipal insurer the Local Government Center, has left her position “effective immediately” and will be replaced on an interim basis by former Pease Development Authority director George Bald, said Barry Glennon, director of the state Bureau of Securities Regulation.

Glennon said he was notified late Friday afternoon that Maura Carroll was no longer LGC's executive director and that he had no information about whether she resigned or was fired.

Tom Enright, LGC Board Chair said in a press release that, “The Board of Directors has come to the difficult decision that fresh leadership would be best for the organization. Maura has agreed to respect the decision of the board and step down.”

Glennon said the BSR, which filed a multi-million legal complaint against the LGC, had no immediate comment about the change in leadership. He said he also didn't know if Carroll had an employment agreement with the LGC, or if she left with a severance package.

Bald, who resigned as commissioner of the Department of Resources and Economic Development last August, will serve as interim executive director for six months while on a leave from Cate Street Capital, according to the LGC. He's also a former Somersworth mayor, and was appointed DRED commissioner in 1998 by then-Gov. Jeanne Shaheen.

The LGC — a municipal insurance pool funded by taxpayers, retirees and public employees — was ordered in August to refund $52 million to member cities and towns for overpayments made during the year 2010 (and subsequent years) and has until the end of 2013 to make those refunds.

The order was made by hearings officer Donald Mitchell in response to evidence presented by the state Bureau of Securities Regulation and the Secretary of State's office, which proved the LGC overcharged for insurance and kept the surplus. The LGC sells health, dental and property liability insurance.

The LGC is appealing the order to the state Supreme Court but is mandated to comply with the refund order in the interim.

In response to the LGC's notice of appeal, Attorney General Michael Delaney filed a 33-page objection, stating, “These monies could have been used by towns, cities, counties and school districts to retain or hire needed teachers, firefighters and police officers during a time of economic hardship.”

In December 2012, the LGC released a list of cities and towns that are owed refunds for overpayments made for the purchase of LGC insurance during 2011, with corresponding amounts of refunds owed and when municipalities can expect to receive those refunds.

Portsmouth is the largest LGC customer, paying 1.4 percent of the total insurance pool. The city expects to receive $643,462 for overpayments it made to the LGC during 2011 alone.

Cities and towns across the state are owed refunds, as are other municipal entities that include the Portsmouth Housing Authority, Rockingham County, the Rye Water District, Greenland's Weeks Library and multiple school districts. The LGC also listed itself as a recipient of several refunds for insurance overpayments.

David Lang, president of the state firefighters' union, said the refunds would be two to three times greater if the LGC calculated them as ordered by the hearings officer. According to the officer's order, the LGC must refund the lesser of the following two amounts: all money in excess of 15 percent of insurance claims, or all money in excess of a risk-based capital reserve of 3.0 (three times an actuary's reserve).

Instead, the LGC announced it will retain a 3.75 risk-based capital reserve, .75 percent greater than the legal order allows. The difference is estimated to be between $5 million and $10 million.

Lang was first to raise concerns about the LGC “hoarding” insurance money and through the state's Right To Know law, gathered much of the organization's books for public and state scrutiny.

 

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Professional Fire Fighters of New Hampshire

603-223-3304 (office)

802-299-9589 (cell)

casey@pffnh.org

 


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IAFF Local 789
19 Elm St
Nashua, New Hampshire 03060
  603-888-4200

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