SB 645 — relative to income eligibility for the New Hampshire child care scholarship program and reallocating certain revenue to fund the program.

SB 645-FN - AS INTRODUCEDAMENDED BY THE SENATE 03/05/2026 0839s SESSION 26-2084 05/09 SENATE BILL 645-FN AN ACT relative to income eligibility for the New Hampshire child care scholarship program and reallocating certain revenue to fund the program.

SB 645-FN - AS INTRODUCEDAMENDED BY THE SENATE 03/05/2026 0839s 26-2084 05/09 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT relative to income eligibility for the New Hampshire child care scholarship program and reallocating certain revenue to fund the program.

Tax revenue on all tobacco products sold at retail in this state imposed by RSA 78:2 shall be divided with 39 percent of that total revenue deposited in the education trust fund established by RSA 198:39,198:39 2and the remaining revenue deposited in the general fund, except that for any surplus funds over that year's planned revenue, 50 percent of the surplus shall be transferred to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4), and the remainingremainder revenueshall be deposited in the general fund.

Except as provided in paragraph II, the state treasurer shall credit [all]all 98 percent of gross revenue derived by the commission from the sale of liquor, or from license fees, and interest received on such moneys, to a special fund, to be known as the liquor commission fund, from which the treasurer shall pay all expenses of the commission incident to the administration of this title,title. and 2 percent to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4).

Any balance left in such fund after such expenses are paid shall be deposited in the general fund on a monthly basis.basis, except that for any surplus funds over that month's planned revenue, 50 percent of the surplus shall be transferred to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4), and the remainder shall be deposited in the general fund.

In addition to the annual license fees provided in this chapter, a fee of $.30 for each gallon of beverage sold or transferred for retail sale or to the public shall be required for licenses issued to SB 645-FN - AS AMENDED BY THE SENATE - Page 2 - wholesale distributors, beverage manufacturers, brew pubs, and nano breweries;

A fee of 5 percent of the wholesale price per case of any specialty beverage sold or transferred for retail sale or to the public shall be required for licenses SB 645-FN - AS INTRODUCED - Page 2 - issued to wholesale distributors or beverage manufacturers.

TwoFor percentany ofsurplus allfunds revenuesover collectedthat pursuantmonth's toplanned thisrevenue, section50 percent of the surplus shall be transferred to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4).II(r)(4), and the remainder shall be deposited in the general fund.

Amend RSA 287-J:6, III(1)-(2)III(b)(2) to read as follows:

(1)(2) 2575 percent to the specialgeneral fundfund; established under RSA 284:21-j for use as provided in that section;

(2)(3) 2Except that for any surplus funds over that period's planned revenue, 50 percent of the surplus shall be transferred to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4);II(r)(4), and the remainder shall be deposited in the general fund.

and6 (3)New [75]Paragraph; 73 percent to the general fund.

6Horse Effectiveand Date.Dog Racing;

ThisGeneral actProvisions. shall take effect July 1, 2026.

LBAAmend 26-2084RSA Revised284:21-j 1/14/26by SBinserting 645-FN-after FISCALparagraph NOTEII AS INTRODUCED AN ACT relative to income eligibility for the Newfollowing Hampshirenew childparagraph: care scholarship program and reallocating certain revenue to fund the program.

III.

Notwithstanding any other provision of law to the contrary, 2 percent of all revenues received by the lottery commission under RSA 284, 287-D, 287-E, 287-H, 287-I, 287-J, or pursuant to any other provision of law, shall be distributed to the department of health and human services for the purposes of administering and expanding eligibility for the child care scholarship program pursuant to RSA 167:83, II(r)(4).

7 Contingency.

This act shall not take effect until the commissioner of the department of revenue administration certifies to the secretary of state and the director of the office of legislative services that the revenues in sections 2 through 6 of this act have each operated at a surplus for the past year.

In no case shall the commissioner make such certification prior to July 1, 2027.

8 Effective Date.

This act shall take effect as described in section 7 of this act.

LBA 26-2084 Revised 3/16/26 SB 645-FN- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENT #2026-0839s) AN ACT relative to income eligibility for the New Hampshire child care scholarship program and reallocating certain revenue to fund the program.

Estimated State Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Expenditures* $0 $10.5$0 millionIndeterminable $10.5Indeterminable million+ $10.5 million+ Funding Source(s) General Fund, Education Trust Fund Appropriations* $0 $10.5$0 millionIndeterminable $10.5Indeterminable million+Funding $10.5Source(s) million+General FundingFund, Source(s)Education NoneTrust Fund *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill METHODOLOGY:

· 250 percent of any surplus tobacco tax revenuerevenues derivedabove fromthose estimated in the tobaccoannual tax;revenue plan;

· 250 percent of grossany revenuesurplus derivedLiquor fromCommission profits above those estimated in the Liquormonthly Commission;revenue plan;

· 250 percent of revenueany collectedsurplus frombeer tax revenues above those estimated in the beermonthly tax;revenue plan;

and · 250 percent of revenueany surplus revenues collected from video lottery terminals (VLT).(VLT), above those estimated in the monthly revenue plan;

Eachand of· the2 revenuepercent sourcesof identifiedcertain aboverevenues isreceived currentlyby deposited into the stateLottery generalCommission. fund.

(Although(The notbill allspecifies tobaccorevenues taxattributable andto VLThorse revenuesand aredog depositedracing, intogames theof generalchance, fund,bingo/Lucky the7, billfantasy makessports, clearsports thatbetting, theand 2video percentlottery allocatedterminals.) forThe childrevenue caresources scholarshipsidentified shallabove beare takencurrently outdeposited ofinto the general fundand portion.)education Accordingly,trust anyfunds. new services funded by the bill will indirectly be general fund expenditures.

The Departmentbill of Health and Human Services states that itno currentlytransfers providesto childthe carechildcare scholarshipsscholarship forprogram householdsshall withtake incomeplace atbefore orJuly below1, 852027. percent of the SMI.

As the first four sources refer to revenue above plan, the amounts that may be available for the childcare scholarship program are currently indeterminable.

The fifth component, certain revenues received by the Lottery Commission, is unique in that the bill requires two percent of all such revenues to be transferred to the childcare scholarship program, regardless of whether those revenues exceed plan.

Although it cannot be known how much revenue will be generated by the Lottery Commission in FY28 and beyond, the operating budget for FY27 assumes that approximately $164 million will be received from the sources identified in the bill.

Assuming this number is accurate in future years, the Lottery component would generate approximately $3.28 million per year for the childcare scholarship program.

This would indirectly be a cost to the general and education trust funds, as these are where such revenues are currently deposited.

With respect to the non-Lottery revenue sources, the bill contains several inconsistencies regarding the determination of surplus revenues above plan.

Section 2 refers to a surplus above the yearly revenue plan, sections 3 and 4 refer to surpluses above the monthly revenue plan, and section 5 refers to a surplus above an unidentified period's revenue plan.

With respect to possible costs, the Department of Health and Human Services states that it currently provides child care scholarships for households with income at or below 85 percent of the SMI.

In addition, the Department assumes that nine new positions (one business administrator, one business system analyst, and seven social services specialists) wouldwill be needed to handle the increased caseload, at an annual cost of $560,000 in FY27,the increasinglyfirst year of the program's expansion, increasing slightly in subsequent years as step increases are provided.