SB 614 — establishing multiple-caregiver self-insured risk coverage arrangements for nonprofit and for-profit providers and servicers.

CHAPTER 273 SB 614-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 03/12/2026 1044s 14May2026...

42 COMMITTEE:

Establishes a multiple-caregiver self-insured risk coverage arrangement for nonprofit and for-for-profit profit providers and servicers of child care, day care, foster care placement, and behavioral health services.

CHAPTER 273 SB 614-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 03/12/2026 1044s 14May2026...

1273:1 New Chapter;

This chapter provides authority for 2 or more nonprofit and for-profit providers and servicers of child care, day care, foster care placement, and behavioral health services to participate in a joint self-insurance risk coverage arrangement covering liability risks.risThe joint self-insurance arrangements authorized under this chapter permit eligible entities to jointly self-insure liability risks, jointly purchase insurance and reinsurance, and contract for risk management, claims, and administrative and legal services.

The joint self-insurance arrangements authorized under this chapter permit eligible entities to jointly self- insure liability risks, jointly purchase insurance and reinsurance, and contract for risk management, claims, and administrative and legal services.

SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - I.

Any arrangement authorized and meeting the standards required under this chapter is not an insurance company, reciprocal insurer, or insurer under the laws of this state, and administration of any CHAPTER 273 SB 614-FN - FINAL VERSION - Page 2 - activities of the arrangement shall not constitute doing an insurance business for purposes of regulation or taxation.

SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 3 - III.

CHAPTER 273 SB 614-FN - FINAL VERSION - Page 3 - (c) Jointly purchase insurance and reinsurance coverage in a form and amount as provided for in the organizational documents;

SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 4 - X.

CHAPTER 273 SB 614-FN - FINAL VERSION - Page 4 - I.

(b) The arrangement shall be established or maintained by or on behalf of two2 or more properly licensed homogeneous entities providing at least one of the services of child care, day care, foster care placement, or behavioral health services, which shall be governed by formal governance documents, which may include any one or more of the following:

(2) A constitution,constitution; (3) Bylaws;

(3) Bylaws;

The officers or trustees selected shall be owners, partners, officers, directors, or employees of participating entities in the arrangement.An officer or trustee may not be an owner, officer, or employee of the administrator or service company of the arrangement.

AnThe officerofficers or trusteetrustees mayshall nothave bethe anauthority owner,to officer,approve orapplications employee of entities for participation in the administratorarrangement, orprovided servicethat companyany entity that terminates its participation shall be prohibited from rejoining for a period of the2 arrangement.years.

The officers or trustees shall have the authority to approve applications of entities for participation in the arrangement, provided that any entity that terminates its participation shall be prohibited from rejoining for a period a two years.

(a) An employee or official of a participating nonprofit corporation in a joint self-self-insurance insurance arrangement shall not directly or indirectly receive anything of value for services rendered in connection with the operation and management of the arrangement other than the salary and SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 5 - benefits provided by his or her employer or the reimbursement of expenses reasonably incurred in furtherance of the operation or management of the arrangement.

(c) No joint self-insurance arrangement approved under this chapter shall require that any civil action or alternative dispute resolution procedure brought in connection to the self-self-insurance insurance arrangement be brought in a jurisdiction other than New Hampshire.

The covered entities of a proposed multiple-caregiver self-self-insurance insurance risk coverage arrangement shall file with the commissioner an application for approval, upon a form furnished by the commissioner, which shall include or have attached the following:

CHAPTER 273 SB 614-FN - FINAL VERSION - Page 5 - I.

A plan of management and operation providing the information required in RSA 405-405-C:6. C:6.

The arrangement shall not engage in an act or practice that in any respect significantly differs from the management and operation plan that formed the basis for the commissioner's SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 6 - approval of the program unless the program first notifies the commissioner in writing and obtains the commissioner's approval.

CHAPTER 273 SB 614-FN - FINAL VERSION - Page 6 - V.

405-C:12 Suspension,Suspension or Revocation of Program License;

SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 7 - (e) The arrangement has refused to be examined or to produce its accounts, records and files for examination, or if any of its officers has refused to give information with respect to its affairs or to perform any other legal obligation as to such examination, when so required by the commissioner;

Before the commissioner shall suspend or revoke the license of any licensee subject to this chapter, the aggrieved arrangement shall be entitled to a hearing in accordance with RSA 400-400-A:17. A:17.

In addition, the officers or trustees may purchase such additional insurance as they consider necessary for protection against potential future claimAnyclaims. funds remaining in the arrangement after satisfaction of all obligations upon termination shall be paid to participating entities as of the termination date in some equitable manner meeting with the approval of the commissioner, including, without ruling out other alternatives, equally on a per capita basis to each participating entity that is covered under the arrangement as of the effective date of termination.

Any funds remaining in the arrangement after satisfaction of all obligations upon termination shall be paid to participating entities as of the termination date in some equitable manner meeting with the approval of the commissioner, including, without ruling out other alternatives, equally on a per capita basis to each participating entity that is covered under the arrangement as of the effective date of termination.

CHAPTER 273 SB 614-FN - FINAL VERSION - Page 7 - I.

II.II.If the commissioner determines, after reviewing the information filed, that an inadequate condition exists, the arrangement shall implement, within 30 days, a plan to correct the inadequacy and shall file proof of reasonable improvement or adequate condition with the commissioner within 6 months of the implementation of the plan.

If the commissioner determines, after reviewing the information filed, that an inadequate condition exists, the arrangement shall implement, within 30 days, a plan to correct the inadequacy and shall file proof of reasonable improvement or adequate condition with the commissioner within 6 SB 614-FN - VERSION ADOPTED BY BOTH BODIES - Page 8 - months of the implementation of the plan.

Subject to other provisions in this chapter, any arrangement that fails to obtain and maintain a valid approval from the commissioner while operating or maintaining a multiple-multiple-caregiver caregiver self-insured risk coverage arrangement shall be subject to a fine of not less than $5,000 or more than $50,000 for each violation.

2273:2 Effective Date.

LBAApproved: 26-2226 05/15/2026 SB 614-FN- FISCAL NOTE AS AMENDED BY THE HOUSE (AMENDMENT # 2026-1626h) AN ACT establishing multiple-caregiver self-insured risk coverage arrangements for nonprofit and for-profit providers and servicers.

FISCALJuly IMPACT:02, 2026 Effective Date:

TheJuly Office01, of2027 Legislative Budget Assistant states this bill has no fiscal impact on state, county and local expenditures or revenue.

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