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Past Messages
2011
2010
Video: LGC's 2010 Challenges, Opportunities for the New Year Ahead, December 30
Op-Ed: Process in Place to Resolve Local Government Center Concerns,
November 21
Member Messages from the Executive Director
January 12, 2011
Dear Member:
Happy New Year to all of you! It has been awhile since I’ve provided you with an update concerning the activities of LGC and the on-going hearing process with the Bureau of Securities Regulation. Let me explain where we are on several fronts.
Bureau of Securities Regulation Hearing Process
Obviously, we have had to place much emphasis on the on-going investigation and hearing process with the Secretary of State’s Bureau of Securities Regulation. It has required the focus of many staff and LGC’s outside legal counsel to describe our operations and respond to the thousands of questions posed during the last 2 1/2 years. We have provided more than 32,000 pages of documents to the Bureau to date and are still producing more materials as this letter is sent.
Many of you saw and read the Staff Petition that was issued by the Bureau in September of last year, outlining the charges against LGC and 11 individual respondents. LGC’s deadline to provide an answer to those charges was last Friday and here is a link to that answer. Until that filing, there was no individual document that responded to the unfounded allegations brought by the Bureau. Rather than provide a typical legal answer to the petition, which would have included a lot of “denied or admitted” language, we provided an answer in detailed narrative form, so that the hearing officer and others know that we refute the allegations in the petition, that the petition contains numerous factual and legal errors, and that LGC Board decisions are consistent with good business practices and are made with the best interest of the members in mind.
We are still in the midst of an on-site financial review by the Bureau, something that was not part of the initial investigation, but was requested after the staff petition was issued in September. The Hearing Officer granted the Bureau two weeks during the holidays to come into the LGC office and review documents and question staff. The Bureau requested another month to continue the on-site review and the Hearing Officer granted only an additional three days for the Bureau to complete its work. A report from the Bureau about the financial review is due to be filed as part of the hearing process no later than February 17.
The discovery process continues and information is being exchanged between the parties, depositions are being scheduled and the formal hearing is slated to begin on April 30. The Bureau has hired two outside attorneys to complement the five attorneys in the Bureau who have been working on this matter.
Legislative Activity
On another front, a special House Committee met throughout the fall to address concerns about the language of RSA 5-B, the statute governing public sector risk pools. Although the title of the committee was House Select Committee to Study Issues Regarding the New Hampshire Local Government Center, the committee heard from all three public sector risk pools, LGC, Primex and SchoolCare, as well as from the Bureau and the Professional Firefighters of NH. Suggestions were made about how to amend the law and clarify the provisions governing the role of the regulator and the regulated entities and the expectations of both.
In the 2012 session, SB 212 has been introduced by Senator Ray White of Bedford to amend RSA Chapter 5-B. We will need your assistance with this, to help explain what is important to you as members of our organization with regard to maintaining reserves and returning surplus. We will keep you apprised as more information about the date and time of any hearing is announced.
LGC Operations
The beginning of 2012 finds staff offering many training programs to members and responding to a variety of operational questions in the field. The Leadership Institute is underway, with the popular Moderators’ Workshop and the City Officials Workshop soon to follow. Member preparation for town and school district meetings mean inquiries for the attorneys and the start of the legislative session brings the NHMA staff to the State House on a daily basis.
Enrollee services representatives have been busy adding new local employees to the coverage rolls and responding to questions about changes in programs that are effective this month. Risk pool operations staff are preparing the July rates and gathering data to add to our bank of research on experience and trends.
IT is updating systems, testing devices and assisting staff in providing service to members in a manner that is as efficient and effective as possible.
LGC welcomed five new Board members in December and is holding orientation sessions for them this month. Committees have been appointed and will begin meeting very soon. Continuing focus on the strategic plan, governance issues and cost containment for coverage programs will highlight the agendas of Board committees in the coming months.
Thank You
We are grateful for the support we have received from our members and the patience you have shown in allowing us to complete the full hearing process before jumping to conclusions about any LGC activity. There have been outrageous claims in the press about LGC, with little to back up those claims other than a statement by one or two individuals. I would again caution you not to take anything at face value and to call us if you read or hear something that causes you concern. We have and will continue to let you know when we find errors that need to be corrected or we believe changes in our operations are necessary.
As always, we value your membership and appreciate your business. All of us at LGC pledge to carry out the mission of the organization to the best of our ability and with your best interests in mind. Please do not hesitate to contact me if you have questions or concerns you wish to discuss.
Thank you.
Maura Carroll
Executive Director