---
title: "RSA 124 Federal Aid"
id: 837c5bce-621c-49ef-b090-92b5ee479e8f
authority: us-nh
place: "New Hampshire"
applies_also_from: [us]
kind: statute
in_force: true
number: "124"
publisher_url: https://gc.nh.gov/rsa/html/IX/124/124-mrg.htm
solon_url: https://solon.orangecat.ch/law/837c5bce-621c-49ef-b090-92b5ee479e8f
language: en
in_force_from: 2007-06-19
date_basis: retrieved
status: consolidated
source_url: https://web.archive.org/web/20070619052920id_/https://www.gencourt.state.nh.us/rsa/html/IX/124/124-mrg.htm
copied_from: internet_archive
copy_captured_on: 2007-06-19
read_on: 2026-11-08
sha256: b86f98fc352113e8fff6129da50de1b513b0b39694b7904f9aea2feb6d3f2e81
provisions: 24
---

# RSA 124 Federal Aid

## 124:1 Authority for Seeking Aid. {#sec_124-1}

The governor, with the approval of the council, is authorized to apply for financial or any other aid which the United States government has authorized or may authorize to be given to the several states for emergency industrial or unemployment relief, for public works and highway construction, for the creation of employment agencies, or for any other purpose intended to relieve distress. Any officer of the state who may be designated in any act passed by the congress of the United States, or in any regulation or requirement of any agency of the United States, is authorized in the name of the state to make all applications and sign all documents which may be necessary to obtain such aid, provided that such applications have the approval of the governor and council. The state treasurer is directed to receive all money so granted by the United States, or by any agency thereof, to the state and to hold all such funds separate from all other funds of the state. Such funds shall be disbursed by the treasurer upon warrants drawn by the governor for the purposes for which such relief or aid is granted.
Source. 1933, 162:2. RL 6:2.

## 124:2 Faith and Credit Pledged. {#sec_124-2}

The faith and credit of the state are pledged to make adequate provision, from time to time, by appropriation or otherwise, to meet all obligations of the state incident to the acceptance of federal aid under the provisions of any act referred to in RSA 124:1 and the governor and council are authorized to issue all necessary documentary evidence of such faith and credit.
Source. 1933, 162:3. RL 6:3.

## 124:3 Debt Limitations. {#sec_124-3}

Cities, towns, school districts, precincts, and counties, upon the approval of the commissioner of revenue administration, may make application to the governor and council for authority to exceed existing debt limitations for the purpose of taking advantage of such grants or aid as may be offered them by the United States government. The governor and council may grant to cities, towns, school districts, precincts, and counties authority to exceed existing debt limitations to such extent and in such amounts as they may deem prudent and advisable. In granting such authority the governor and council may prescribe the terms and conditions upon which such debt limitations may be exceeded.
Source. 1933, 162:4. RL 6:4. RSA 124:3. 1973, 544:8, eff. Sept. 1, 1973.

## 124:4 Application for and Administration of Federal Aid. {#sec_124-4}

Notwithstanding any other provision of law, the governor and council are hereby authorized to designate from time to time, as they may deem in the best interest of the state, the proper persons or agencies in the state government to take all necessary action to apply for, receive, and administer any federal benefits, facilities, grants-in-aid, or other federal appropriations or services made available to assist state activities, for which the state is, or may become eligible. All such moneys in excess of $50,000 made available, after designation by the governor and council, may be expended by the proper persons or agencies in the state government only with the prior approval of the joint legislative fiscal committee. In addition to such other instruments, documents, and agreements as may be executed under the authority of this section, such persons or agencies may execute indemnification agreements, with the approval of governor and council, in the name of the state with and for the benefit of the United States whenever such execution is required as a condition of receipt of such federal assistance.
Source. 1950, 5, part 25:5. RSA 124:4. 1963, 166:1, eff. Aug. 19, 1963. 2005, 177:12, eff. July 1, 2005.

## 124:5 Certain Transfers Permitted. {#sec_124-5}

The commissioner of administrative services is hereby authorized to effect such transfers of federal funds between state agencies as may be permitted by the laws of the United States, in order to reimburse any agency of the state for services performed for, or facilities made available to another state agency in the administration of federal benefits, facilities, grants-in-aid, or other federal appropriations or services made available to state activities.
Source. 1950, 5, part 25:6. RSA 124:5. 1985, 399:3, I, eff. July 1, 1985.

## 124:6 Authority Given. {#sec_124-6}

The governor and council are hereby authorized to cooperate with and enter into such agreements with the federal government, or any agency thereof, as they may deem advisable to secure federal funds for the purposes of capital improvements and repairs authorized by ch. 322 of the Laws of 1949.
Source. 1949, 322:4, eff. July 28, 1949.

## 124:7 Notification Required. {#sec_124-7}

Whenever a state agency makes application, enters into a contract or agreement or submits state plans for participation in and for grants of federal funds under any federal law which are not appropriated by the general court, said agency shall at the time of such action notify the commissioner of administrative services, the fiscal committee of the legislature, and coordinator of federal funds and whenever any such application, contract, agreement or state plan is amended, the agency shall notify each such officer and the committee.
Source. 1967, 22:1. 1985, 399:3, I, eff. July 1, 1985.

## 124:8 Reports. {#sec_124-8}

Such agency shall furnish to each such officer and the committee a progress report in relation to each such application, contract, agreement or state plan at least once in each 6-month period following the date of the filing of the application, contract, agreement or state plan and shall also file a final report as to the final disposition of each such application, contract, agreement or state plan.
Source. 1967, 22:1, eff. May 7, 1967.

## 124:9 Form and Content. {#sec_124-9}

The form and content of the notifications and reports required by RSA 124:7 and 8 shall be prescribed by the fiscal committee of the legislature but shall in any event include (a) the nature of the program in question (b) the duration of the program in question (c) the federal and state funds required for program initiation and the source of state funds (d) estimate of the federal and state funds required to continue the program after the initial funding and the source of state funds unless specifically exempted by said committee and the committee may exempt the department of employment security from any of the provisions of this subdivision to the extent and in the manner determined by it.
Source. 1967, 22:1, eff. May 7, 1967.

## 124:10 Authorizing Payment of Relocation Assistance. {#sec_124-10}

[Repealed 1989, 147:2, IV, eff. May 17, 1989.]

## 124:11 Computation of Indirect Costs Required. {#sec_124-11}

I. Each state agency receiving a federal grant or grants shall compute an agency indirect cost rate for each grant as provided by federal regulation and shall apply the same to each grant it receives. Any state agency making grants of federal funds to any other state agency, either directly or as a pass-through, shall fund the indirect costs for each such grant in the amount of the indirect costs of the state agency to which it has granted the funds in accordance with the indirect cost rate computed as provided by federal regulations by the receiving state agency. All such indirect costs received shall accrue to the state general fund and shall not be available for expenditure by the agency, except that in the case of the departments of transportation and fish and game that proportion of any indirect cost recovery which represents costs of either of said departments as opposed to the state-wide overhead cost portion of the rate shall accrue to the highway fund or the fish and game fund as applicable.
II. The state agency shall include the indirect cost rate for each federal grant in any cost recovery plan filed with the commissioner of administrative services under RSA 21-I:75 and shall notify the department of administrative services of any negotiation with the federal agency relative to the agency's indirect cost rate proposal. The commissioner of the department of administrative services or the commissioner's designee may participate in such negotiations and shall approve the final agreement relative to the agency's indirect cost rate.
Source. 1975, 364:3, eff. June 7, 1975. 2005, 177:64, eff. July 1, 2005.

## 124:11-a Federal Proposals; Indirect Costs. {#sec_124-11-a}

Any agency that submits an application for federal funds shall include in such application provisions for reimbursement of the allocated statewide central services cost and any agency indirect costs. If no federal funds are approved for indirect costs, the agency shall provide written notice of that determination to the department of administrative services.
Source. 2005, 177:65, eff. July 1, 2005.

## 124:12 Definition of ""State'' for Block Grant Purposes. {#sec_124-12}

The state of New Hampshire, for the purposes of accepting and expending federal block grants, shall be the branches of state government as defined in our constitution, as they interact in our established legal processes relating to authority to expend federal funds.
Source. 1981S, 1:12, eff. Nov. 23, 1981.

## 124:13 Departments to Submit Plan. {#sec_124-13}

I. Each department or agency responsible for block grants shall prepare and submit its complete proposed plan to the presiding officers of the legislature at least 30 days before the required legislative public hearing on the plan. The department or agency shall also make copies of such plan available to the public at least 30 days before that hearing.
II. In preparing its complete proposed plan, a department or agency shall comply with all federal requirements and the notice and hearing requirements of RSA 541-A:3. No plan shall be submitted to the legislature under paragraph I of this section unless all such requirements have been met.
Source. 1981S, 1:12, eff. Nov. 23, 1981.

## 124:13-a Disbursement of Energy Overcharge Funds. {#sec_124-13-a}

Energy overcharge funds disbursed by the federal Department of Energy to the state shall be subject to the same department and agency planning requirements as federal block grants under this subdivision. No such energy overcharge funds shall be expended until specifically appropriated by the general court. The state agency responsible for planning for the distribution of federal fuel assistance block grants shall be responsible for submitting plans under RSA 124:13 for expenditure of any energy overcharge funds.
Source. 1987, 373:1, eff. July 25, 1987.

## 124:13-b Disbursement of Tobacco-Related Funds. {#sec_124-13-b}

Any tobacco-related funds, including funds from settlements and grants, received by the state shall be subject to the same department and agency planning requirements as federal block grants under this subdivision. No tobacco-related funds shall be expended until specifically appropriated by the legislature. This section shall not apply to tobacco-related funds raised by the state of New Hampshire.
Source. 1998, 291:1, eff. Aug. 25, 1998.

## 124:13-c Workforce Investment Act Funds. {#sec_124-13-c}

The administrative entity for the federal Workforce Investment Act funds shall submit a quarterly written report to the legislative fiscal committee, senate president, and speaker of the house of representatives. The entity shall make an oral presentation to the legislative fiscal committee on a semi-annual basis.
Source. 2001, 172:1, eff. Sept. 3, 2001.

## 124:14 Estimated Federal Funds. {#sec_124-14}

If, under any appropriation made by the general court, the federal grant received, whether by direct grant from a federal agency or by a grant or pass-through of federal funds from a state agency, is less than estimated, the total appropriation shall be reduced by the amount of reduction in federal estimates and the applicable state matching funds, with the exception of food and nutrition grants to state institutions. If the applicable state matching funds are included in a section or sections other than the section or sections in which the federal grants are estimated, the appropriation reductions shall be made in the applicable sections. The provisions of this section shall also apply to any position funded in full or in part from federal funds, and if federal funds are not available to fund any position or positions as budgeted, said position or positions shall be abolished forthwith. The provisions of this section shall not apply to revenue sharing funds.
Source. 1983, 469:84, eff. July 1, 1983.

## 124:15 Positions Restricted. {#sec_124-15}

I. In addition to the positions authorized by law, no new personnel positions, or consultants, or both may be created by the acceptance of federal moneys or moneys from any other source unless such positions, or consultants, or both are approved by the fiscal committee of the general court; provided, however, that the governor and council may accept all moneys available for any emergency or disaster as defined by the authority awarding such moneys; and provided further that all such moneys available to the general court or to either of its houses may be accepted by the respective presiding officers with the prior approval of the fiscal committee. Nothing herein shall be construed to affect the provisions of RSA 98:17-a.
II. Every board, agency, department or commission receiving such federal or other moneys shall attempt to apply them in whole or in part to the cost of personnel positions authorized by law so as to reduce the obligation of general funds, but if the salaries of such personnel positions cannot be paid out of such moneys then such positions shall be considered as specified in paragraph I.
III. All such moneys which fund personnel positions subject to the restrictions of this section shall be used only for the purposes or programs specified in the application for approval of the positions or as otherwise authorized by law, and all such moneys which are accepted in accordance with law are hereby appropriated.
Source. 1983, 469:84, eff. July 1, 1983.

## 124:16 Funds Set Aside. {#sec_124-16}

Every state department, board, institution, commission or agency which receives federal funds shall set aside an amount equal to .2 percent of the funds received to pay for financial and compliance audits as required by the federal government or by state statute.
Source. 1983, 469:84, eff. July 1, 1983.

## 124:17 Use Restricted. {#sec_124-17}

Applications for grants or other federal benefits, however designated, except where precluded by federal law, shall include requests for funds adequate to accomplish the objectives of the grant proposal, including moneys to pay for financial and compliance audits as required by the grantor or by state statute. Moneys included in a grant award budgeted and designated for auditing the grant or program shall not be used for any other purpose.
Source. 1983, 469:84, eff. July 1, 1983.

## 124:18 Separate Account Required. {#sec_124-18}

All funds set aside and designated to be used for financial and compliance audits of federal assistance grants however designated shall be credited to a separate account maintained on the records of the commissioner of administrative services.
Source. 1983, 469:84, eff. July 1, 1983.

## 124:19 Legislative Budget Assistant to Audit. {#sec_124-19}

The legislative budget assistant may enter into agreements or contracts with the federal government or its agencies for the purpose of conducting financial and compliance audits of programs funded in whole or in part by the federal government and carried out by agencies of the state. The legislative budget assistant may conduct said audits himself or may contract with another auditor who shall conduct said audit under the direction and authority of the legislative budget assistant. All costs of such audits, direct or indirect, shall be a charge against the separate account maintained by the commissioner of administrative services of the funds set aside for the purpose, and the same are hereby continually appropriated.
Source. 1983, 469:84. 1985, 399:3, I, eff. July 1, 1985.

## 124:19 Legislative Budget Assistant to Audit. {#sec_124-19_2}

The legislative budget assistant may enter into agreements or contracts with the federal government or its agencies for the purpose of conducting financial and compliance audits of programs funded in whole or in part by the federal government and carried out by agencies of the state or entities expending state or federal funds. The authority of the legislative budget assistant to conduct or contract for audits on non-state agencies shall be limited to 5 entities in a 5-year period. The legislative budget assistant may conduct said audits or may contract with another auditor who shall conduct said audit under the direction and authority of the legislative budget assistant. All costs of such audits, direct or indirect, shall be a charge against the separate account maintained by the commissioner of administrative services of the funds set aside for the purpose, and the same are hereby continually appropriated.
Source. 1983, 469:84. 1985, 399:3, I, eff. July 1, 1985. 2006, 79:3, eff. July 1, 2007.