Revision: May 20, 2010, midnight
HB 1166 – VERSION ADOPTED BY BOTH BODIES
17Feb2010… 0249h
04/28/10 1374s
2010 SESSION
05/10
HOUSE BILL 1166
AN ACT relative to procurement procedures of the director of plant and property management, and relative to approval of design build projects.
SPONSORS: Rep. Pilotte, Hills 16; Rep. L. Ober, Hills 27
COMMITTEE: Public Works and Highways
This bill:
I. Permits the division of plant and property management to procure supplies or services for the legislative and judicial branches of state government and recognizes that the division may include certain provisions regarding purchases by those branches, by municipalities, and by nonprofits in its contracts.
II. Authorizes the use of procurement cards for supplies purchased through the division of plant and property management for items below a set dollar value.
III. Requires capital budget overview committee approval only for certain state building projects over a specified amount.
IV. Repeals the authority of the director of plant and property management to purchase supplies for the New Hampshire College and University Council.
This bill is a request of the department of administrative services.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17Feb2010… 0249h
04/28/10 1374s
10-2399
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to procurement procedures of the director of plant and property management, and relative to approval of design build projects.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Director of Plant and Property Management; Additional Purchasing Authority. Amend RSA 21-I:17, I to read as follows:
I. The director of plant and property management may purchase supplies or services for the legislative or judicial branches whenever the governing body thereof so desires and the director deems that such purchases can be made advantageously. In addition, the director may include terms in his or her contracts that require a vendor to make supplies and services available to the legislative or judicial branches, and any county, city, town, school district, special district or precinct, or any other governmental subdivision, or any nonprofit agency certified under the provisions of section 501(c) of the federal Internal Revenue Code, [whenever the governing body thereof so desires and the director deems that he can make such purchases advantageously] on terms that are the same as or similar to those offered to the executive branch of the state; however, any such procurement of supplies or services by the legislative or judicial branches, any county, city, town, school district, special district or precinct, or any other governmental subdivision, or any nonprofit agency certified under the provisions of section 501(c) of the federal Internal Revenue Code shall be made independently and distinctly from the director's purchases under this chapter, and the director shall not be required to enter into any contractual or other arrangements or assume any responsibility or liability with respect to any such procurement of supplies or services by the legislative or judicial branches, any county, city, town, school district, special district or precinct, or any other governmental subdivision, or any nonprofit agency certified under the provisions of section 501(c) of the federal Internal Revenue Code.
2 Delegation of Purchasing Authority; Use of Procurement Cards. Amend RSA 21-I:17-a, I to read as follows:
I. The director of plant and property management may, upon written application of the governing board of any agency, authorize such governing board, or one or more individuals designated by such board, to purchase supplies for the agency directly from vendors by the use of field purchase orders, or by the use of procurement cards issued for that purpose; provided, however, that no such field purchase order or procurement card shall be used where a total expenditure of more than $500 is involved. The form and use of such field purchase orders or procurement cards shall be prescribed by rules adopted by the commissioner of administrative services[,] pursuant to RSA 541-A in consultation with the state treasurer, or in the department’s manual of procedures described in RSA 21-I:14, I. Rules or procedures adopted by the commissioner relative to procurement cards shall include processes for monitoring the use of such cards. [The director may also authorize purchases using the integrated financial system for contracted commodities and services, provided that the total expenditure involved does not exceed $5,000.] Procurement cards shall be used only for the state purposes permitted under this paragraph. Unauthorized use of a procurement card may result in disciplinary action up to and including termination of employment. Any person who knowingly uses a procurement card in violation of this section shall be guilty of a misdemeanor.
3 Public Works Design and Construction; Approval by Capital Budget Overview Committee. Amend RSA 21-I:80, I(d) to read as follows:
(d) Notwithstanding any other provision of law, the commissioner is authorized to use the design build and construction management methods of contracting for any [buildings that are part of capital projects] project. The capital budget overview committee shall approve preliminary plans prior to construction, reconstruction, alteration, or maintenance if the project is part of a capital project and:
(1) The construction management method of contracting is used; or
(2) The design build method of contracting is used and the estimated cost is more than $500,000. If the design-build method of contracting is used and the estimated cost is $500,000 or less, preapproval of the capital budget overview committee shall not be required, but the department shall notify the committee of all such projects and shall provide quarterly reports on project status.
4 Repeal. RSA 21-I:17, II, relative to the authority of the director of plant and property management to purchase supplies for the New Hampshire College and University Council, is repealed.
5 Effective Date. This act shall take effect 60 days after its passage.
LBAO
10-2399 Amended 05/07/10
HB 1166 FISCAL NOTE
AN ACT relative to procurement procedures of the director of plant and property management, and relative to approval of design build projects.
FISCAL IMPACT:
The Department of Administrative Services states this bill, as amended by the Senate (Amendment #2010-1374s), will increase state revenue by $35,000 in FY 2012 and each year thereafter and will decrease state expenditures by $25,000 in FY 2011 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Administrative Services states this bill allows agencies to purchase supplies up to $500 in value using a purchasing card and potentially expands the instances where the design build method of contracting can be utilized for state capital projects. The Department estimates revenue of 1% of the dollar value of the applicable transactions could be generated by the use of procurement cards, as banks that provide the service charge participating vendors a fee, a portion of which is turned over to the state in the form of rebate revenue. It also estimates that $3,500,000 of transactions would be made annually using procurement cards for possible yearly revenue of approximately $35,000 (1% × $3,500,000). The Department also estimates the use of procurement cards will decrease the amount of time state agency personnel take to process individual invoices and will reduce the number of checks issued to vendors, although it cannot provide a specific amount for this potential decrease in costs. The Department assumes procurement cards would be in place by July 1, 2011 and any costs associated with rulemaking or the development of procedures would be absorbed within the existing budget. Beginning July 1, 2010, the Department estimates that 5 projects per year, at an average value of $100,000 each, would be undertaken using the design build method and would typically save 5% of costs, for a decrease in state expenditures of approximately $25,000 annually (5 projects × $100,000 × 5% savings).