Revision: March 13, 2012, midnight
HB 1274-FN – AS AMENDED BY THE HOUSE
1Feb2012… 0376h
2012 SESSION
09/04
HOUSE BILL 1274-FN
AN ACT transferring the McAuliffe-Shepard discovery center to a private operator and making a supplemental appropriation therefor.
SPONSORS: Rep. Vaillancourt, Hills 15
COMMITTEE: Executive Departments and Administration
This bill transfers the operations of the McAuliffe-Shepard discovery center from the state to a private operator and includes a supplemental appropriation to the discovery center for this purpose.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
1Feb2012… 0376h
12-2304
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT transferring the McAuliffe-Shepard discovery center to a private operator and making a supplemental appropriation therefor.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Transfer of McAuliffe-Shepard Discovery Center to Private Operator. Pursuant to 2011, 224:88, II and as further provided in sections 2-8 of this act, all of the functions, positions, powers, duties, responsibilities, and funding of the McAuliffe-Shepard discovery center shall be transferred from the commission established in RSA 12-L:3 to a private operator on January 1, 2013. The transfer provided in this section shall include all of the equipment, software, books, papers, and records of the discovery center, except for the buildings and grounds of the discovery center which shall be transferred to the department of administrative services as provided in sections 5 and 6 of this act.
2 New Paragraph; McAuliffe-Shepard Discovery Center; Definition of Private Operator. Amend RSA 12-L:1 by inserting after paragraph IV the following new paragraph:
V. "Private operator" means an independent, private entity responsible for the management and operation of the discovery center beginning January 1, 2013.
3 New Subparagraph; Duties of the McAuliffe-Shepard Discovery Center Commission; Coordination with Private Operator. Amend RSA 12-L:7, I by inserting after subparagraph (f) the following new subparagraph:
(g) Coordinate with the private operator to achieve an orderly transition from operation of the discovery center by a state agency to operation of the discovery center by the private operator.
4 Status of Employees Pending Transition; Discovery Center Transition Fund Established; Transfer of Property and Funds. Amend RSA 12-L:8-11 to read as follows:
12-L:8 Director; Staff.
I. The commission shall employ a discovery center director and such staff as may be necessary to perform the duties assigned by the commission. The director shall be nominated by the commission and confirmed by the governor and council, and shall serve at the pleasure of the commission. The director shall be an unclassified employee whose salary shall be established under RSA 94:1-a. All other employees under this section shall be classified employees.
II. All employees of the discovery center shall remain state employees through midnight on December 31, 2012, allowing for any resignations, terminations, retirements, and new hires between the effective date of this paragraph and December 31, 2012. The state shall assume all applicable state post-retirement and payout costs for these employees. All state employees laid off from the discovery center on or before January 1, 2013 shall be eligible for inclusion in the state reduction-in-force list.
12-L:9 Gifts; Grants; Donations. Notwithstanding any other provision of law, the commission is authorized to institute promotional programs to solicit and receive gifts, grants, or donations, of any kind, made for the development or operation of the discovery center. The commission may accept gifts, grants, and donations of money and property, other than real property, for use in institutional programs without the approval of the governor and council. All monetary grants, gifts, or donations intended for operations through December 31, 2012, shall be deposited in the McAuliffe-Shepard discovery center fund. [Authority of the commission granted by this paragraph may be delegated to Touch the Future as the commission deems appropriate. Such delegation shall be reviewed from time to time and the commission shall have the authority to revoke or limit any such delegation.] All monetary grants, gifts, or donations for operations or endowments for use on or after January 1, 2013 shall be deposited in the McAuliffe-Shepard discovery center transition fund established in RSA 12-L:10, II.
12-L:10 McAuliffe-Shepard Discovery Center Fund and Transition Fund.
I. There is hereby established in the office of the state treasurer a fund to be known as the McAuliffe-Shepard discovery center fund which shall be kept separate and distinct from all other funds. All fees received by the commission pursuant to RSA 12-L:7 and all monetary gifts, grants, and donations pursuant to RSA 12-L:9 intended for operations through December 31, 2012 shall be deposited in such fund. The fund is established to pay for the operational expenses of the discovery center and the commission incurred through December 31, 2012. The moneys in this fund shall be nonlapsing and shall be continually appropriated to the commission.
II. [Nothing in this section shall be construed to prohibit the commission from establishing an endowment fund.] There is hereby established in the office of the state treasurer a fund to be known as the McAuliffe-Shepard discovery center transition fund which shall be kept separate and distinct from all other funds. All monetary gifts, grants, and donations pursuant to RSA 12-L:9 intended for operations on or after January 1, 2013 shall be deposited in such fund and shall be used to assist the private operator in funding its operations on or after January 1, 2013.
12-L:11 Transfer of Funds. The commission may transfer funds between and among line items within the discovery center budget regardless of funding source or funding mix, except that such authority shall not apply to the use of donor designated funds or to the discovery center transition fund. On December 31, 2012, all property and assets of the discovery center, including the planetarium located in Concord, and the buildings and grounds related thereto, shall be transferred to the department of administrative services. Also on December 31, 2012, all funds in the McAuliffe-Shepard discovery center fund and all funds in the McAuliffe-Shepard discovery center transition fund shall be transferred to the private operator.
5 New Sections; Transfer of Discovery Center Grounds and Equipment. Amend RSA 12-L by inserting after section 12 the following new sections:
12-L:13 Discovery Center Buildings and Grounds.
I. Ownership of the discovery center buildings and grounds shall be retained by the state.
II. The state shall retain responsibility for all debt service incurred by the discovery center prior to January 1, 2013.
III. The state shall assume all buildings and grounds routine maintenance and repair costs.
IV. The state shall enter into a 10-year, renewable lease with the private operator to occupy and operate the discovery center building and grounds beginning on January 1, 2013, at a charge of $1 per year. Either party may terminate this lease with 90 days notice if the other party fails to make a good faith effort to meet all of its obligations under RSA 12-L.
12-L:14 Discovery Center Exhibits, Equipment, Software Licenses, and Supplies.
I. The commission shall compile a comprehensive inventory of all equipment, including exhibits and software owned by the discovery center, on June 30, 2012, which shall be updated through December 31, 2012.
II. The annual lease to the private operator shall include the use of all exhibits and equipment owned by the discovery center on December 31, 2012. The state shall allow the private operator to make any upgrades to the equipment and exhibits the private operator deems necessary.
III. All equipment and exhibits on loan to the discovery center on June 30, 2012, shall be identified and updated in a timely manner through December 31, 2012.
IV. The discovery center director shall work with the private operator to contact the loaners and arrange for transfer of the loans to the private operator, for those loans that the private operator wishes to continue.
V. For all software licensed to the discovery center for which the license period extends past December 31, 2012, the state shall work with the vendors to transfer the licenses to the private operator, where possible and legal to do so.
VI. The state shall transfer at no cost all supplies belonging to the discovery center on December 31, 2012, to the private operator.
12-L:15 Discovery Center Visitor, Donor, Program Records and Archives. All publicly available donor, visitor, and program records and archival materials owned by the discovery center on December 31, 2012, shall continue to be available to the public and to the private operator.
12-L:16 State Funds.
I. All funds appropriated to the McAuliffe-Shepard discovery center in 2011, 224:88 shall be transferred to the private operator on December 31, 2012.
II. All funds in the discovery center transition fund established in RSA 12-L:10, II shall be transferred to the private operator on December 31, 2012.
III. The private operator may apply for state grants for which it is eligible and shall receive due consideration in the state’s selection of grant recipients.
6 Department of Administrative Services; Division of Plant and Property Management. Amend RSA 21-I:11, X to read as follows:
X. Subject to the direction and supervision of the commissioner of administrative services, act as custodian of the state house, legislative office building, state house annex, state library, the McAuliffe-Shepard discovery center, including the planetarium and all buildings and grounds related thereto, and, with the exception of interior maintenance of the acute psychiatric services building, the Anna Philbrook center, the Tobey School building, and all transitional housing buildings including the Howard recreation building, all state-owned buildings located on the campus of the New Hampshire hospital as described in RSA 4:39-a, as well as the grounds connected with each of the foregoing properties, and have charge of all matters relating to the care, maintenance and repair of said property.
7 Supplemental Appropriation to McAuliffe-Shepard Discovery Center. In order to facilitate the transition of the McAuliffe-Shepard discovery center to a private operator, the following sums are hereby appropriated to the McAuliffe-Shepard discovery center for the fiscal year ending June 30, 2013. Funds appropriated pursuant to this section shall be in addition to any other funds appropriated to the discovery center for this or any other purpose. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
06 EDUCATION
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
610010 McAuliffe-Shepard Discovery Center
3172 REVENUE CENTERS FY 2013
010 Personal Services-Perm. Classi 54,757
019 Holiday Pay 3,210
020 Current Expenses 55,684
022 Rents-Leases Other Than State 1,448
024 Maint. Other Than Build.- Grnds 2,941
026 Organizational Dues 900
030 Equipment New/Replacement 9,000
040 Indirect Costs 14,258
042 Additional Fringe Benefits 2,574
046 Consultants 2,000
047 Own Forces Maint.-Build.-Grnds 764
048 Contractual Maint.-Build-Grnds 26,258
050 Personal Service-Temp/Appointe 87,962
060 Benefits 39,567
065 Board Expenses 100
070 In-State Travel Reimbursement 1,950
080 Out-Of State Travel 1,703
TOTAL 303,373
ESTIMATED SOURCE OF FUNDS FOR
REVENUE CENTERS
009 Agency Income 303,373
TOTAL SOURCE OF FUNDS 303,373
06 EDUCATION
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
610010 McAuliffe-Shepard Discovery Center
3432 ADMINISTRATION FY 2013
010 Personal Services-Perm. Classi 157,327
011 Personal Services-Unclassified 46,289
018 Overtime 204
023 Heat- Electricity - Water 60,908
048 Contractual Maint.-Build-Grnds 11,600
060 Benefits 109,412
TOTAL 385,740
ESTIMATED SOURCE OF FUNDS FOR
ADMINISTRATION
General Fund 385,740
TOTAL SOURCE OF FUNDS 385,740
06 EDUCATION
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
610010 McAuliffe-Shepard Discovery Center
3480 SCIENCE STORE FY 2013
010 Personal Services-Perm. Classi 19,417
019 Holiday Pay 417
020 Current Expenses 12
040 Indirect Costs 2,466
042 Additional Fringe Benefits 913
050 Personal Service-Temp/Appointe 3,524
060 Benefits 14,439
106 Goods For Resale 11,273
TOTAL 52,461
ESTIMATED SOURCE OF FUNDS FOR
SCIENCE STORE
009 Agency Income 52,461
TOTAL SOURCE OF FUNDS 52,461
06 EDUCATION
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
61 MCAULIFFE-SHEPARD DISCOVERY CENTER
610010 McAuliffe-Shepard Discovery Center
3481 DONATIONS FY 2013
020 Current Expenses 2
024 Maint. Other Than Build.- Grnds 2
030 Equipment New/Replacement 2
041 Audit Fund Set Aside 2
043 Debt Service 77,952
046 Consultants 2
066 Employee Training 2
070 In-State Travel Reimbursement 2
080 Out-Of State Travel 2
TOTAL 77,968
ESTIMATED SOURCE OF FUNDS FOR
DONATIONS
005 Private Local Funds 77,960
FEDERAL FUNDS 8
TOTAL SOURCE OF FUNDS 77,968
EXPENDITURE TOTAL FOR MCAULIFFE-SHEPARD
DISCOVERY CENTER 819,542
FEDERAL FUNDS 8
GENERAL FUND 385,740
OTHER FUNDS 433,794
TOTAL ESTIMATED SOURCE OF FUNDS FOR
MCAULIFFE-SHEPARD DISCOVERY CENTER 819,542
8 Repeal. The following are repealed:
I. RSA 12-L:3-6, relative to the discovery center commission.
II. RSA 12-L:8, relative to discovery center staff.
III. RSA 12-L:9-11, relative to discovery center funds.
IV. RSA 6:12, I(b)(172), relative to discovery center funds.
9 Effective Date.
I. Section 8, paragraph I of this act shall take effect March 31, 2013.
II. Section 8, paragraphs II, III, and IV of this act shall take effect January 1, 2013.
III. The remainder of this act shall take effect upon its passage.
LBAO
12-2304
Revised 03/09/12
Amended 02/21/12
HB 1274 FISCAL NOTE
AN ACT transferring the McAuliffe-Shepard discovery center to a private operator and making a supplemental appropriation therefor.
FISCAL IMPACT:
The McAuliffe-Shepard Discovery Center and Department of Administrative Services state this bill, as amended by the House (Amendment #2012-0376h), will have an indeterminable impact on state expenditures in FY 2013 and each year thereafter. There is no fiscal impact on state, county, or local revenue, or county or local expenditures.
This bill appropriates $385,740 from the state general fund, $433,794 from other funds, and $8 from federal funds to the McAuliffe-Shepard Discovery Center in FY 2013 for the purposes of this act.
METHODOLOGY:
The McAuliffe-Shepard Discovery Center states this bill transfers all functions, positions, powers, duties, responsibilities, and funding of the Center, including all equipment, software, books, papers, records, from the McAuliffe-Shepard Discovery Center Commission to a private operator. In determining this bill’s impact, the Discovery Center assumes, under the arrangement currently in place, state general fund support for the Center would have continued annually, with an increase in state funding required beginning in FY 2013 to a rate based on the $763,037 of state general funds appropriated to the Discovery Center in FY 2012, increased at an inflation rate of 2.5% per year. The Discovery Center assumes this bill’s transfer of the Center to a private operator will result in a decrease in state general fund expenditures by those projected amounts, with savings in FY 2013 adjusted for this bill’s supplemental appropriation ($377,297 = $763,037 - $385,740 supplemental appropriation).
FY 2013 FY 2014 FY 2015 FY 2016
Projected Savings ($377,297) ($782,113) ($801,666) ($821,707)
The Discovery Center states the transfer will be effective December 31, 2012, so this bill makes supplemental appropriations for the first half of FY 2013 to aid in accomplishing this transition. The funds are appropriated to four accounting units within the Discovery Center’s budget, totaling the following amount in FY 2013:
Federal Funds $8
General Funds $385,740
Other Funds $433,794
Total Funds $819,542
The Discovery Center states these funds will support its operations during the first half of FY 2013 before the transfer takes place, and would be in addition to the $227,000 of state general funds already appropriated to the Center in FY 2013 in Chapter 244:88, Laws of 2011.
The McAuliffe-Shepard Discovery Center and Department of Administrative Services state despite the transfer to a private operator, this bill would require the state to continue to own the buildings and grounds upon which the center is located, and be responsible for certain routine maintenance and repair costs. Both entities state this bill would also require the state to continue to be responsible for debt service on debt incurred by the Discovery Center before January 1, 2013, and to lease the buildings and grounds to the private operator for a ten year period for $1 a year. Both entities assume this bill would also require the state to be responsible in FY 2013 for paying off the leave balances of the Discovery Center’s employees who would cease being state employees after the transfer to the private operator. Their estimates of these state general fund costs are as follows:
FY 2013 FY 2014 FY 2015 FY 2016
Buildings/Grounds $32,714 $67,064 $68,740 $70,459
Debt Service $339,847 $422,343 $412,158 $401,816
Leave Payout to Employees $131,046 $0 $0 $0
Total Projected Costs $503,607 $489,407 $480,898 $472,275
The Discovery Center also states state expenditures may increase due to unemployment claims for any Center employees terminated as a result of the transfer, although it cannot estimate an amount.
When combining the projected state general fund costs with the Discovery Center’s assumed state general fund savings, the net impact to the state is as follows:
FY 2013 FY 2014 FY 2015 FY 2016
Projected Savings ($377,297) ($782,113) ($801,666) ($821,707)
Projected Costs $503,607 $489,407 $480,898 $472,275
Net Cost / (Savings) $126,310 ($292,706) ($320,768) ($349,432)