Bill Text - HB625 (2012)

Relative to New Hampshire correctional industries.


Revision: Jan. 5, 2012, midnight

HB 625-FN-A – AS INTRODUCED

2011 SESSION

11-0639

04/01

HOUSE BILL 625-FN-A

AN ACT relative to New Hampshire correctional industries.

SPONSORS: Rep. Groen, Straf 1; Rep. Seidel, Hills 20; Rep. Comerford, Rock 9

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill establishes GraniteCor, a business enterprise that operates within the state prison system. The bill exempts GraniteCor from certain competitive bidding and purchasing requirements, establishes a GraniteCor fund and a line of credit from the state, and requires that the manufacturing fee of $4 for motor vehicle number plates be assessed by the department of safety for the use of GraniteCor.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0639

04/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to New Hampshire correctional industries.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subdivision; New Hampshire Correctional Industries; Granite Cor. Amend RSA 622 by inserting after section 32 the following new subdivision:

New Hampshire Correctional Industries-GraniteCor

622:32-a GraniteCor Established. There is hereby established New Hampshire correctional industries which shall be known by the trade name “GraniteCor.” GraniteCor shall be a business enterprise that operates within the state correctional system and as a business entity, shall strive to be financially self-sustaining.

622:32-b Definitions. In this subdivision:

I. “Board” shall mean the GraniteCor board of directors.

II. “General manager” means the administrator responsible for operations at GraniteCor.

622:32-c Board of Directors Established; Duties.

I. GraniteCor shall be overseen by a board of directors consisting of:

(a) The commissioner of the department of corrections or designee.

(b) The assistant commissioner of the department of corrections or designee.

(c) The director of administration of the department of corrections or designee.

II. The terms of office of the members shall be coterminous with their office within the department of corrections.

III. Members of the board shall serve without compensation.

IV. The board shall:

(a) Review and approve any business or strategic plan offered by the general manager prior to its implementation.

(b) Approve all projects or purchases proposed for GraniteCor.

622:32-d Exemptions from State Contract Requirements.

I. Purchases of raw materials of up to $25,000 which are used to make revenue generating products shall be exempt from the competitive bidding requirements and purchasing requirements of the department of administrative services, division of plant and property management set forth in RSA 21-I:11.

II. Emergency repairs or replacement of GraniteCor equipment shall be permitted and shall be exempt from the competitive bidding requirements and purchasing requirements of the department of administrative services, division of plant and property management set forth in RSA 21-I:11, if the board can demonstrate that production and related revenues would be interrupted due to equipment failure.

III. GraniteCor shall be subject to governor and council approval for any expenditure relating to individual agency contracts for service, maintenance, and repairs.

622:32-e GraniteCor Fund Established.

I. There is established in the department of corrections a nonlapsing fund to be known as the GraniteCor fund which shall be kept distinct and separate from all other funds.

II. The commissioner of the department of corrections shall deposit in the GraniteCor fund all revenues generated by GraniteCor from the sales of GraniteCor goods and services and the number plate manufacturing fee collected by the department of safety pursuant to RSA 228:25. The commissioner shall also deposit in the fund such other funds received under state or federal law, or donated to GraniteCor by private parties and shall credit any interest or income earned on moneys on deposit to the fund.

III. All moneys in the fund shall be nonlapsing and continually appropriated to GraniteCor for the purposes of paying GraniteCor’s direct expenses, payment of staff salary and benefits, replacing old or aging equipment necessary to GraniteCor’s functions, buying new equipment to expand the number of work training opportunities that tend to reduce recidivism, supporting growth in GraniteCor’s programs, and enhancing support services necessary to GraniteCor’s mission.

622:32-f Line of Credit. The state shall provide GraniteCor with a line of credit in an amount not to exceed $50,000 per year secured by the credit of the state for the purpose of purchasing equipment which has been approved by the board in the GraniteCor budget and to allow GraniteCor to meet its expenses in a timely manner.

622:32-g Manufacture of Motor Vehicle Plates.

I. GraniteCor shall obtain, maintain, and replace as necessary, all manufacturing equipment necessary for the manufacture of all number plates authorized by the department of safety under RSA 261. GraniteCor shall purchase and store raw materials necessary for the manufacture of number plates, store finished number plates for the issuing agency, and deliver such number plates to the issuing agency as needed.

II. The commissioner of the department of corrections shall deposit the number plate manufacturing fee of $4 per plate into the GraniteCor fund established in RSA 622:32-e.

2 Administration of Transportation Laws; Addition to Fund. Amend RSA 228:25, I to read as follows:

I. There is hereby established an inventory fund in the department of safety consisting of the initial appropriation of $1,000,000 which sum is hereby authorized as a revolving fund comprised of funds in the highway fund that are not otherwise appropriated and into which shall be deposited additional revenues [derived from the number plate manufacturing fee established in this paragraph] from other state or federal sources. The fund shall be nonlapsing and continually appropriated to the department. The prison shall purchase such raw materials as may be required and agreed to by the commissioner of safety in order for the commissioner of safety to issue fully reflectorized motor vehicle number plates. This purchase shall be a charge against the inventory fund and the prison shall be responsible for the control [and accountability] and storage of the raw materials so charged. Said number plates shall be manufactured at the state prison. The prison shall be furnished out of said inventory account the raw materials necessary to manufacture said plates and upon receipt of the finished plates by the department of safety shall be reimbursed for their direct and indirect costs. The commissioner of safety shall, biennially, request the commissioner of administrative services to review and approve said cost rates. Notwithstanding any other provision of law, the commissioner of safety shall charge, in addition to the regular motor vehicle registration fee, a number plate manufacturing fee of $4.00 per plate at the time of issuing said reflectorized motor vehicle number plates or replacement reflectorized number plates which shall be transferred to the department of corrections for deposit into the GraniteCor fund established in RSA 622:32-e. Said additional charge shall not give the registrant any title or other property interest in said plates. The commissioner of safety or assistant commissioner may request from time to time delivery of the number plates from the prison and shall reimburse the inventory fund by a transfer from revenue. At least 6 months prior to subsequent general issue, a transfer from revenue shall be made for all remaining finished plates in inventory. The commissioner of safety shall report to the governor, the president of the senate, and the speaker of the house of representatives, no later than 90 days after the close of the second fiscal year of each biennium, the year ending balance in the inventory fund and the department’s recommendation as to when the next general issue of number plates should commence, the estimated cost of such a general issue, and the estimated annual cost to support routine plate issue and replacement without a new general issue.

3 New Subparagraph; Application of Receipts; GraniteCor Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (304) the following new subparagraph:

(305) Moneys deposited into the GraniteCor fund established in RSA 622:32-e.

4 Effective Date. This act shall take effect 60 days after its passage.

LBAO

11-0639

01/18/11

HB 625-FN-A - FISCAL NOTE

AN ACT relative to New Hampshire correctional industries.

FISCAL IMPACT:

    Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.