Revision: March 8, 2016, midnight
\t \t\tSB 332 - AS AMENDED BY THE SENATE
02/11/2016 0401s
2016 SESSION
\t16-2800
\t05/09
SENATE BILL\t332
AN ACT\trelative to state procurement of goods and services.
SPONSORS:\tSen. Carson, Dist 14; Rep. C. McGuire, Merr. 29; Rep. P. Schmidt, Straf. 19; Rep. Eaton, Ches. 3; Rep. Danielson, Hills. 7
COMMITTEE:\tExecutive Departments And Administration
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AMENDED ANALYSIS
\tThis bill specifies the time period after which financial information regarding RFPs may be released to the public and establishes a process for disqualification of unethical state contractors. The bill increases the expenditure amount that the department of administrative services may delegate to an agency. The bill also establishes an advisory committee on state procurement.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/11/2016 0401s\t16-2800
\t05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to state procurement of goods and services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Financial Information Regarding Requests for Bids or Requests for Proposals. Amend the introductory paragraph of RSA 21-G:37, III to read as follows:
\t\tIII. Notwithstanding RSA 91-A:4, no information other than that specified in paragraph II shall be available to the public or to the members of the general court or its staff concerning specific RFBs, RFPs, RFAs, or similar requests for submission made by any state agency from the closing date for responses [until the contract negotiations with the selected vendor are completed,] until the contract is approved by the governor and executive council, or, if the contract does not require approval from the governor and executive council, until the contract has been actually awarded as determined by the issuing agency, except:
\t2 Ethics. Amend RSA 21-G:38, I to read as follows:
\t\tI. From the time the bid is published until a contract is awarded, no bidder shall offer or give, directly or indirectly, any gift, expense reimbursement, or honorarium, as defined by RSA 15-B, to any elected official, public official, public employee, constitutional official, or family member of any such official or employee who will select, evaluate, or award an RFB, RFP, RFA, or similar request for submission. Any bidder that violates this section shall be subject to prosecution for an offense under RSA 640:2. Every RFB, RFP, RFA, or similar request for submissions issued by any state agency shall contain a provision stating that any bidder who has been convicted of an offense based on conduct in violation of this section, which has not been annulled, or who is subject to a pending criminal charge for such an offense, shall be disqualified from bidding on the RFB, RFP, RFA, or similar request for submission and every such bidder shall be disqualified from bidding on any RFB, RFP, RFA, or similar request for submission issued by any state agency. An agency which becomes aware of any such charge or conviction shall notify the department of administrative services, which department shall maintain a list of vendors reported to it and make that list available for agency reference on the state's internal intranet system. A bidder that was disqualified under this section because of a pending criminal charge which is subsequently dismissed, results in an acquittal, or is annulled, may notify the department of administrative services, which shall note that information on the list maintained on the state's internal intranet system, except that in the case of annulment, the information shall be deleted from the list.
\t3 Delegation of Purchasing Authority. Amend RSA 21-I:17-a, I to read as follows:
\t\tI. The director of procurement and support services 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] $1,000 is involved unless such use is otherwise allowed by law. 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. Procurement cards shall be used only for state purposes. 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. Agencies' use of procurement cards shall be subject to the limitations of the amounts appropriated by the legislature.
\t4 New Section; Advisory Committee on State Procurement Established. Amend RSA 21-I by inserting after section 14-c the following new section:
\t21-I:14-d Advisory Committee on State Procurement.
\t\tI. There is established an advisory committee on state procurement. The members of the committee shall be as follows:
\t\t\t(a) Four members of the house of representatives, 3 of whom shall be members of the house executive department and administration committee and one of whom shall be a member of the finance committee, appointed by the speaker of the house of representatives.
\t\t\t(b) One member of the senate, appointed by the president of the senate.
\t\tII. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
\t\tIII. The committee shall work with the department of administrative services to update state procurement procedures. The committee shall meet at least annually and on an as-needed basis to address procurement issues identified by the committee.
\t\tIV. The members of the committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Three members of the committee shall constitute a quorum.
\t\tV. Beginning November 1, 2016, and each November 1 thereafter, the committee shall report its findings and any recommendations for proposed legislation to the commissioner of the department of administrative services, the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library.
\t5 Effective Date. This act shall take effect upon its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2800
\t\t\t\t\t\t\t\t\t\t\tAmended 2/29/16
SB 332-FN- FISCAL NOTE
AN ACT\trelative to state procurement of goods and services.
FISCAL IMPACT:
The Department of Administrative Services and Office of Legislative Budget Assistant state this bill, as amended by the Senate (Amendment #2016-0401s), will have an indeterminable fiscal impact on state expenditures in FY 2017 and each year thereafter. There will be no fiscal impact to state, county, and local revenue or county and local expenditures.
METHODOLOGY:
The Department of Administrative Services states this bill increases the cap on field purchase orders from $500 to $1,000. The Department states this change will reduce the amount of paperwork and decrease the number of invoices that need to be processed by state agencies. The Department estimates this change will avoid approximately $44,000 in extra labor each year across state agencies. The Department states such savings will probably not result in staff reductions as staff resources will be reallocated to other duties.
The Office of Legislative Budget Assistant states this bill contains a class B felony. There is no method to determine how many charges would be brought as a result of the changes contained in this bill to determine the fiscal impact on expenditures. However, the Judicial Branch, Department of Corrections, Judicial Council and New Hampshire Association of Counties have provided the Office with potential costs associated with the penalties contained in this bill:
| FY 2017 | FY 2018 |
Judicial Branch |
|
|
Routine Criminal Felony Case | $449 | $470 |
Complex Criminal Felony Case | $869 | $895 |
Appeals | Varies | Varies |
It should be noted average case cost estimates for FY 2017 and FY 2018 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types. | ||
Judicial Council |
|
|
Public Defender Program | Has contract with State to provide services. | Has contract with State to provide services. |
Contract Attorney – Felony | $756/Case | $756/Case |
Assigned Counsel – Felony | $60/Hour up to $4,100 | $60/Hour up to $4,100 |
It should be noted that a person needs to be found indigent and have the potential of being incarcerated to be eligible for indigent defense services. The majority of indigent cases (approximately 85%) are handled by the public defender program, with the remaining cases going to contract attorneys (14%) or assigned counsel (1%). | ||
Department of Corrections |
|
|
FY 2015 Average Cost of Incarcerating an Individual | $34,336 | $34,336 |
FY 2015 Average Cost of Supervising an Individual on Parole/Probation | $520 | $520 |
NH Association of Counties |
|
|
County Prosecution Costs | Indeterminable | Indeterminable |
Estimated Average Daily Cost of Incarcerating an Individual | $85 to $110 | $85 to $110 |
Many offenses are prosecuted by local and county prosecutors. In those instances where the Department of Justice has prosecutorial responsibility or is involved with appeals for a conviction related to the offense contained in this bill, the Department would absorb the cost within its existing budget. If the bill results in the Department needing to prosecute significantly more cases or be involved in significantly more appeals, then there may be an indeterminable increase in costs to the Department.