Bill Details - HB534 (2019)

HB 534-FN - AS INTRODUCED

 

 

2019 SESSION

19-0337

05/06

 

HOUSE BILL 534-FN

 

AN ACT relative to certain major state projects.

 

SPONSORS: Rep. Graham, Hills. 7; Rep. Eaton, Ches. 3; Sen. Giuda, Dist 2; Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3

 

COMMITTEE: Public Works and Highways

 

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ANALYSIS

 

This bill expands the scope of projects that are exempt from the department of administrative services competitive bidding requirement.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0337

05/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to certain major state projects.

 

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

 

1  Major Projects; Exclusion from Competitive Bidding Requirement.  Amend RSA 21-I:80, I(b) to read as follows:

(b)  Projects for the department of fish and game, the adjutant general's department, the department of transportation, and the department of natural and cultural resources whose estimated total cost is not more than [$250,000] $500,000 or for projects that cannot be accepted by the department of administrative services, division of public works.  Such projects may be done on a force account basis, by contracts awarded through competitive bidding, by short term rental of construction equipment, or by any combination of these methods.  These departments are authorized to rent construction equipment for periods not exceeding 6 months at rates the departments deem competitive through the use of quotes or bids.

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

 

LBAO

19-0337

1/11/19

 

HB 534-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to certain major state projects.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Funding Source:

  [ X ] General            [    ] Education            [ X ] Highway           [ X ] Other

 

METHODOLOGY:

This bill would raise the threshold, from $250,000 to $500,000, for projects that are exempt from the competitive bid requirement of the Department of Administrative Services, Division of Public Works (DPW).  The following departments are affected and would realize reduced expenditures: Fish and Game, Adjutant General, Transportation, and Natural and Cultural Resources.  Projects that cannot be accepted by the DPW are also exempted.  

 

DAS indicates DPW derives approximately thirty percent of its total funding from fees charged to these agencies and would therefore lose that funding source.  This funding loss would impact the ability of the DPW to perform its role in enforcing Statewide building standards and codes, designing new building or building improvements, and monitoring the construction of these building improvements to ensure Statewide standards are adhered to during the construction phase.  DPW would require additional general funds to replace the lost funding stream and maintain these functions at current levels.  There is no provision to replace these funds in the DAS budget with general funds.

 

In FY 2018, the total project value for these named agencies was $7,292,335.  DPW fees are approximately 6 percent of this value, or $437,540 ($7,292,335 x .06 = $437,540).  DPW total funding from fees in FY 2018 was $957,358.  Fifty percent of this funding is estimated to come from the fees charged to these agencies, or $478,679.  Based on these two calculations, $450,000 represents a reasonable estimate of potential loss of funding from fees on 2018 dollars.  An inflation factor of 5% per year would yield a potential loss of funding of $496,125 in FY 2020, $520,931 in FY 2021, $546,978 in FY 2022, and $574,327 in FY 2023.

 

AGENCIES CONTACTED:

     Department of Administrative Services

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Public Works and Highways HJ 3 P. 18
Jan. 23, 2019 Public Hearing: 01/23/2019 11:00 am LOB 201
Feb. 5, 2019 Executive Session: 02/05/2019 10:00 am LOB 201
Feb. 14, 2019 Committee Report: Ought to Pass for 02/14/2019 (Vote 16-0; CC) HC 11 P. 10
Committee Report: Ought to Pass (Vote 16-0; CC)
Feb. 14, 2019 Ought to Pass: MA VV 02/14/2019
March 7, 2019 Introduced 03/07/2019 and Referred to Transportation; SJ 8

Action Dates

Date Body Type
Jan. 23, 2019 House Hearing
Feb. 5, 2019 House Exec Session
House Floor Vote
Feb. 14, 2019 House Floor Vote

Bill Text Revisions

HB534 Revision: 4812 Date: Jan. 15, 2019, 12:32 p.m.