HB1411: (New Title) establishing a committee to study funding sources for the state laboratories and extending the appropriation to the department of corrections for the prison automation system.

HB 1411-FN-A – AS AMENDED BY THE SENATE

05Feb2004… 0311h

17Mar2004… 0693h

04/08/04 0995s

04/08/04 1097s

2003 SESSION

03-2339

05/09

HOUSE BILL 1411-FN-A

AN ACT establishing a committee to study funding sources for the state laboratories; relative to laboratory fees and services; and extending the appropriation to the department of corrections for the prison automation system.

SPONSORS: Rep. Weyler, Rock 79; Rep. Dodge, Rock 80; Rep. Graham, Hills 57; Rep. M. Smith, Straf 72; Sen. Morse, Dist 22; Sen. Clegg, Dist 14

COMMITTEE: Public Works and Highways

AMENDED ANALYSIS

This bill:

I. Establishes a study committee to consider implementing a facility fee to fund the maintenance and renovation of the state laboratories.

II. Prevents the lapse of a prior appropriation to the department of corrections for a prison automation system.

III. Establishes a study committee to determine the extent to which the state laboratory competes against the private sector in offering its products and services to the general public.

IV. Amends fees charged by the state laboratory of hygiene.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05Feb2004… 0311h

17Mar2004… 0693h

04/08/04 0995s

04/08/04 1097s

03-2339

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT establishing a committee to study funding sources for the state laboratories; relative to laboratory fees and services; and extending the appropriation to the department of corrections for the prison automation system.

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

1 Committee Established. There is established a committee to study funding sources for renovation and maintenance of the state laboratories.

2 Membership and Compensation.

I. The members of the committee shall be as follows:

(a) Four members of the house of representatives, appointed by the speaker of the house of representatives, one of whom shall be a member of the ways and means committee, 2 of whom shall be members of the finance committee, and one of whom shall be a member of the public works and highways committee.

(b) Two members of the senate, appointed by the president of the senate, one of whom shall be a member of the ways and means committee and one of whom shall be a member of the finance committee.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

3 Duties. The committee shall study the feasibility of implementing a facility fee for laboratory services to pay for maintenance and debt service on the renovation and expansion of the state laboratories.

4 Chairperson; Quorum. The members of the study 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. Four members of the committee shall constitute a quorum.

5 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2004.

6 Capital Appropriation; Department of Corrections; Lapse Date Extended. The $750,000 appropriation to the department of corrections in 1997, 349:1, III(D), for the prison automation system, is hereby extended to June 30, 2005.

7 Oversight and Reporting Required. The department of corrections shall provide a report every 90 days to the legislative capital budget overview committee on the progress of the prison automation project beginning September 30, 2004, until the funds appropriated and extended for such purpose in section 6 of this act are fully expended. The reports shall include the current total project cost, funds encumbered, actual expenditures, and the estimated completion date for the project.

8 Office of Information Technology; Oversight and Reporting Required. The office of information technology shall provide a report every 30 days to the fiscal committee of the general court and to the house and senate ways and means committees on the progress of the prison automation project beginning September 30, 2004, until the funds appropriated and extended for such purpose in section 6 of this act are fully expended. The reports shall include the current total project cost, funds encumbered, actual expenditures, and the estimated completion date for the project.

9 State Laboratory Committee Established. The general court recognizes that certain functions of state government may directly or indirectly compete with services and products otherwise provided by the private sector. State government has a responsibility to consider very carefully any decision to provide products and services to the public at large, particularly where the products and services to be provided may compete with similar products or services offered by the private sector. Therefore, there is hereby established the state laboratory committee, a study committee to examine the current structure of the state laboratory to identify those services which compete directly with the private sector and to examine the true costs of providing such services where private market-priced services are concerned.

I. The members of the committee shall be as follows:

(a) Three members of the senate, appointed by the president of the senate, one of whom shall be a member of the senate environment committee, one of whom shall be a member of the senate ways and means committee, and one of whom shall be a member of the senate finance committee.

(b) Three members of the house of representatives, appointed by the speaker of the house of representatives, one of whom shall be a member of the house environment and agriculture committee, one of whom shall be a member of the house ways and means committee, and one of whom shall be a member of the house finance committee.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

III. The committee shall:

(a) Determine the extent to which the state laboratory competes against the private sector in offering its products and services to the general public.

(b) Examine the benefits and true cost savings to the state associated with the possibility of phasing out those services in which the state unfairly competes against the private sector today.

(c) Review similar operations and the competitive position in the marketplace of similarly-provided laboratory services of other states.

(d) Evaluate the need to refocus the role and responsibilities of the state laboratory services to provide necessary services available in the private sector, such as those related to homeland security.

(e) Develop recommendations and legislative proposals for reorganization and implementation of changes based on the findings of this committee.

(f) Study other issues deemed relevant to the committee's purpose.

(g) Solicit relevant information and testimony from the following individuals and organizations:

(1) The New Hampshire Municipal Association.

(2) The New Hampshire Waterworks Association.

(3) The Business and Industry Association of New Hampshire.

(4) The Lab Association of New Hampshire.

(5) American Council of Engineering Companies-New Hampshire Chapter.

(6) The commissioner of the department of health and human services, or designee.

(7) The commissioner of the department of environmental services, or designee.

(8) The commissioner of the department of safety, or designee.

IV. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

V. The committee shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2004.

10 Public Health; Laboratory of Hygiene; Fee Required; Fees Changed. RSA 131:3-a, I-III is repealed and reenacted to read as follows:

I. Fees for analyses required by the federal Safe Drinking Water Act or offered as a service shall be set by following the cost allocation method established for reimbursements to the state from grants funded by the United States Environmental Protection Agency (EPA).

(a) Inorganic chemicals $360/400

(b) Synthetic organic chemicals $750

(c) Volatile organic chemicals $130

(d) Radiologicals

(1) Analytical gross alpha $ 60

(2) Uranium (activity) $150

(3) Uranium (mass) $ 15

(4) Radium 226 $150

(5) Radon $ 25

(e) Standard analysis $115

(f) Bacteria as CTS/100ml $ 25

(g) Bacteria as P-A/100ml $ 20

(h) Lead and copper $ 30

(i) Total trihalomethanes $ 75

(j) Total organic carbon $ 50

(k) Haloacetic acids $100

(l) Nitrate/Nitrite $ 13

(m) Specific ultraviolet absorbance $150

(n) Water quality parameters $ 40

II. Fees for analyses of the following special parameters not required by the federal Safe Drinking Water Act shall be:

(a) Asbestos $ 35

(b) Bacteria as MPN/100ml $ 35

(c) Biosuitability $150

(d) Fluoride $ 13

(e) Individual metals $ 15

(f) Iron bacteria $ 30

(g) Methyl tertiary butyl ether $ 75

(h) Standard plate count $ 30

(i) Thermometer calibration $ 15

(j) Total petroleum hydrocarbons $115

(k) Total phosphorous $ 15

(l) Non-specific analytical investigation $ 70 per hour

(m) Other tests at calculated cost

(n) Expedited service 2 times list price

III. Fees for analysis of the following parameters in support of the department’s private homeowner initiative shall be:

(a) Bacteria, chloride, nitrate $ 35

(b) Drinking water bacteria $ 20

(c) Radiological analysis $ 90

(d) Standard analysis $ 90

(e) Suspected sewage $ 60

(f) Volatile organic chemicals $130

IV. Unless otherwise prohibited by the Safe Drinking Water Act or the EPA grants referenced in paragraph I, the commissioner of environmental services may adopt rules to change the fees established in paragraphs I-III. Rules adopted under this paragraph shall be exempt from RSA 541-A, and may be amended or superseded annually based on market conditions and trends as is the common practice in private industry. Fees established under this paragraph shall be designed to reflect the rate of inflation as measured by the most recent available northeast region consumer price index and to be comparable with fees for similar services offered by other laboratories in the state. Any rule adopted by the commissioner of environmental services under this paragraph shall be filed with the fiscal committee of the general court and with the office of legislative services within 7 days of adoption, amendment, or repeal.

V. All fees collected by the commissioner of environmental services under this section shall be deposited with the state treasurer as unrestricted revenue, with the exception that 50 percent of every analysis fee shall be deposited with the state treasurer and reserved in a special nonlapsing fund to be used by the commissioner of environmental services for the purchase of replacement or new laboratory equipment designed to improve service. The commissioner may, with prior approval of the governor and council, use funds in the nonlapsing account for unanticipated personnel or supply expenditures made necessary by unexpected changes in or additions to federal or state required laboratory analyses, or unusual volume of samples.

11 Effective Date.

I. Section 10 of this act shall take effect September 1, 2004.

II. The remainder of this act shall take effect upon its passage.

LBAO

03-2339

Amended 4/26/04

HB 1411 FISCAL NOTE

AN ACT establishing a committee to study funding sources for the state laboratories; relative to laboratory fees and services; and extending the appropriation to the department of corrections for the prison automation system.

FISCAL IMPACT:

The Department of Environmental Services has determined this bill, as amended by the Senate (Amendments #2004-0995s and #2004-1097s), will have increase state revenue by $477,378 in FY 2005 and each year thereafter, and increase county and local expenditures by an indeterminable amount in FY 2005 and each year thereafter. The Office of Information Technology determined that this bill will increase state expenditures by $5,372 in FY 2005 and FY 2006. There is no fiscal impact on county and local revenue.

METHODOLOGY:

The Department of Environmental Services (DES) states that this bill will increase state general fund revenue by $477,378 in FY 2005 and by an indeterminable amount each year thereafter. The Department based this estimate on FY 2003 actual samples received since the number of tests and types of tests requested vary widely each year. The schedule below shows the breakdown of the projected revenue increase by three major customer type; homeowners, public water systems, and other.

Homeowners $ 57,465

Public Water Systems 335,930

Other 83,983

$477,378

The Department further states that there may be an indeterminable increase to county and local expenditures for those counties and municipalities that use the Department’s lab services for required Federal Safe Drinking Water Act testing.

The Office of Information Technology (OIT) states this bill will require OIT to monitor and report to the Fiscal Committee of the General Court, and to the House and Senate Ways and Means Committees on the status of the prison automation project, beginning September 30, 2004. The Office estimates that a business analyst can accomplish these functions in five hours per month. The five hour estimate consists of two hours per week for project review, and three hours per week for report preparation. The Office estimates this cost to be $5,372 in FY 2005 and FY 2006.

The Department of Corrections (DOC) states that this bill will require DOC to report to the Legislative Capital Budget Overview Committee on the progress of the prison automation project beginning September 30, 2004. The Department determined that this reporting can be accomplished without an increase in state expenditures. DOC also states that the lapse date extension for the prison automation project does not appropriate additional money, it extends the authorization of funds approved in the 1997 Legislative Session.