SB429: relative to state and municipal contracting practices for public works.

SB 429 - AS AMENDED BY THE SENATE

03/11/04 0710s

2004 SESSION

04-3083

05/01

SENATE BILL 429

AN ACT relative to state and municipal contracting practices for public works.

SPONSORS: Sen. Clegg, Dist 14; Sen. Morse, Dist 22; Sen. Kenney, Dist 3; Sen. Gatsas, Dist 16; Rep. Graham, Hills 57; Rep. Infantine, Hills 54

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill prohibits the state and municipalities from imposing certain requirements on contracts for products, services, or the manufacture of public works.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/11/04 0710s

04-3083

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to state and municipal contracting practices for public works.

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

1 New Section; Department of Administrative Services; Contracting Practices for Public Works. Amend RSA 21-I by inserting after section 14-b the following new section:

21-I:14-c Contracting Practices for Public Works. The state of New Hampshire, its agencies, municipalities, and instrumentalities thereof, when engaged in procuring products for public works projects or services for public works projects, or contracting for the manufacture of public works, shall ensure that bid specifications, project agreements, or other controlling documents required or subject to the approval of the agency, municipality, or instrumentality, do not restrict any bidder, contractor, or subcontractor based on union affiliation, the furnishing of certain employee fringe benefits, apprenticeship programs except as required by RSA 319-C and RSA 329-A, compliance with a hiring plan unless required by the acceptance of federal funds, or public display of personal wage or benefits information. This section shall not apply to projects that do not use state or federal funds.

2 Repeal. RSA 21-I:14-c, relative to contracting practices for public works, is repealed.

3 Effective Date.

I. Section 2 of this act shall take effect June 1, 2006.

II. The remainder of this act shall take effect 60 days after its passage.

LBAO

04-3083

4/15/04

SB 429 FISCAL NOTE

AN ACT relative to state and municipal contracting practices for public works.

FISCAL IMPACT:

The New Hampshire Municipal Association and the Association of Counties have stated this bill, as amended by Senate (Amendment #2004-0710s), may have an indeterminable impact on local and county expenditures in FY 2005 and FY 2006. There will be no fiscal impact on state expenditures or state, county and local revenue.

METHODOLOGY:

The New Hampshire Municipal Association stated this bill would prohibit municipalities from using bid specifications or contract terms that compel bidders or contractors for public works projects to follow certain practices, such as employment of union labor or the provision of certain employee fringe benefits. It is possible that imposing such restrictions on municipal contracting practices would result in fiscal impacts to municipalities, however, the Association is unable to identify or quantify such impacts.

The Association of Counties stated it is not clear whether this legislation is applicable to county government. Specifically, the use of the term "instrumentalities" might not be inclusive of county governments. Further, the term "federal funds" for purposes of this section are not defined.

The Department of Administrative Services indicated the State does not utilize this practice now, therefor, this bill should have no fiscal impact on state government.