HB659: establishing a state recycling program to provide technical services to municipalities and establishing a fee on take-out food and beverages.

HB 659-FN-A – AS INTRODUCED

2005 SESSION

05-0843

08/09

HOUSE BILL 659-FN-A

AN ACT establishing a state recycling program to provide technical services to municipalities and establishing a fee on take-out food and beverages.

SPONSORS: Rep. French, Merr 5; Rep. Owen, Merr 4; Rep. Rous, Straf 7; Rep. B. Williams, Graf 8

COMMITTEE: Environment and Agriculture

ANALYSIS

This bill establishes a state recycling program to provide technical services to municipalities and establishes a fee on take-out food and beverages.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0843

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT establishing a state recycling program to provide technical services to municipalities and establishing a fee on take-out food and beverages.

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

1 New Chapter; Take-Out Food and Beverage Fee. Amend RSA by inserting after chapter 77-E the following new chapter:

CHAPTER 77-F

TAKE-OUT FOOD AND BEVERAGE FEE

77-F:1 Imposition of Fee.

I. A fee is imposed at the rate of 0.001105 percent upon the value of all take-out food and beverages sold by any business enterprise in the state. The fee shall be paid annually to, and in a manner and on such forms as required by, the department of revenue administration.

II. Revenue received by the department of revenue administration under paragraph I, shall be paid to the state treasurer for deposit in the take-out food and beverages recycling fund established under RSA 149-M:56.

III. In lieu of the fee in paragraph I, a business enterprise may voluntarily contribute an amount equal to the amount payable in paragraph I to New Hampshire the Beautiful, Inc.

77-F:2 Rulemaking. The commissioner shall adopt rules, under RSA 541-A, relative to:

I. The form and method of the payment of the fee imposed under this chapter.

II. The administration of the fee imposed under this chapter.

III. The recovery of any fee or penalties imposed pursuant to RSA 21-J.

2 New Subdivision; Take-Out Food and Beverage Recycling Program. Amend RSA 149-M by inserting after section 55 the following new subdivision:

Take-Out Food and Beverage Recycling Program

149-M:56 Take-Out Food and Beverage Recycling Fund Established.

I. There is hereby established the take-out food and beverage recycling fund to be used for the purposes of this subdivision.

II. This nonlapsing, revolving special fund is hereby continually appropriated to be expended by the department in accordance with 149-M:57. All moneys shall be deposited with the state treasurer who shall keep this money in a separate fund, designated the take-out food and beverage recycling fund. The state treasurer shall invest the moneys deposited in the fund as provided by law. Interest received on investments made by the state treasurer shall also be credited to the fund.

149-M:57 Recycling Board. There is hereby established a recycling board to administer the take-out food and beverage recycling program.

I. The board shall consist of 14 members, as follows:

(a) One member of the house of representatives, appointed by the speaker of the house.

(b) The commissioner of environmental services, or designee.

(c) A representative from the Northeast Resource Recovery Association, appointed by said association.

(d) A representative from the New Hampshire Wholesale Beverage Association, appointed by said association.

(e) A representative from the Business and Industry Association of New Hampshire, appointed by said association.

(f) A representative from the Retail Merchants Association of New Hampshire, appointed by said association.

(g) A representative from the New Hampshire Grocers Association, appointed by said association.

(h) A representative from the New Hampshire Municipal Association, appointed by said association.

(i) Two representatives from 2 separate environmental groups concerned with recycling, appointed by the governor.

(j) Four representatives from 4 separate retail businesses, appointed by the governor.

(k) A representative from the resource recovery industry, appointed by the governor.

II. Each member shall serve for a term of 3 years.

149-M:58 Duties. The board shall provide technical assistance regarding recycling to municipalities and award grants for equipment and start-up costs to municipal recycling programs, public school out-reach programs, and public awareness programs.

149-M:59 Executive Director. The board may hire one person as executive director, and one or more persons as support staff. The executive director shall:

I. Coordinate the activities directly involved with the administration of the program in accordance with this chapter, and as directed by the board.

II. Evaluate the applicants for grants and assistance, and determine if these applicants meet the criteria of the program, subsequent to instruction by the board.

III. At the direction of the board, administer the affairs of the program and be directly responsible for executing all policies of the board.

149-M:60 Rulemaking Exemption. The board shall be exempt from any rulemaking requirement under RSA 541-A.

3 New Subparagraph; Receipt of Moneys. Amend RSA 6:12, I(b) by inserting after subparagraph (234) the following new subparagraph:

(235) Moneys deposited in the take-out food and beverage recycling fund under RSA 149-M:56.

4 Effective Date. This act shall take effect July 1, 2005.

LBAO

05-0843

Revised 2/14/05

HB 659 FISCAL NOTE

AN ACT establishing a state recycling program to provide technical services to municipalities ad establishing a fee on take-out food and beverages.

FISCAL IMPACT:

The Department of Environmental Services states this bill will increase state restricted revenues and expenditures by $500,000 in FY 2006 and each year thereafter. The Department of Environmental Services states that local revenues will increase by $111,995 in FY 2006, $104,523 in FY 2007, $96,776 in FY 2008 and $88,801 in FY 2009. There is no fiscal impact on county revenue or county and local expenditures.

METHODOLOGY:

The Department of Environmental Services states that the rate of .001105 percent upon the value of all take-out food and beverages sold in the state is expected to raise $500,000 per year. The Department assumes that 35% of the fee, $175,000, would be contributed leaving $325,000 to the Recycling Board, as there is no way to predict how many enterprises would voluntarily contribute to the New Hampshire the Beautiful in lieu of paying the fee to the state.. It is assumed that the Board will not rely on the Department of Environmental Services for administration of its activities or for more than technical assistance. It is assumed that the Board will hire an executive director, a technical assistance staff and an administrative assistant. It is assumed the cost of $50,000 will be needed to rent office space, run the office (computers, office furniture, phones) and for a travel budget, etc. It is assumed that whatever revenue is not consumed in the administration of the board or the provision of technical services, will be awarded as grants. See summary below by fiscal year:

FY 2006

FY 2007

FY 2008

FY 2009

Estimated Revenues

$500,000

$500,000

$500,000

$500,000

Estimated contribution % to NH the Beautiful

35%

35%

35%

35%

Estimated contribution $ to NH the Beautiful

$175,000

$175,000

$175,000

$175,000

Net Amount to State Recycling Program

$325,000

$325,000

$325,000

$325,000

Board Expenses

Executive Director Salary (LG 31)

49,082

51,422

53,898

56,375

Exec. Dir. Benefits @ 44%

21,596

22,626

23,715

24,805

Exec. Dir. Salary & Benefits

70,678

74,048

77,613

81,180

Technical Staff (LG 26)

39,390

41,165

42,998

44,928

Tech. Staff Benefits @ 44%

17,332

18,113

18,919

19,768

Tech. Staff Salary & Benefits

56,722

59,278

61,917

64,696

Administrative Assistant (LG 15)

24,726

25,799

26,871

28,002

Admin. Asst. Benefits @ 44%

10,879

11,352

11,823

12,321

Admin. Asst. Salary & Benefits

35,605

37,151

38,694

40,323

Total Salaries & Benefits

163,005

170,477

178,224

186,199

Office Management and general budget

50,000

50,000

50,000

50,000

Total Board Expenses

$213,005

$220,477

$228,224

$236,199

Net Amount Available as Grants

$111,995

$104,523

$ 96,776

$ 88,801

The Department of Revenue Administration states the Department cannot estimate the increase that will be realized by imposing a fee upon the value of all take-out food and beverages sold by any business enterprise in the state. The Department states that a definition of exactly what constitutes “all take-out food and beverages” needs to be clarified. The Department also states even if this bill contained all of the requisite language of a tax law, the effective date would be problematic, as that would not allow much time to prepare to impose and administer a new tax.