AN ACT relative to New Hampshire correctional industries.

SPONSORS: Rep. Groen, Straf 10; Rep. Pitre, Straf 2; Rep. Ulery, Hills 37

COMMITTEE: Executive Departments and Administration


This bill establishes GraniteCor within the department of corrections. The bill exempts GraniteCor from state competitive bidding and purchasing requirements; establishes a GraniteCor capital equipment fund; prioritizes state purchases from governmental entities; and transfers a portion of the existing motor vehicle number plate manufacturing fee assessed by the department of safety to GraniteCor.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.




In the Year of Our Lord Two Thousand Thirteen

AN ACT relative to New Hampshire correctional industries.

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

1 New Subdivision; New Hampshire Correctional Industries; GraniteCor. Amend RSA 622 by inserting after section 32 the following new subdivision:

New Hampshire Correctional Industries-GraniteCor

622:32-a GraniteCor Established. In order to provide inmates with on-the-job-training (OJT) in jobs that produce products and services that serve customers, there is hereby established a division within the department of corrections called New Hampshire correctional industries, which shall be known by the name “GraniteCor.” GraniteCor shall be administered by, and subject to the authority of, the commissioner of the department of corrections.

622:32-b GraniteCor Operations.

I. The state shall provide GraniteCor with a market for its products and services.

II. The primary goal of GraniteCor shall be to engage prison inmates in productive, skill building work that reduces idleness and recidivism, and increases prison and public safety. GraniteCor shall have a base market sufficient for GraniteCor to be self-funding while maintaining sufficient OJT jobs to maintain compliance with court decrees. GraniteCor shall strive to attain revenue which is not less than $3,000,000 and not more than $9,000,000 in purchases of products and services by governmental entities.

III. The following provisions shall apply to transactions between a governmental entity and GraniteCor:

(a) GraniteCor may supply a governmental entity with products and services at market prices based on similar quality products and services. When purchasing from GraniteCor, governmental entities shall not be required to solicit bids or price quotes from any other source of said products or services.

(b) Political subdivisions of the state and nonprofit organizations may purchase from GraniteCor unless otherwise restricted by their own rules, laws, or ordinances.

(c) GraniteCor prices shall be determined by the open market except where otherwise required by law.

(d) GraniteCor may supply any product or service at market prices to the department of corrections without limitation.

(e) Products under $500 in value, and products over $500 in value for which GraniteCor has a contract approved by governor and council, which are made, in whole or in part, by private businesses which GraniteCor repackages, partially manufactures, distributes, or otherwise physically handles, shall be considered GraniteCor products.

(f)(1) GraniteCor and the department of administrative services, division of plant and property management, bureau of graphic services shall be the primary vendors for printing jobs for the state. Other governmental entities may internally produce printed products limited to their own use at the discretion of the commissioner of the department of administrative services.

(2) GraniteCor shall be the primary printer for graphic-related products for governmental entities, except for products produced internally by such agency. GraniteCor shall have the right of first refusal for printing jobs which may be outsourced.

(g) GraniteCor’s sign shop shall be the primary sign shop for governmental entities and shall have first option to produce signs 48 inches or less in width.

(h) Governmental entities shall purchase stickers, decals, and tags from GraniteCor at market prices whenever GraniteCor has the capability for making such items.

(i) Governmental entities shall purchase motor vehicle number plates from GraniteCor and all governmental entities shall design plates capable of being manufactured by GraniteCor. GraniteCor shall assess and collect a $1.50 per plate fee for the manufacture such plates. The governmental entity shall provide all necessary materials. Moneys collected by GraniteCor under this subparagraph shall be deposited into the GraniteCor capital equipment fund established in RSA 622:32-d.

(j) GraniteCor shall be allowed to sell directly and indirectly nationally and internationally to businesses, individuals, nonprofit entities, and governments when in accordance with federal laws.

(k) GraniteCor may participate in the Prison Industry Enhancement Certification Program (PIECP) administered by United States Department of Justice and may implement some or all of the requirements of the program, and any amendments to the program, as deemed necessary. GraniteCor shall be reimbursed for costs involved in managing, expanding, and administering PIECP from the accounts of inmates who participate in PIECP.

(l) GraniteCor may purchase and maintain a privately hosted e-commerce web site approved department of information technology (DoIT) and accept electronic payments. GraniteCor may purchase and maintain a separate, privately hosted web site approved by DoIT for the purpose of allowing customers to upload files. All web sites shall meet or exceed state security requirements as determined by DoIT.

622:32-c Exemptions from State Contract and Purchasing Requirements. GraniteCor’s purchases and contracting shall be exempt from the competitive bidding requirements set forth in RSA 21-I:11.

622:32-d GraniteCor Capital Equipment Fund Established.

I. There is established in the office of the state treasurer a fund to be known as the GraniteCor capital equipment fund, which shall be administered by the commissioner of the department of corrections, and which shall be kept distinct and separate from all other funds. All moneys in the fund shall be nonlapsing and continually appropriated to GraniteCor. The commissioner of the department of corrections shall deposit in the fund all moneys received by GraniteCor from the sales of GraniteCor goods and services, and such other funds received under state or federal law, and any gifts, grants, or donations to GraniteCor from any source. The fund shall be used to purchase necessary capital equipment for GraniteCor and shall not be used for GraniteCor general operating expenses. The commissioner shall credit any interest or income earned on moneys on deposit to the fund.

II. No later than June 30 of each fiscal year in which GraniteCor’s annual revenues exceed its annual expenses, the commissioner of the department of administrative services shall deposit in the GraniteCor capital equipment fund an amount equal to the difference between GraniteCor’s annual revenues and annual expenses. For the purpose of calculations under this paragraph, depreciation shall not be considered an operating expense.

III. GraniteCor’s annual expenses may exceed its annual revenues until such time as the commissioner of the department of administrative services certifies to the commissioner of the department of corrections that a minimum of $3,000,000 in purchases of products and services by governmental entities is from GraniteCor.

IV. GraniteCor may finance or lease capital equipment costing in excess of $5,000 for up to 84 months.

2 Addition to Fund. Amend RSA 228:25 to read as follows:

228:25 Addition to Fund.

I. There is hereby established an inventory fund in the department of safety consisting of the initial appropriation of $1,000,000 which sum is hereby authorized as a revolving fund comprised of funds in the highway fund that are not otherwise appropriated and into which shall be deposited additional revenues derived from the number plate manufacturing fee established in this paragraph. The fund shall be nonlapsing and continually appropriated to the department. The [prison] department of safety shall purchase such raw materials as may be required [and agreed to by the commissioner of safety] by GraniteCor in order for the commissioner of safety to issue fully reflectorized motor vehicle number plates. This purchase shall be a charge against the inventory fund and [the prison] GraniteCor shall be responsible for the control and accountability of the raw materials so charged. Said number plates shall be manufactured at the state prison. [The prison] GraniteCor shall be furnished out of said inventory account the raw materials necessary to manufacture said plates and upon receipt of the finished plates by the department of safety shall be reimbursed for their direct and indirect costs. The commissioner of safety shall, biennially, request the commissioner of administrative services to review and approve said cost rates. Notwithstanding any other provision of law, the commissioner of safety shall charge, in addition to the regular motor vehicle registration fee, a number plate manufacturing fee of $4.00 per plate at the time of issuing said reflectorized motor vehicle number plates or replacement reflectorized number plates, $1.50 of which shall be credited by the commissioner of safety to the GraniteCor capital equipment fund established in RSA 622:32-d. Said additional charge shall not give the registrant any title or other property interest in said plates. The commissioner of safety or assistant commissioner may request from time to time delivery of the number plates from [the prison] GraniteCor and shall reimburse the inventory fund by a transfer from revenue. At least 6 months prior to subsequent general issue, a transfer from revenue shall be made for all remaining finished plates in inventory. The commissioner of safety shall report to the governor, the president of the senate, and the speaker of the house of representatives, no later than 90 days after the close of the second fiscal year of each biennium, the year ending balance in the inventory fund and the department’s recommendation as to when the next general issue of number plates should commence, the estimated cost of such a general issue, and the estimated annual cost to support routine plate issue and replacement without a new general issue.

II. [Repealed.]

III. In accordance with the provisions of paragraph I, replacement plates may be purchased from the inventory fund.

IV. If [the state prison shop]GraniteCor is unable to manufacture or deliver reflectorized motor vehicle plates in a timely manner because of an emergency interruption resulting from a riot or other unforeseen cause, as determined by the commissioner of corrections or the commissioner of safety, the commissioners shall submit a written report to the governor and council and shall request that an outside vendor be retained to manufacture said plates. If at any time the commissioner of safety or the commissioner of corrections determines that [the prison] GraniteCor cannot produce number plates at a competitive price or meet reasonable delivery schedules, the commissioner of safety shall report to the fiscal committee of the general court and the governor and council, and shall request that an outside vendor be retained to manufacture the plates. Upon approval of the governor and council, the commissioner of safety shall request the director of plant and property management to select an outside vendor[ in accordance with RSA 8:19].

V. The commissioner of safety, with approval of the governor, may charge the necessary expenses for the manufacture, storage, handling, issuance, and distribution of reflectorized motor vehicle number plates against the inventory fund provided under this section.

3 Sales of Prison Products. Amend RSA 622:26 to read as follows:

622:26 Sales of Prison Products.

[I. The commissioner of corrections may contract for the sale or lease of goods and products which are produced at the state prisons on the open market at competitive prices, when, in his opinion, such sale or lease is in the best interests of the inmates and of the prisons and does not conflict unduly with the availability of prison manufactured goods to state and public institutions as provided for in RSA 622:5, VI and RSA 622:28, and results in the best utilization of the prison production capacity.

II.] The commissioner of corrections shall not, nor shall any other authority, make any contract by which the labor or time of any prisoner in the state prisons or in any reformatory, penitentiary, or jail in the state shall be farmed out, given, or sold to any person.

4 New Subparagraph; Application of Receipts; GraniteCor Capital Equipment Fund. Amend RSA 6:12, I(b) by inserting after subparagraph 310 the following new subparagraph:

(311) Moneys deposited into the GraniteCor capital equipment fund established in RSA 622:32-d.

5 Repeal. The following are repealed:

I. RSA 622:5, V, relative to the power of the commissioner of the department of corrections to provide for the sale of articles manufactured in the prisons.

II. RSA 622:28, relative to provision of products for state agencies.

III. RSA 622:28-a, relative to the prison industries inventory account.

IV. RSA 6:12, I(b)(206), relative to the industries inventory account.

6 Effective Date. This act shall take effect July 1, 2014.





AN ACT relative to New Hampshire correctional industries.


The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill, as introduced, as it is awaiting information from the Departments of Safety and Transportation. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.