HB 644-FN-A - AS INTRODUCED
2003 SESSION
05/01
HOUSE BILL 644-FN-A
AN ACT relative to selling advertising space on state paychecks, vendor checks, and websites.
SPONSORS: Rep. Crane, Hills 59; Rep. Naro, Graf 15; Rep. M. Cooney, Graf 15; Rep. Dupuis, Rock 77
This bill permits the state treasurer to sell advertising space on state paychecks, vendor checks, and websites.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0405
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to selling advertising space on state paychecks, vendor checks, and websites.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; State Treasurer and State Accounts; Advertising on State Paychecks, Vendor Checks, and Websites. Amend RSA 6 by inserting after section 20 the following new section:
6:20-a Advertising on State Paychecks, Vendor Checks, and Websites. The treasurer may sell advertising space on state paychecks, electronic and printed vendor checks, and websites to private organizations and businesses. Each state paycheck shall include approximately 4 square inches of space that may be sold to public or private entities for advertising or promotional purposes. Advertising on state websites shall be at the discretion of the commissioner of the department of administrative services. Each check and website shall include the following statement: "The display advertising contained herein is not an endorsement, either implied or explicit, by the state of products or services, but is a revenue raising measure for the state." Any money so generated shall be deposited in the general fund.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
03-0405
Revised 2/10/03
HB 644 FISCAL NOTE
AN ACT relative to selling advertising space on state paychecks, vendor checks, and websites.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state expenditures by $76,446 in FY 2004, and by $1,446 in FY 2005 and each year thereafter, and increase state revenue by $3,423 in FY 2004 and each year thereafter. The Treasury Department states they are unable to determine the fiscal impact of this bill on state revenue and expenditures. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Administrative Services states the costs for advertising on payroll checks would require 1 hour per pay-period at $28.92 per hour (LG25 salary & benefits) at an annual cost of $752 (26 hours X $28.92). The Department estimates a four square inch ad would result in $1.27 in revenue for each 1,000 checks. Assuming the Department issues 377,000 payroll checks per year, revenue to the state would total $479 annually (377 X $1.27). The costs to advertise on vendor checks would require 1 hour each month at an annual cost of $347 (12 hours X $28.92). Assuming the Department issues 191,936 vendor checks per year and revenue would equal $1.27 per 1,000 checks, revenue to the state would total $244 annually (192 X $1.27). The initial cost for advertising on Webster (State's Internet Homepage) would result in an initial cost of $75,000 for site redesign. Operational costs would total $347 annually, assuming 12 hours per year at $28.92 per month. The Department estimates the charge for advertising on Webster would total $225 per month, resulting in annual revenue of $2,700 ($225 X 12). The fiscal impact is as follows:
FY 2004 FY 2005 FY 2006 FY 2007
Operational Cost
Payroll Checks $ 752 $ 752 $ 752 $ 752
Vendor Checks 347 347 347 347
Webster 75,347 347 347 347
Total Cost $76,446 $1,446 $1,446 $1,446
Revenue
Payroll Checks $ 479 $ 479 $ 479 $ 479
Vendor Checks 244 244 244 244
Webster 2,700 2,700 2,700 2,700
Total Revenue $3,423 $3,423 $3,423 $3,423
The Treasury Department states that any advertising sold would be designed by the buyer within the space available on the checks, and any revenue derived would be based on sales. There is no cost associated with a simple text message that might be included on state payroll checks. The Department is unable to determine the costs associated with any advertising that goes beyond simple text messages. It is assumed there will be costs associated with the sales effort and keying done on checks, however, these cannot be determined at this time.