Determining Fees and Fines

1. Determining Fees and Fines A Study of the Current Fee and Fine Regulation Systems The contents of this report were developed under grant P116B100070 from the U.S. Department of Education. However, these contents do not necessarily represent the policy of the U.S. Department of Education, and you should not assume endorsement by the Federal Government.

2. Project Overview • Background on Fees and Fines • Setting Fees and Fines • Fees and Fines in Other States • Examination of Fees and Fines in New Hampshire • Fees and Fines in the Department of Environmental Services

3. Background on Fees and Fines Fees Fines Payment is made to cover social harm Paid involuntarily Not used to raise revenue • Payment is made to use public good • Paid voluntarily • Revenue neutral

4. Setting Fees and Fines • Typically set by relevant State Agency with varying degrees of legislative oversight • Two basic options • Fees and fines set by state agencies • Fees and fines codified in statutes by legislatures

5. Setting Fees and Fines in New Hampshire • In New Hampshire fees and fines are set by agencies but can be changed by legislature • Fees and fines are proposed in Administrative rules that are approved every 10 years • Fees and fines have historically been changed by the legislature • RSA 236:122 Motor Vehicle Recycling Yards and Junk Yards; License Fees lowered from $250 to $25 • In RSA 270-D:17 the Safe Boater Education Fees was lowered from $10 to $5

6. Fees in Other States -Test Study comparing Minnesota and Arizona-"Before and After" approach examining efficiency    -Agency Rule vs. Statute-Gap between costs of services provided and fee amounts+/-2-3% with agency rules, +/-5-7% with statute

7. Fees in Other States -Did not measure effects of increased direct representation in fee setting through statute-Legislature had trouble adjusting fees and fines quickly and efficiently-With many fees and fines this could be a big problem

8. Methodology • New Hampshire Code of Administrative Rules • Individual Agencies Rules • Key Term searches • Complied fee information

9. Methodology • Agency • Rule • Fee Amount • Fee Description • Statutory Authority • Date Effective • Date Expired • Category

10. Fees and Fines in New Hampshire • Decentralized and Diverse • Little known about total number and scope • From Amusement Ride Safety and Acupuncture Licensing to Waste Management and Veterans Cemeteries

11. Environmental Services • 152 Administrative Rules containing fees and fines • Rules contain from 1 to 30 fees and fines each • 799 fees and fines (includes complex fees) • Both single payment and per-use • $5 to $2,000 • 10 Programs

12. Rule Examples • 614.02 • Concerns unauthorized shoreline maintenance • 7 different environmental penalties (dredging, construction, repair, filling) • 303.05 • Concerns water sample testing • 30 different fees depending on type of test

14. Environmental Services Fees and Fines by Program (Environmental)

15. Fees and Fines by Type (Environmental)

16. Conclusion – Policy Options • Retain current system • Add additional layers of oversight to fee process • Reduce time for administrative rule approval (currently 10 years) • Mandate agencies report list of fees and fines • Codifying fees and fines through statute • Will likely create variance from the “true” cost • May make it more difficult for agencies to be revenue neutral • Will likely be a large burden for legislative support staff • Potential benefits are difficult to measure