HB465: relative to permissible campaign contributions by business organizations and labor unions.

HB 465-FN - AS INTRODUCED

2021 SESSION

21-0596

11/05

HOUSE BILL 465-FN

AN ACT relative to permissible campaign contributions by business organizations and labor unions.

SPONSORS: Rep. Read, Rock. 17; Rep. Elliott, Rock. 8; Rep. Grassie, Straf. 11; Rep. Knirk, Carr. 3; Rep. Gay, Rock. 8; Rep. DiLorenzo, Rock. 17; Rep. Lane, Merr. 12; Rep. T. Smith, Hills. 17; Rep. Guthrie, Rock. 13

COMMITTEE: Election Law

ANALYSIS

This bill requires business organizations and labor unions to make political contributions through segregated funds.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0596

11/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty One

AN ACT relative to permissible campaign contributions by business organizations and labor unions.

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

1 New Paragraph; Prohibited Political Contributions; Business Organizations. Amend RSA 664:4 by inserting after paragraph I the following new paragraph:

I-a. By any business organization, or by any officer, director, executive, agent, partner, or employee acting in behalf of such business organization. This shall not prohibit the establishment by a business organization of a political committee that operates independently of the business organization, provided that the committee’s expenditures and contributions are made through a separate, segregated fund consisting only of voluntary contributions solicited from individuals who are employees, officers, shareholders, directors, partners, or members of the business organization. The provisions of this paragraph shall not apply to sole proprietorships.

2 Political Expenditures and Contributions; Prohibited Political Contributions; Labor Unions; Segregated Account Exception. Amend RSA 664:4, III to read as follows:

III. By any labor union or group of labor unions, or by any officer, director, executive, agent, or employee acting in behalf of such union or group of unions; or by any organization representing or affiliated with any such union or group of unions, or by any officer, director, executive, agent, or employee acting in behalf of such organization. This shall not prohibit the establishment by a labor union or group of labor unions of a political committee that operates independently of the labor union or group of labor unions, provided that the committee’s expenditures and contributions are made through a separate, segregated fund consisting only of voluntary contributions solicited from individuals who are employees, officers, shareholders, directors, partners, or members of the labor union or group of labor unions.

3 Repeal. RSA 664:4, II, relative to prohibited political contributions by partnerships, is repealed.

4 Effective Date. This act shall take effect January 1, 2022.

LBA

21-0596

1/4/21

HB 465-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to permissible campaign contributions by business organizations and labor unions.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2021

FY 2022

FY 2023

FY 2024

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

COUNTY:

Revenue

$0

$0

$0

$0

Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

METHODOLOGY:

This bill requires businesses and labor unions to use segregated funds for political contributions.

The Department of State indicates any changes to the Secretary of State's forms or State Campaign Finance System could be funded by available money in the current Department budget.

The Department of Justice enforces the laws governing the filing and reporting for political committees. The Department indicates this bill may increase investigations or enforcement activities by an unknown degree and therefore any resulting impact on expenditures for such purposes is indeterminable. There is no expected increase in revenues as a result of this bill.

This bill may result in additional penalties pursuant to RSA 664 that may have an impact on the New Hampshire judicial and correctional systems. There is no method to determine how many charges would be brought as a result of the changes contained in this bill to determine the fiscal impact on expenditures. However, the entities impacted have provided the potential costs associated with these penalties below.

Judicial Branch

FY 2021

FY 2022

Violation Level Offense

$53

$53

Class B Misdemeanor

$55

$55

Class A Misdemeanor

$78

$78

Simple Criminal Case

$309

$309

Routine Criminal Felony Case

$494

$494

Appeals

Varies

Varies

Department of Corrections

FY 2020 Average Cost of Incarcerating an Individual

$47,691

$47,691

FY 2020 Annual Marginal Cost of a General Population Inmate

$6,407

$6,407

FY 2020 Average Cost of Supervising an Individual on Parole/Probation

$584

$584

NH Association of Counties

County Prosecution Costs

Indeterminable

Indeterminable

Estimated Average Daily Cost of Incarcerating an Individual

$105 to $120

$105 to $120

AGENCIES CONTACTED:

Department of Justice and Department of State