HB314: prohibiting the use of federal, state, or local funds for lobbying activities.

HB 314-FN - AS AMENDED BY THE HOUSE

8Jan2026... 3026h

2025 SESSION

25-0489

07/05

HOUSE BILL 314-FN

AN ACT prohibiting the use of federal, state, or local funds for lobbying activities.

SPONSORS: Rep. Potenza, Straf. 19; Rep. Bailey, Straf. 2; Rep. Bernardy, Rock. 36; Rep. Burnham, Straf. 2; Rep. Cambrils, Merr. 4; Rep. DeRoy, Straf. 3; Rep. Tom. Mannion, Hills. 1; Rep. Sabourin, Rock. 30; Rep. Soti, Rock. 35; Rep. Bjelobrk, Graf. 5

COMMITTEE: Legislative Administration

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ANALYSIS

This bill regulates the use of public funds for lobbying activities and establishes certain additional enforcement mechanisms.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

8Jan2026... 3026h 25-0489

07/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Five

AN ACT prohibiting the use of federal, state, or local funds for lobbying activities.

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

1 Lobbyists; Prohibited Activities. RSA 15:5 is repealed and reenacted to read as follows:

15:5 Prohibited Lobbyist Activities.

I. In this section, "public funds" means a grant or appropriation to, and received by, a state, county, town, city, village district, unincorporated place, or school district. 

II. Except as provided in paragraph V, no recipient of a grant or appropriation of public funds may use public funds to lobby or attempt to influence legislation or contribute public funds to any person, partnership, firm, or corporation that is employed to promote or oppose, directly or indirectly, any legislation pending or proposed before the general court.

III. Any recipient of a grant or appropriation of public funds that wishes to engage in any of the activities prohibited in paragraph II, or contribute funds to any entity engaged in these activities, shall segregate the public funds in such a manner that such funds are physically and financially separate from any non-public funds that may be used for any of these purposes. Mere bookkeeping separation of the public funds from other moneys shall not be sufficient. 

IV. Nothing in this section shall restrict public officials or public employees from testifying before the legislature unless the individual testifying is required to register as a lobbyist in accordance with RSA 15:1. 

V. A municipality that wishes to engage in the activities prohibited by RSA 15:5, II may permit those activities in the following manner: 

(a) In a town, the question shall be placed on the warrant of an annual town meeting under the procedures set out in RSA 39:3, and shall be voted on a ballot. In a city, the legislative body may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, shall place the question on the official ballot for any regular municipal election upon submission to the legislative body of a petition signed by 5 percent of the registered voters. 

(b) The selectmen, aldermen, or city council shall hold a public hearing on the question at least 15 days but not more than 30 days before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the municipality and published in a newspaper of general circulation at least 7 days before the hearing. 

(c) The wording of the question shall be substantially as follows: 

"Shall we allow public funds to be used for lobbying, an attempt to influence legislation, participate in political activity, or contribute funds to any entity engaged in these lobbying activities?" 

(d) If a majority of those voting on the question vote "Yes," public funds may be utilized for lobbying activities by the town or city. 

(e) If the question is not approved, the question may later be voted upon according to the provisions of paragraph I at the next annual town meeting or regular municipal election. 

(f) A municipality that has voted to allow the public funding of lobbying activities may consider rescinding its action in the manner described in paragraph I of this section. 

(g) An unincorporated place may allow the public funding of lobbying activities by majority vote of the county delegation, after a public hearing is held. 

(h) In a municipality that approves the use of public funds for the purpose of lobbying activities, the municipality shall publish in the municipality’s annual report to its citizens, the dollar amount expensed to each recipient engaged in lobbying activities utilizing public funds. In the case of a recipient which provides other services in addition to lobbying, there shall be no requirement for the segregation of public funds, but the annual report shall delineate the lobbying and non-lobbying expensed of each recipient.

2 Towns, Cities, Village Districts, and Unincorporated Places; Powers; Authorization to Pay Dues. Amend RSA 31:8-a to read as follows:

31:8-a Authorization to Pay Dues. [The] ?After a municipality has satisfied the requirements of RSA 15:5, V regarding the use of public funds for lobbying activities, the board of selectmen may vote to pay, from amounts appropriated by the town for town officers' expenses, such amounts as shall be payable for annual membership in the New Hampshire Municipal Association and expenses incurred in attending regular meetings of the said association, provided that the appropriation of such dues has not previously been rejected by a vote at the annual town meeting and provided further that the association shall not record association positions before the general court or committees thereof on matters which do not directly affect New Hampshire towns and cities, nor engage in partisan political activity by endorsing, or otherwise supporting, any political party or candidate.

3 Applicability. This act applies only to an expenditure or payment of public funds as defined in RSA 15:5, I, that is made on or after the effective date of this act, including an expenditure or payment of public funds that is made under a contract entered into before, on, or after the effective date of this act.

4 Effective Date. This act shall take effect January 1, 2027.

LBA

25-0489

12/4/24

HB 314-FN- FISCAL NOTE

AS INTRODUCED

AN ACT prohibiting the use of federal, state, or local funds for lobbying activities.

FISCAL IMPACT: 









Estimated State Impact





FY 2025

FY 2026

FY 2027

FY 2028





Revenue

$0

$0 

$0 

$0 





Revenue Fund

None





Expenditures*

Indeterminable





Funding Source

General Fund





Appropriations*

$0 

$0 

$0 

$0 





Funding Source

None





*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill









Estimated Political Subdivision Impact





FY 2025

FY 2026

FY 2027

FY 2028





County Revenue

$0 

$0 

$0 

$0 





County Expenditures

Indeterminable





Local Revenue

$0 

$0 

$0 

$0 





Local Expenditures

Indeterminable




METHODOLOGY:

This bill adds, deletes, or modifies a criminal penalty, or changes statute to which there is a penalty for violation. Therefore, this bill may have an impact on the judicial and correctional systems, which could affect prosecution, incarceration, probation, and parole costs, for the state, as well as county and local governments. A summary of such costs can be found at: https://gencourt.state.nh.us/lba/Budget/Fiscal_Notes/JudicialCorrectionalCosts.pdf

The bill also provides for civil remedies. There is no way to predict how many such actions would occur, but the Judicial Branch has provided average cost information for civil cases in the Superior Court:

NH Judicial Branch Average Civil Case Estimates for LBA





Judicial Branch Average Cost

FY 2025

FY 2026





Superior Court Complex Civil Case

$1,430

$1,473





Superior Court Routine Civil Case

$535

$552 




Common Civil Case Fees





Superior Court 

Fees

As of 2/12/2020





Original Entry Fee

$280





Third-Party Claim

$280





Motion to Reopen

$160




AGENCIES CONTACTED:

Judicial Branch, Judicial Council, Department of Justice, Department of Corrections, New Hampshire Association of Counties, and New Hampshire Municipal Association