HB 1421-FN – AS INTRODUCED
2006 SESSION
03/04
HOUSE BILL 1421-FN
AN ACT relative to campaign contributions and expenditures.
SPONSORS: Rep. Splaine, Rock 16; Rep. Weed, Ches 3; Rep. C. Chase, Hills 2; Rep. Clemons, Hills 24; Rep. Harvey, Hills 21
This bill establishes a fund to provide campaign financing for eligible candidates for governor, councilor, and state senator. Candidates qualify for the financing by collecting a requisite number of $5 contributions and complying with other provisions of the financing law. The candidate will then use money received from the fund instead of private contributions to finance the candidate’s campaign.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2127
03/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to campaign contributions and expenditures.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Application of Receipts; General Revenue Exceptions; Clean Elections Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (242) the following new subparagraph:
(243) Moneys deposited in the New Hampshire clean elections fund established in RSA 664-A:2.
2 Elections; Political Expenditures and Contributions; Enforcement; Complaints; References Added. Amend RSA 664:18 to read as follows:
664:18 Complaints. Any candidate or voter may make complaint in writing to the attorney general of any violation of any of the provisions of this chapter or RSA 664-A.
I. Upon receipt of such complaint, the attorney general or [his] designee shall review the complaint, and where sufficient evidence of a violation is presented, conduct investigations to determine whether a violation of this chapter or RSA 664-A has occurred.
II. Following investigation, the attorney general is empowered, if [he] the attorney general determines that a provision of this chapter or RSA 664-A has been violated, to:
(a) Issue an order requiring the violator to cease and desist from his or her violation. If the attorney general's order is not obeyed, the attorney general or designee may petition the superior court of the county in which the violation occurred for an order of enforcement.
(b) Prosecute to final judgment through [his] a designee if sufficient cause for such prosecution is found.
III. If, in the opinion of any person making complaint, the family, business, or political connection of the attorney general's designee is such as to make it unlikely that [he] the designee will act diligently and earnestly in any proceeding therefor, the person complaining may state such facts to the attorney general.
IV. If the attorney general believes that [his] a designee will be hampered by any existing facts or circumstances and in any manner prevented from vigorously proceeding against any respondent complained against for such violation, or that the service of more than one attorney in any proceeding would be in the interest of the state, [he] the attorney general shall have authority to employ and assign additional attorneys, to conduct or assist in conducting such proceeding. Such attorneys shall be allowed reasonable compensation, to be approved by the governor and council and paid by the state out of funds not otherwise appropriated.
3 New Paragraph; Elections; Ballot Law Commission; Jurisdiction; General Duties; Objection to Candidate Registration. Amend RSA 665:6 by inserting after paragraph II the following new paragraph:
II-a. When a candidate’s registration as a participating candidate pursuant to RSA 664-A:3 is in apparent conformity with law, it shall be valid unless written objection thereto shall be filed with the ballot law commission within the time limit provided in RSA 664-A:7. The ballot law commission shall then meet as provided in RSA 665:5 in order to hear and decide all the objections. The decision of the ballot law commission in such case shall be final as to questions of law and fact, and no court shall have jurisdiction to review such decision.
4 Elections; Ballot Law Commission; Jurisdiction; General Duties; Reference Added. Amend RSA 665:6, III to read as follows:
III. The jurisdiction vested in the ballot law commission under paragraphs I, [and] II, and II-a of this section shall be exclusive of all other remedies.
5 Elections; Ballot Law Commission; Jurisdiction; Filing Disputes; Reference Added. Amend RSA 665:5 to read as follows:
665:7 Filing Disputes. The ballot law commission shall hear and determine disputes arising over whether nomination papers, [or] declarations of candidacy, or registration of candidates for clean elections funding with the secretary of state conform with the law. The decision of the ballot law commission in such cases shall be final as to questions both of law and fact, and no court shall have jurisdiction to review such decision.
6 Elections; Ballot Law Commission; Hearing Date; Reference Added. Amend RSA 665:5, III to read as follows:
III. The ballot law commission shall also meet at such other times as may be necessary as provided in RSA 655:31, RSA 664-A:7, RSA 665:8, II, and RSA 665:9.
7 New Chapter; Clean Elections Financing. Amend RSA by inserting after chapter 664 the following new chapter:
CHAPTER 664-A
664-A:1 Definitions. In this chapter:
I. “Fund” means the New Hampshire clean elections fund established in RSA 664-A:2.
II. “General election campaign period” means the period beginning the day after the state primary election and ending the day of the state general election.
III. “Participating candidate” means a candidate who receives clean elections funding pursuant to this chapter.
IV. “Primary election” means a state primary election. For purposes of this chapter, primary election shall include only those elections held to nominate candidates of a party, as defined by RSA 652:11.
V. “Primary election campaign period” means the period beginning the day of the filing deadline in RSA 655:14 and ending the day of the state primary election.
VI. “Qualifying contribution” means a contribution meeting the requirements of RSA 664-A:4.
VII. “Qualifying form” means a form completed by a contributor that acknowledges a qualifying contribution and meets the requirements of RSA 664-A:4.
VIII. “Qualifying period” means the period beginning January 1 of the year of the state general election and ending 60 days from the date on which the candidate files for office.
IX. “Seed money contribution” means a contribution meeting the requirements of RSA 664-A:5.
664-A:2 New Hampshire Clean Elections Fund Established.
I. There is established the New Hampshire clean elections fund to be used for the purposes of providing public financing for the primary and general election campaigns of participating candidates and paying for the administrative and enforcement costs of this chapter.
II. This nonlapsing, revolving special fund, which shall not exceed $6,000,000 on June 30 of each year, is hereby continually appropriated to be expended by the secretary of state in accordance with RSA 664-A. All moneys not currently needed to meet the obligations of this chapter shall be deposited with the state treasurer who shall keep this money in a separate fund, designated the New Hampshire clean elections fund, notwithstanding RSA 6:12. The state treasurer shall invest the moneys deposited in the fund as provided by law. Interest received on investments made by the state treasurer shall also be credited to the fund.
III. The following moneys shall be deposited in the fund:
(a) Voluntary donations made directly to the fund.
(b) Unspent seed money contributions and qualifying contributions remaining at the end of the qualifying period and not returned to contributors.
(c) Money distributed from the fund and returned by a participating candidate who does not remain a candidate until the primary or general election for which the money was distributed.
(d) Money distributed from the fund which is returned by the participating candidate because it is not spent by the date of the primary or general election for which the money was distributed.
(e) Interest generated by the fund.
(f) Any money appropriated from the general fund by biennium budgetary appropriations.
664-A:3 Qualifications of Participating Candidates.
I. A candidate qualifies as a participating candidate for the primary election campaign period if the candidate collects the required number of qualifying contributions and files an affidavit of registration, signed by the candidate and the candidate’s fiscal agent, with the secretary of state indicating that the candidate has complied and shall comply with the requirements of this chapter.
II. A candidate qualifies as a participating candidate for the general election campaign period if the candidate was a participating candidate for the primary election campaign period and:
(a) Has been declared nominated; or
(b) Did not have a primary contest.
III. A candidate shall not qualify as a participating candidate if the candidate accepted any private contributions other than seed money contributions or qualifying contributions prior to the primary election campaign period.
664-A:4 Qualifying Contribution Requirements.
I. A candidate shall collect at least the following number of contributions:
(a) 5,000 for a candidate for governor.
(b) 1,000 for a candidate for councilor.
(c) 300 for a candidate for state senator.
II. Each qualifying contribution shall be acknowledged by a qualifying form signed under penalty of perjury by the contributor. The form shall include the contributor’s printed name and domicile for voting purposes, the name of the candidate, and a certification that the purpose of the contribution is to help the candidate qualify for clean elections funding.
III. Qualifying forms shall be submitted to the secretary of state in bulk by the close of the qualifying period.
IV. The candidate shall retain copies of the qualifying forms.
V. Qualifying contributions shall be made by check or money order payable to the candidate.
VI. Qualifying contributions shall be made from personal moneys by individuals who are registered to vote and qualified to vote for the candidate.
VII. Qualifying contributions shall be for $5 and must be received by the candidate during the qualifying period.
664-A:5 Seed Money Contributions.
I. Seed money contributions shall not exceed $500 for a candidate for governor or $100 for a candidate for councilor or state senator.
II. Seed money contributions may be made by any individual adult, including the candidate and the candidate’s family, who is not prohibited from making contributions by RSA 664:4.
III. Total seed money contributions accepted by the candidate shall not exceed:
(a) $62,500 for a candidate for governor.
(b) $5,000 for a candidate for councilor.
(c) $3,000 for a candidate for state senator.
IV. A candidate who accepts seed money contributions exceeding the amount in paragraph III shall not be eligible for funding from the clean elections fund.
V. Seed money contributions may only be expended during the qualifying period.
VI. By the final day of the qualifying period, the candidate shall return all unexpended seed money contributions to the most recent contributors. In the alternative, the candidate may donate the unexpended seed money contributions to the New Hampshire clean elections fund.
VII. The candidate shall itemize all seed money contributions in reports filed pursuant to RSA 664:7. For seed money contributions of $25 or less, the candidate shall list the name of the contributor and the contributor’s voting domicile. Candidates shall not accept seed money contributions without the required disclosure information.
664-A:6 Contributions and Expenditures.
I. During the primary and general election campaign periods, a participating candidate shall not accept private contributions from any source.
II. Participating candidates shall include seed money contributions and qualifying contributions in their reports filed pursuant to RSA 664:7.
III. Participating candidates shall cooperate with any audit or examination by the state.
IV. Participating candidates shall not accept any non-monetary contributions except the volunteer donations permitted by this paragraph. A volunteer may donate up to $100 worth of goods and services to a participating candidate per month. A volunteer’s time or voluntary use of personal vehicles shall not be considered a donation for purposes of this paragraph.
V. Funding from the clean elections fund shall not be used for any purpose other than campaign expenses for the period for which it is allocated.
664-A:7 Objection to Registration. The registration of a candidate in accordance with the provisions of this chapter shall be regarded as valid and shall be received by the secretary of state unless an objection is made in writing to the ballot law commission no later than 7 days following the last day of the qualifying period. Upon receipt of the objection, the commission shall notify the candidate in writing of the time and place for its hearing. The ballot law commission shall determine whether a candidate qualifies as a participating candidate within 7 days of receiving the objection. If the ballot law commission determines that the candidate does not meet the requirements of this chapter, it may revoke the candidate’s eligibility and order the candidate to return to the fund any payments received pursuant to this chapter.
664-A:8 Clean Elections Fund Financing.
I. A participating candidate shall be eligible for the following amounts from the fund:
(a) Candidate for governor:
(1) $625,000 for a contested primary election.
(2) $312,500 for an uncontested primary election.
(3) $312,500 for the primary election campaign period if the candidate is not seeking the nomination of a party, as defined in RSA 652:11.
(4) $625,000 for a contested general election.
(b) Candidate for councilor:
(1) $50,000 for a contested primary election.
(2) $25,000 for an uncontested primary election.
(3) $25,000 for the primary election campaign period if the candidate is not seeking the nomination of a party, as defined in RSA 652:11.
(4) $50,000 for a contested general election.
(c) Candidate for state senator:
(1) $20,000 for a contested primary election.
(2) $10,000 for an uncontested primary election.
(3) $10,000 for the primary election campaign period if the candidate is not seeking the nomination of a party, as defined in RSA 652:11.
(4) $20,000 for a contested general election.
II.(a) A participating candidate may receive additional funding from the fund to match expenditures by the participating candidate’s opponent above the voluntary expenditure limitation amount in RSA 664:5-b. The amount of such additional funding shall not exceed 200 percent of the amount allocated to the candidate for the election period pursuant to paragraph I.
(b) A participating candidate may receive additional funding from the fund to match expenditures by any independent expenditure, as defined by RSA 664:2, XI, that reasonably can be described as either in support of the candidate’s opponent or the opposition of the candidate. The amount of such additional funding shall not exceed 200 percent of the amount allocated to the candidate for the election period pursuant to paragraph I.
III. A participating candidate shall receive payments from the fund according to the following schedule:
(a) Fifteen percent of the funding for the primary election period by the close of the business day immediately following fulfillment of the qualification requirements and certification of such by the secretary of state.
(b) Eighty-five percent of the funding for the primary election period 2 weeks after the end of the qualifying period.
(c) Funding for the general election upon qualification for general election funding.
(d) Matching funds for excess expenditures within 24 hours of the filing of the report by the opposing candidate showing the amount of the excess expenditure.
IV.(a) Not more than 60 percent of the money in the fund at the close of the qualifying period shall be disbursed for the primary election period.
(b) Not more than 40 percent of the money in the fund at the close of the qualifying period shall be disbursed for the general election period.
664-A:9 Reports. In addition to the reports required by RSA 664:6 and RSA 664:7, a non-participating candidate whose total expenditures for either the primary election campaign period or the general election campaign period exceeds $625,000 for governor, $50,000 for councilor, or $20,000 for state senator shall file the following additional reports in the form required by RSA 664:6, I:
I. Weekly reports to be filed every Friday of the election campaign period by 4 o’clock in the afternoon until 20 days before the election date.
II. Daily reports during the 20 days preceding the election date to be filed by 4 o’clock in the afternoon.
664-A:10 Shortfall in Fund. In the event that the fund does not have sufficient money to fund all participating candidates in accordance with RSA 664-A:8, payments to participating candidates shall be pro-rated so that each qualifying candidate receives a proportional share based on the amount to which the candidate would have been entitled under RSA 664-A:8. A participating candidate may supplement the pro-rated payments with private contributions up to an amount equal to the difference between the pro-rated payment amount and the amount to which the candidate would have been entitled.
664-A:11 Administration. The secretary of state shall prepare and distribute all forms required by this chapter. The secretary of state shall also prepare a manual for clean election, which shall be written in nontechnical language and shall include simple instructions on qualifying as a participating candidate.
664-A:12 Reports to Legislature.
I. The secretary of state shall report to the general court after each election cycle regarding the clean elections fund. The report shall include a detailed summary of all seed money contributions, qualifying contributions, payments from the fund, and expenditures made by all participating candidates. The report shall also include a summary and evaluation of the secretary of state’s activities, and recommendations relative to the implementation and administration of this chapter.
II. The ballot law commission shall report to the general court after each election cycle regarding the clean elections fund. The report shall also include a summary and evaluation of the ballot law commission’s activities, and recommendations relative to the enforcement of this chapter.
664-A:13 Fines for Excess Expenditures. Any participating candidate who spends or obligates to spend more than the clean elections funding permitted by this chapter shall be subject to a fine in an amount equal to 10 times the excess expenditures. The fine shall be paid from the candidate’s personal assets into the clean elections fund.
8 Certification and Applicability.
I. The state treasurer shall certify to the secretary of state the date that the balance in the New Hampshire clean elections fund reaches $1,000,000. On the April 1 next following such certification, the secretary of state shall commence administering the clean elections financing provisions of RSA 664-A relating to campaigns for governor and councilor.
II. The state treasurer shall certify to the secretary of state the date that the balance in the New Hampshire clean elections fund reaches $2,000,000. On the April 1 next following such certification, the secretary of state shall commence administering the clean elections financing provisions of RSA 664-A relating to campaigns for state senator.
9 Effective Date. This act shall take effect upon its passage.
LBAO
06-2127
11/9/05
HB 1421-FN - FISCAL NOTE
AN ACT relative to campaign contributions and expenditures.
FISCAL IMPACT:
The Department of State indicates this bill will increase state revenue and expenditures by an indeterminable amount in FY 2007 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department states this bill establishes the New Hampshire Clean Elections Fund to provide financing for eligible candidates for Governor, Councilor, and State Senator. The balance in the fund cannot exceed $6,000,000 at the end of any fiscal year. The Department is unable to determine the amount of funding that will be deposited into the fund, nor the expenditures from said fund. The Department states a Program Specialist I position (Labor Grade 19) would be required to administer the clean election fund, ensure candidate qualifications are met, interact with and support the Ballot Law Commission, prepare and distribute the required manual, and prepare and distribute the required reports to the General Court. Costs would also include items such as a desk, chair, computer, file cabinet, and other miscellaneous supplies in FY 2007. Assuming benefits at 44% of salary, the fiscal impact would be as follows:
FY 2007 FY 2008 FY 2009 FY 2010
Salary (LG 19) $30,947 $32,234 $33,677 $35,081
Benefits @44% 13,617 14,183 14,818 15,436
Equipment & Supplies 5,000 0 0 0
Total Cost $49,564 $46,417 $48,495 $50,517