02/16/06 0911s

2006 SESSION

06-3052

03/01

SENATE BILL 398-FN

COMMITTEE: Public and Municipal Affairs

ANALYSIS

This bill:

I. Modifies the definitions of “candidate,” “political advertising,” “contribution,” and “expenditure” for purposes of the campaign finance laws.

II. Modifies registration requirements for political committees and reporting requirements for political committees and candidates.

III. Requires political committees and certain candidates to maintain segregated accounts.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/16/06 0911s

06-3052

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

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

1 Political Expenditures and Contributions; Definitions; Candidate. Amend RSA 664:2, II to read as follows:

II. “Candidate” means any natural person:

(a) Who publicly [declared as such] declares “I am a candidate,” states the office he or she seeks, and for whom votes are sought in an election;

(b) Who has filed for nomination for or election to a state or county office;

(c) Who has received anything of value, including donation of in-kind goods or services, with an aggregate value of more than $1,000, for the purposes of influencing the nomination or election of the person;

(d) Who has received anything of value, including donation of in-kind goods or services, with an aggregate value of more than $1,000, to support exploration of a potential candidacy;

(e) Who has made expenditures with an aggregate value of more than $1,000; or

(f) Who has spent or committed to spend more than $1,000 in aggregate, received as contributions, for the purpose of exploring a potential candidacy.

2 Political Expenditures and Contributions; Definitions; Political Advertising. Amend RSA 664:2, VI to read as follows:

VI. “Political advertising” means any communication, including buttons or printed material attached to motor vehicles, which expressly [or implicitly] advocates the success or defeat of any party, measure, or person at any election.

3 Political Expenditures and Contributions; Definitions; Contribution; Expenditure. Amend RSA 664:2, VIII-IX to read as follows:

VIII. “Contribution” shall mean a payment, gift, subscription, assessment, contract, payment for services, dues advance, forbearance, or loan to a candidate or political committee made for the purpose of influencing the nomination or election of any candidate or the adoption or defeat of any measure. “Contributions” shall include the use of any thing of value but shall not include the services of volunteers who receive no pay therefor or the use of personal resources by a candidate on behalf of his or her candidacy.

IX. “Expenditure” shall mean the disbursement of money or thing of value or the making of a legally binding commitment to make such a disbursement in the future for the purpose of influencing the nomination for election or election of any candidate or the adoption or defeat of any measure. It does not include the candidate’s filing fee or his or her expenses for personal travel and subsistence.

4 New Paragraph; Political Expenditures and Contributions; Definitions; Exploratory Committee. Amend RSA 664:2 by inserting after paragraph XVII the following new paragraph:

XVIII. “Exploratory committee” means any organization of 2 or more persons formed for the purpose of exploring the candidacy of a person at an election.

5 Registration of Political Committees. Amend RSA 664:3, I to read as follows:

I. Any political committee including any exploratory committee, except the political committee of a political party, shall register with the secretary of state as provided in this section. The committee shall register with the secretary of state not later than 24 hours after receiving [any contribution] contributions with an aggregate value in excess of $500, or $1,000 in the case of a political committee of a candidate, or before making any expenditure with an aggregate value in excess of $500, or $1,000 in the case of a political committee of a candidate. The registration shall be accompanied by a fee of $50, which shall be deposited by the secretary of state into the election fund established pursuant to RSA 5:6-d; provided, however, that the political committee of a candidate which registers under this section shall not be required to pay the $50 fee. Each political committee shall designate a treasurer or agent who is a citizen of this state and who is authorized to receive all process and other legal documents on behalf of the political committee, and through whom may be obtained access to all books and records of the political committee. The political committee shall file with the secretary of state a statement of the purpose of the committee and shall indicate whether the committee will be making independent expenditures in support of or in opposition to any candidate including a statement of the name, address, occupation, and principal place of business of its chairperson, treasurer or agent, and other officers.

6 New Paragraph; Registration of Political Committees; Campaign Account. Amend RSA 664:3 by inserting after paragraph IV the following new paragraph:

V.(a) A candidate for governor, executive council, or state senate or a political committee, except a political committee or exploratory committee of a candidate for an officer other than governor, executive council, or state senate, shall, within 21 days of becoming a candidate or registering the committee, establish an exclusive campaign account or accounts, in a bank or equivalent institution. If the committee is located in New Hampshire, the account shall be with a financial institution which ordinarily conducts business within the state. The account shall be in a name that includes the full name of the political committee or candidate as registered or as will be filed with the secretary of state. A candidate for governor, executive council, or state senate shall be exempt from this requirement if he or she files a statement with the secretary of state that he or she intends to spend less than the amount established in RSA 664:5-b as the voluntary expenditure limit for that office, provided the candidate agrees to open a bank account if he or she expends more than that amount.

(b) The chairperson and treasurer shall report to the secretary of state the name of the bank or institution where the committee’s account is established and the names of all persons authorized to sign checks or make electronic transfers issued from the account within 7 days of establishing the account.

(c) All cash and contributions on hand on the date the committee establishes the bank account shall be deposited into the account.

(d) Except as provided in subparagraph (f), expenses paid on behalf of a political committee which has a bank account shall be drawn from the account and issued on a check, electronic transfer, or wire transfer signed or authorized by the treasurer or a person authorized by the committee, approved in writing by the treasurer, and reported to the secretary of state.

(e) The account shall be used exclusively for the purposes of receiving contributions and making expenditures for the candidate or committee. No other funds shall be deposited in the account. No disbursement shall be made from the account that does not qualify as an expenditure or a qualified use of surplus funds. No personal funds, corporate funds, or contributions to or expenditures by another candidate or political committee shall be deposited to or disbursed from the account. Political committees which also exist as federal political action committees or as municipal committees shall not commingle contributions to the federal committee or the municipal committee in the account.

(f) A political committee required to establish an account under this paragraph may maintain a petty cash fund out of which it may make expenditures not in excess of $100 to any person in connection with a single purchase or transaction. Funds shall be deposited to the petty cash fund only from the committee’s established bank account and a record of each cash disbursement shall be kept with sufficient detail to satisfy the reporting requirements of this chapter.

(g)(1) A committee or candidate may:

(A) Change the bank or financial institution where the account is maintained;

(B) Change the persons who are authorized to make disbursements from the account; or

(C) Change its treasurer and, if a candidate, his or her fiscal agent.

(2) Changes under subparagraph (g)(1) shall be accomplished by written notice to the secretary of state within 7 days of the change. The written notice shall include the signature of the chairperson or candidate and the signature of the treasurer or evidence that such person has resigned, is deceased, or is no longer eligible to serve by law.

(h) The account required by this paragraph shall be closed before a final report by the committee reporting the committee’s fund balance as zero is filed with the secretary of state, unless the remaining fund balance is transferred to a political committee with the identical name or to a political committee of the same candidate that registers for the purpose of the next election cycle simultaneously with filing the final report of the committee that is terminating its existence.

(i) This section shall not be construed to require a candidate making expenditures with only his or her own personal funds to open a bank account.

7 Reporting by Political Committee. Amend RSA 664:6, I-V to read as follows:

I. Any political committee whose [receipts] contributions received or expenditures in support of a candidate, measure, or political party exceed $500, or $1,000 in the case of a political committee of a candidate, except, for the purposes of this paragraph only, the political committee of a political party [or the political committee of a candidate], shall file with the secretary of state an itemized statement, signed by its chairman and treasurer showing each of [its receipts] the contributions it has received, including in-kind contributions. All reports of contributions with a value exceeding $25 [with] shall include the full name and home post office address of the contributor listed in alphabetical order and the amount of the contribution, the date it was received, and the aggregate total for each election for each contributor of over $100. [The statement shall be filed not later than the Wednesday 12 weeks immediately preceding a primary election, before 5 o’clock in the afternoon, and shall cover the period from the day of the committee registration up to and including the Monday before the statement is due.] Reports of in-kind contributions shall, in addition, include a description of the goods or services contributed with sufficient detail to allow a reasonable person to estimate the value of the contribution. The value of an in-kind contribution shall be the fair market price, which is the price at which property or services would change hands between a willing buyer and a willing seller when neither is under any compulsion to buy or sell and both have reasonable knowledge of the relevant facts. If the value of an in-kind contribution is not known, the value shall be estimated and the report shall indicate that the reported amount is an estimate. All [receipts] contributions received of $25 or under shall appear on the statements as unitemized [receipts] contributions received. Any listing which exceeds an individual’s aggregate total of $100 for each election shall be accompanied by the contributor’s occupation including official job title, the name of the contributor’s employer, and the city or town of the contributor’s principal place of business, if any. The statement shall also show each committee expenditure with the full name and city or town of persons, corporations, committees, or [to whomever] other entities paid or to be paid, the date paid, and the election for which the expenditure was made, with the specific nature and amount of each expenditure since the date of the registration.

I-a. If a committee’s contributions or expenditures exceed the amounts specified in paragraph I prior to its registration, the committee shall file a statement with its registration reporting all contributions received and expenditures made prior to the date of registration.

I-b. The statement required by paragraph I shall be filed not later than the Wednesday 12 weeks immediately preceding a primary election, before 5 o’clock in the afternoon, and shall cover the period from either the date of the receipt of the first contribution or the date of the first expenditure, whichever occurred earlier, or the cutoff of the previous report, up to and including the Monday before the statement is due.

II. An itemized statement in the same form as in paragraph I shall be filed with the secretary of state not later than the Wednesday 3 weeks immediately preceding a primary and a general election, before 5 o’clock in the afternoon. The statement shall summarize the period under paragraph I if a statement is filed and shall itemize all [receipts] contributions received and expenditures since the cutoff of that statement up until the Monday preceding the filing of the statement under this paragraph.

II-a. A statement in the same form as in paragraph I shall be filed with the secretary of state not later than the Wednesday immediately preceding a primary and a general election, before 5 o’clock in the afternoon. The statement shall summarize the statements under paragraphs I and II if such statements are filed and itemize all [receipts] contributions received and expenditures since the cutoff of the statement under paragraph II up until the Monday preceding the filing of the statement under this paragraph. In addition to the reporting requirements contained in this section, the secretary of state shall be notified by the fiscal agent within 24 hours of any contribution exceeding $500 which is received after the statement under this paragraph is filed and prior to the day of election.

III. An itemized statement in the same form as in paragraph I summarizing the previous statements if such statements are filed and itemizing all [receipts] contributions received and expenditures [since] during the period starting with the cutoff of the previous report, or if no report has been filed all contributions received and expenditures made, and ending on the day of the primary [or the general] election shall be filed with the secretary of state not later than the second Wednesday after the primary election, before 5 o’clock in the afternoon, and, for the period ending on the day of the general election, not later than December 15, before 5 o’clock in the afternoon.

IV. [Any political committee whose receipts or expenditures do not exceed $500 for a reporting period need not file. However, when a committee’s accumulated receipts or expenditures for an election exceed $500 the committee shall file a statement at the next reporting deadline.] The requirements of this section shall be construed to require that all contributions received and all expenditures made be reported. Once a committee has reached the level of contributions or expenditures requiring it to report under this section, the committee shall file a report for each reporting period, even if it has received no contributions and made no expenditures during the period covered by the report.

IV-a. Any political committee whose independent expenditures, in aggregate, exceed $500 shall file an itemized statement with the secretary of state not later than 24 hours after such expenditures are made, and thereafter each time a further $500 is expended. Such itemized statements shall cover the period during which independent expenditures totaling $500 were made. Each statement shall include a certification by the political committee that the independent expenditure meets the definition in RSA 664:2, XI. Each statement shall contain the date of each independent expenditure; the name and address of the person to whom the expenditure was made; the name of the candidate on whose behalf or against whom each expenditure was made; the amount of each expenditure; the purpose of each expenditure; and the aggregate amount of all previous independent expenditures. If the independent expenditure is made in support of or to oppose more than one candidate, the statement made under this paragraph shall allocate the way in which the expenditure was made among the candidates on a reasonable basis. For the purposes of this paragraph, “reasonable basis” means a statement which reflects the benefit or the burden reasonably expected to be derived or suffered by each candidate. The filing requirements of this paragraph shall be in addition to all other filing requirements under this section, and shall not be limited to the filing periods during which expenditures must otherwise be reported.

V. [Any] In addition to any other reports required by this chapter, a political committee that has reached the level of contributions or expenditures requiring it to report under this section shall file reports on or before May 15 of each year and on or before November 15 in each non-election year in the form prescribed by the secretary of state and containing, at a minimum, the information required by paragraph I. A political committee which has any outstanding debt, obligation, or surplus following the election for which it was formed shall file reports [at least once every 6 months thereafter in the same form as in paragraph I] on these dates in the form prescribed by the secretary of state and containing, at a minimum, the information required by paragraph I until the obligation or indebtedness is entirely satisfied or surplus deleted, at which time a final report shall be filed. A political committee which remains in existence after the election for which it was formed and which has a surplus shall not accept contributions after the election day for which it was formed. A political committee which remains in existence after the election for which it was formed and which has a debt shall not make expenditures after the end of the month in which the election for which it was formed was held.

8 Reporting by Candidates. Amend RSA 664:7 to read as follows:

664:7 Reporting by Candidates. Candidates for state or county office may choose to receive contributions and make expenditures through a political committee. A political committee of a candidate is a political committee and is subject to the registration and reporting requirements established by this chapter for political committees. Each candidate at the primary or general election for governor, councilor, state senator, representative to general court, or county officer, who [has expenditures exceeding $500] chooses not to establish a political committee and who receives contributions that have an aggregate total value of greater than $1,000 or makes expenditures that have an aggregate total value of greater than $1,000, shall file statements before and after an election in like manner and detail as prescribed in RSA 664:6, [II, II-a, III, IV, and V, excepting, however,] except that the report that a political committee must file when it registers shall be filed by the candidate on the date when he or she files for office. A candidate that does not establish a political committee shall establish an account at a bank or financial institution as prescribed for political committees in RSA 664:3. Reports required by this section to be filed by a candidate shall not include the expenditures of political committees of the party to which the candidate belongs in elections other than primaries; such expenditures shall be reported by the political committee of the political party in accordance with RSA 664:6.

9 Applicability. No candidate or committee shall have less than 14 days from the effective date of this act to satisfy any requirements established by this act.

10 Effective Date. This act shall take effect upon its passage.

LBAO

06-3052

1/30/06

SB 398-FN - FISCAL NOTE

FISCAL IMPACT:

• SB398 at GenCourtMobile

Bill Text Revisions

SB398 Revision: 10395 Date: Jan. 21, 2010, midnight

Docket

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