Revision: March 8, 2016, midnight
\t \t\tSB 518-FN-A - AS INTRODUCED
2016 SESSION
\t16-2953
\t03/05
SENATE BILL\t518-FN-A
AN ACT\testablishing a fee for political committees, political advocacy organizations, and candidates based on gross expenditures.
SPONSORS:\tSen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Rep. Devine, Rock. 4; Rep. Burton, Straf. 6; Rep. Kidder, Merr. 5
COMMITTEE:\tPublic and Municipal Affairs
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ANALYSIS
\tThis bill establishes a gross expenditure fee based on a political committee's, political advocacy organization's, or candidate's gross expenditures during an election cycle. This bill also establishes an innovative civics education program.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2953
\t03/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\testablishing a fee for political committees, political advocacy organizations, and candidates based on gross expenditures.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 New Section; Gross Expenditure Fee. Amend RSA 664 by inserting after section 3-a the following new section:
\t664:3-b Gross Expenditure Fee.
\t\tI. Each political committee, each political advocacy organization, and each candidate shall pay a gross expenditure fee in accordance with this section.
\t\tII. The amount of the gross expenditure fee shall be based on the political committee's, political advocacy organization's, or candidate's gross expenditures during the election cycle. The first $5,000 of expenditures shall be exempt from the calculation of the fee. The amount of the fee shall be the sum of 2.5 percent of the political committee's, political advocacy organization's, or candidate's expenditures between $5,000 and $500,000 plus 5 percent of the political committee's, political advocacy organization's, or candidate's expenditures in excess of $500,000.
\t\tIII. Each political committee, each political advocacy organization, and each candidate shall submit with the first report under RSA 664:6, RSA 664:6-a, or RSA 664:7 an estimate of gross expenditures during the election cycle. The political committee, political advocacy organization, or candidate shall submit with the first report a gross expenditure fee payment based on the estimate. The political committee's, political advocacy organization's, or candidate's final report shall include a reconciliation statement in which actual gross expenditures are reported. If the reconciliation statement shows an additional amount to be due, such additional amount is due and payable on the due date of the report. If the reconciliation statement shows an overpayment of the fee, the secretary of state shall refund the overpayment to the committee, organization, or candidate.
\t\tIV. Of the fees collected under this section, $500,000 shall be appropriated each fiscal biennium to the department of justice to fund enforcement of election and lobbying laws, including, but not limited to, filing and disclosure requirements and voter registration and voting procedures. The remainder of the fees collected under this section shall be deposited in the innovative civics education program fund established in paragraph V.
\t\tV. There is hereby established the innovative civics education program fund. Moneys in the fund are continually appropriated to the department of education for purposes of RSA 198:63 and are nonlapsing.
\t2 New Subparagraph; General Fund Exceptions; Innovative Civics Education Program Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (331) the following new subparagraph:
\t\t\t\t(332) Moneys deposited in the innovative civics education program fund established in RSA 664:3-b.
\t3 New Subdivision; Innovative Civics Education Program. Amend RSA 198 by inserting after section 62 the following new subdivision:
Innovative Civics Education Program
\t198:63 Innovative Civics Education Program.
\t\tI. The department of education shall implement an innovative civics education program to provide grants to school districts that maintain education programs promoting active and engaged citizenship through a thorough understanding of civics.
\t\tII. By September 30, 2016, the department of education shall appoint a committee of 5 social studies teachers to develop criteria for innovative civics education program grant eligibility under this section. The committee shall submit its recommendations to the board of education, which shall adopt rules under RSA 541-A by August 30, 2017 describing the criteria for education programs and the procedure for applying for grants.
\t\tIII. The department of education shall annually review applications for innovative civics education program grants based on criteria established in rules adopted under paragraph II. The department shall award grants based on the number of eligible districts and funding available. Grants shall be paid from the innovative civics education program fund established in RSA 664:3-b.
\t\tIV. Nothing in this section shall require a school district to apply for innovative civics education program grants or exempt any school district from minimum standards of the board of education applicable to social studies programs.
\t4 Innovative Civics Education Program Report. The commissioner of the department of education shall coordinate with social studies teachers a review and evaluation of the innovative civics education program and submit a report the findings and recommendations by September 30, 2017 to the legislative oversight committee established in RSA 193-C:7.
\t5 Applicability. The gross expenditure fee in RSA 664:3-b shall be calculated for the 2016 election cycle based on gross expenditures made after the effective date of this act. For the 2016 election cycle, political committees, political advocacy organizations, and candidates shall not be required to submit an estimate of expenditures or to pay the initial fee. Each political committee, each political advocacy organization, and each candidate shall submit with the final report under RSA 664:6, RSA 664:6-a, or RSA 664:7 for the 2016 election cycle a report of gross expenditures made after the effective date of this act and pay the fee based on this amount.
\t6 Effective Date. This act shall take effect upon its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2953
\t\t\t\t\t\t\t\t\t\t\t1/11/16
SB 518-FN-A- FISCAL NOTE
AN ACT\testablishing a fee for political committees, political advocacy organizations, and candidates based on gross expenditures.
FISCAL IMPACT:
The Department of State, Department of Justice, and Department of Education state this bill, as introduced, will increase state revenue and may increase state expenditures and local revenue by an indeterminable amount in FY 2017 and each year thereafter. There will be no fiscal impact to county and local expenditures or county revenue.
This bill establishes a continually appropriated, nonlapsing dedicated fund.
METHODOLOGY:
The Department of State states this bill would assess a fee on all expenditures in excess of $5,000 by candidates and political committees. The Department would be responsible to collect the fees. The Department of Justice would receive the first $500,000 of fees collected for election law and lobbying enforcement. This bill establishes the Innovative Civics Fund and any remaining balance of funds collected in excess of $500,000 would be deposited into the Fund, which would be administered by the Department of Education. The Department of State estimates the following amount of fee revenue would be generated in FY 2017 and FY 2019:
Office | Estimated # of Candidates | Average Expenditures Per Candidate | Assessed Balance | 2.5% Fee | 5% Fee |
Governor | 2 | $2,000,000 | $3,990,000 | $24,750 | $150,000 |
Executive Council | 10 | $50,000 | $450,000 | $11,250 | $0 |
Senate | 48 | $75,000 | $3,360,000 | $84,000 | $0 |
Representative | 800 | $5,000 | $0 | $0 | $0 |
County | 120 | $20,000 | $1,800,000 | $45,000 | $0 |
Political Committee | 175 | $15,000 | $1,750,000 | $43,750 | $0 |
Democratic Committee | 1 | $1,200,000 | $1,195,000 | $12,375 | $35,000 |
Republican Committee | 1 | $360,000 | $355,000 | $8,875 | $0 |
Note: The Department states this table does not include additional candidates who lose primaries so the fee estimates may be low. | $230,000 | $185,000 | |||
Total Fees Collected | $415,000 | ||||
The Department of State states that to monitor and collect the fees included in this bill, it will need a full-time staff person for seven months of the year during an election year (i.e., FY 2017 and FY 2019) at the following cost:
Account Clerk III (Calculated at 60% of Annual Cost) | ||||
| FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Salary & Benefits | $36,000 | $0 | $41,000 | $0 |
The Department of Justice states it does not currently have any staff devoted to election and lobbying law enforcement. The Department estimates that to enforce such laws it would need to create at least three new positions and incur the following costs:
| FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Investigator | $99,000 | $101,000 | $106,000 | $112,000 |
Attorney | $126,000 | $126,000 | $127,000 | $128,000 |
Paralegal | $68,000 | $67,000 | $71,000 | $74,000 |
Total | $293,000 | $294,000 | $304,000 | $314,000 |
The Department of Education states that to the extent fee revenue exceeds $500,000 and is deposited into the Innovative Civics Fund, state grants for an innovative civics education program would be provided to eligible local school districts. If grants are provided, then local revenue would increase by an indeterminable amount.
This bill does not contain an appropriation or authorization for new positions.