Bill Text - HB1568 (2020)

Prohibiting town employees and elected officials from profiting from businesses with which the town does business.


Revision: Dec. 3, 2019, 11:39 a.m.

HB 1568-FN-LOCAL - AS INTRODUCED

 

 

2020 SESSION

20-2565

06/08

 

HOUSE BILL 1568-FN-LOCAL

 

AN ACT prohibiting town employees and elected officials from profiting from businesses with which the town does business.

 

SPONSORS: Rep. Roy, Rock. 32

 

COMMITTEE: Municipal and County Government

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill prohibits an employee or elected official of a municipality from receiving a private financial benefit from a municipal contract.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2565

06/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT prohibiting town employees and elected officials from profiting from businesses with which the town does business.

 

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

 

1  New Section; Personal Profiting From Town Contracts Prohibited.  Amend RSA 95 by inserting after section 1-a the following new section:

95:1-b  Personal Profiting Prohibited.  No employee or elected official of a municipality or its political subdivisions may accept a private financial or other tangible benefit not available to the general public by virtue of a contract entered into by such municipality and a third party or accept other financial or tangible benefit not available to the general public offered to them by virtue of their employment or elected status.  This shall not included payments or benefits to employees for normal work negotiated as part of a collective bargaining agreement between the government entity and various bargaining units affiliated with municipal employees or payment of salaries and benefits to other employees approved by the municipality or its subdivisions and provided for specifically in the approved budget.

2  Effective Date.  This act shall take effect January 1, 2021.

 

LBAO

20-2565

11/21/19

 

HB 1568-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT prohibiting town employees and elected officials from profiting from businesses with which the town does business.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   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 prohibits municipal employees or elected officials from accepting a private financial or other tangible benefit not available to the general public by virtue of a contract entered into by such municipality and a third party, or accepting any other financial or tangible benefit not available to the general public offered by virtue of their employment or elected status.  This prohibition shall not apply to payments or benefits to employees negotiated as part of a collective bargaining agreement or as provided for specifically in the approved municipal budget.   The New Hampshire Municipal Association states there is no anticipated impact on municipal revenue or expenditures as a result of this bill.

 

This bill contains penalties 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

Class B Misdemeanor

$54

$56

Class A Misdemeanor

$77

$79

Appeals

Varies

Varies

It should be noted that average case cost estimates for FY 2021 and FY 2022 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.  An unspecified misdemeanor can be either class A or class B, with the presumption being a class B misdemeanor.

Judicial Council

 

 

Public Defender Program

Has contract with State to provide services.

Has contract with State to provide services.

Contract Attorney – Misdemeanor

$300/Case

$300/Case

Assigned Counsel – Misdemeanor

$60/Hour up to $1,400

$60/Hour up to $1,400

It should be noted that a person needs to be found indigent and have the potential of being incarcerated to be eligible for indigent defense services. The majority of indigent cases (approximately 85%) are handled by the public defender program, with the remaining cases going to contract attorneys (14%) or assigned counsel (1%).

NH Association of Counties

 

 

County Prosecution Costs

Indeterminable

Indeterminable

Estimated Average Daily Cost of Incarcerating an Individual

$105 to $120

$105 to $120

 

Many offenses are prosecuted by local and county prosecutors.  When the Department of Justice has investigative and prosecutorial responsibility or is involved in an appeal, the Department would likely absorb the cost within its existing budget.  If the Department needs to prosecute significantly more cases or handle more appeals, then costs may increase by an indeterminable amount.  

 

AGENCIES CONTACTED:

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