Revision: May 9, 2024, 1:14 p.m.
SB 605 - AS AMENDED BY THE HOUSE
9May2024... 1663h
2024 SESSION
24-3163
08/06
SENATE BILL 605
AN ACT relative to ethical standards for members of the general court.
SPONSORS: Sen. Bradley, Dist 3; Sen. Soucy, Dist 18
COMMITTEE: Judiciary
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ANALYSIS
This bill defines "organization" for the purpose of determining the ethical duties of members of the general court.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
9May2024... 1663h 24-3163
08/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to ethical standards for members of the general court.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; Persons Having Substantial Influence; Members of the General Court. Amend RSA 14-C by inserting after section 4 the following new sections:
14-C:4-a Definition. “Organization” shall be construed broadly to mean any business, corporation, whether for profit, non-profit, not-for-profit, social welfare organization, or natural person. “Organization” shall not include the United States of America, the state of New Hampshire, a county within the state of New Hampshire, or any political subdivision within the state of New Hampshire.
14-C:4-b Recusal. A legislator shall recuse himself or herself from participation in any official legislative activity only when the legislator or a member of the legislator’s household satisfies all of the following:
I. Receives financial remuneration from an organization;
II. Holds a position to exercise substantial influence over the affairs of the organization; and
III. The organization has lobbied, testified, or otherwise attempted to influence the outcome of the official legislative activity.
14-C:4-c Persons Having Substantial Influence. Those persons who hold any of the following powers, responsibilities, or interest having substantial influence over the affairs of the organization may include, but are not limited to the following:
I. Voting members of the governing body;
II. Presidents, chief executive officers, or chief operating officers;?and
III. Treasurers and chief financial officers.
14-C:4-d Facts and Circumstances Tending to Show Substantial Influence. Whether a person holds a position to exercise substantial influence over the affairs of the organization shall be determined based on the totality of the circumstances. Facts and circumstances tending to show that a person has substantial influence over the affairs of an organization include, but are not limited to, the following:
I. The person founded the organization;
II. The person is a substantial contributor to the organization;
III. The person's compensation is primarily based on revenues derived from activities of the organization, or of a particular department or function of the organization, that the person controls;
IV. The person has or shares authority to control or determine a substantial portion of the organization's capital expenditures, operating budget, or compensation for employees;
V. The person manages a discrete segment or activity of the organization that represents a substantial portion of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole;
VI. The person owns a controlling interest (measured by either vote or value) in a corporation, partnership, or trust or other entity.
14-C:4-e Facts and Circumstances Tending to Show No Substantial Influence.? Facts and circumstances tending to show that a person does not have substantial influence over the affairs of an organization include, but are not limited to, the following:
I. The person has taken a bona fide vow of poverty as an employee, agent, or on behalf, of a religious organization;
II. The person is a contractor (such as an attorney, accountant, or investment manager or advisor) whose sole relationship to the organization is providing professional advice (without having decision-making authority or a title of authority within the organization) with respect to transactions from which the contractor will not economically benefit either directly or indirectly (aside from customary fees received for the professional advice rendered);
III. The direct supervisor of the individual does not hold a position to exercise substantial influence over the affairs of the non-governmental organization, business, or person;
IV. The person does not participate in any management decisions affecting the organization as a whole or a discrete segment or activity of the organization that represents a substantial portion of the activities, assets, income, or expenses of the non-governmental organization, business, or person, as compared to the organization as a whole; or
V. Any preferential treatment a person receives based on the size of that person's contribution is also offered to all other donors making a comparable contribution as part of a solicitation intended to attract a substantial number of contributions.
2 Effective Date. This act shall take effect January 1, 2025.