HB 314-FN - AS INTRODUCED 2025 SESSION 25-0489 07/05 HOUSE BILL314-FN AN ACTprohibiting the use of federal, state, or local funds for lobbying activities. SPONSORS:Rep. Potenza, Straf. 19; Rep. Bailey, Straf. 2; Rep. Bernardy, Rock. 36; Rep. Burnham, Straf. 2; Rep. Cambrils, Merr. 4; Rep. DeRoy, Straf. 3; Rep. Tom. Mannion, Hills. 1; Rep. Sabourin, Rock. 30; Rep. Soti, Rock. 35; Rep. Bjelobrk, Graf. 5 COMMITTEE:Legislative Administration ----------------------------------------------------------------- ANALYSIS This bill regulates the use of public funds for lobbying activities and establishes certain additional enforcement mechanisms. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type. 25-0489 07/05 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty Five AN ACTprohibiting the use of federal, state, or local funds for lobbying activities. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 Lobbyists; Prohibited Activities. RSA 15:5 is repealed and reenacted to read as follows: 15:5 Prohibited Lobbyist Activities. I. In this section, "public funds" means a grant or appropriation of a state, county, town, city, village district, unincorporated place, or school district. II. No public funds shall be used to lobby, attempt to influence legislation, participate in political activity, or contribute funds to any entity for the purpose of engaging in the same. III. Any recipient of public funds that wishes to engage in any of the activities which would require registration as a lobbyist under RSA 15:1, shall segregate public funds in such a manner that such funds are physically and financially separate from any other funds that may be used for any of these purposes. Mere bookkeeping separation of the public funds from other monies shall not be sufficient. IV. If an entity engages in an activity prohibited in paragraph II, a taxpayer or resident of this state is entitled to appropriate injunctive relief to prevent further activity prohibited by that paragraph and to prevent further payment of public funds related to that activity. A taxpayer or resident who prevails in such an action is entitled to recover from the entity the taxpayer’s or resident’s reasonable attorney's fees and costs incurred in bringing the action. V. Notwithstanding any other provision of law, any person who knowingly authorizes spending of public funds in violation of this section shall be guilty of a Class A misdemeanor and personally liable for an amount equal to 3 times the amount wrongfully paid or expended, divided equally to the county, town, city, village district, unincorporated place, or school district which provided the grants or appropriations. VI. A knowing violation of this section is grounds for discharge of an employee. VII. Nothing in this section shall be construed to limit an entity's ability to provide information which does not advocate for or against political candidates or legislation. 2 Applicability. This act applies only to an expenditure or payment of public funds as defined in RSA 15:5, I, that is made on or after the effective date of this act, including an expenditure or payment of public funds that is made under a contract entered into before, on, or after the effective date of this act. 3 Effective Date. This act shall take effect January 1, 2026. LBA 25-0489 12/4/24 HB 314-FN- FISCAL NOTE AS INTRODUCED AN ACTprohibiting the use of federal, state, or local funds for lobbying activities. FISCAL IMPACT: Estimated State Impact FY 2025 FY 2026 FY 2027 FY 2028 Revenue $0 $0 $0 $0 Revenue Fund None Expenditures* Indeterminable Funding Source General Fund Appropriations* $0 $0 $0 $0 Funding Source None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2025 FY 2026 FY 2027 FY 2028 County Revenue $0 $0 $0 $0 County Expenditures Indeterminable Local Revenue $0 $0 $0 $0 Local Expenditures Indeterminable Estimated State Impact FY 2025 FY 2026 FY 2027 FY 2028 Revenue $0 $0 $0 $0 Revenue Fund None Expenditures* Indeterminable Funding Source General Fund Appropriations* $0 $0 $0 $0 Funding Source None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2025 FY 2026 FY 2027 FY 2028 County Revenue $0 $0 $0 $0 County Expenditures Indeterminable Local Revenue $0 $0 $0 $0 Local Expenditures Indeterminable METHODOLOGY: This bill adds, deletes, or modifies a criminal penalty, or changes statute to which there is a penalty for violation. Therefore, this bill may have an impact on the judicial and correctional systems, which could affect prosecution, incarceration, probation, and parole costs, for the state, as well as county and local governments. A summary of such costs can be found at: https://gencourt.state.nh.us/lba/Budget/Fiscal_Notes/JudicialCorrectionalCosts.pdf The bill also provides for civil remedies. There is no way to predict how many such actions would occur, but the Judicial Branch has provided average cost information for civil cases in the Superior Court: NH Judicial Branch Average Civil Case Estimates for LBA Judicial Branch Average Cost FY 2025 FY 2026 Superior Court Complex Civil Case $1,430 $1,473 Superior Court Routine Civil Case $535 $552 Judicial Branch Average Cost FY 2025 FY 2026 Superior Court Complex Civil Case $1,430 $1,473 Superior Court Routine Civil Case $535 $552 Common Civil Case Fees Superior Court Fees As of 2/12/2020 Original Entry Fee $280 Third-Party Claim $280 Motion to Reopen $160 Superior Court Fees As of 2/12/2020 Original Entry Fee $280 Third-Party Claim $280 Motion to Reopen $160 AGENCIES CONTACTED: Judicial Branch, Judicial Council, Department of Justice, Department of Corrections, New Hampshire Association of Counties, and New Hampshire Municipal Association