SB 17 – AS INTRODUCED

2015 SESSION

15-0884

08/03

SENATE BILL 17

AN ACT relative to training of certain board officers of nonprofit corporations.

SPONSORS: Sen. Carson, Dist 14; Sen. Cataldo, Dist 6; Rep. M. Griffin, Rock 7; Rep. Danielson, Hills 7

COMMITTEE: Public and Municipal Affairs

ANALYSIS

This bill requires that every publicly supported voluntary corporation ensure that the chairperson or presiding officer of its board of directors, or his or her designee, receives biennial management training.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15-0884

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Fifteen

AN ACT relative to training of certain board officers of nonprofit corporations.

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

1 Purpose. The purpose of this act is to safeguard publicly supported funds in the amount of $250,000 or more in the aggregate from all units of government, federal, state, and local, that are received under provisions of contracts, grants, and provider agreements or similar means by nonprofit corporations and to deter waste, fraud, and abuse of such funds.

2 New Section; Voluntary Corporations; Training Requirements. Amend RSA 292 by inserting after section 6-b the following new section:

292:6-c Training Requirements; Reporting; Compliance.

I. Every voluntary corporation that receives $250,000 or more in the aggregate of publicly supported funds under provisions of contracts, grants, and provider agreements or similar means shall ensure that the chairperson or presiding officer of its board of directors, or a board member as his or her designee, shall receive training on a biennial basis with respect to the fundamental management and administrative requirements for nonprofit and charitable organizations. Under this section training shall be conducted by a person or entity independent from and not connected to the corporation whose representatives are being trained. Training shall be of at least 4 hours duration and shall include, but not be limited to, instruction on fiduciary responsibilities, financial controls, relative responsibility and authority of boards of directors and corporation employees, ethics, and federal and state laws and regulations governing nonprofit corporations. Any person assuming a position covered by this section shall complete the required training within 4 months of assuming such position.

II. Every voluntary corporation covered by this section shall report annually to the New Hampshire department of justice, division of charitable trusts on its compliance with the requirements of this section. The report shall include information on the person required to be trained, the person or entity providing the training, and the date, duration, and subject matter of the training provided and shall be in such form as determined by the division of charitable trusts.

III. The director of the division of charitable trusts may impose a penalty on any publicly supported voluntary corporation for each failure to comply with a provision of this section. The division of charitable trusts shall adopt administrative rules pursuant to RSA 541-A regarding the policy and procedures for penalties under this section.

3 Effective Date. This act shall take effect 60 days after its passage.