Right to Know (HB 1356)

The bill would require larger non-profit organizations-funded mostly with public money– be considered public agencies

And that would mean they would be subject to the state’s right to know law.

NHPR’s Mark Bevis has the story.

Editor’s note: This text below has changed from what was originally broadcast. Rep. Rick Watrous did not sue CCTV under the Right to Know law, he sued the City of Concord. NHPR regrets the error and apologizes to Rep. Watrous.

Representative Rick Watrous, from Concord, says his intentions are good.

With so many government services being provided by non-profits, he argues, citizens should be able to know how their tax money is spent.

“Philosophically, it makes a certain common sense to me that if you’re getting the majority of your money from local government, local taxpayers should be able to find out what you’re doing.”

So Watrous has sponsored a bill that would change the classification of a public agency to include many of those non-profits.

His bill would classify any non-profit whose annual revenue exceeds $100,000 as a public agency if more than 50% of its revenue comes from state or local government.

And that would make those non-profits subject to the same right to know law as those government agencies.

Watrous says the right-to-know law would bring the workings of those organizations into the light of day.

“I think the more transparency and the more accountability would ultimately mean, would result in greater efficiency and responsibility and I think in the long run it would result in a better use of the public’s money.”

But the bill’s critics say greater efficiency is one thing these changes won’t achieve.

Julienne Turner is the Executive Director of CCTV, Concord’s community access Cable TV.

80% of its 250 thousand dollar budget comes through the city.

“I’m concerned about, not only the administrative drain it could have on a non-profit organization, but also the potential if there is an issue about a dispute, the legal battle that could ensue and could be a tremendous financial drain on a non-profit, especially a small non-profit.”

She worries that a non-profit will have to put staff time into meeting right to know requests rather than focusing on its mission.

Turner has some experience.

Several years ago, the City of Concord had to defend itself in a lawsuit from none other than the sponsor of this bill.

Before he was elected to the State House, Watrous had a long-standing, very public dispute with his former employer, CCTV.

Under the right to know law, he demanded to see documents related to organization’s relationship with city officials.

The court ruled the non-profit was not subject to those laws.

And Claudia Damon wants to keep it that way.

Damon is the Director of Advocacy for the NH Center for Non-Profits.

She says she doesn’t understand the point of the bill.

If it’s to understand how taxpayer money is spent, Damon points out that all of a non-profit’s financial information is already public.

They’ve go to file what’s called Form 990 with the IRS.

“It requires information in detail on governance, management, all revenues, all expenses. It requires a balance sheet with detailed assets and liabilities. It requires information on contracts, leases, compensation. It has something like 16 schedules requiring detailed information.”

And that information is all filed with the State Attorney General’s office.

Still, for some proponents of right to know laws, those forms are not enough.

Joshua Meyer is the Editor of Wiki-FOIA, which is an on-line database of right to know laws across the country.

He says many, if not most states have right to know laws, and some include private organizations that receive public money.

But he adds that many state laws have exemptions to protect those organizations.

For example some protect the non-profit’s trade secrets.

“And another really common exemption is if you receive public funds, if you separate your public expenditures from your funding from other sources most states will only allow FOIA requests to be submitted for the budgets of your public expenditures. Kansas and Louisiana both do that.”

Few people in New Hampshire know the right to know law of this state any better than Attorney Bill Chapman.

And he didn’t feel comfortable talking specifically about this bill without knowing the range of non-profits it would effect.

Chapman says if a non-profit is carrying out a governmental function, it’s appropriate for the public to know how its money is spent.

But he adds maybe the way to go at the problem is not to question the non-profit, but the governmental body that made the decision to use the non-profit.

“and that would not require the right to know law to apply to them rather that is really a question that goes to the state agency that’s providing the funding that would be subject to the right to know law.”

House Bill 1356 came out of House Judiciary committee with a two vote majority in favor.

It goes to the House floor next Wednesday.