Law

RSA 31 Powers and Duties of Towns

New Hampshire · 31 · statute

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Contents: 172 provisions
  1. 31:1 Public Corporations.
  2. 31:2 Parishes.
  3. 31:3 In General.
  4. 31:3-a Suits Involving State-Mandated Programs.
  5. 31:4 Appropriations.
  6. 31:4-a Deficit Reduction.
  7. 31:5 At Special Meetings.
  8. 31:5-a Appropriations of Disaster Funds.
  9. 31:5-b Legalization of Meetings.
  10. 31:6 For Holidays.
  11. 31:6-a Holiday Designations.
  12. 31:7 Contract with Hospital.
  13. 31:8 Town Officers' Associations.
  14. 31:8-a Authorization to Pay Dues.
  15. 31:9 Legislative Counsel.
  16. 31:9-a Sponsoring Certain Benefits.
  17. 31:9-b Time for Payment.
  18. 31:9-c Lockups.
  19. 31:9-d Climate Emergency Municipality Unification.
  20. 31:10 When Allowed.
  21. 31:11 Method.
  22. 31:12 Amount; Debt Limit.
  23. 31:13 Due Date; Refunding.
  24. 31:14 Recovered Funds.
  25. 31:15 to 31:17 Repealed by 1975, 254:2, eff. Aug. 5, 1975.
  26. 31:17-a Referendum.
  27. 31:18 Isolated Dwellings; Abandoned or Wasting Real Estate.
  28. 31:19 In General.
  29. 31:19-a Trust Funds Created by Towns.
  30. 31:19-b Deferred Compensation Plan Trusts.
  31. 31:19-c Authorization for Municipalities to Establish OPEB Trusts.
  32. 31:20 For Cemeteries.
  33. 31:21 Funds of Cemetery Associations, Etc.
  34. 31:22 Trustees.
  35. 31:22-a Cy Pres, Cemetery Trust Funds.
  36. 31:23 Single Trustee.
  37. 31:24 Trustees; Expenses.
  38. 31:25 Custody; Investment.
  39. 31:25-a Retention of Nonlegal Securities.
  40. 31:25-b Prudent Investment Defined.
  41. 31:25-c Report to the Attorney General.
  42. 31:25-d Application of Prudent Investor Rule.
  43. 31:26 Investments by Single Trustee.
  44. 31:27 Collective Investments.
  45. 31:28 Exception.
  46. 31:29 Contributions and Withdrawals.
  47. 31:30 Liberal Construction of Provisions.
  48. 31:31 Trust Funds for Districts.
  49. 31:32 Expenditures.
  50. 31:33 Audit and Publication of Reports of Trustees.
  51. 31:34 Records.
  52. 31:35 Compensation of Bookkeeper.
  53. 31:36 Deposits.
  54. 31:37 Payment by Towns.
  55. 31:38 Reports.
  56. 31:38-a Professional Banking and Brokerage Assistance.
  57. 31:39 Purpose and Penalties.
  58. 31:39-a Conflict of Interest Ordinances.
  59. 31:39-c Administrative Enforcement of Ordinances.
  60. 31:39-d Local Ordinance Citations; Pleas by Mail.
  61. 31:39-e Bylaws Affecting Forestry Activities.
  62. 31:40 Taxicabs.
  63. 31:41 Open-Air Motion Picture Theatres.
  64. 31:41-a Motor Vehicle Race Tracks.
  65. 31:41-b Hazardous Embankments.
  66. 31:41-c Electioneering.
  67. 31:41-d Pinball Machines and Coin Operated Amusements.
  68. 31:41-e Drug-Free Zones; Public Housing Authorities.
  69. 31:42 Regulation by Selectmen.
  70. 31:43 When in Force.
  71. 31:43-a Adoption of Curfew Law.
  72. 31:43-b City of Rochester.
  73. 31:43-c Minors under 16.
  74. 31:43-d Curfew Signal.
  75. 31:43-e Penalty, Custodian.
  76. 31:43-f Penalty, Minors.
  77. 31:43-g Second Offense.
  78. 31:44 to 31:50-a Repealed by 1979, 185:2, eff. Aug. 5, 1979.
  79. 31:51 Regulations.
  80. 31:52 Rights of Owners.
  81. 31:53 Repealed by 1994, 25:1, I, eff. June 21, 1994.
  82. 31:54 Repealed by 1994, 25:1, II, eff. June 21, 1994.
  83. 31:55 Repealed by 1994, 25:1, III, eff. June 21, 1994.
  84. 31:56 Use of Militia.
  85. 31:57 To Whom Payable; Maximum.
  86. 31:58 Adoption of Provisions.
  87. 31:59 Administration.
  88. 31:59-a Authority Granted.
  89. 31:59-b Purchasing Agent.
  90. 31:59-c Definitions.
  91. 31:59-d Application of Subdivision.
  92. 31:60 to 31:89 Repealed by 1983, 447:5, I, eff. Jan. 1, 1984.
  93. 31:89-a to 31:89-l Repealed by 1983, 447:5, I, eff. Jan. 1, 1984.
  94. 31:90 Stock Voting.
  95. 31:91 Soliciting Funds.
  96. 31:92 Taking of Land.
  97. 31:92-a Water Pollution.
  98. 31:93 Town Seal.
  99. 31:94 Fiscal Year.
  100. 31:94-a Optional Fiscal Year.
  101. 31:94-b Adoption.
  102. 31:94-c Authorization to Use Accounting Period.
  103. 31:94-cc Proration of Property Tax Exemptions During Transition Period.
  104. 31:94-d Debt During Transition Period.
  105. 31:94-e Transition Period.
  106. 31:95 Budget.
  107. 31:95-a Tax Maps.
  108. 31:95-b Appropriation for Funds Made Available During Year.
  109. 31:95-c Special Revenue Funds.
  110. 31:95-d Procedure for Adoption; Rescission or Change of Purpose.
  111. 31:95-e Acceptance of Personal Property Donated to Towns and Village Districts.
  112. 31:95-f Geographic Information Systems.
  113. 31:95-g Option to Assign Appraisal Responsibility.
  114. 31:95-h Revolving Funds.
  115. 31:96 Interlocal Cooperation on Federal or Interstate Flood Control Projects.
  116. 31:97 State Guarantee.
  117. 31:98 Repealed by 1969, 125:2, eff. July 8, 1969.
  118. 31:98-a Contingency Fund.
  119. 31:99 License to Occupy Portion of Street.
  120. 31:100 Street Fairs.
  121. 31:101 Effect of License.
  122. 31:102 Obstructing Access to Highways.
  123. 31:102-a Hawkers, Peddlers and Vendors.
  124. 31:102-b Background Checks for Certain Vendors.
  125. 31:103 Repealed by 1983, 447:5, II, eff. Jan. 1, 1984.
  126. 31:103-a Contributions to County or State.
  127. 31:103-b Cybersecurity.
  128. 31:104 Liability of Municipal Executives.
  129. 31:105 Indemnification for Damages.
  130. 31:106 Indemnification; Civil Rights Suits.
  131. 31:107 Purchase of Insurance.
  132. 31:108 Attachment, Trustee Process Prohibited.
  133. 31:109 Local Option for Oil Refinery Siting in Towns.
  134. 31:110 Establishment.
  135. 31:111 Purpose.
  136. 31:112 Management.
  137. 31:113 Appropriations Authorized.
  138. 31:114 Repealed by 1995, 299:19, I, eff. Jan. 1, 1996.
  139. 31:115 Eligibility for Federal Funds.
  140. 31:116 Manufactured Housing Foundations.
  141. 31:117 Woodstoves.
  142. 31:118, 31:119 Repealed by 1983, 447:5, III, eff. Jan. 1, 1984.
  143. 31:120 Purpose.
  144. 31:121 Authority Granted.
  145. 31:122 Services Advisory Committee; Cost.
  146. 31:123 Method of Appropriation.
  147. 31:124 Assessments.
  148. 31:125 Limit on Liability.
  149. 31:126 Presumption of Procedural Validity.
  150. 31:127 Definitions.
  151. 31:128 Certified Copy of Legislation Prima Facie Evidence of Enactment.
  152. 31:129 Limitation.
  153. 31:130 Conformity with Enabling Statute.
  154. 31:131 Origin of Warrant Articles.
  155. 31:132 Records Storage.
  156. 31:133 Liability Limitation.
  157. 31:134 Statement of Purpose.
  158. 31:135 Definition.
  159. 31:136 Water and/or Sewer Utility Authorized; Intermunicipal Agreement.
  160. 31:137 Commissioners.
  161. 31:138 Election or Appointment.
  162. 31:139 Services Provided; Cost.
  163. 31:140 Method of Appropriation.
  164. 31:141 Assessments and Fees.
  165. 31:142 Limit on Liability.
  166. 31:143 Authority to Incur Capital Debt.
  167. 31:144 Assessment Funds.
  168. 31:145 District Utility Fund.
  169. 31:146 Abatement and Appeal of Assessments and Fees.
  170. 31:147 Liens and Collection of Assessments.
  171. 31:148 Reports.
  172. 31:149 Local Option.

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172 provisions

31:1 Public Corporations.

Every town is a body corporate and politic, and by its corporate name may sue and be sued, prosecute and defend, in any court or elsewhere. Source. RS 31:1. CS 32:1. GS 34:1. GL 37:1. PS 40:1. PL 42:1. RL 51:1.

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31:2 Parishes.

All places incorporated by the name of parishes with town privileges are towns, and are entitled to the privileges, vested with all the powers, and subject to all the liabilities, of towns. Source. RS 31:2. CS 32:2. GS 34:2. GL 37:2. PS 40:2. PL 42:2. RL 51:2.

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31:3 In General.

Towns may purchase and hold real and personal estate for the public uses of the inhabitants, and may sell and convey the same; may recognize unions of employees and make and enter into collective bargaining contracts with such unions; and may make any contracts which may be necessary and convenient for the transaction of the public business of the town. Source. RS 31:3. CS 32:3. GS 34:3. GL 37:3. PS 40:3. PL 42:3. RL 51:3. RSA 31:3. 1955, 255:1, eff. July 14, 1955.

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31:3-a Suits Involving State-Mandated Programs.

If legal proceedings have been commenced by a town against the state over whether a state program or responsibility violates the provisions of Part I, Article 28-a of the New Hampshire constitution relative to mandated programs, all penalties or liens which the state may impose on the town for failure to comply with the state program or mandate shall be stayed until the court proceedings are completed. For the purposes of this section, the term "town" shall mean every political subdivision of the state, which shall include any village district, school district, city, county, unincorporated town, or unorganized place. Source. 1993, 299:1, eff. Jan. 1, 1994.

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31:4 Appropriations.

Towns may at any legal meeting grant and vote such sums of money as they judge necessary for any purpose for which a municipality may act if such appropriation is not prohibited by the laws or by the constitution of this state. Source. 1849, 861:1. RS 31:4. CS 32:4. 1862, 2580:3. GS 34:4. 1868, 1:6; 26:1. 1872, 40:1. 1875, 39:1. 1876, 2:1. GL 37:4, 9; 49:10; 50:1. 1883, 69:3. 1889, 7:1; 82:1. PS 40:4. 1891, 1:1. 1895, 29:1. 1897, 23:1. 1899, 13:1, 2; 34:1. 1901, 8:1; 17:1; 54:1. 1905, 18:1. 1909, 73:1. 1911, 81:1; 146:1. 1913, 58:1. 1915, 58:1; 64:1. 1917, 225:1. 1919, 17:1; 41:1. 1923, 27:1, 2. 1925, 11:1. PL 42:4. 1929, 172:1. 1931, 90:1. 1937, 119:2; 133:101. 1939, 20:1; 51:1; 90:1. 1941, 65:1; 74:1. RL 51:4. 1943, 34:1. 1945, 54:1, 2; 106:1. 1947, 130:1. 1949, 42:1; 59:1; 133:3; 161:1. RSA 31:4. 1957, 85:1; 186:1; 287:1. 1961, 81:1; 168:1. 1963, 90:1. 1965, 8:1; 224:1. 1969, 49:1; 125:1; 247:1; 445:1, 2. 1971, 159:1; 310:1, 336:1. 1973, 582:2. 1974, 15:3, 5. 1975, 2:1; 273:1. 1977, 14:1; 263:1. 1979, 156:1. 1983, 187:1, eff. Aug. 10, 1983.

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31:4-a Deficit Reduction.

Towns may vote, at any annual meeting, to raise such sums of money as the voters judge necessary for the purpose of reducing an accumulated general fund deficit. Source. 1994, 147:1, eff. July 22, 1994.

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31:5 At Special Meetings.

I. (a) No money shall be raised or appropriated or shall any appropriation previously made be reduced or rescinded at any special town meeting except by vote by ballot, nor unless the ballots cast at such meeting shall be equal in number to at least 1/2 of the number of legal voters borne on the checklist of the town entitled to vote at the annual or biennial election next preceding such special meeting; and such checklist, corrected according to law, shall be used at any meeting upon the request of 10 legal voters of the town. This section shall not apply to money to be raised for the public defense or any military purpose in time of war or to money to be raised for the purpose of financing broadband infrastructure bonds under RSA 33:3-g. In case an emergency arises requiring an immediate expenditure of money, the selectmen may petition the superior court for permission to hold a special town meeting which, if granted, shall give said meeting the same authority as an annual town meeting. (b) "Emergency" for the purposes of this section shall mean a sudden or unexpected situation or occurrence, or combination of occurrences, of a serious and urgent nature, that demands prompt, or immediate action, including an immediate expenditure of money. This definition, however, does not establish a requirement that an emergency involves a crisis in every set of circumstances. (c) To verify that an emergency exists, a petitioner shall present, and the court shall consider, a number of factors including: (1) The severity of the harm to be avoided. (2) The urgency of the petitioner's need. (3) Whether the claimed emergency was foreseeable or avoidable. (4) Whether the appropriation could have been made at the annual meeting. (5) Whether there are alternative remedies not requiring an appropriation. II. On or before the date of filing the petition with the superior court, the selectmen shall forward a copy of the petition and the warrant article or articles, by certified mail, to the commissioner of the department of revenue administration. The petition to the superior court shall include a certification that the commissioner of the department of revenue administration has been notified pursuant to this paragraph. III. In the event that the legislative body at an annual meeting amends or rejects the cost items or fact finder's reports as submitted pursuant to RSA 273-A, notwithstanding paragraphs I and II, the selectmen may call one special meeting for the sole purpose of addressing all negotiated cost items without petitioning the superior court for authorization. Such special meeting may be authorized only by a contingent warrant article inserted on the warrant or official ballot either by petition or by the governing body. The wording of the question shall be as follows: "Shall (the local political subdivision), if article __________ is defeated, authorize the governing body to call one special meeting, at its option, to address article __________ cost items only?" The refusal of the legislative body to authorize a special meeting as provided in this paragraph shall not affect any other provision of law. Any special meeting held under this paragraph shall be combined with the revised operating budget meeting under RSA 40:13, XI, if any, and shall not be counted toward the number of special meetings which may be held in a given calendar or fiscal year. IV. When the selectmen vote to petition the superior court for permission to hold a special town meeting, the selectmen shall post notice of such vote within 24 hours after taking the vote and a minimum of 10 days prior to filing the petition with the court. The selectmen shall post notice of the court date for an evidentiary hearing on the petition within 24 hours after receiving notice of the court date from the court. Such notices shall be posted at the office of the selectmen and at 2 or more other conspicuous places in the town, and in the next available edition of a local newspaper with a wide circulation in the town. Source. 1876, 2:1. 1881, 69:2. PS 40:4. 1917, 161:1. PL 42:5. 1927, 56:1. RL 51:5. 1943, 37:1. RSA 31:5. 1989, 172:1. 1991, 166:1, eff. July 26, 1991. 1997, 317:1, eff. Aug. 20, 1997; 318:1, eff. Aug. 22, 1997. 1998, 55:1, eff. July 4, 1998. 2022, 183:1, eff. June 15, 2022.

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31:5-a Appropriations of Disaster Funds.

Notwithstanding RSA 31:5, the selectmen may call a special town meeting to authorize the expenditure of federal funds allocated to the town as a result of a major disaster as declared by the governor and to appropriate the local matching share for such funds. The authorization to expend federal funds and the appropriation of matching funds shall be the only action taken at such meeting. Any special meeting called under this section shall have the same authority as that of an annual town meeting. Source. 1975, 318:1, eff. Aug. 6, 1975.

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31:5-b Legalization of Meetings.

I. In the past, irregularities and procedural defects in actions of municipal legislative bodies have been cured by actions of the general court. The procedure in this section is an alternative approach which enables municipalities to effect legalization by local action. II. Whenever the legislative body of a municipality has voted by the requisite majority, by written ballot or in any other manner legally authorized, to take any legal actions and the vote is subsequently discovered to be procedurally defective, such defects may be cured and legalized by a vote at a special meeting called for the purpose of ratifying the procedurally defective action. Procedurally defective actions shall mean minor procedural irregularities such as failure to comply with statutory requirements regarding time or place of notice, vote, hearing, or wording, or with any procedural act not contrary to the spirit or intent of the law. The ratification of the procedurally defective action shall be subject to the following requirements: (a) The municipality may, on the authority of the governing body, call a special town meeting for the exclusive purpose of curing such defect. (b) The special town meeting called for that purpose may not take place less than 21 calendar days after the original vote. (c) Not less than 7 calendar days prior to the special town meeting, not counting the day of the special town meeting, the governing body shall conduct a public hearing at which the reasons for the special town meeting shall be explained. (d) The municipality shall comply with all statutory notice and procedural requirements for holding special town meetings. (e) The necessary majority required to cure the defects shall be the same as the majority as required for passage of the original article. III. When any procedural defect has been cured under this section, actions of the voters shall be valid as if all statutorily required proceedings had been complied with. Source. 1988, 284:1. 1989, 287:1, eff. July 28, 1989.

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31:6 For Holidays.

City councils may, at any legal meeting, grant and vote money, not exceeding $2,000, for providing municipal Christmas trees or for public patriotic exercises for Memorial Day, Independence Day, Veterans Day or other holidays. Source. 1909, 77:1. 1921, 42:1. PL 42:6. RL 51:6. RSA 31:6. 1969, 445:3, eff. July 3, 1969.

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31:6-a Holiday Designations.

Any municipality, town, village, or unincorporated place that adopts a holiday on a date indicated in RSA 288:1 shall use the appellation for such holiday designated in RSA 288:1 with respect to any official communication, publication, document, or calendars. Source. 2024, 182:3, eff. Sept. 10, 2024.

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31:7 Contract with Hospital.

The treasurer of any town or city which provides a free hospital bed shall make a contract with the hospital concerning the admission of patients, and the rates, rules and regulations governing such admission shall be approved by the selectmen of towns or the city council of cities before the payment of any money to the hospital. Source. 1899, 13:3. PL 42:7. RL 51:7.

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31:8 Town Officers' Associations.

For the encouragement of equitable taxation and the education of public officials in tax problems and other matters pertaining to the proper and efficient discharge of the duties of their respective offices, each town and city shall pay annually to the New Hampshire Association of Assessing Officials, the New Hampshire City and Town Clerks' Association and the New Hampshire Tax Collectors' Association, such amounts as shall be due for annual membership for its officials therein, providing that the amount paid for any one annual membership hereunder shall not exceed $20. Members of these several organizations in addition to the annual membership fee, shall be entitled to receive their actual expenses incurred in attending the annual convention of their respective associations, the same to be audited by the selectmen of towns and the finance committee of cities and paid out of city and town funds. Source. 1921, 51:1. PL 42:8. RL 51:8. 1949, 137:1. RSA 31:8. 1963 60:1. 1971, 372:1. 1973, 122:1. 1977, 31:1, eff. May 28, 1977.

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31:8-a Authorization to Pay Dues.

The board of selectmen may vote to pay, from amounts appropriated by the town for town officers' expenses, such amounts as shall be payable for annual membership in the New Hampshire Municipal Association and expenses incurred in attending regular meetings of the said association, provided that the appropriation of such dues has not previously been rejected by a vote at the annual town meeting and provided further that the association shall not record association positions before the general court or committees thereof on matters which do not directly affect New Hampshire towns and cities, nor engage in partisan political activity by endorsing, or otherwise supporting, any political party or candidate. Source. 1961, 81:2, eff. June 13, 1961.

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31:9 Legislative Counsel.

Towns may at any legal meeting authorize the employment by the selectmen of counsel in legislative matters in which the town is directly or indirectly interested, or may ratify the previous employment by the selectmen of such counsel and may grant and vote money therefor. Source. 1901, 62:1. PL 42:9. RL 51:9.

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31:9-a Sponsoring Certain Benefits.

A town may at any legal meeting vote to sponsor a group life, accident, medical, surgical and hospitalization insurance benefit or any combination of such benefits for regular employees of the town and their dependents under which plan said employees agree to pay the premiums. In such case the town treasurer is authorized to withhold from the compensation of such employees who agree to such plan the amount of the premiums and pay over the same to the company furnishing such benefits. Source. 1963, 90:3, eff. July 23, 1963.

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31:9-b Time for Payment.

All elected and appointed officials of a municipal corporation shall be paid monies due them for services rendered as approved by a vote of the municipality from the time of election, or appointment, to the expiration of the term of office for which they are elected or appointed. Said monies shall be paid after the services have been rendered either weekly, bi-weekly, monthly, quarterly or semi-annually as agreed upon between the governing board and the officials involved. As used in this section the words "municipal corporation" shall mean a town, a village district or a school district, but shall not include a city or county. Source. 1971, 512:7. 1975, 137:1, eff. Jan. 1, 1976.

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31:9-c Lockups.

The selectmen of any town, upon petition of 30 or more legal voters of the town, shall provide a suitable lockup for the temporary detention of offenders. Source. 1874, 53:1. GL 269:25. 1883, 60:1. PS 264:23. PL 378:27. RL 440:26. RSA 570:29. 1973, 532:4, eff. Nov. 1, 1973.

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31:9-d Climate Emergency Municipality Unification.

I. As a result of sea-level rise, storm surge, and flooding from extreme precipitation events, or in anticipation of such events as projected by the Coastal Risk and Hazards Commission final report, "Preparing New Hampshire for Projected Storm Surge, Sea-Level Rise, and Extreme Precipitation," and subsequent science and technical advisory panel reports under RSA 483-B:22, the legislative body of a municipality may declare a climate emergency and engage in planning for municipal cooperation and for municipal boundary adjustment or unification with one or more other municipalities. Municipal boundary adjustment or unification may include (a) the alteration of existing municipal boundaries or (b) the creation of a new municipality incorporating the existing boundaries of such municipalities and the creation of new, unified legislative and governing bodies. During this process a municipality may discontinue public roads pursuant to RSA 231:43 or RSA 231:45. II. A proposal for municipal boundary adjustment or unification shall be presented in a bill to the general court after approval by a majority vote of each of the governing bodies of the municipalities affected. Approval of the boundary adjustment or unification by the general court and the respective municipalities shall follow the process for alteration of town lines under RSA 51:9. A legislative enactment authorizing the unification of 2 or more municipalities shall establish the form of government for the resulting municipality and a process for electing or appointing all necessary municipal officers if the unification is approved as provided in RSA 51:9. Source. 2019, 318:2, eff. Oct. 2, 2019.

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31:10 When Allowed.

Towns may incur indebtedness and issue notes for temporary loans, other than loans in anticipation of taxes, in any case where moneys belonging to them are lost or rendered unavailable through any default, suspension of payment or other casualty. They may proceed in like manner where moneys received for the use of a school or village district, but not yet paid over thereto, are so lost or rendered unavailable. Source. 1925, 1:1. PL 42:10. RL 51:10.

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31:11 Method.

The power may be exercised in cities by a 2/3 vote of the city councils. It may be exercised by the selectmen of towns and the governing boards of districts without vote of the voters in town or district meeting. Provided, that no sum in excess of $100,000 shall be so borrowed without vote of the city, town, or district. Source. 1925, 1:1. PL 42:11. RL 51:11. 2003, 289:3, eff. Sept. 1, 2003.

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31:12 Amount; Debt Limit.

Loans so effected shall not exceed the amount of the funds so lost or unavailable; and the proceeds thereof shall be held in lieu of such funds and applied to the same uses. The loans shall not be included in determining the authorized borrowing capacity of the municipality. Source. 1925, 1:1. PL 42:12. RL 51:12.

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31:13 Due Date; Refunding.

The notes originally issued for such loans shall be payable not later than the tenth day of December following the next annual tax assessment after their issue; but by vote of the city councils, or at a legal town or district meeting, such notes may be renewed from time to time in whole or in part pending determination of the amount recoverable on account of the funds, or may be refunded in whole or in part by the issue of bonds of the municipality subject in all other respects to the provisions of RSA 33. Source. 1925, 1:1. PL 42:13. RL 51:13. RSA 31:13. 1963, 151:3, eff. Aug. 18, 1963.

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31:14 Recovered Funds.

Whenever such municipality recovers any portion of the funds, the net sum so recovered shall be applied to the payment of any balance remaining unpaid on such notes or bonds. Source. 1925, 1:1. PL 42:14. RL 51:14.

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31:15 to 31:17 Repealed by 1975, 254:2, eff. Aug. 5, 1975.

to 31:17 Repealed by 1975, 254:2, eff. Aug. 5, 1975.

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31:17-a Referendum.

Upon the written application of 10 percent of the registered voters in a town, presented to the selectmen or one of them at least 15 days before the day prescribed for an annual town meeting, the selectmen shall insert in their warrant for such meeting an article relative to the use of fluoride in the public water system for said town. If the town has an official ballot, the town clerk shall insert on such ballot the following question: "Shall fluoride be used in the public water system?" Beside this question shall be printed the word "yes" and the word "no" with the proper boxes for the voter to indicate his or her choice. If a majority of those voting in a water system that serves one municipality does not approve the use of fluoride in the public water system, no fluoride shall be introduced into the public water system for said town; or if fluoride has prior to said vote, been introduced, such use shall be discontinued until such time as the majority of those voting in the town approve the use of fluoride. After such popular referendum, the selectmen shall not insert an article relative to the use of fluoride in the public water system in the warrant nor shall such question be inserted on the official ballot for a minimum period of 3 years from the date of the last popular referendum and only upon written application at that time of not less than 10 percent of the registered voters of said town. The procedure for a referendum on the use of fluoride in a town that is part of public water system serving more than one municipality shall be the procedure in RSA 485:14-a. Source. 1959, 273:1. 1979, 335:1, eff. Aug. 21, 1979. 2004, 225:3, eff. July 1, 2004. 2008, 230:6, eff. Aug. 19, 2008.

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31:18 Isolated Dwellings; Abandoned or Wasting Real Estate.

Whenever a town may find that real estate in said town is in an isolated location and is uneconomic for farm or home use or has been abandoned or allowed to go to waste, said town may at any legal meeting grant and vote such sums as it may judge necessary to purchase or rent said property and for the repair and improvement of any buildings thereon for the purpose of getting said land and buildings back into productive use and shall by vote authorize the selectmen to make such purchase or such improvements and repairs and to use or dispose of said property. The property acquired under the provisions hereof may be used or disposed of for such recreational, forestry or other purposes as the town may deem to be in the public interest, or may be sold at public auction or private sale by the selectmen or their authorized agents when in the opinion of the selectmen such sale would result in increasing the taxable valuation of the town, or be for the public interest. Source. 1941, 66:1. RL 51:18. 1947, 223:1, eff. June 25, 1947.

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31:19 In General.

I. Towns may take and hold in trust gifts, legacies, and devises made to them for the establishment, maintenance, and care of libraries, reading-rooms, schools, and other educational facilities, parks, cemeteries, and burial lots, the planting and care of shade and ornamental trees upon their highways and other public places, and for any other public purpose that is not foreign to their institution or incompatible with the objects of their organization. II. Towns may authorize the board of selectmen, or town council if there is one, to accept such trusts without further action by the town. III. Such authority to accept shall continue in effect for one year from the date of town meeting or action by the town council. The authority to accept trusts may be granted for an indefinite period, in which case the warrant article or vote granting such authority shall use the words, "indefinitely" or "until rescinded" or similar language. Source. GL 49:7; 50:3. PS 40:5. 1901, 83:1. 1907, 70:1. PL 42:18. 1941, 43:1. RL 51:19. RSA 31:19. 1995, 137:1, eff. May 24, 1995.

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31:19-a Trust Funds Created by Towns.

I. A town may at any annual or special meeting grant and vote such sums of money as it deems necessary to create trust funds for the maintenance and operation of the town; and any other public purpose that is not foreign to the town's institution or incompatible with the objects of its organization. The town may appoint agents to expend any funds in the trust for the purposes of the trust. An annual accounting and report of the activities of the trust shall be presented to the selectmen and published in the annual report. II. Trust funds created pursuant to this section shall be revocable by majority vote of the legal voters present and voting at any annual meeting, unless the vote creating the trust expressly provides that the trust shall be irrevocable, and upon revocation the trustees of trust funds holding the account for said trust shall pay all the moneys in such fund to the town treasurer. III. Notwithstanding any other provision of this chapter, any trust fund created under this section shall be subject to the same provisions concerning custody, investment, expenditure, change of purpose, and audit as are reserve funds established under RSA 34:1, 34:1-a, 35:1 or 35:1-c. The legal validity of such a fund properly established shall not be affected by its designation as a "trust," "reserve," "capital reserve," or any other designation. IV. The local legislative body may authorize the acceptance of privately donated gifts, legacies, and devises to be utilized for the same purposes as a trust fund created under this section; provided, however, that such gifts, legacies, or devises shall be invested and accounted for separately from, and not commingled with, amounts appropriated under paragraph I, and shall be subject to the custody and investment provisions applicable to trust funds accepted under RSA 31:19. V. A trust fund created under the provisions of this section that is established for the purpose of maintaining health insurance funds for the benefit of employees and retired employees of any town shall be exempt from the provisions of RSA 35:8 or 34:4, and, when so established, the town may name its own trustees who may expend any funds in the trust for the payment of health claims or health insurance premiums for the benefit of any employees or retired employees of the town. An annual accounting and report of the activities of the trust shall be presented to the selectmen and published in the annual report. Source. 1983, 264:2. 1991, 231:1. 1993, 176:1, 2. 1995, 20:2, 3, eff. June 11, 1995. 1998, 44:1, eff. July 4, 1998.

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31:19-b Deferred Compensation Plan Trusts.

I. In this section, "eligible employer" means a governing body of a political subdivision, and any instrumentality whose income is exempt from federal taxation under section 115 of the Internal Revenue Code. II. All eligible employers are authorized to adopt resolutions establishing deferred compensation plans for their employees under section 457(b) of the Internal Revenue Code; and, further, establishing trusts, custodial accounts, or annuity contracts described in section 401(f) of the Internal Revenue Code to receive all assets and income of deferred compensation plans for the exclusive benefit of employee and retiree participants and their beneficiaries as required by section 457(g) of the Internal Revenue Code. III. Notwithstanding any other provision of the law to the contrary, all Internal Revenue Code section 457(b) deferred compensation plans adopted and all Internal Revenue Code section 457(g) trusts, accounts, or contracts created by any eligible employer after August 20, 1996, which meet the requirements of this section, are hereby deemed to be qualifying deferred compensation plans under this section. IV. The eligible employer which establishes a deferred compensation plan trust under section 457(g) of the Internal Revenue Code is hereby authorized to serve as a trustee of such trust and is further authorized to appoint an administrator to administer the deferred compensation plan trust and receive all plan assets and income for such purposes. An administrator may be within or outside the state so long as it administers a deferred compensation plan trust which qualifies as an Internal Revenue Code section 457(b) deferred compensation plan and an Internal Revenue Code section 457(g) trust account or contract. Any appointments made after August 20, 1996 of administrators and investments of plan assets in trusts created by those administrators that meet the requirements of this section are hereby ratified. V. All amounts deferred under an Internal Revenue Code section 457(b) plan, after a trust has been established, shall be transferred to the trust within a period that is not longer than is reasonably necessary for the proper administration of the accounts of participants. All assets and income held in any deferred compensation plan trust established under this section shall be held, managed, and invested for the exclusive benefit of employee and retiree participants and their beneficiaries and shall not be diverted to any other purpose including any debt or obligation of the eligible employer under state or federal law. Source. 1998, 371:1, eff. June 26, 1998.

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31:19-c Authorization for Municipalities to Establish OPEB Trusts.

I. The legislative body of a municipality that created, on or before January 1, 2012, an actuarial liability to pay other post-employment benefits (OPEB) to employees or officers after their termination of service may establish an irrevocable trust to pay those benefits. In this section, the term "other post-employment benefits" means employee benefits other than pensions that are received after employment ends, and may include such medical, disability, or other health benefits, as are covered by Statement No. 45 of the Governmental Accounting Standards Board (GASB). The term "trust" means a trust qualified under GASB Statement No. 43. II. Deposits to any fund under such a trust and any earnings on those deposits shall be irrevocable and shall be held in trust for the exclusive benefit of retirees and their beneficiaries in accordance with the terms of the plans or programs providing other post-employment benefits, except that funds governed by the trust may be withdrawn for other purposes only when an employer's liability owed to former officers or employees for other post-employment benefits has been satisfied or otherwise eliminated pursuant to subparagraph V(b). The assets of any trust created pursuant to this section or in which a municipality participates pursuant to this section shall be exempt from taxation and execution, attachment, garnishment, or any other process. No public officer, employee, or agency shall divert, use, or authorize the use of such funds for any purpose other than as provided in law for other post-employment benefits covered by the trust and administrative expenses. III. The trustees of any trust created pursuant to this section shall have the full power to invest, reinvest, and manage the assets of the trust. The trustees shall invest the assets of the trust with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The trustees shall also diversify such investments so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so. The board of trustees may engage a trust administrator, investment consultants, or other qualified professionals to assist with management and investment of the funds of the trust and may pay for these services out of the funds of the trust. IV. Trusts created by a municipality pursuant to this section shall by administered by the board of trustees established by the municipality pursuant to RSA 31:22. The accounts of the trustees shall be subject to the auditing and reporting requirements of RSA 31:33. Other provisions of RSA 31:19 through 31:38-a governing trusts shall also apply unless they are contrary to this section. V. The municipality may withdraw money from the funds of a trust created pursuant to this section only: (a) As needed to pay other post-employment benefits owed to former officers and employees; or (b) When all other post-employment benefits liability owed to former officers or employees of the employing entity has been satisfied or otherwise defeased. Source. 2012, 219:1, eff. July 1, 2012.

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31:20 For Cemeteries.

Towns shall take and hold in trust gifts, legacies and devises made to them for the care of cemeteries and burial lots when the terms of the gift, legacy or devise do not impose any liability upon the town beyond the amount of the gift, legacy or devise and the income thereof. Source. GL 49:7; 50:3. PS 40:5. 1901, 83:1. 1907, 70:1. PL 42:19. RL 51:20.

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31:21 Funds of Cemetery Associations, Etc.

Towns may receive from cemetery associations or individuals funds for the care of cemeteries or any lot therein, and the income thereof shall be expended by the town in accordance with the terms of the trust or contract under which the funds were received. Source. GL 49:7; 50:3. PS 40:5. 1901, 83:1. 1907, 70:1. PL 42:20. RL 51:21.

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31:22 Trustees.

All such trusts shall be administered by a board of 3 trustees, unless a town at an annual or special town meeting votes that such trusts shall be administered by a board of 5 trustees. In towns with a board of 3 trustees, one trustee shall be elected by a ballot at each annual town meeting for a term of 3 years. In towns with a board of 5 trustees the 2 additional trustees shall be appointed initially by the selectmen, one for one year and one for 2 years. Thereafter all trustees shall be elected by ballot at the annual town meeting to replace those whose terms expire. The term of each trustee shall be 3 years. Vacancies shall be filled by the selectmen for the remainder of the term. The board may recommend to the appointing authority the names of no more than 2 persons who may serve as alternate members on the board. The alternate members shall be appointed to one-year terms. In cities said trustees shall be chosen and hold their office for such term as shall be provided for by city ordinance. Trustees shall organize by electing one of their number bookkeeper, who shall keep the records and books for the trustees, and shall require a voucher before making any disbursement of funds from said trusts. Source. 1915, 162:2. PL 42:21. RL 51:22. 1943, 70:1. 1945, 68:1. 1953, 21:1. RSA 31:22. 1979, 141:1, eff. June 5, 1979. 2014, 70:1, eff. July 26, 2014.

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31:22-a Cy Pres, Cemetery Trust Funds.

Upon petition of a majority of the board of trustees and upon a finding that it is in the public interest, the superior court or the probate court may direct the application of only accumulated excess trust income for the general care, capital improvements to or expansion of the cemetery relative to which the particular trust applies. The court shall determine from the terms of the particular trust whether the excess income accumulation of the particular burial lot trust fund will not be required for the care of the burial lot in the foreseeable future. In determining this requirement the court shall consider: I. The financial status of the trust account. II. A projection of future interest rates. III. A projection of future labor costs necessary to maintain the lot. Source. 1977, 128:2. 1992, 284:1, eff. Jan. 1, 1993.

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31:23 Single Trustee.

A town wherein the total book value of trust funds is less than $15,000, acting under an appropriate article in the warrant for any annual town meeting, may vote that the board shall consist of one trustee only, in which case said trustee shall be chosen by ballot at the same and each succeeding annual town meeting; and such vote may be rescinded in like manner. All the duties and obligations imposed by law upon a board of trustees shall devolve upon the trustee so chosen; vacancies shall be filled by the selectmen for the remainder of the year; and said trustee shall receive from the town treasury such compensation as the town meeting may determine. Source. 1945, 85:1. RSA 31:23. 1983, 264:1, eff. Aug. 17, 1983.

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31:24 Trustees; Expenses.

The expenses of trustees or the trustee provided for in RSA 31:23 shall be charged as incidental town charges. Source. 1915, 162:5. PL 42:27. 1941, 43:3. RL 51:29. 1945, 85:3. RSA 31:24. 1973, 544:8. 1979, 376:17, eff. Aug. 22, 1979.

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31:25 Custody; Investment.

The trustees shall have the custody of all trust funds held by their town. Any person who directly or indirectly receives any such trust funds for deposit or for investment in securities of any kind shall, prior to acceptance of such funds, make available at the time of such deposit or investment an option to have such funds secured by collateral having value at least equal to the amount of such funds. Such collateral shall be segregated for the exclusive benefit of the town depositing or investing such funds. Only securities defined by the bank commissioner, as provided by rules adopted pursuant to RSA 383-B:3-301(e), shall be eligible to be pledged as collateral. The funds shall be invested only in deposits in federally insured banks authorized to accept deposits under RSA 6:8, I and I-a, or in deposits in any credit union in this state, or in state, county, town, city, school district, water and sewer district bonds and the notes of towns or cities in this state; and such stocks and bonds as are legal for investment by any bank chartered by this state to engage in a banking business; and in participation units in the public deposit investment pool established pursuant to RSA 6:45; or in obligations with principal and interest fully guaranteed by the United States government. The obligations may be held directly or in the form of securities of or other interests in any open-end or closed-end management-type investment company or investment trust registered under 15 U.S.C. section 80a-1 et seq., if the portfolio of the investment company or investment trust is limited to such obligations and repurchase agreements fully collateralized by such obligations. Deposits in a federally insured bank or credit union shall be made in the name of the town which holds the same as a trust, and it shall appear upon the books thereof as a trust fund. Shares of mutual funds are also permitted if they are registered with the Securities and Exchange Commission, qualified for sale in the state of New Hampshire in accordance with the New Hampshire uniform securities act of the New Hampshire secretary of state's office, and which have in their prospectus a stated investment policy which is consistent with the investment policy adopted by the trustees of trust funds in accordance with this chapter, and when so invested, the trustees shall not be liable for the loss thereof. The trustees may retain investments as received from donors, until the maturity thereof. The trustees shall formally adopt an investment policy for all investments made by them or by their agents for any trust funds in their custody in conformance with the provisions of applicable statutes. Such investment policy shall be reviewed and confirmed at least annually. A copy of the investment policy shall be filed with the attorney general. Source. 1915, 162:3. 1917, 75:1; 171:1. PL 42:22. 1929, 100:1. 1933, 46:1. 1939, 72:11. 1941, 21:1. RL 51:23. RSA 31:25. 1969, 447:1. 1992, 24:2, II, eff. April 3, 1992. 1996, 209:4, eff. Aug. 9, 1996. 1997, 181:1, eff. Aug. 16, 1997. 2001, 54:1, eff. Jan. 1, 2002. 2007, 164:1, eff. Aug. 17, 2007. 2015, 272:39, eff. Oct. 1, 2015. 2021, 65:7, eff. Aug. 3, 2021. 2023, 36:2, eff. July 16, 2023.

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31:25-a Retention of Nonlegal Securities.

Any security which at the time of its purchase under RSA 31:25 constituted a legal investment for any bank chartered by this state to engage in a banking business or for trustees of trust funds under the laws and conditions then existing may be retained notwithstanding the fact that, because of changes in the law relating to legal investments or because of conditions arising subsequent to the purchase of such security, its purchase might not then be legal; provided, however, that no such security that is not a prudent investment under the circumstances existing at the time of its retention and thereafter may be retained by the trustees; and provided further, that the aggregate total of the market value of all securities retained under this section shall not exceed 20 percent of the total market value of all the investments held by the trustees. Source. 1983, 118:1, eff. May 25, 1983. 1997, 181:2, eff. Aug. 16, 1997. 2001, 54:2, eff. Jan. 1, 2002. 2021, 65:8, eff. Aug. 3, 2021.

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31:25-b Prudent Investment Defined.

For purposes of RSA 31:25-a, a prudent investment is one which a prudent man would purchase for his own investment having primarily in view the preservation of the principal and the amount and regularity of the income to be derived therefrom. Source. 1983, 118:1, eff. May 25, 1983.

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