HB 366-FN - AS INTRODUCED

 

 

2023 SESSION

23-0187

06/04

 

HOUSE BILL 366-FN

 

AN ACT prohibiting certain noncompete clauses and nondisclosure agreements regarding free software projects and the sharing of open source software.

 

SPONSORS: Rep. Gallager, Merr. 20

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill prohibits certain noncompete clauses and nondisclosure agreements regarding free software projects and the sharing of open source software.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23-0187

06/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT prohibiting certain noncompete clauses and nondisclosure agreements regarding free software projects and the sharing of open source software.

 

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

 

1  New Chapter; Free and Open Source Software.  Amend RSA by inserting after chapter 21-V the following new chapter:

CHAPTER 21-W

FREE AND OPEN SOURCE SOFTWARE

21-W:1  Definitions.  In this chapter:

I.  "Free software" means software that gives users the freedom to run the program, to study and change the program in source code form, to redistribute exact copies, and to distribute modified versions.

II.  "Noncompete clause" shall refer to a clause of a contract in which an employer requires an employee to agree not to provide assistance to the employer's competitors.  Such clauses may also be referred to as "restrictive covenants".

III. "Nondisclosure agreement" shall refer to any contract or clause of a contract that restricts access to the sharing of certain information between the signing parties.

21-W:2 Noncompete Clauses.  Notwithstanding RSA 275:70, any noncompete clause which prevents an employee from contributing to a free software project such employee wishes to contribute to shall be void and unenforceable in the state of New Hampshire.

21-W:3 Nondisclosure Agreement.  No employer in the state of New Hampshire shall use a nondisclosure agreement to prevent an employee from sharing the source code of free and open source software that such employee would otherwise normally be able to share under the software's license.  Any such agreement shall be void and unenforceable.

21-W:4 National Security. Nothing in this chapter shall be interpreted to permit the violation of federal security clearance protocols established by the United States Department of Defense.

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

 

LBA

23-0187

12/29/22

 

HB 366-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT prohibiting certain noncompete clauses and nondisclosure agreements regarding free software projects and the sharing of open source software.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill prohibits certain noncompete clauses and nondisclosure agreements regarding free software projects and the sharing of open source software.

 

The Department of Information Technology (DoIT) states the fiscal impact of this bill is indeterminable as a regulatory entity would need to be established to adjudicate and enforce the requirements of the bill.  The DoIT states they do not have the regulatory expertise to determine how to create, organize or the known costs to establish the regulatory entity.  

 

The Department of Administrative Services states there would be an indeterminable impact on State expenditures.  However, they are not able to quantify the amount as the Department does not have any such non-competes associated to open source software.  The Department is not able to comment on any other agencies that may hae documents in the process.

 

It is assumed any fiscal impact would occur after FY 2023.

 

AGENCIES CONTACTED:

Department of Information Technology and Department of Administrative Services