Contentious hearing on HB 635: sponsor seeks to remove nonprofit status for groups that 'settle' undocumented migrants; opponents call for ITL

Representative Travis Corcoran introduced House Bill 635, which would bar nonprofit (state tax‑exempt) status for organizations whose activities "settle or resettle" undocumented noncitizens, or that knowingly facilitate or employ undocumented migrants in settlement work. "Nonprofit status is not a right of any entity," Corcoran told the committee; he framed the bill as a policy decision about which activities the state should subsidize through tax exemptions.

Supporters at the microphone said sizable nonprofit networks receive public dollars to assist migration and resettlement, and argued the state should not extend tax privileges to organizations that facilitate the settlement of persons the sponsor characterized as "illegal aliens." Representative Donald Macfarlane and several private citizens urged the panel to retain and study the bill further, arguing that NGOs' revenue models create incentives to expand settlement activity and that better transparency and accountability are needed.

Opponents included refugee resettlement groups and local nonprofit operators. Rick Menard, executive director of Building Community in New Hampshire, explained that refugee resettlement is a federally managed program and that his organization is paid under federal contract for services to people with documentation; he urged legislators to reject the measure or send it to study. Menard and other witnesses said the bill conflates federal refugee resettlement and services to people without documentation and would penalize organizations doing federally funded work. Several witnesses also urged that criminal enforcement and immigration status are federal responsibilities.

Department of Revenue Administration (DRA) staff explained administrative implications: under the bill DRA might investigate nonprofit status determinations and would treat complaints like other suspected tax‑exempt‑status irregularities; DRA asked for clearer base definitions and noted that consolidated federal return data and combined reporting rules complicate attributing activity across interlocking entities. Committee members pressed sponsors about standards (for example, whether a single instance of assistance would strip tax status) and enforcement mechanics; the sponsor said the bill aims at organizations whose activities are primarily focused on settling undocumented persons. No committee vote was taken; members said the bill will require further drafting, legal review, and possible fiscal analysis.