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SPBG 
 
Cap Group 

Editorial Board

 
Brad Cook
Sheehan Phinney
Bass + Green

Bruce Berke
Sheehan Phinney
Capitol Group 
 
Valerie Acres
Sheehan Phinney
Capitol Group 

Henry Veilleux
Sheehan Phinney
Capitol Group

Erle Pierce
Sheehan Phinney
Capitol Group
 
Michael Skelton
Greater Manchester Chamber of Commerce
michaels@manchester-chamber.org
 
Welcome to Capitol Insight 
 
Sponsor Insight
 
Does "yes" really mean no?

This week, I overheard a legislator trying to explain to a group of elementary school students touring the State House that "yes" sometimes means no. The children looked puzzled; however, the point made perfect sense to me, particularly on that day when a vote of "yes" on SB 489 meant no, you do not support expanded gam(bl)ing (its name now depends on how you feel about it) in New Hampshire. Two hundred and twelve members of the House voted "yes" on a committee recommendation that the bill be killed, so that, indeed, is what happened to SB 489.

It was a wider margin than advocates on either side expected, in part because the Governor threatened to veto the bill just days earlier and in part because some members who might support expanded gam(bl)ing in some form did not support SB 489 because it included casinos, too many slot machines, too many locations and/or not enough oversight by the state.

Does "no" really mean maybe?
 
Whatever the reason for the wide margin, 54 votes was wide enough to put an end to this idea, correct?  Well, maybe. Already, one legislator has come forward with a scaled-back version of expanded gam(bl)ing that he hopes will be added as an amendment to SB 450, the current legislative vehicle to deal with the state's budget woes.

The new proposal would include fewer slot machines at fewer locations, more oversight by the state including the use of state employees to run the operations, and a sealed bid process for selecting locations. There would be no full-fledged casinos and no dedicated funds, such as the $50 million dedicated funding stream to the Department of Health and Human Services that was part of SB 489.

A key factor for this initiative is the fact that the House did not vote to "indefinitely postpone" SB 489. When a bill is tabled or killed, its provisions can re-appear as an amendment to another bill that is still under active consideration. Often, inclusion as part of a larger package can change the balance in decision-making such that the idea is more favorably received the second time around. Indefinite postponement is a mechanism to help prevent this from occurring. Under House and Senate rules, a two-thirds vote (rather than a simple majority) is required to act on a question that has been indefinitely postponed. Senate rules go one step further and specifically state that "[a]ny bill which is indefinitely postponed shall not be reintroduced under cover of an amendment, bill, resolution, order, or committee of conference report" and "[n]o motion to suspend this rule shall be permitted." As with most things in the Legislature, however, even the rules regarding indefinite postponement are grey, the key being how broadly or narrowly the "question" that was postponed is defined.

It is too early to tell whether other proponents of expanded gam(bl)ing will regroup and try again to promote the idea. If not, or if so but they are unsuccessful, citizens should brace for additional budget cuts as the cuts made so far are not even close to closing a projected $200 million general fund shortfall in the state's biennial budget.

And, on another topic - Does "no" really mean yes?

Last January, the New Hampshire Supreme Court issued a 3-2 opinion rejecting the State's attempt to transfer $110 million from the NH Medical Malpractice Joint Underwriting Association (JUA) to the general fund as part of an effort to close the lingering budget gap. The court said a new state law authorizing the transfer was "a retrospective law that results in impairment of contract rights in violation of the New Hampshire Constitution" and was, therefore, impermissible.
 
The Court did not reach questions regarding whether the proposed transfer would be an unconstitutional "taking without just compensation" or be prohibited because the JUA is not a state agency. Nor did it order distribution of the surplus funds, leaving that to procedures contained in existing policy and regulations.  Thus, despite the court saying "no" to the proposed transfer, one legislator heard "yes" and has come forward with a new proposal to do just that, on a smaller scale.

The new proposal, introduced as a potential amendment to SB 450, would allocate up to $25 million of surplus JUA funds to the general fund in exchange for release of remaining surplus funds to policyholders. Proponents characterize this proposal as voluntary on the part of policyholders and, therefore, free from the threat of further litigation and delay. Opponents characterize it as extortion by the state, rather than theft, since policyholders are dependent on "review and approval" of the Insurance Commissioner for release of funds. This could be just another ill-fated idea that will not proceed very far. But, with gam(bl)ing "maybe" - and most likely - off the table, perhaps the answer to this question will be "yes"?

With the legislative session nearing its end, this confusion will have to be resolved soon.  So, once again, more to come...
 
Valerie Acres
Sheehan Phinney Capitol Group
 
Chamber Insight 
 
Business Community to Lock Arms in Support of Business Tax Reforms
 
On Monday while SB 497 and SB 450 (bills that repeal the LLC tax and address reasonable compensation) are still mired in legislative process the business community plans to lock arms and call for swift action by the legislature on business tax reform.
 
The Chamber along with representatives from 10 other business associations will hold a press conference on Monday calling for the legislature to repeal the LLC tax and reform business tax laws.
 
The Chamber believes reforming of the state's antiquated reasonable compensation rules is the way to provide the business community with more clarity and certainty when paying business taxes. SB 497, HB 1607, and SB 450 address this issue and the LLC tax in various forms.  The Chamber's preference would be a passage of SB 497 as it deals with both the repeal of the LLC tax and reasonable compensation as part of one integrated solution that also modernizes business taxes and adopts federal tax standards.
 
The press conference is scheduled for Monday April 26th at 10 a.m. in the Legislative Office Building in Concord.
 
House Committee to Consider Manchester Solar Array Project Next Week
 
After hearing 8+ hours of testimony on the SB 334, the Manchester Solar Array project, the House Science, Technology, and Environment Committee was expected to vote on the bill this past Wednesday. Instead, the committee opted to delay voting for one week which is perhaps a sign of committee members looking craft a compromise amendment.
 
As a quick reminder, SB 334 allows Public Service of New Hampshire to retain up to $5 million in funds (paid by ratepayers) slated to go into the Renewable Portfolio Standard fund in order to facilitate the development of a massive solar array project on the capped landfill in Manchester in partnership with the City.  The Chamber supports SB 334 as it makes an ideal project a reality and clearly is an effective and efficient use of RPS funds. New Hampshire has a long way to go to reach its obligation to produce 25% of its energy from renewable sources by 2025 (mandated by the RPS law). As long as the State keeps dragging its feet on reaching these goals, all ratepayers (businesses & residents) will continue to pay a penalty into a program known as the renewable energy fund. If the legislature is serious about meeting this obligation, it should not be saying no to proposals like SB 334.
 
The Chamber plans to continue its strong push for SB 334 up until next week's vote and is pleased by the tremendous support of individual businesses willing to sign a letter of support or make calls to committee members. If your business is interested in supporting this project, please email Michaels@manchester-chamber.org.
 
Senate Sends Controversial Workers Comp Bill to Interim Study
 
HB 1315, a controversial workers compensation bill, was sent to for further study by the Senate last week by a 13 to 11 vote. The bill, which was opposed by the Chamber, changed the division of damages recovered by those who receive workers compensation by no longer requiring that workers compensation insurers be reimbursed when a third party is found to be at fault for damages.
 
This minor change (the bill was only one sentence) would have increaseed rates for employers and entities providing workers compensation. The Risk Managers for multiple cities weighed in on the issue as well as the business community which proved to be the difference on the Senate floor.
 
Michael Skelton
Greater Manchester Chamber of Commerce
michaels@manchester-chamber.org