Erle Pierce, Sheehan Phinney Capitol Group 

It was another busy week in Concord. Our Governor gave his last state of the State address to a packed house where he delivered several important messages. He reiterated his position on expanded gambling (expect a veto if a bill hits his desk), he called for more civility among those who make our laws, and while providing few details on how it would be accomplished, called for the timely completion of the widening of I-93. He also renewed his call for a constitutional amendment to address the issue of targeted aid for education.

There were also many House and Senate hearings and more than a few bills were passed, killed or sent along in their legislative journey.

Casino Gambling - Undaunted by the threat of a gubernatorial veto, the entire House will take up HB 593 next week. This 36 page bill, which was first introduced last year, allows video lottery machines and table games at two gaming locations in the state pursuant to a competitive application process. It distributes proceeds of video lottery machines and table games to the municipalities where the facility is located, as well as abutting communities, and to the general fund to offset business taxes. The bill also establishes a gaming enforcement unit in the Division of State Police and requires the Lottery Commission to regulate, license, and enforce the provisions for video lottery and table games operated at a gaming location.

The House Ways and Means committee recommended passage of the amended bill by a vote of 14-7.  The majority of the committee, led by Chairman Stephen Stepanek, R-Milford, feels this bill is a bi-partisan pro business bill that will create jobs, grant tax relief, and provide the state with an additional revenue source. Those in the minority on this amended bill, including Rep. David Hess, R-Hooksett, feel the state is creating a gambling monopoly to the detriment of its citizens. Expect a big floor fight next week!

Net Operating Loss - This week the House Ways and Means Committee voted to kill HB 1641, legislation requiring the carry forward of certain net operating loss deductions as they relate to the creation of new jobs. The law would require an employer to create a new job before taking the additional credit for the net operating loss carryover previously created in this biennium. In a 14 to 5 vote, the majority felt that while the bill sounds good in theory, in practice it had too many unanswered questions and grey areas to be administered and would create more costly restrictions on business. The minority in the committee disagreed with that belief and will be offering an amendment to the full House during its session on February 8.

PSNH Power Plant Divestiture - The initial House Science Technology and Energy Committee public hearing on HB 1238 was held on Thursday of this past week and there were many attendees and opinions of what should happen with this legislation. Passage of HB 1238 would require that PSNH divest itself of power generating facilities business by December 31, 2013.  PSNH is against the plan arguing the removal of low cost, reliable power sources in New Hampshire would not be in anyone's best interest. They also cautioned against the recovery of the costs on any of the power plants and the effects on ratepayers' bills (remember stranded costs?).  Many employees also offered testimony on their employer's standing in the community, including all local taxes that are collected and employee and company involvement in support of community programs.

Several others saw the proposed legislation differently.  In the words of one representative of a company that sells electricity on the open market, ratepayer subsidized power generation "puts a finger on the scale" of the free market and it should be lifted to create a level playing field on which all can compete equitably.

Will Stewart, Greater Manchester Chamber of Commerce 

To divest or not to divest, that is the question

When energy markets were deregulated across the country more than a decade ago, New Hampshire was among the states that chose to give customers a choice as to where they buy their electricity.

But unlike other states' deregulation models, New Hampshire's provides a hedge for customers when it comes to potentially volatile energy costs. The model gives customers the ability to buy from the competitive energy market when prices are low, as well as the protection of returning to PSNH's Energy Service when market conditions are less favorable, or even extreme.

House Bill 1238, however, seeks to do away with this "best of both worlds" scenario by forcing PSNH to sell its power plants, which provide the aforementioned hedge by allowing the company to produce its own electricity to sell directly to its customers.

Not only will divestiture of these assets further expose businesses to energy market risks and weaknesses, but it will also expose customers-business and residential-to a new "divestiture tax" from the stranded costs that will be created by the forced sale of PSNH's power plants in the current (buyer's) market.

If HB 1238 passes, the business community will face needless uncertainty. It is for this reason the Chamber opposes HB 1238.

Not a poll tax, but a pole tax

Prior to 2011, local governments did not have the right to assess a property tax on telephone poles and conduits. But now they do, and as a result of this new tax, rates for land line users -which include much of the business community - will increase. Indeed, the New Hampshire Public Utilities Commission has already granted approval for FairPoint to add the new tax to customers' bills. Other communications providers will likely follow suit. Unless, that is, House Bill 1305 is passed.

HB 1305 seeks to reestablish the exception from property taxes for telecommunications poles and conduits that existed prior to 2011.

This new pole tax creates a disincentive to investment in New Hampshire and will have a negative impact on the state's economy. Money spent to pay this tax cannot be used for improved telecommunications networks, expanded broadband deployment, job creation or economic development. Likewise, this new tax is not conducive to maintaining our reputation as a business-friendly state. For these reasons the Chamber supports HB 1305.