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Editorial Board
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Sheehan Phinney Capitol Group
Sheehan Phinney Capitol Group
Sheehan Phinney
Capitol Group
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| Lessons in legislative life
Brad Cook, Sheehan Phinney Capitol Group
The New Hampshire Legislature was under the gun this past week as "cross-over" looms next week. That is the date that all bills considered by the House or Senate have to be handled and, if passed, sent to the other body for consideration. In this even-numbered year, a non-budget year, a disproportionate number of ideological bills have been considered, as the legislature has not had to fashion a spending plan. Several actions by the House are instructive as examples of facts of legislative life, strategy and process.
First, to the surprise of many observers, the House overwhelmingly defeated a bill aimed at repealing same-sex marriage in New Hampshire. In the most conservative House in years, many expected the bill to pass. The proposal, HB 437, would have repealed same-sex marriage which was passed in 2009, would have instituted "civil unions" in a different form than existed here prior to 2009, and would have mandated a referendum on the issue on the November ballot, in a non-binding poll to gage the opinion of the voters on the issue, assumedly to help the next legislature know whether the repeal should be kept or same-sex marriage restored. This bill had been the subject of criticism by proponents and opponents of same-sex marriage, the press, candidates for governor, and legislators on both sides of the issue as confusing, inconsistent in calling for a referendum after repeal, and defective in that the form of civil unions restored was deemed confusing. What is the lesson? If bills are to have a chance, they should be clear, understandable, and not subject to attack for a number of reasons that various legislators can use as a reason to oppose the bill. HB 437 failed that test, and failed to pass. Whether a simple repeal on the one hand or call for a referendum without more, on the other, would have passed, is impossible to know.
Second, two actions by the legislature show the efficacy of the rule that says in certain circumstances, bills have to be considered by more than one committee to pass the House and be sent to the Senate. HB 1659 is a bill that would have required notice of certain alleged medical ramifications of abortion and, as passed originally by the House, would have imposed a criminal penalty for failure to provide the information. Since there was a criminal penalty, and the House passed the bill without its having been considered by the Criminal Justice and Public Safety Committee, as required by the rules, later it was sent to that committee which, after examination, stripped the bill of the criminal penalty. Whether the amended bill is a good idea or not, following the rules had a substantive effect on the bill.
Similarly, the bill to eliminate the office of Chancellor of the University System of New Hampshire, reduce the number of trustees, and reduce the size of the System office, controversial with many as based on inaccurate "facts" and interfering with the oversight function of the USNH Board of Trustees, HB1692, passed the House preliminarily and was required to be referred to the Finance Committee as it had fiscal ramifications (indeed, the fiscal note claimed it would increase costs by millions of dollars due to duplication on individual campuses of functions of the System Office that would be eliminated). At the Finance Committee, as of this writing, amendments to the bill have been proposed that would substantially change it by deleting the elimination of the Chancellor, the reduction in trustees and changing the bill in a number of other respects, while keeping certain provisions claimed to help keep tuition under control. If the amended bill is the resulting one, it will show the effectiveness of additional consideration by a second committee, although the House and/or Senate probably should consider defeating the bill in any form.
Finally, the House passed a couple of bills affecting hospital construction in New Hampshire. One, HB1642, that would allow small, specialty hospitals to be built without review by the state's Certificate of Need Board, gives such for-profit entities an advantage no other such healthcare facilities enjoy and was criticized by Democrats and some Republicans as unfair, aimed to help one provider only, unconstitutional, and a threat to New Hampshire's Medicaid reimbursement. The other, a repeal of the Certificate of Need Board and process itself, passed the House earlier, an action opposed by business organizations as a threat to increase healthcare costs. Both bills should be watched carefully as the Senate considers them.
Watch for more action as cross-over looms.
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| Two disappointing votes and a good one
Will Stewart, Greater Manchester Chamber of Commerce
Divestiture by any other name...
On Thursday, the House Science, Technology and Energy Committee voted to pass an amended version of House Bill 1238, which seeks to force PSNH to sell its power plants.
On the surface, the amended version of the bill looks like it just sends the divestiture issue to be studied by the Public Utilities Commission (PUC). But in fact, the bill still leads to divestiture, a move the Chamber opposes at it would eliminate the hedge against volatile energy prices that is made possible by PSNH's ownership of its own power plants, by which the company call sell electricity directly to its customers when prices on the competitive energy market are high.
As amended, HB 1238 grants the PUC - unelected regulators -the ability to force PSNH to sell its generation assets. Furthermore, the bill only directs the PUC to study how divesture will impact default energy service customers, not PSNH's entire customer base which includes large power customers that benefit from having PSNH's energy service as a reliable backup for their energy needs.
The issue of whether PSNH should own generation has historically been a policy issue decided by the legislature. The legislature made the decision in 2003 for PSNH to keep its generation, a decision which saved PSNH customers $700 million in the form of lower rates thanks to the company's power plants.
Likewise, HB 1238, as amended, ignores the issue of the "stranded costs" that will be created by forcing PSNH to sell its power plants. A forced sale of PSNH power plants will create hundreds of millions of dollars in new costs that will be borne by all customers.
Finally, HB 1238 runs counter to the legislature's stated goal of making New Hampshire more business friendly. The bill will lead to higher electric rates which will hurt the state's ability to attract and retain businesses. As such, the House should overturn the committee's "Ought to Pass" recommendation by voting "Inexpedient to Legislate."
Workforce development bill goes down
As expected, the Senate on Wednesday voted to uphold the "Inexpedient to Legislate" recommendation of that body's Ways and Means Committee with regard to Senate Bill 405. The bill aimed to create a credit against the state Business Profits Tax and Business Enterprise Tax for donations to New Hampshire's community colleges for workforce development activities and student financial aid.
This bill, which the Chamber supported, would have provided New Hampshire's business community a way to help increase the skill level of the state's workforce through a partnership between businesses, the state's community colleges, and the State.
The defeat of the bill is a shame as it would have been a win/win/win. Businesses receiving the tax credit would have had an efficient way to invest in their community colleges, and would have benefitted from the skilled workforce the colleges can produce. The colleges would have gained resources to enhance curriculum, support students, and ensure they are delivering high-quality programs attuned to the needs of New Hampshire businesses. And the State would have seen a return on investment as state companies become more competitive and increase their economic activity.
It's not all bad news
On Wednesday, the Senate passed Senate Bill 405, which seeks to extend the state's Research and Development Tax Credit program and increase the program's annual cap from $1 million to $2 million.
Originally enacted for five years starting in 2007, the Research and Development Tax Credit program allows New Hampshire businesses to claim up to $50,000 against their state business tax liabilities for "qualified manufacturing research and development" expenditures.
The rub is that companies applying for the full $50,000 credit don't get anywhere near that amount. Due to the popularity of the program, coupled with the program's $1 million annual cap, actual tax credit amounts received are closer to $15,000 per business.
Here's hoping SB 405 fares just as well in the House. |
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