House Health and Human Services Committee recommends conformance with U.S. Supreme Court decision

Last summer, the U.S. Supreme Court overturned similar laws in Maine, Vermont and New Hampshire that sought to extend privacy protections to prescribing doctors. The Court declared that such laws restricted commercial free speech. On Tuesday, the House Health & Human Services Committee recommended passage of Senate Bill 287 that will return NH's statutes to reflect the Court's decision while ensuring that individuals' and patients' privacy are properly maintained.

The committee heard testimony that demonstrated the many beneficial uses to this de-identified data (protecting privacy for individuals) which will assist the enhanced development of care for patients.

The committee also heard some testimony that attempted to maintain privacy for doctors' prescribing habits but that prohibition and commercial uses were the issues the U.S. Supreme Court acted on last summer. Incorporating these issues into SB 287 would be in direct conflict with the Court's decision and very likely land the State of NH back in court with a very expensive lawsuit similar to the one we and the states of Vermont and Maine lost last year.   

If the House adopts any amendments on the floor next week, it will likely send the parties back into court on a matter that has already been litigated.

Taxing Internet Access?

In an effort to clarify a situation that, for several years, has dogged the telecommunications industry (and their customers) in New Hampshire and the State Department of Revenue Administration (DRA), the House and Senate are expected to jointly put forth legislation that establishes clear guidelines for DRA to follow with respect to the application of the Communications Services Tax (CST) on Internet access. 

If passed, such legislation would have New Hampshire law reflect the federal moratorium on taxation of Internet access that was established in 1998 and renewed in 2003 and 2007.  Without any further federal action, the current moratorium will expire in 2014 but this legislation will make it very clear that New Hampshire will no longer tax Internet access, with or without a national moratorium.

The move is expected to make access to the Internet more affordable, which should increase subscribership and, in turn, stimulate investment in expanding New Hampshire's broadband network.

The CST's original intent was to tax two-way communications and was initiated in 1990 as a way to capture revenue from the growing wireless market. As technology evolved and the Internet boom came about, the tax did not keep up with technological changes. 

The current rate of the CST is 7 percent and is applied primarily to your voice and other two- way communication services on your traditional and wireless telephone services. 

Today there are approximately two million wire and wireless telephone lines in the state and although they will remain subject to the tax, more than seven hundred thousand broadband access lines that connect you directly to the Internet will not.

The Senate Finance committee will likely hold a public hearing on an amended HB1652 next Thursday, April 26, in the Senate Finance committee.  Passage of this important bill by our legislature will provide clear guidance to all involved to cease collection of a tax that has been collected for far too long.