Henry Veilleux, Sheehan Phinney Capitol Group 

The House and Senate have taken final action on the bills in their respective chambers and now have until next Thursday, May 24 to decide which bills that they've each passed in different versions will go to committees of conference to negotiate agreement, and which ones they will simply let die. Here is where a few issues stand:

INTERNET TAX: The House and Senate brought back to life legislation to prohibit the Department of Revenue Administration from taxing the internet.  The move, if successful, 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 current 7 percent communications services tax enacted in 1990 is applied to two-way communications. 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 Department has been taxing internet access, primarily because the application of the tax has not kept up with technological changes. This past Wednesday, the House adopted language in SB 399 that prohibits taxing access to the internet through wireless or broadband connections, but allow the state to continue taxing two-way wireless phone use, other voice communications and text messaging. The House also added two other provisions to SB 399 that the Senate has already rejected.  The first provision would increase the payroll threshold for paying the business enterprise tax from $75,000 to $100,000 and increase the threshold for gross receipts from $150,000 to $200,000. The second provision would require the Department to seek approval from the Joint Legislative Committee on Administrative for any new business or interest and dividends tax forms. The Senate revived the internet tax ban in HB 1418.  The bill also increases the threshold for taxation under the BET and a provision concerning business expense deductions under Section 179 of the IRS Code. Both of these bills are likely to end up in committees of conference.

CERTIFICATE OF NEED:  The Senate took HB 1617 off the table and passed an amended version that prospectively repeals this review board in five years. The Health Services Planning and Review Board is responsible for managing the Certificate of Need Program. A certificate of need is required to: construct or modify health care facilities; acquire new medical equipment; or offer new inpatient care beds and services. The dollar thresholds that trigger the revew are: $2,974,891 for any acute care facility project; $1,983,260 for any nursing home, ambulatory surgical facility or specialty hospital project; $845, 374 for any ambulatory surgical facility within the service area of a hospital with fewer than 70 licensed beds; and $400,000 for equipment. HB 1617 repeals this whole process on January 1, 2018.  Senators expressed a desire to reform the certificate of need process, and said the prospective repeal will keep everyone's feet to the fire to complete reform of the program before 2018. The bill also includes an extension of the current moratorium on new nursing home and rehabilitation beds. HB 1617 will likely end up in a committee of conference.

LIMITED LIABILITY COMPANIES:  The House passed SB 203 with amendment on a vote of 172-106. The bill revises the laws governing LLC's in an attempt to make it simpler to form LLC's and operate them under the law.  House and Senate leaders see this bill as a priority, so expect it to get final approval soon.