Week Eleven - April 3, 2009

This electronic publication, known as The Advocate, is brought to you each Friday by your Greater Nashua Chamber of Commerce, in partnership with our friends at Devine Millimet & Branch, and ActiveEdge. Please use this piece to review what has happened in Concord this past week, read about our Chamber's lobbying efforts relating to those activities, and preview what we are doing on behalf of our Chamber members in the coming week.

This Week’s Update

As we approach “crossover day” next week, we can successfully report we have been able to eliminate or retain a number of the more onerous bills on which we’ve been active. There are also a number of good bills continuing to move forward.

SUPPORT

Moving from one branch of the legislature to the other, are the following bills that the Chamber supports.

HB 320
This bill permits agreements between Central Business Districts and municipalities to provide enhanced infrastructure improvements. Capital expenditures are not to exceed $20,000 per project and are only approved after a 2/3 vote of the advisory board, a public hearing and a 2/3 vote of the governing body.
Status: House Passed with Amendment, it moves to the Senate

SB 5
This bill prohibits retailers in New Hampshire from providing private consumer information to any foreign states (i.e. Massachusetts) for purposes of enforcing collection of a sales or use tax against those consumers, unless the foreign state has a qualifying sales and use tax statute. In other words, the bill basically will protect New Hampshire retailers from becoming the tax agent for Massachusetts or any other state. The bill places all burdens for collecting a sales or use tax on other states and their residents, not on New Hampshire, which of course does not have a sales tax. The impetus to SB 5 is stemming from activity in which the State of Massachusetts is trying to force Town Fair Tire to collect a "use tax" against any Massachusetts resident who purchases goods or products from Town Fair's retail stores in New Hampshire. If the State of Massachusetts succeeds in this, they will likely expand their efforts to include all New Hampshire retail businesses, thereby effectively eliminating New Hampshire's image as a tax-free state. This issue has profound implications for all of us, regardless of our industry.

If you’d like to learn more about this, be sure to attend a special breakfast event the Chamber is hosting this Wednesday, April 8, 7:30 – 9:00am. Attorney General Kelly Ayotte and the legal counsel for Town Fair Tire will both be speaking about this case and its implications for New Hampshire retailers. You can RSVP by calling the Chamber at 603-881-8333.
Status: Passed In Senate Commerce Committee. Full Senate Vote to take place on 4/8/09

SB 182
SB 83, which would have created a committee to study the Net Operating Loss carry-forward provisions under the BPT and BET, has now been added to SB 182, which if passed by the Senate, will create a study committee to study all business tax credits and the revenues attributable to those credits. Included in the study are the CDFA tax credit, the CROP (EZ) tax credit, the R&D tax credit, NOL’s credits, job creation credits, insurance tax credits, and the BET credit against the Business Profits Tax. The Chamber respectfully asked that the legislation be amended to actually increase the $1 million limit on NOL’s in New Hampshire to mirror the unlimited cap which is in federal law and also in the laws of the other New England states. Instead of passing an NOL increase, the Senate is now looking to study all New Hampshire tax credits or incentive programs. We are not opposed to studies; however, business needs help, not necessarily more study, and needs it now.
Status: Senate Passed With Amendment, now headed to House

SB 89
This bill grants immunity from liability to a recipient of unemployment benefits, if the Department of Employment Security pays unemployment benefits to the employee when they were not entitled to those benefits. The employer in such cases is made whole. The employer's account would not be charged for the payments once it is determined the mistake was not the employer's.
Status: Senate Passed the bill, now headed to House

SB 170
This bill creates a self-employment assistance program to pay unemployment benefits to unemployed persons who are attempting to create a new business. Currently, an unemployed person can only receive unemployment benefits if they are looking for a job. In this economy there are not enough jobs to go around, so if one commits to the conditions of the self-employment assistance program, then one can receive a self-employment assistance allowance while getting help starting a business. The benefits are charged to the Unemployment Trust Fund and not the former employer.
Status: House Passed, now onto the Senate

OPPOSE

Here are major bills the Chamber opposes, which are still alive.

HB2
A bill that increases fees, permits, taxes, etc. including:

• A reinstatement of the inheritance tax.
• A new capital gains tax.
• An increase in all tobacco taxes.
• An increase in the rooms and meals tax.
• An increase in environmental fees.
• Creates a gambling winnings tax.

HB 580
A bill that creates procedures for accessing health care information from the health care providers and also setting up an audit trail. If this legislation passes, New Hampshire will be the first state in the country to pass such stringent health care privacy legislation. It is interesting that this legislation runs counter to the stimulus plan promoted by President Obama and passed by the Congress, which gives financial incentives to institutions to create electronic medical records. New Hampshire health care providers across the state will have one eye blindfolded as they provide care.
Status: House Passed with Amendment, it now moves to the Senate

HB 613
A bill that establishes a committee to study the advantages and disadvantages of the acquisition of the remaining rail corridors by the state. The House believed this would be prudent in light of the fact that more rail transportation is in our future. Others, such as ourselves, believe the threat of “taking” by eminent domain would adversely impact ongoing rail negotiations for commuter rail.
Status: House Passed, bill now moves to the Senate

HB 686
A bill that allows the complainant (but not the employer) the right to remove a case for jury trial to superior court in a case before the state’s Human Rights Commission. Current law allows any party to request a case before the Human Rights Commission to be removed and sent to Superior Court for a jury trial. The logic in allowing either party to send a case to court was due to the fact that the Human Rights Commissioners, who decide the cases, are political appointees. Therefore, depending on what Governor is in power, the Commission can potentially be biased. Allowing either side to ask for a jury trial is only being fair, and this bill eliminates that.
Status: House Passed, bill now moves to the Senate

SB 40
This onerous bill requires advanced notice in plant closing and mass layoffs for all businesses, profit and non-profit, with 75 or more employees. The most egregious part of the legislation for every business entity is the language that allows the state of New Hampshire to pierce the corporate veil. No other state has such a punitive law. The Senate Commerce Committee passed SB 40 with an amendment that is equally as bad as the original bill. The amendment still lowers the threshold of companies held responsible under the federal WARN Act from 100 to 75 employees. This would result in a far larger group of New Hampshire’s businesses suddenly needing to comply with the New Hampshire state WARN Act. Compliance will require legal counsel as well as additional H.R. training, all of which cost extra dollars at a time when every dollar is critical to our businesses. The amended bill still pierces the corporate veil. Many New Hampshire businesses rely on board directors, capital investors, and banks, and all of them certainly rely on senior-level management. This amended bill would still create personal liability for managers, board directors, and capital investors whether or not they are part of the governing infrastructure.

SB 40 language will have a chilling effect on businesses willingness to bring their company into the state. Holding individuals liable within a state WARN legislation is unprecedented. This sends the wrong message to the business community during a time we need to focus on the business friendly nature that we should be striving to achieve. Every business in New Hampshire will have to disclose to anyone investing or managing a New Hampshire company or non-profit with over 75 employees that they may be personally liable for wages and benefits if the company violates the New Hampshire WARN Act. In addition, the amendment allows the state to put a lien on the companies assets if they violate the New Hampshire WARN Act. However, the amendment allows the employee wages and benefits to have a super priority in bankruptcy, even before the mortgage is settled. We believe this is a 1st in the nation in bankruptcy proceedings. This is a horrible piece of legislation for a supposedly business-friendly state.

Passed Senate Commerce Committee, Full Senate Vote to take place on 4/8/09

SUCCESS!

The Chamber successfully fought against the following bill.

SB 152
A bill proposing a 90-day suspension of a project to install new scrubber technology at the Merrimack Station located in Bow and operated by PSNH. The purpose of the suspension ostensibly is to study the benefits and costs of moving forward with the scrubber project. Opponents of the bill, including the Chamber, believe the real intent is to shut down the power station altogether.
Killed In Senate Energy Committee, Full Senate Vote to take place on 4/8/09

Acknowledgements

This weekly update is made possible by the generous support of Devine Millimet & Branch, one of the state’s top law firms and our Chamber’s contracted representative in Concord. If your business has a legislative or local issue that needs strategic consulting and attention, they are a valuable resource that can help navigate you through both local and state processes.

This weekly update is designed and maintained by our friends at ActiveEdge, and we thank them for their help in delivering this piece to your inbox every Friday!

If you have questions about this update, or comments to share with us about other issues in Concord, please email Chris Williams at cwilliams@nashuachamber.com. We want to be sure we're representing you to the best of our ability, so do not hesitate to reach out to us!

J. Christopher Williams
President & CEO
Greater Nashua Chamber of Commerce
151 Main St.
Nashua, NH 03060
Phone: 603.881.8333
Fax: 603.881.7323