Week Fourteen - April 24, 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

SB 205: The Chamber joined the retail merchants in opposing SB 205, legislation that increases the pecuniary loss thresholds for retail theft, trespassing, shop lifting, etc. Simply put, this bill changes the thresholds at which a theft changes from being classified as a misdemeanor to a felony. Currently, any stolen property in NH valued at $500 or more can be classified as a felony. This bill would raise that threshold, allowing any stolen property up to $1,750 to be classified as only a misdemeanor rather than as a felony.

Organized Retail Crime (ORC) in New Hampshire is on the rise. Retailers in our region are seeing significant increases in groups of criminals who are extremely well-versed in New Hampshire state law. These thieves try to keep the individual thefts to mere dollars below the felony level. They also work in teams so as to avoid the potential for being charged at the felony level for three or more thefts in a 72-hour period.

If we do not have the ability to charge higher level thefts as felonies, we are allowing more theft to take place and therefore severely impacting retail business in New Hampshire. We are also sending a message to thieves that they now may steal more goods without concern of a possible felony conviction.

As the financial limits for misdemeanors are increased, criminal enterprise will increase in New Hampshire, impacting retailers and law enforcement. A misdemeanor theft conviction is unlikely to result in jail time; therefore, thieves will be more likely to take the risk and steal. This is a dangerous road we cannot afford to go down. Persons who have no fear of accruing a misdemeanor conviction for theft will be thrilled that under this bill the limit of their ability to steal just increased $1,750.00. This is not the New Hampshire way.

More Labor Woes

HB 240: The Chamber, as well as many other business groups, opposed the Labor Departments amendment to HB 240 this week. We are back again to the issue of independent contractor vs. employee classification. The Department stated their reasoning for the language change is that they are having a problem enforcing the employee classification existing law. The existing law states that “if the Commissioner finds that the employer’s use of such written agreement was intended to misrepresent the relationship between the employer and the person providing services, the Commissioner may assess a civil penalty....” The Department is interpreting the current law regarding the penalties to only apply if there is a written agreement between employer and employee as to the employment classification. Oral agreements that misrepresent employee classifications cannot be fined according to the Department. They claim employers stopped putting agreements in writing since written agreements are enforceable but oral agreements are not. The amendment is applying penalties to non-written, as well as written agreements, but more importantly the amendment deletes the “intent” standard. Therefore, if the amendment passes, any mistake could now be penalized. The amendment would punish an honest mistake. The bad actors should be fined but not those who make honest mistakes.

SB 144, which allows the unemployment compensation trust fund to be charged for benefits to employees who voluntarily leave their employment, had a standing-room-only hearing. The reason for this was that an amendment was offered by the Department of Employment Security to add more circumstances by which one can receive unemployment benefits. The Department argues these conditions are necessary in statute in order for New Hampshire to receive $21 million of Federal stimulus money into our depleted Unemployment Compensation Trust Fund. The new circumstances are:

  • The employee can no longer perform the duties of their job due to illness, non-work related injury or pregnancy.
  • The employee left work in order to accompany their spouse to a new location where it is impractical for the employee to commute to their current job. The Department considers up to 50 miles a reasonable commute.
  • The employee left work due to an illness or disability of a member of the immediate family.

The Department testified that since this one-time Federal money, the Feds will allow New Hampshire to repeal these conditions for unemployment compensation after 2 years; however, they will not allow a sunset provision for the legislation. Odd, huh?

We certainly thought unemployment funds were to be provided when the employer terminated an employee. It now seems the pendulum has swung the other way in that it is the employees’ choice to voluntarily terminate and still collect benefits, due to these new conditions.

The second bullet item above is of particular interest; it actually says that an employee can collect benefits if he or she voluntarily leave a job to relocate with his or her spouse if that spouse got a new job somewhere that would make commuting for the employee unfeasible. In other words, a woman can get a job that requires her and her husband to move; the husband could then quit his job to move with his wife, but still collect unemployment benefits for doing so, despite the fact that he left his job voluntarily.

SB 170 also had a full room hearing before the House Labor Committee. This is the bill that gives unemployment benefits to unemployed persons who are attempting to establish a business. Senator Maggie Hassan, the prime sponsor, stated that historically, in times of recession, people who have lost their jobs have decided to open their own business. This bill sets up the structure where a person must meet certain criteria to qualify. Not more than 5% of total unemployment compensation recipients may participate in this program.

There is concern over the current decline in the state’s Unemployment Compensation Trust Fund. We believe a trigger of $225 million should be added to the legislation for this benefit to take effect. The Trust Fund probably won’t be up to $225 million again until 2014. Why expand benefits at the same time the business community is being asked to put more money into the Trust Fund as it will be near depletion by the end of the year?

Another Full House

SB 132, which is a bill the Senate amended to create a commission to develop implementation plans for merging state agencies, had a hearing before House Executive Departments and Administration and had to be moved to Representatives Hall. This is a record year for the number of hearings taking place in Reps Hall due to large turnout of people wishing to testify! The only public support for the bill was from the Governor’s Office and the Senate Majority Office. The Senate’s version of the bill called for implementing a plan for merging:

  • Department of Resource & Economic Development, except the parks and forest divisions, with the Department of Employment Security;
  • Department of Cultural Resources, Department of Agriculture, Markets and Food, the Department of Fish and Game, the Division of Parks and Recreation, and the Division of Forest and Lands;
  • All law enforcement functions under the Department of Safety.

Due to the huge outcry against “change,” Senator Hassan offered an amendment which would create a commission to “consider” mergers and “develop draft implementation plans for any such mergers.” All of this has to be done by November 1, 2009. There are many who do not think this legislation will pass the House. Interesting to see if the House of “change” (the House passed medical marijuana, same sex marriage, transgender equality) will change social policies but not “change” government.


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

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