Week Fifteen - April 18, 2008

The Advocate is a new electronic tool provided to our business members and regional state legislators.  This publication, sponsored by Devine Millimet & Branch and designed by ActiveEdge, is intended to keep you up to date with all the latest happenings in Concord concerning legislation impacting businesses.  We hope you enjoy this weekly electronic publication!

Prohibition of RFID Still a HUGE PROBLEM for Business

The Senate Commerce Committee barely had any standing room left at the public hearing for HB 686, the bill that regulates, and in many cases, prohibits the use of “remotely readable devices” in New Hampshire. Retail merchants, manufacturers, health care providers, pharmaceutical companies, financial services, the airport, municipalities, education representatives, cellular phone companies and, of course, the “privacy first” advocates, were all present for the nearly two hour debate on the use of “remotely readable devices.” Chamber President, Chris Williams was the last opponent to speak against HB 686. Chris was succinct in making sure Committee Chairman, Senator David Gottesman, knew how the passage of this legislation will affect all of the Greater Nashua region businesses, including our largest companies like BAE Systems, Nashua Corporation, Oracle and Kollsman. To our knowledge, this was the first time the new director of the Manchester/Boston airport, Mr. Mark Brewer, has spoken before the legislature. Mr. Brewer was significantly concerned about the security issues the state will face by prohibiting the use of these “remotely readable devices”, particularly at the airport. We can only imagine the reduction in use of the Manchester/Boston airport, were the public to learn how much less secure they would be flying out of Manchester versus other airports, thanks to our local privacy zealots. The Chamber currently has this bill as its highest priority because of the potential for adverse impact all our businesses.

Part-Time Workers Unemployment Compensation

This week the House passed SB 502, the expansion of unemployment benefits to part-time workers, by a comfortable margin. While it was slated to go through on the Consent Calendar, it was pulled off for a roll call vote. As we noted last week, the Senate deleted the most important section for business which would have allowed the Commissioner of Unemployment Compensation the discretion to request the continuation of the discount rate for businesses when the Unemployment Trust Fund dipped below the statutory threshold. The Commissioner needs this authority in order to relieve businesses from paying as much into the fund during times when the fund is enjoying good health. The House Labor Committee did not reinstate this provision. The Chamber will now push to get that provision reinstated when the bill goes to the House Finance Committee or attempt to amend another piece of legislation.

Senate Passes HB 185 (Economic Revitalization Zones)

The Chamber had a big victory yesterday as the Senate passed HB 185, revitalizing the CROP Zone law, a 5-year old Chamber initiative which had sunset last year. The amended bill restores language that will ensure that the newly-named “economic revitalization zone tax credit” (ERZ credit) will not be watered down by the process through which DRA applies the credits. The bill also provides that amounts carried forward under the ERZ credit are not to be counted against the annual $825,000 aggregate limit on the value of ERZ agreements entered into by the Commissioner of DRED. The Chamber has been a major proponent of these tax credits from the beginning, and we will continue to advocate for a strengthening of these types of tax credits, particularly in an economic downturn. A rising tide floats all boats!

Bariatric Surgery Mandate

Members of the House Commerce Committee heard testimony this week on HB 312, a bill that mandates insurance coverage for treatment of obesity and morbid obesity. While the testimony pretty much reflected that heard by the Senate Commerce Committee, the bariatric surgeon who had provided “hands on” testimony in support of the measure at the Senate hearing was unavailable because of surgical commitments elsewhere.

Unlike the Senate Commerce Committee, which had no previous exposure to bariatric surgery issues, the House Commerce Committee has had significant exposure to the issue through experience with a previous bill, HB 894. That bill, introduced last session and held over the summer was the subject of a number of subcommittee deliberations before it was sent off to interim study back in January. Given that circumstance, and a growing concern by some legislators that burdening the heath insurance market too aggressively this session may have implications for the economy and also for the upcoming elections, interested parties will be watching the House Commerce Committee’s disposition of SB 312. Despite the considerable uncertainty around the fortunes of the measure, it is notable to see that advertisements relating to bariatric surgical facilities are adding weight to various New Hampshire newspapers and periodicals. And yes, that pun was intended.

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