Week Thirteen - April 17, 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 - Just Another Week In Concord

To give you a flavor of what the Capital City is like these days, Wednesday began with competing rallies in front of the State House by opponents and advocates of the same-sex marriage bill, who then proceeded inside the State House to an overflow Representative’s Hall for a hearing on that bill. Those two groups then turned the State House plaza over to the tax tea party, a well-attended affair by advocates for less tax and less government. While the tea party was going on, a group of state employees picketed on the sidewalk in front of the State House for restoration of jobs and more benefits. After a full day of competing rallies and hearings, the Senate Finance Committee held a packed house hearing on the budget in Concord and then in Manchester the next night. Next week, things should not let up at all, with the seatbelt bill being heard on Monday morning to a full Representatives Hall and the “bathroom bill” receiving a hearing on Thursday. This is the backdrop to all of the business and budget measures that are being considered, and the level of unrest and dispute is reaching a point that has seldom been seen over the past few decades in Concord. Here is a look back at some of the bills the Chamber was following this week.

This Week's Trips by Chamber President to Concord

SB 204: Your Chamber President, Chris Williams, made a trip to Concord as did other Nashua folks, to support an amendment to SB 204 in support of local employer Skillsoft. Chris testified that in 2008 a law was passed that was intended to simply redefine which institutions and agencies in New Hampshire can be defined as postsecondary career schools. In practicality it has actually negatively impacted a number of small and large business operations across our state who are in the business of providing e-learning and performance enhancing solutions to corporations.

Skillsoft happens to be the largest example of a business operation inadvertently and significantly impacted. Skillsoft is one of Nashua's largest and best businesses, employing well over 200 people with solid, good-paying jobs that in turn support our regional economy.
Skillsoft is not a postsecondary career school; however, the broad swath painted by legislation last session has unintentionally placed Skillsoft into a disadvantageous new category that results in them paying ridiculously exorbitant fees to Concord.

Skillsoft, like many of our members, is simply too good and too profitable of a company within the State of New Hampshire. The Chamber cannot stand by and watch well-intentioned legislation have a negative impact on good companies in our region.

SB 40, the piercing the corporate veil legislation having to do with notification of mass layoffs, continues to be an issue. Chris worked with BAE Systems to convene a meeting including the BIA, the Manchester Chamber and a few others, with the Governor’s Staff this week to go over the remaining issues the business community has with SB 40. They include:

  • Definition of employer. The current language takes in all parent companies for liability exposure.
  • Lowering the threshold for compliance from 100 employees (Federal WARN) to 75 employees.
  • Severe penalties.

Moving Forward

SB 182: It looks as if SB 182, which creates a committee to study all state business tax credits, will move quickly through the House Ways and Means Committee. The message from the Senate was: before the state creates any more business incentives through tax credits, the state needs to access the current credits, see if they are even being used, analyze their effectiveness and the cost to the state verses the increased revenue to the state due to the business incentives. Among the credits to be reviewed will be:

  • CDFA (Community Development Finance Authority) credit
  • Economic Revitalization Zone Credit (CROP)
  • R&D Credit
  • NOL (Net Operating Loss) credit against BET/BPT
  • BET credit against BPT
  • BPT credit for insurance taxes

We can only hope this study will enlighten the legislature to the need for business incentives to retain and attract business.

Next Week

Coming up next week are a number of pieces of legislation the Chamber will be watching.

HB 240: The Labor Department strikes again. We guess they had so much success with SB 40 in the Senate, they decided to go for another roll of the dice. The Department has offered a non-germane amendment to HB 240 in the definition section of the employment laws dealing with prima facie evidence. The law states that the criteria have been met by a written agreement. The current language states that an employer can be fined if the written agreement “was intended to” misrepresent the relationship between the employer and employee. The amendment deletes the “was intended to” and adds language that says if the “Commissioner finds that the employer in any other way misrepresented the relationship...” a civil penalty may ensue. This looks like a revenue-raising amendment favoring the State to us. It also creates liability on the employer who uses independent contractors. We will testify in opposition to this amendment.

On the House Labor Committee we will pay particular attention to:

SB 89, which 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.

SB 144, which allows the Unemployment Trust Fund to pay for claims that may arise from an employee being voluntarily discharged, usually due to a medical condition. The legislation would have the unemployment benefits paid out of the Trust Fund, not directly by the employer.

SB 170, 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. 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.

These bills are moving forward at the same time the Governor is summonsing Chamber presidents to Concord to discuss the Unemployment Trust Fund. Stay tuned for the outcome of that conversation next week.

We will also watch the House Environment Committee as it tackles two retained bills.

SB 283, which creates a solid waste management fund and assesses a beverage container fee.

HB 675, which requires a refundable deposit on beverage containers.


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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