Welcome to the Greater Nashua Chamber of Commerce

Week Five - February 13, 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

Yesterday, on the day of Abraham Lincoln’s 200th birthday, Governor John Lynch unveiled his budget for 2010-2011. Uncharacteristically, there were no standing ovations during the Governor’s budget address. Usually, legislators get their exercise for the day jumping to their feet to show rousing support of the Governor’s policies. Not so this time. Was that out of respect for the economic hard times and the dire cuts, or a lack of enthusiasm for what was being heard in the presentation? Time will tell.

What are folks talking about most?

The chatter in the hall by the Republicans was fairly positive. The Democratic chatter mainly had to do with the elimination of what is known as “bumping rights.”

Here are the highlights from our perspective:

The capital budget focuses only on critical maintenance projects (shovel ready).
275 - 300 state layoffs are expected in addition to the State hiring freeze continues.
The Governor's Wellness Plan that passed in the last biennium will be instituted for State Employees (the Chamber held a breakfast on this program this past fall).
State agencies are eliminating programs, changing some employees to 4-day work weeks, and closing some state offices and relocating them to Concord.
The Tobey School, 16 State liquor stores, 8 district courts, the Lakes Region Correctional facility, and the Concord liquor warehouse will all close.
The State will be leasing land next to the liquor stores (not sure for what purpose in this economy).
proposed $.35 increase in the tobacco tax.
proposed 3/4 percent increase in Rooms & Meals tax with the city and town portion staying with the State.
The medical malpractice fund is basically being depleted.
Part of I-95 is being sold to the turnpike system.
Toll fees will increase but E-Z Pass will be capped at $30 per month for commuters.
Vehicle registration fees will increase.

What is next?

A new health care provider payment system.
State departments merging.
Elimination of Boards & Commissions

All of this and more adds up to a $40 million (maybe) decrease in spending from FY 08/09 to FY 10/11. Is it enough? We say no. We think the deficit will continue to grow.

A sales tax or income tax are both off the table. Gambling - maybe? The Governor "remains skeptical" but he urged the legislature to give careful and deep thought to any such proposals..." So, is the Governor's door open? We say yes.

For the business community, the budget cuts and fee increases are not too onerous at the moment. However, the cost-shifting to the towns and counties is very concerning. It looks like approximately $83 million is being held back from the towns. Whether the federal stimulus package covers this loss to the communities, only time will tell. The devil will be in the details and the work done by the House and Senate Finance Committees.

Besides the Budget

HB 203, 50, and 572: Screening Panels

This was an extremely busy day in the House Judiciary Committee as they heard multiple bills on the medical screening panel process, an issue on our radar year ago. Newly elected Representative David Nixon, a trial lawyer from Manchester, is trying to change the screening statutes. HB 203 is attempting to make finding by a majority (not just unanimous findings) admissible. The medical community is opposing the bill.

Next, came HB 50 which actually repeals the medical injury screening panels. The sponsor, Representative Rowe of Amherst, believes that the screening panels that became law in 2005 add an unnecessary bureaucracy and slows the recovery process for plaintiff and defendant. Representative Rowe said he filed to lower medical malpractice costs, as the panel is not needed since mediation was added to the process and causes major delays. Again, the medical community opposes the bill. The first panel hearing was in 2007. There have been 46 hearings in the last year, and only 3 or 4 have gone to trial. More cases are being resolved in the 2 years of the existence of the law than the number of cases which go to trial. The screening panel has been somewhat instrumental in helping to keep physicians in the state. The Supreme Court malpractice filings are down in New Hampshire.

HB 572, another of Representative Nixon's bills, is trying to make pretrial screening panels optional for parties to a medical injury action. Years ago there was an optional panel but a report by the House Judiciary Committee later deemed it not beneficial.

Why is the Chamber interested in these bills? Anything we can do to help keep health costs down is only a win for business.

HB 197: Apportionment of Damages

HB 197, the 2009 version of SB 143, which the Governor vetoed in 2007, had a hearing in House Judiciary to a packed audience. Everyone opposes this bill except the trial lawyers. The bill will change the way damages are apportioned in a multi-party lawsuit. The Chamber is a member of a large group opposing the bill which includes:

This coalition will work as tirelessly this year to kill this onerous "deep pockets or last standing" legislation. The governor does not have to see this legislation on his desk again.

HB 675: Beverage Deposits

This seems to be the year of standing-room-only hearings. HB 675, which requires a refundable deposit on beverage containers, was heard by the House Environment Committee. Unlike many bills this year that have a bit of support and tons of opposition, the bottle bill has lots of advocates on both sides. The proponents believe adding a redemption deposit will increase state revenues by $10-$15 million. They believe adding redemption centers will add jobs in New Hampshire. Our bordering states have a refundable deposit.

The list of opponents includes all who use handle bottles; grocers, beer and wine manufacturers, etc. They argue there are no storage areas in stores now and therefore no place to put redeemed containers. If redemption centers are created, then the containers have to transported, jobs added which means increased costs to the consumer. Every place we look, the State is adding cost to business and the consumers.

Not only was the House Labor Committee packed this week, but the House Environment and Agriculture Committee was overflowing as HB 652 was heard. This bill is one more attempt by the Sierra Club to institute an extremely costly environmental impact process on all projects undertaken by a public agency; a private project with any public money; or, any project that is leased, permitted, licensed or certified by a public agency - in other words, almost all projects. One State Representative suggested if a project has to have a comprehensive environmental impact statement, it should also have a regulatory impact statement. The Departments of Environmental Services and Transportation opposed the bill, as well as your Chamber, Associated General Contractors and other business groups. This same idea has come up for the last four years, had an exhaustive study and no one can find a way to adopt an environmental policy statement for the State that does not have consequences. The current New Hampshire law and the National Environmental Policy Act are sufficient. With so many huge economic issues in the state, hopefully the House Environment Committee will not move this bill forward.

Cheers

Congratulations to our own Sy Malhfuz of Persian Rug Galleries for being selected the NH Retail Merchants Association “Retailer of the Year!!”

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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