2014 Efforts - New Hampshire Tech Alliance

A Bi-Weekly Update of Key Happenings at the State House –

By Suzan M. Lehmann, Esq.

May 5, 2014

Senate Bill 351 (Disclosure of Non-compete and Piracy Agreements): This bill passed the Senate in an amended form and the House followed suit by voting to pass this bill that requires employers to notify employees of non-compete agreements when making offers of new employment to prospective employees, and removes the requirement in existing law that non-compete agreements be provided to existing employees who are changing job classifications within the organization. The NH High Tech Council registered its support of the bill in the form it was originally introduced which would have entirely repealed existing law that imposes disclosure requirements on employers who use non-compete and anti-piracy agreements. The bill now goes to the Governor’s desk for approval. The bill takes effect upon passage.

House Bill 1416 (State Economic Development Plan): This bill is headed to the Governor’s desk for approval after now having passed both the Senate and the House. The bill requires the Division of Economic Development of the Department of Resources and Economic Development to develop a rolling 2-year state economic development plan, with the initial plan due by December 31, 2015. The bill takes effect upon passage.

Other News from Concord:
Senate Bill 366 and House Bill 1633 (Expanded Gaming): Last week, the New Hampshire House, by the narrowest of margins, voted to kill the gaming bill, Senate Bill 366, passed overwhelmingly by the Senate. The vote to kill the bill was 172-172, with the Chair forced to cast the deciding vote to break the tie. By one vote, the House voted to find the bill Inexpedient to Legislate. It is the closest that legalized gaming has ever come to passing the House. The Senate’s expanded gaming bill would allow for two casinos at least 30 miles apart: a casino with up to 3,500 slot machines and 160 table games and a second smaller casino with up to 1,500 slots and 80 table games. The Senate’s bill would also divert $25 million of annual profit to restore state revenue sharing grants to cities and towns and includes the House’s casino regulatory measures. Under House rules, gaming advocates could find a member who voted with the prevailing side to file for reconsideration. A reconsideration motion was filed and the matter is expected to be taken up on Wednesday.

House Bill 1403 (State Minimum Wage): Efforts to increase the state’s minimum wage were dealt a blow last week when the Senate Finance Committee voted to recommend the bill Inexpedient to Legislate. The bill would increase the state’s minimum wage from the current $7.25 an hour to $8.25 an hour on January 1, 2015, and then to $9.00 an hour on January 1, 2016. Under this measure, beginning in September 2016 and each September thereafter, the minimum wage would be subject to adjustment according to the Consumer Price Index. The bill now goes to the Senate floor for a vote.

Senate Bill 241 (Division of Economic Development Fund): This bill would establish a non-lapsing and continually appropriated economic development fund in the Department of Resources and Economic Development (DRED), and would authorize the state to accept grants, gifts and donations of any kind for the fund. According to the Commissioner of DRED, business leaders have expressed interest in donating to such a fund. The bill passed the Senate and the House Ways and Means Committee voted to recommend passage of the bill in an amended form. The bill now goes to the House floor for a vote.

Senate Bill 295 (Credit History in Employment Decisions): After passage in the Senate, this bill moved to the House and passed in an amended form that would prohibit employers from using credit history in employment decisions. If signed into law by the Governor, the law will take effect January 1, 2015.

House Bill 1168 (Eligibility to Work in United States): The Senate Commerce Committee voted to recommend passage of this bill, as amended by the committee, that would require employers to obtain and keep on file, documentation of an employee’s eligibility to work in the United States. The bill now goes to the Senate floor for a vote.

Senate Bill 367 (Fuel Tax): The House voted in favor of this bill to increase the state’s fuel tax by 4.2 cents. The tax increase would take effect July 1, 2014 and tax proceeds would be used to fund road and bridge improvements over the next two years and to pay off borrowing toward completing the widening of I-93. The tax would expire once the borrowing is paid off. The bill now goes to the Governor’s desk who has already stated her intention to sign the bill into law.

Senate Bill 399 (Public Contracting): This bill passed the Senate in an amended form that would establish standards for ethics in public contracting and a committee to study state government procurement. The House Executive Departments and Administration Committee killed the bill by voting it Inexpedient to Legislate.

April 14, 2014

Senate Bill 351 (Disclosure of Non-compete and Piracy Agreements): This bill passed the Senate in an amended form and now is under consideration by the House Labor Committee. The bill, as passed by the Senate would require employers to notify employees of non-compete agreements when making offers of new employment to prospective employees, and would remove the requirement in existing law that non-compete agreements be provided to existing employees who are changing job classifications within the organization. The NH High Tech Council registered its support of the bill as introduced that would have entirely repealed existing law that imposes disclosure requirements on employers who use non-compete and anti-piracy agreements. The House Labor Committee held a public hearing on 4/2/14 at 10:30 AM and an Executive Session is scheduled for 4/16/14.

House Bill 1416 (State Economic Development Plan): This bill is now under consideration by the Senate Executive Departments and Administration Committee after passing the House in an amended form. The bill would require the Division of Economic Development of the Department of Resources and Economic Development to develop a rolling 2-year state economic development plan, with the initial plan due by December 31, 2015.

Other News from Concord:
Governor’s Task Force on Science, Technology, Engineering and Math (STEM) Education: On April 9, 2014, Governor Maggie Hassan issued an Executive Order creating the Governor’s Task Force on Science, Technology, Engineering and Math (STEM) Education. The Task Force is aimed at bringing together stakeholders from the education and business communities to make recommendations for modernizing STEM education in the state. The Task Force is chaired by Dr. Ross Gittell, chancellor of the Community College System of New Hampshire, and includes Jeremy Hitchcock, CEO and Chairman of Dyn, Dean Kamen, President of DEKA Research & Development and Founder of FIRST, and other individuals from New Hampshire’s business and education communities.

House Bill 1403 (State Minimum Wage): Efforts to increase the state’s minimum wage continue at the statehouse with the passage of this bill in the House and the bill’s continuing consideration by the Senate Finance Committee. The bill would increase the state’s minimum wage from the current $7.25 an hour to $8.25 an hour on January 1, 2015, and then to $9.00 an hour on January 1, 2016. Under this measure, beginning in September 2016 and each September thereafter, the minimum wage would be subject to adjustment according to the Consumer Price Index.

House Bill 1415 (Robotics Funding in Department of Education): Now that this bill has passed the House, the Senate Finance Committee is considering this bill that would establish a robotics education fund in the Department of Education.

House Bill 1168 (Eligibility to Work in United States): The Senate Commerce Committee is considering this bill that would prohibit the employment of any employee without obtaining documentation of an employee’s eligibility to work in the United States and would impose civil penalties for violation of the law.

House Bill 1404 (Payroll Cards): The Senate Commerce Committee voted to refer this bill to interim study. The bill would have added additional requirements on employers’ use of payroll cards.

Senate Bill 366 and House Bill 1633 (Expanded Gaming): Efforts to expand gaming continue with a House Ways and Means Committee session scheduled for April 16, 2014 to consider the Senate’s expanded gaming bill, Senate Bill 366, and an executive session on the bill scheduled for April 17, 2014. The Senate’s expanded gaming bill would allow for two casinos at least 30 miles apart: a casino with up to 3,500 slot machines and 160 table games and a second smaller casino with up to 1,500 slots and 80 table games. The Senate’s bill would also divert $25 million of annual profit to restore state revenue sharing grants to cities and towns and includes the House’s casino regulatory measures.

Senate Bill 367 (Fuel Tax): A joint Public Works and Ways and Means Committee voted to recommend passage of this bill that would increase the state’s fuel tax by 4.2 cents. The tax increase would take effect July 1, 2014 and tax proceeds would be used to fund road and bridge improvements over the next two years and to pay off borrowing toward completing the widening of I-93. The tax would expire once the borrowing is paid off. The bill now goes to the full House for a vote.

Senate Bill 399 (Public Contracting): This bill passed the Senate in an amended form that would establish standards for ethics in public contracting and a committee to study state government procurement. The bill is now under consideration by the House Executive Departments and Administration Committee.

March 31, 2014

New Hampshire’s legislative calendar is chock-full of deadlines, and last Thursday marked a key deadline known as “Crossover Day,” the day bills must pass a chamber and “cross-over” to the other in order to remain active for the remainder of the 2014 legislative session. With “Crossover Day” now over, both chambers have begun work on bills in their court and have until May 15 to act on each other’s bills.

Below is an update of the status of some notable bills the NH High Tech Council has been tracking this session.

Senate Bill 351 (Disclosure of Noncompete and Piracy Agreements): The Senate passed this bill in an amended version that would require employers to notify employees of noncompete agreements when making offers of new employment to prospective employees, but would remove the requirement in existing law that noncompete agreements be provided to existing employees who are changing job classifications within the organization. The NH High Tech Council registered its support of the bill as introduced that would have entirely repealed existing law that imposes disclosure requirements on employers who use non-compete and anti-piracy agreements. The bill is now under consideration by the House Labor Committee and a public hearing is scheduled for April 2, 2014 at 10:30 AM at LOB 307.

House Bill 1416 (State Economic Development Plan): This bill passed the House in an amended form that would require the Division of Economic Development of the Department of Resources and Economic Development to develop a rolling 2-year state economic development plan, with the initial plan due by December 31, 2015. The bill is now under consideration by the Senate Executive Departments and Administration Committee.

House Bills 1239 and 1508 (Common Core): These bills were defeated in the House Education Committee. House Bill 1239 would have prohibited the implementation of any new Common Core standards until the Board of Education performed a fiscal analysis and held public hearings, and House Bill 1508 would have required the Board of Education to terminate implementation of Common Core standards.

House Bill 1475 (Research and Development Tax Credit): This bill was killed by the House when it tabled the bill in February. The bill would have repealed New Hampshire’s R & D tax credit and replaced it with a credit on reinvestment.

Other News from Concord:
House Bill 1403 (State Minimum Wage): The House passed this bill that would increase the state’s minimum wage from the current $7.25 an hour to $8.25 an hour on January 1, 2015, and then to $9.00 an hour on January 1, 2016. Under this measure, beginning in September 2016 and each September thereafter, the minimum wage would be subject to adjustment according to the Consumer Price Index. The bill has is now in the Senate for consideration.

House Bill 1415 (Robotics Funding in Department of Education): This bill passed the House and would establish a robotics education fund in the Department of Education. The Senate Finance Committee is now considering this bill and a public hearing is scheduled for April 15, 2014 at 1:30 PM at SH 103.

Senate Bill 241 (Division of Economic Development Fund): The Senate passed this bill that would establish a non-lapsing and continually appropriated economic development fund in the Department of Resources and Economic Development, and would authorize the state to accept grants, gifts and donations of any kind for the fund. The bill is now before the House Ways and Means Committee and scheduled for public hearing on April 2, 2014 at 10:15 AM at LOB 202.

House Bill 1168 (Eligibility to Work in United States): This bill passed the House in an amended form and would prohibit the employment of any employee without obtaining documentation of an employee’s eligibility to work in the United States and impose civil penalties for violation of the law. The bill is now before the Senate Commerce Committee.

House Bill 1404 (Payroll Cards): This bill passed the House in an amended form and would add requirements to employers’ use of payroll cards. The bill is under consideration by the Senate Commerce Committee.

Senate Bill 366 and House Bill 1633 (Expanded Gaming): The Senate passed its version of an expanded gaming bill, Senate Bill 366, by a vote of 15-9. The Senate’s bill would allow for two casinos at least 30 miles apart: a casino with up to 3,500 slot machines and 160 table games and a second smaller casino with up to 1,500 slots and 80 table games. The Senate’s bill would also divert $25 million of annual profit to restore state revenue sharing grants to cities and towns and includes the House’s casino regulatory measures. While the House voted 173-144 to kill its expanded gaming bill (House Bill 1633) that would have authorized a single high-end casino, efforts in the House to prevent further consideration of expanded gaming this session failed. The House will have another chance to approve expanded gaming with Senate Bill 366 now under consideration by the House Ways and Means Committee.

Senate Bill 367 (Fuel Tax): The Senate passed this bill that would temporarily increase the state’s fuel tax by 4.2 cents. The tax increase would take effect July 1, 2014 and tax proceeds would be used to fund road and bridge improvements over the next two years and to pay off borrowing toward completing the widening of I-93. The tax would expire once the borrowing is paid off. The bill has moved to the House where it is under consideration by Joint Committee – Public Works and Highways & Ways and Means. A public hearing is scheduled for April 8, 2014 at 10:00 AM at LOB 210-211 and a full committee work session is scheduled for April 9, 2014 at 10:00 AM at LOB 210-211.

March 10, 2014

House Bills 1239 and 1508 (Common Core): The House Education Committee voted 13-6 last week to kill these bills that would delay or terminate the implementation of Common Core educational standards. House Bill 1239 would prohibit the Board of Education from implementing any new Common Core standards until it performs a fiscal analysis and holds a public hearing in each executive council district. House Bill 1508 would require the Board of Education to terminate implementation of Common Core standards.

House Bill 1416 (State Economic Development Plan): The House Commerce Committee voted 18-0 last week to recommend passage of this bill in an amended form that would require the Division of Economic Development of the NH Department of Resources and Economic Development to develop a rolling 2-year state economic development strategy and operating plan and process, with the initial plan due by December 31, 2014.

Other News from Concord:
House Bill 1403 (State Minimum Wage): The House Labor Committee voted last week in favor of increasing the state minimum wage from the current $7.25 an hour to $8.25 an hour on January 1, 2015, and then to $9.00 an hour on January 1, 2016. The bill heads to the House floor for a vote on Wednesday, March 12, 2014.

House Bill 1415 (Robotics Funding in Department of Education): This bill would establish a robotics education fund in the department of education. It is currently in the House Education Committee and scheduled for executive session on Tuesday, March 18, 2014 at 10:30 AM in LOB 202.

House Bill 1633 (Expanded Gaming): The House Ways and Means Committee voted 11-9 to recommend killing this bill that would authorize a single high-end casino and generate about $80 million in license fees and up to $100 million a year in annual profit. The bill now heads to the House floor for a vote on Thursday, March 13, 2014.

Senate Bill 367 (Gas Tax): The Senate Ways and Means Committee voted 4-1 last week in favor of an estimated 4.2 cent gas tax increase in July 2014. The Senate is scheduled to vote on the bill on Thursday, March 13, 2014.

Senate Bill 413 (Access to Health Insurance Coverage): The Senate voted 18-5 last week to pass this bill that would expand health care coverage to an estimated 50,000 adults through funding available for Medicaid under the Affordable Care Act. The bill now heads to the House where it is expected to pass.

House Bill 1509 (Including Nonprofit Charities in BET): The House Ways and Means voted 12-8 to kill this bill that would include nonprofit charitable enterprises in the business enterprise tax and lowered the rate of the tax.

Senate Bills 208 and 420 (Taxes): The Senate Ways and Means Committee voted 5-0 to refer these bills to interim study. Senate Bill 208 would allow for deduction of foreign taxes paid from taxable dividends under the interest and dividends tax and Senate Bill 420 would reduce the rate of business profits tax and business enterprise tax.

February 24, 2014

Senate Bill 351 (Disclosure of Noncompete and Piracy Agreements): The Senate passed Senate Bill 351 in an amended form last Wednesday that would remove a requirement in existing law that employers notify employees of non-compete and anti-piracy agreements before promoting or transferring an employee. Under the amended version, employers would still be required to notify employees of noncompete requirements when making offers of new employment. The bill is headed over to the House for consideration by the House Labor Committee.

House Bills 1239 and 1508 (Common Core): The House Education Committee continued hearings scheduled for last Thursday on two bills that would delay or terminate the implementation of Common Core educational standards. House Bill 1239 would prohibit the Board of Education from implementing any new Common Core standards until it performs a fiscal analysis and holds a public hearing in each executive council district. House Bill 1508 would require the Board of Education to terminate implementation of Common Core standards. The two bills are scheduled for executive session in the House Education Committee on March 4, 2014 at 1:00 PM in LOB 207.

House Bill 1416 (State Economic Development Plan): This bi-partisan bill would require the Division of Economic Development of the NH Department of Resources and Economic Development to develop a rolling 2-year state economic development strategy and operating plan, with the initial plan due by December 31, 2014. The House Commerce and Consumer Affairs Committee held an executive session on the bill Thursday and continued the session to March 4, 2014 at 1:15 PM in LOB 302. A subcommittee work session is also scheduled for March 4, 2014 at 10:20 AM in LOB 302.

Other News from Concord:

House Bill 1191 (Manufacturing Education Study Commission): The House Education Committee voted to kill House Bill 1191 that would have established a manufacturing education study commission. The committee voted that the bill is Inexpedient to Legislate by a vote of 17-0.

Senate Bill 297 (Apportionment of Damage): The Senate Judiciary Committee voted last Thursday to refer Senate Bill 297 to Interim Study. This bill would only allow allocation of fault in civil damage suits to those defendants that are not immune from suit. Opponents have criticized the bill’s perceived unfairness in holding defendants with a small degree of fault liable for payment of a disproportionately larger share of damages. The committee’s recommendation to send the bill to Interim Study will go to the full Senate, and if approved, the concept will be studied by a legislative committee over the summer.

Senate Bill 413 (Access to Health Insurance Coverage): The Senate Health, Education and Human Services Committee held a lengthy hearing last Tuesday on Senate Bill 413 that would establish a health protection program to provide uninsured, low-income citizens with access to private insurance coverage. The bill results from a recent bi-partisan deal following a lengthy debate over the last year on Medicaid expansion in New Hampshire. Under this program, it is expected that an estimated 50,000 low-income individuals and families will be able purchase private insurance with federal funds allocated for expansion of health care coverage. The program would run until December 31, 2016 and a legislative reauthorization of the program would be needed for it to continue after that date. The bill is expected to go before the full Senate in early March.

February 10, 2014

Last week was a busy one at the State House that included the Governor’s State of the State address on Thursday. Below is an update on some of the key bills the NH High Tech Council is tracking and other news from Concord.

Senate Bill 351(Disclosure of Noncompete and Piracy Agreements): The NH High Tech Council has registered its support of Senate Bill 351, a bill that would repeal a law that imposes disclosure requirements on employers who use non-compete and anti-piracy agreements. Under current law, employers must disclose non-compete and non-piracy agreements to potential employees when making offers of new employment and to existing employees with an offer of change in job classification. A hearing was held before the Senate Commerce Committee on January 23, 2014. Supporters of the law’s repeal argued that it undermines New Hampshire’s ability to attract and retain jobs in technology and research and development. Supporters of the repeal also criticized the vagueness of key terms in the law that leaves employers uncertain as to how to comply with the law. The bill remains under consideration by the Senate Commerce Committee.

House Bill 1475 (Research and Development Tax Credit): The House tabled House Bill 1475 last week that would have repealed New Hampshire’s R & D tax credit and replaced it with a credit on reinvestment. This research and development tax credit against business taxes paid to the State of New Hampshire was enacted in 2007 with $1,000,000 designated for each of the next 5 fiscal years to fund the credit. In 2013, Senate Bill 1 was passed which doubled the award to $2,000,000 effective May 2013 and made the tax credit permanent. Tabling the bill means it is set aside and could be reconsidered, but it would require a majority vote of the House to be brought back for consideration.

House Bills 1239 and 1508 (Common Core): The House Education Committee heard testimony last Thursday on two bills that would delay or terminate the implementation of Common Core educational standards. House Bill 1230 would prohibit the Board of Education from implementing any new Common Core standards until it performs a fiscal analysis and holds a public hearing in each executive council district. House Bill 1508 would require the Board of Education to terminate implementation of Common Core standards. The bills are expected to be studied by subcommittees before a full vote by the House Education Committee is taken.

House Bill 1416 (State Economic Development Plan): This House bill would require the Division of Economic Development to develop a rolling 2-year state economic development strategy and operating plan, with the initial plan due by December 31, 2014. The bill has bi-partisan support and is under consideration by the House Commerce and Consumer Affairs Committee at this time.

Other News from Concord:
State of the State: Governor Maggie Hassan (D) delivered her first State of the State address last Thursday calling for a continued focus on bipartisanship, innovation and fiscal responsibility. The Governor’s speech included an emphasis on the need for a strong workforce and one that remains in New Hampshire. Notably, the Governor unveiled two new efforts intended to modernize science, technology, engineering and mathematics (STEM) education and to strengthen the state’s workforce pipeline:

— STEM Education Task Force: Governor Hassan announced her formation of a STEM Education Task Force, citing the need to build a workforce in New Hampshire that is prepared for high-tech jobs today and in the future and the need to provide an even more rigorous STEM education. The task force will be composed of diverse stakeholders who will make recommendations for modernizing STEM education in New Hampshire schools.

— Partnering of Manufacturing and Schools: Governor Hassan announced the creation of a new program led by Commissioner Jeff Rose of the Department of Resources and Economic Development that will partner manufacturing companies directly with classes at local schools with the goal of building relationships that can lead to a stronger workforce pipeline.

In other areas, the Governor voiced her support for restoring and increasing the minimum wage and emphasized the need to take on challenges confronting the state, including infrastructure, energy and health care. In her address, the Governor continued her push for legalizing casinos, and noted that the state stands to lose an estimated $75 million a year to Massachusetts if such legislation does not pass. The Senate has voted to table Senate Bill 366 which calls for the licensing of two casinos sharing 5,000 video slots and 24 table games, and hold onto the bill until the House acts on its own gaming bill. House Bill 1633 calls for only one casino and is the result of a gaming commission that was charged with developing regulations for a casino. The debate over Medicaid expansion reached a milestone last week with the announcement of a bi-partisan deal struck with state senators on a framework that would enable an estimated 50,000 low-income adults to purchase private insurance with $2.4 billion in federal funds available to expand health care coverage. Governor Hassan praised the bi-partisan compromise to accept the federal funds and to move forward with health care expansion.