2015 Legislative Report

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1 This year has been one of the most active sessions in AGC of NH history. We started the year with three priority issues: the workers compensation medical fee table, highway funding in the state budget, and school building aid. Back in January, we could never have predicted how these issues would pan out. Workers compensation was the number one business topic of this session. Some twenty associations united to advocate in favor of a medical fee table. According to New Hampshire Insurance Department data, workers compensation medical charges in the state are the highest in the region and among the highest in the country. Forty-six states have already implemented medical fee tables to control costs, and similar legislation is long overdue in New Hampshire. AGC and the business coalition made a great effort to work with the medical community to negotiate a reasonable system. While we expected the opposition from the medical community, we were taken off guard by the level of resistance within the legislature. Both the House and the Senate voted to retain their respective bills. AGC, along with other businesses, kept pushing the issue throughout the session. Representative Will Infantine proposed a formula that would set minimums and maximums, allowing more flexibility than the fee table. Despite being so late in the session, the new bill gained some momentum. The medical community pushed hard against this idea, and proposed alternative language that would allow negotiation in determining reasonable fees. Both bodies ultimately agreed on this resolution. Only time will tell if this solution will lower the exorbitant cost of workers compensation medical procedures in New Hampshire. Highway funding in the state budget was a long and tedious process for the association to follow. It started in February when the governor s budget had eliminated the increase and funding of the municipal bridge program, which was subsequently followed by the House cutting local municipal aid funding and reducing the betterment program. The Senate restored two out of three of these based on the new TIFIA Bond, which is expected to be finalized in September. This new bond raises an additional $16-$20 million per year to be available over the next 9 years, allowing the Department of Transportation s operations budget to be made whole in light of the projected budget shortfall predicted. It also allowed construction to see additional project funds starting in 2017 of approximately $9- $10 million a year for the next several years, making up for the loss of the municipal bridge funding. School building aid started the same as it has for a number of years, with legislation mandating that the school building aid program be reinstituted. This proposal would make approximately $8 million available for school building aid. Since the state matches municipalities with approximately 35% of the total cost, this would make the total construction projects around $24 million. This would be a good change after more than six years of not funding any school building projects. The House Education Committee supported the idea along with AGC, school administrators, and the school Board Associations. But as in the past, the Finance Committee refused to utilize that money for the intended purpose, since they ve been able to use the money to offset rising costs of other budget programs. It is apparent that school building aid is no longer a priority in the budget process since municipalities can proceed without the state funds. At the end of the session, the association was informed that a group would like to work on possible ways to implement a school building aid program in the future. AGC is open to discussing the matter and ensuring that there is a solid infrastructure for educating our children in New Hampshire. Outside of these top issues, the association experienced success, such as stopping bills that would have created new setbacks to wetlands, making sure that mold certification only applied to residential construction, opposing municipalities having the right to set their own minimum wage, and many others that you will see throughout this report. The association believes that if the workers compensation medical costs do not come down over the next year, the legislature will be taking another look at implementing a medical feet table. If you have any questions regarding any of the legislation the association worked on this year, please feel free to give us a call. Sincerely, Gary Abbott Executive Vice President July 6, 2015 p Legislative Report p 1

2 Workers Compensation Medical fee table for workers compensation (SB 3) This bill would implement a medical fee table for workers compensation that would set medical rates based on information from the Insurance Department s health care database, CHIS, as a means to lower medical costs for workers compensation claims in the state. Primary Sponsor: Senator Gary Daniels Workers compensation benefits and establishing payment schedules (HB 477) This bill would implement a medical fee table for workers compensation based on 150% of Medicare. This bill would also increase an employee s average weekly wage from 60% to 66 2/3% of an employee s average weekly wage. Primary Sponsor: Representative Jack Flanagan Worker s compensation reform (SB 133) This bill initially required the insurance commissioner to collect additional workers compensation claim data. The House amended the bill to change the current statute to allow healthcare providers and carriers to negotiate reasonable costs. If either party deems a cost unreasonable, it has the option to appeal to the Department of Labor. Primary Sponsor: Senator Jeb Bradley Continuing eligibility for workers compensation (SB 203) This bill allows the Commissioner of Labor to review eligibility for workers compensation no later than the fourth anniversary of the last date of medical treatment for an injury. The current law only allows continuation of medical benefits for four years after indemnity benefits stop. Primary Sponsor: Senator Donna Soucy Budget State Budget (HB 1 & HB 2) This bill makes appropriations for the expenses of certain departments of the state for fiscal years ending June 30, 2016 and June 30, The Governor vetoed the bill, but the House and Senate passed an extension of a past budget so that the state could continue operating for another 60 days. Primary Sponsor: Neil Kurk ed highway projects and school building aid Status: Vetoed by Governor Capital Budget (HB 25) This bill makes appropriations for all state agencies for capital improvements including construction projects. This year s appropriations also included software for upgrades to the DOT s oversized/overweight vehicle permit system. Primary Sponsor: Representative Gene Chandler permit system upgrades Current School Building Aid School building aid grant payments (HB 215) This bill proposed an amendment to increase school building aid grant payments. Under the proposal, the amount of school building aid will be no less than $50,000,000 per fiscal year beginning July 1, Current law requires a freeze on state aid for new school construction projects in effect until June 30, Primary Sponsor: Representative Rick Ladd 2 p Legislative Report p July 6, 2015

3 Disbursements of school building aid grant payments (HB 261) This bill would have allowed school building aid grant payments to be disbursed in installments over a period not to exceed 20 years if school building aid was reinstated. Primary Sponsor: Representative Michael Cahill Implementing the school building aid program (HB 549) This bill changes the amount of school building aid grants from a maximum of $50 million a year to a minimum of $50 million per year. The bill also amends the criteria used by the department of education to distribute school building aid grants. Primary Sponsor: John Mullen Allowing 3% of rooms and meals tax for school building aid (HB 576) This bill repeals the provision allowing operators to retain 3 percent of meals and rooms taxes collected. The bill continually appropriates 3 percent of meals and rooms tax revenues to the school building aid program. Primary Sponsor: Michael Cahill Right to Work/Employment Right to Work (SB 107) This bill prohibits collective bargaining agreements that require employees to join or contribute to a labor union. Primary Sponsor: Senator John Reagan Status: Senate laid on table; no further action was taken this session. The Franklin Partin Right to Work Act (HB 402) This bill prohibits collective bargaining agreements that require employees to join a labor union. Primary Sponsor: Representative William O Brien Union membership (HB 324) This bill permits union members to vote to decertify the union if membership falls below 50 percent. This bill also permits employers to require such a vote if the number of employees who pay union dues falls below 50 percent of the total number of employees. Primary Sponsor: Representative Joseph Pitre Prohibiting collective bargaining agreements that require employees to join a labor union (HB 658) This bill prohibits collective bargaining agreements that require employees to join a labor union. Primary Sponsor: Representative Alfred Baldasaro Status: Senate laid on table; no further action was taken this session. State minimum hourly rate (HB 163) This bill establishes a state minimum hourly rate at $16. Tipped employees who regularly receive more than $30 a month in tips directly from the customers will receive a base rate from the employer of not less than 45 percent of the applicable minimum wage. Primary Sponsor: Representative Timothy Robertson Enabling counties and municipalities to establish minimum wage rates (HB 370) This bill enables counties and municipalities to establish minimum wage rates for all individuals employed within such county or town. Primary Sponsor: Representative Timothy Robertson July 6, 2015 p Legislative Report p 3

4 Mandatory paid sick leave for employees (HB 600) This bill requires employers to provide paid sick leave for employees. The bill inserts a new chapter that offers definitions for terms such as employer, employee and family member. The chapter also covers protected rights and sick leave policies. Primary Sponsor: Representative Mary Gile Relative to third party review required by the planning board (SB 98) This bill allows an applicant to request that the planning board choose a different third party consultant. It would require the town to offer applicants three choices. The Senate committee removed the three choices and added language saying it can be contested. Primary Sponsor: Senator David Watters original bill Planning board review process (HB 368) This bill allows an applicant to select an engineer from a list of professional engineers approved by the planning board. Primary Sponsor: Representative Edward Butler Requiring employers to use the E-Verify system (HB 267) This bill requires employers to verify employees eligibility to work in the United States by using a status verification system called E-Verify. Primary Sponsor: Representative John Duarte Establishing a common definition of employee (HB 450) This bill establishes a commission to study and make recommendations for a common definition of employee for both the Departments of Labor and Employment Security. It was amended by the House to include a definition that was developed by the two agencies over the previous year. Primary Sponsor: Representative Keith Murphy Building State procurement of goods and services (SB 86) This bill specifies the information related to state procurement of goods and services that shall be available to the public. This bill also includes ethical guidelines for relationships between vendors and agency members. Primary Sponsor: Senator Sharon Carson Certification for mold assessment services (SB 125) This bill requires persons providing residential mold assessment services for mold contamination in residential dwellings be certified by certain professional organizations and requires the Board of Home Inspectors to inform the public that mold assessment professionals are required to be certified. Primary Sponsor: Senator Sam Cataldo Energy conservation in new building construction (HB 288) This bill permits municipalities to decide whether or not to enforce the code for energy conservation in new building construction. This bill also permits an individual to refuse to have the code for energy conservation in new building construction enforced against him or her. Primary Sponsor: Representative Warren Groen 4 p Legislative Report p July 6, 2015

5 Updating the New Hampshire Fire Code (HB 427) This bill updates the New Hampshire Fire Code by adopting the 2015 edition of the Life Safety Code and the Uniform Fire Code NFPA1. Primary Sponsor: Representative Rick Ladd Defining phased development (SB 143) This bill defines phased development for purposes of innovative land use controls, stating that construction of public or private improvements proceeds in stages on a schedule over a period of years approved by the planning board. In a phased development, the issuance of building permits in each phase is solely dependent on the completion of the prior phase and satisfaction of other conditions on the schedule approved by the planning board. Primary Sponsor: Senator David Boutin Energy efficiency implementation plan (HB 238) This bill requires the office of energy and planning to include consideration of certain factors when developing the energy efficiency implementation plan. The factors include possible sources of funding including loan guarantees, possible impacts on the economy, the need for stability of state energy efficiency policy over time in order to achieve the objectives of the plan, the rate at which a competent cadre of workers can be trained, ways to obtain public awareness and support, and optimal organizational options for achieving energy efficiency goals. Primary Sponsor: Representative John Mann Restrictions for building inspector review deeds (HB 286) This bill enables a municipality to authorize the building inspector to require compliance with applicable deed restrictions or covenants as a condition to the issuance of a building permit. The House committee amended the bill, making it optional for communities. Primary Sponsor: Representative David Bickford Expanding the definition of impact fees (HB 546) This bill authorizes the assessment of exactions for improvements according to a fee schedule under the innovative land use controls law and authorizes a municipality to establish an advisory committee for such purposes. Alternately, a municipality which collects exactions according to a fee schedule, reviewed by an advisory committee, used to maintain levels of service, and updated annually, may also assess fees for paved and improved pedestrian paths; traffic calming and pedestrian safety measures; and firefighting vehicles or equipment; and to recoup the development s proportional share of the capital facilities owned or operated by the town, school district, or capital facilities of a cooperative or regional school district or mutual aid district of which the municipality is a member. Primary Sponsor: Representative Max Adramson Funding for state energy efficiency programs (HB 615) This bill extends the dates for agencies to file certain reports concerning energy consumption; deletes a reference to a committee that is no longer in existence; changes the name of the energy efficiency fund; requires certain cost savings to revert to the energy fund; and authorizes the department of administrative services, division of public works design and construction, to oversee construction of state projects. Primary Sponsor: Representative Robert Backus July 6, 2015 p Legislative Report p 5

6 Highway Dedicating funds (CACR 2) This constitutional amendment concurrent resolution (CACR) provides that revenue from fees and assessments shall be used only for the special program for which such fees or assessments were imposed. Primary Sponsor: Representative Steven Smith Disposition of dedicated funds (SB 13) This bill requires 2/3 approval of the general court to expend or transfer funds from a dedicated account in a manner contrary to its statutory purpose. Primary Sponsor: Senator Chuck Morse Limiting the capabilities of wireless communication devices in motor vehicles (HB 103) In addition to limiting texting and in vehicles, this bill would require GPS to be disabled as well. Primary Sponsor: Representative James Belanger Establishing a committee to study the use of law enforcement details and flaggers for traffic control on municipally maintained road (SB 234) This bill establishes a study committee to study the use of law enforcement details and flaggers for traffic control on municipally maintained road, as well as the installation and maintenance of utility- or non-utility-owned equipment, and whether DOT standards should be used. Primary Sponsor: Senator Jeb Bradley Gas tax repeal (HB 591) This bill repeals the 4 cent gas tax that was raised last year. Primary Sponsor: Representative James Spillane Reports on gross appropriations from the highway fund in the tentative state budget and defining autocycle and making provisions for the operation and inspection of autocycles (HB 115) This bill adds the House Public Works and Highways Committee and the Senate Transportation Committee to the recipients of reports on gross appropriations from the highway fund in the tentative state budget. Primary Sponsor: Representative Herbert Richardson Environment Conservation commissions (SB 83) This bill prohibits members of municipal conservation commissions from serving as agents of the municipality when gathering information about a property not acquired by the conservation commission. Primary Sponsor: Senator Gary Daniels Town clerk fees for fill and dredge permit applications (HB 278) This bill authorizes an applicant fee of no more than $10 for sending copies of fill and dredge permits to certain boards. Primary Sponsor: Representative Daniel Davidson Defining exotic aquatic wildlife weeds (HB 281) This bill establishes a committee to study exotic aquatic species. Primary Sponsor: Representative Suzanne Gottling 6 p Legislative Report p July 6, 2015

7 Requiring state buffers near wetlands (HB 349) This bill requires the Department of Environmental Services to consider impacts to wetland buffers before granting permits for filling and dredging in wetlands. Primary Sponsor: Representative Judith Sprang Status: House laid on table; no further action was taken this session. Miscellaneous Taxation (CACR 1) This constitutional amendment concurrent resolution (CACR) provides that a 3/5 vote is required to pass legislation imposing new or increased taxes or license fees, or to authorize the issuance of state bonds and providing that the general court shall appropriate funds for payment of interest and installments of principal of all state bonds. Primary Sponsor: Representative Jordan Ulery Historic burial grounds and cemeteries (SB 20) Establishing a commission to study moving historic burial grounds and cemeteries. Primary Sponsor: Senator David Watters Expanding the Good Samaritan law to engineers and architects (HB 292) This bill grants civil immunity to licensed engineers and architects rendering assistance in an emergency in the absence of gross negligence or willful misconduct. Primary Sponsor: Representative Gene Chandler Legislative review of any agency s proposed rules (HB 434) This bill allows a standing committee of the general court to review any proposed administrative rule of an agency. An objection by the standing committee may be a basis for final objection of a proposed agency rule. Primary Sponsor: Representative Daniel Itse Establishing a committee to study the funding of state infrastructure projects (HB 511) This bill establishes a committee to study the funding of DES state aid grants under RSA 486, RSA 486-A, and RSA 149-M. Primary Sponsor: Representative Adam Schroadter Increasing the research and development tax credit against the business profits tax (SB 6) This bill increases the research and development tax credit against the business profits tax from $2 million to $7 million. Primary Sponsor: Senator Jeb Bradley Status: The Senate laid on table; no further action was taken this session. Tax exemptions for commercial and industrial construction (HB 359) This bill allows municipalities in Carroll County to offer property tax exemptions to foster commercial and industrial construction. Primary Sponsor: Representative Frank McCarthy July 6, 2015 p Legislative Report p 7

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