This Rollinsford cow from Brookford Farm is headed for milking, not slaughter. (photo by Hilary Niles)

The issue has emerged in the past few years as a number of smaller meat and poultry farms have sprouted up throughout the state. Later today, the Senate will likely pass House Bill 339, which would establish a meat inspection services administrator.

The hunt for local food

According to the U. S. Department of Agriculture, 23 states have given up their meat and poultry protection program in the past four decades — as New Hampshire did in 1978. A Nashua Telegraph story by David Brooks from last August focused on the challenges of a state having only one federally certified slaughterhouse with inspection capability.

State veterinarian Stephen Crawford, whose office would oversee the state inspection service, said in the story that “the increase in interest for locally raised meat and poultry has created an enormous opportunity for New Hampshire farmers. The most significant limitation to filling the demand for meat other than poultry is a distinct lack of access to local slaughter facilities.”

Making it pay (for itself)

Establishing the program is one thing, but providing enough funding to get a viable service up and running may be an issue. House Bill 339, sponsored by Rep. Laurie Harding (D-Lebanon) establishes a meat inspection fund. But, it only appropriates $1 through June 30, 2012. Supporters believe the program will become more than self-sustaining through fees, fines and other grants and donations. The cost for inspection services will start at $50 for a cow, $10 for a turkey or rabbit and $5 for a chicken.

House Bill 339 had bipartisan sponsorship and passed the House by a voice vote in March. The bill already made it through one round of Senate vetting before being resubmitted (as all spending bills do) to the Senate Finance Committee, which gave it a unanimous recommendation for passage.

>> Wednesday, May 4, full Senate session vote on HB 339 and more than 60 other bills and amendments. Senate Chambers at the State House, beginning at 10:00 a.m.

This Daily Briefing was written by Michael McCord.

3 sides of the nickel

Gov. John Lynch dismissed the last-minute tax cut proposal that was trumpeted by House leadership (see “Speaking of Gas Prices“). Lynch said he wouldn’t have to veto Senate Bill 78 because the Senate won’t pass this “political gimmick” that could chop an estimated $6.5 million out of the state’s Highway Fund, which is used for road and bridge construction and maintenance.

House Majority Leader Rep. D. J. Bettencourt (R-Salem) countered with enthusiasm, suggesting an economic development chain reaction would unfold if the measure passes. While New Hampshire already has the lowest gas tax and prices in the region, Bettencourt said, “Expanding this margin by another 5 cents would result in more out-of-state residents coming to New Hampshire to fill their gas tanks. While they are here, visitors will also take advantage of our low tax environment and purchase other goods, including cigarettes, liquor and lottery tickets. This will help to drive up state revenues, as will the business profits taxes of the local gas stations benefiting from the additional business.”

On the other hand, Senate Finance Chair Chuck Morse (R-Salem) told the Concord Monitor he wondered whether oil producers would benefit most from the gas tax reduction. The Senate also wasn’t ready to embrace the math attached to the House cigarette tax reduction bill (lower taxes = greater revenues) when it tabled House Bill 156 yesterday (see “The Price of Taxing Tobacco“).

Steps of the dance

While it may appear that the Senate is playing bad cop to the House’s good cop when it comes to tax cuts, this is a traditional legislative dance of differing assumptions and priorities. It can and does work both ways, as Sen. Lou D’Allensandro (D-Manchester) found out in 2010 when he managed to get an expanded gambling bill through the Senate — only to run into a wall of opposition and skepticism in the House.

The reality is that this stage of the game is nearly all political posturing. The tax cuts that have been passed by the House or tabled in both the House and Senate remain very much in play. It’s the final House-Senate conference committees, where the two chambers’ differences are worked out, that will reveal the Legislature’s final revenue priorities come June.

This Daily Briefing was written by Michael McCord.

If you’re in retail, we want to know: Do you see more business with lower taxes?

(Comments below, policy here.)

To prepare for the flurry of activity, today we begin a series of dispatches looking at some of the bills we’ve followed from early stages through public hearings and committee votes. We start with bills that are on the “consent,” or voice vote calendar.

This process bundles up scores of new pieces of legislation and lets lawmakers agree to the committee recommendations on each bill, all by voicing just one vote. The official name for killing a bill is voting it “Inexpedient to Legislate,” commonly shortened to ITL. Short for “Ought to Pass,” an OTP recommendation means the committee supports the bill in question.

To help you follow along, the committee names in bold are linked to previous Front Door Politics dispatches covering these bills.

Education

The committee gave a unanimous Inexpedient to Legislate (ITL) recommendation for House Bill 39, which targeted the state’s curriculum requirements for an adequate education.

Election Law

House Bill 223, which would eliminate election-day voter registration, received an ITL recommendation.

Executive Departments and Administration

Back in November, we highlighted the progress of a study committee looking into establishing a state meat inspection service. House Bill 339 would establish just such a service, and received a unanimous Ought to Pass (OTP) committee recommendation.

Health, Human Services and Elderly Affairs

Two pharmaceutical take-back bills are headed for passage after receiving unanimous OTP committee recommendations. House Bill 71 would allow communities and private entities to establish drug take-back programs, and House Bill 426 would allow for institutions such as nursing homes and correctional facilities to re-allocate unused drugs.

Municipal and County Government

House Bill 144, a proposal to repeal the PACE, or clean energy district legislation from last year, has been amended to changes some funding mechanisms in a way that satisfied committee concerns about the new program. The PACE changes are headed for passage after a unanimous OTP recommendation by the committee.

This Daily Dispatch was written by Michael McCord.

New Hampshire saw the question asked and answered Wednesday when two tax cut proposals were approved by the full House. In a rare parliamentary move, House Republican leaders then stopped, or “tabled” the bills, preventing them from moving to and being considered by the Senate, where they would receive a second round of public hearings, committee considerations, and floor votes.

Norma Love of the Associated Press reported that House Ways and Means Committee Chair Rep. Stephen Stepanek (R-Milford) urged the House to cut the rooms and meals tax (House Bill 166) and a telephone tax (House Bill 37), which combined would shave as much as $64 million from revenue estimates for the 2012-2013 biennium budget. But, after the bills passed by wide margins, Stepanek offered a motion to table the bills because, he said, “We do not have the necessary funds (now) to pass this tax reduction.”

Former House Speaker and Democratic House leader Terie Norelli (D-Portsmouth) said the parliamentary move was a “sleight of hand gimmick” that allows House Republicans to get the public relations benefit of tax cuts without having to deal with the revenue-draining consequences of their actions.

“We have been told they plan to do this with every tax cut bill,” Norelli tells Front Door Politics. “If you don’t have the money (for tax cuts), why bring it forward? What kind of public policy is this?” she asks.

Norelli says that during her four years as Speaker and more than 14 years in the House, she had never seen such a parliamentary “tabling” action for revenue or spending bills. She says bills that pass the House are rarely — if ever — tabled, the exception being new information or a study that could cause House members to reconsider their votes. Norelli expects the tax cut proposals will emerge later in the session during budget negotiations with the Senate. In her estimation, that would mean less transparency, public input and legislative debate.

Stepanek agrees that tax cuts could be revived later in the session during budget negotiations with the Senate — if there’s money to pay for them.

Some rank and file Republicans were not pleased with Wednesday’s tabling motion, and 31 voted against it. According to the Associated Press story, Rep. Tony Soltani (R-Epsom) said the tax cuts should have been moved to the Senate. “We give you a tax cut and take it away. Why can’t we be honest about it?” Soltani asked.

The House Republican Office did not return a call seeking comment and further clarification for this dispatch.

This Daily Dispatch was written by Michael McCord.

Democratic majorities in both the N.H. House and Senate have been replaced by Republican super-majorities, and the state’s budget crisis has deepened. The next two-year budget hasn’t even been crafted yet, and deficit estimates range from $400 million to the $1 billion figure claimed by Republican leaders.

Lynch told business leaders in Manchester last week that he will present a balanced budget, a “tough budget” without any new taxes or tax increases, according to the Union Leader. His budget proposal would also benefit the business community and keep education funding level.

When the current biennial budget (2010-2011) was written, Lynch and Democratic budget writers projected the state would bring in a little more than $4.5 billion in revenue. Republicans have already lowered that figure, projecting $4.4 billion in revenue over the next two years. It’s lower, in large part, because Republicans want to be asking for less.

In addition to bringing down the tobacco tax and rooms and meals tax, for example, the evolving Republican budget plan also targets recent tax and fee increases passed under Democratic control. They propose repealing the $30 car registration fee hike, eliminating the gambling winnings tax, and reducing fees for auto inspections, marriage licenses, vital records, builder applications, pet store licenses, and license renewals for restaurants and lodging facilities.

Republicans also challenge the very integrity of the process used by Democratic leaders when they crafted the current budget. “Revenue estimates contained within the Governor’s previous budget were artificially inflated,” said House Majority Leader D. J. Bettencourt (R-Salem).

It’s a charge the Lynch administration has disputed. In 2009, Lynch said projected revenues would remain flat — nearly the same as the previous biennium (2008-2009).

Lynch’s budget address from 2009 (which you can see here) also presented budget-cutting proposals that led to an estimated 300 state employees being laid off, and proposed closing one-quarter of the state’s district courts. That budget also suspended revenue sharing to cities and towns and cut the state’s contribution to public employee retirement plans to provide an additional $123 million in education adequacy aid for communities — and called for a one percent decrease in spending from the previous budget.

>> Tuesday, Feb. 15, Gov. John Lynch’s budget address to the Legislature, Representatives Hall at the State House, 10:00 a.m.

This Daily Dispatch was written by Michael McCord, with contributions from Hilary Niles.

In what is shaping up to be the busiest period yet for lawmakers this session, the House will meet twice next week to vote on dozens of bills — on Tuesday after Gov. John Lynch’s budget address to the Legislature and on Wednesday for its regularly scheduled session.

Two bills that we have reported on this session in Front Door Politics — one to cut state funding for public television and the other to cut the state’s rooms and meals tax rate – will have full House votes next week.

Defunding Public Television

House Bill 113, sponsored by Rep. Steve Vaillancourt (R-Manchester), would cut all state funding to New Hampshire Public Television — estimated at around $5 million for the next two years. The measure was recommended by the Finance Committee with a 19-6 vote in favor. Vaillancourt told the Portsmouth Herald last month that his proposal was “the easiest five million we can cut” from the budget.

The measure would prohibit the University System of New Hampshire, which oversees NHPTV, from using state money to fund the state’s only non-commercial television station.

“We are not just a television station,” testified New Hampshire Public Television president and CEO Peter Frid before the Finance Committee last month. “We are a multi-media, community-centered institution that offers online services, and maintains numerous partnerships with community, educational, state and municipal agencies to extend the value of the public’s investment.” Frid estimates that NHPTV serves more than one million viewers a month and that the loss of state revenue would impact as much as one-third of the station’s $8.5 million annual budget.

Reducing Rooms and Meals Tax

House Bill 166, which would reduce the rooms and meals tax from 9 to 8 percent, was recommended by the Ways and Means Committee by a 16-5, party line vote. The committee’s majority report by Rep. Laurie Sanborn (R-Loudon) said, “Reducing the tax is good for our economy, encourages people to spend money here, and helps our business community grow and create jobs.”

The Minority report by Rep. Christine Hamm (D-Hopkinton) said it was doubtful that consumers would be concerned by a 70 cents tax difference for a $70 hotel bill. “Since the commissioner of the Department of Resources and Economic Development confirmed that assumption when he testified there had been no impact on the state meals and rooms revenues that could be attributable to the rate’s increase in 2010, and since the state is in need of sustainable revenues, the minority considers a reduction of this rate to be unnecessary and inadvisable at this time,” Hamm wrote.

If enacted, the bill is estimated to cut state revenues between $16.3 million and $27.2 million.

Redefining Renewable Energy

House Bill 302 would change the state’s Renewable Portfolio Standards law and, among other impacts, add large hydropower plants to the list of what’s considered “renewable” (see earlier posts from Feb. 4 and Feb. 7). As expected, following the public hearing for HB 302 on Feb. 8, the Science, Energy and Technology Committee gave it a unanimous thumbs-down. The Inexpedient to Legislate recommendation has relegated the to be killed on the consent calendar next week.

>> The House and Senate will meet in joint session on Tuesday, February 15, at 10:00 am.

>> The House will meet immediately after the budget address until 3:00 p.m., and will reconvene on Wednesday, Feb. 16, at 10:00 a.m.

>> The Senate will meet in session on Wednesday, Feb. 16, at 1:00 p.m.

This Daily Dispatch was written by Michael McCord.

Here we highlight three proposals that were put on the regular calendar, which will likely be moved to next Wednesday. The Senate will hold its session tomorrow (Feb. 3) at noon.

Rx Drug Return

House Bill 71, which would allow for establishment of pharmaceutical drug take-back programs, was the subject of a Front Door Politics dispatch last month. The measure had strong bipartisan support and was recommended for passage by the House Health, Human Services & Elderly Affairs Committee with a unanimous 17-0 vote.

In the committee’s report to the full House, Rep. Evalyn Merrick (D-Lancaster) said the ability of New Hampshire communities and private entities to establish take-back programs for both uncontrolled and controlled drugs would build upon previous efforts with local law enforcement officials to remove “thousands of unused medications from homes and (the) streets of New Hampshire.”

Weeding Out Industrial Hemp

A Hopkinton lawmaker this year continues his quest to allow farmers to grow industrial hemp in New Hampshire. Rep. Derek Owen (D) has sponsored at least seven similar bills since 1998. This year’s measure, House Bill 101, would also set up a special state agricultural program to oversee the production. But there is a catch:

Federal law prohibits the growing of industrial hemp. Owen’s bill respects this by providing that the program would only be implemented once the federal government amends its laws.

By an 11-7 vote, the Environment and Agriculture sent the bill to the full House with an “Inexpedient to Legislate” recommendation, saying that if the federal law changes, then a New Hampshire law would be unnecessary. They also question the passage of creating a program to oversee the production, since costs are unknown at this time.

Critics of industrial hemp say it is closer to the drug marijuana than it is to a fiber. But advocates say there is a distinct difference in the chemical make up and the crop is grown and utilized in a wide range of products in Canada, China, Germany and a number of other countries.

Unrestricted Agents

By a 7-5 vote, the Executive Departments and Administration Committee recommended passage of a bill to repeal a 2007 law requiring sports agents to register with the state. House Bill 136 is sponsored by committee chair Carol McGuire (R-Epsom). In the majority report, Rep. Spec Bowers (R-Georges Mills) said only six agents have registered since the law was passed and there have been no enforcement actions.

“It is not needed because athletes, parents, and coaches are knowledgeable about the rules and are fully able to exercise individual responsibility,” Bowers said. “The statute is harmful in that it encourages reliance on the government to protect people from their own decisions.”

According the Secretary of State web site (the agency that oversees sports agent registrations), it costs $100 for a new sports agent application and $50 for renewal.

This Daily Dispatch was written by Michael McCord.

Shortly after the House and Senate go into session Wednesday morning, five House Committees will begin their work in the afternoon. At least, they’ll start getting organized for the work ahead.

From hemp and headwaters to judges and taxes, we’ll bring you the extra mile with this quick round-up:

Environment and Agriculture Committee

This 18-member group is chaired by Rep. Robert Haefner (R-Hudson). So far, four bills have been referred to the committee, including House Bill 101, which would establish an industrial hemp program fund.

>> 1 p.m., Legislative Office Building, Room 303

Judiciary Committee

This 18-member group is chaired by Rep. Robert Rowe (R-Amherst). Among the three bills referred so far to the committee, one Constitutional Amendment proposal (CACR2) would allow the Legislature to set the length of service terms for judges.

>> 1 p.m., LOB Room 208

Municipal and County Government Committee

This 17-member group is chaired by Rep. Beverly Ferrante (R-Derry). Among the 11 bills so far referred to the committee, House Bill 108 would authorize the town of Hampton to appoint a tree warden.

>> 1 p.m., LOB Room 301

Resources, Recreation and Development Committee

This 17-member group is chaired by Rep. Andrew Renzullo (R-Hudson). Nine bills have been referred to the committee so far, including House Bill 35, which would authorize the state to purchase five private dams in the Connecticut Lakes Headwaters Tract.

>> 1 p.m., LOB Room 305.

Ways and Means

Chaired by Rep. Stephen Stepanek (R-Milford). In addition to the organizational agenda, this 20-member group will learn about the revenue process from the Legislative Budget Assistant Office. Among the handful of bills that have been referred to the committee, House Bill 36 would reduce the fee for copies of birth certificates and House Bill 68 would establish a commission to study reducing the interest and dividends tax rate for residents over age 65.

>> 1:30 p.m., LOB Room 202

Did you know?

Due to a change in Internal Revenue service regulations, beginning this year lawmakers will get a one-cent-per-mile increase in their mileage reimbursement rate, from 50 cents per mile to 51 cents per mile.

This Daily Dispatch was written by Michael McCord.

The New England Cottontail Rabbit (Sylvilagus transitionalis) is one of New Hampshire's endangered species. Will Democrats be next? (photo credit Wikipedia)

Democratic Leaders

The shrunken Democratic caucus in the Legislature may require an endangered species designation, but on Friday and Saturday, they chose their leadership teams for the 2011-2012 legislative sessions. As expected, current Senate President Sylvia Larsen of Concord will become Senate minority leader on Dec. 1 when the next Legislature is sworn in. The other four returning Democratic senators also were given titles: Sen. Lou D’Allesandro of Manchester will serve as Deputy Democratic Leader while Molly Kelly of Keene will become Assistant Democratic Leader. Sen. Matthew Houde of Plainfield will be the Democratic whip and Sen. Amanda Merrill of Durham will be deputy whip.

On the House side, current House Speaker Terie Norelli of Portsmouth, who was reelected to an eighth term, will be House minority leader.

Keene has seven Democratic House members and the Keene Sentinel took a look at what the changeover to Republican control could mean for the city, the region and the influence of the lawmakers who went from majority to minority status.

Inspecting Proposition

We are keeping an eye on a recent House study committee recommendation to create a new, state-run meat inspection service. Since the 1970s, there has been only one federal meat inspection site in the state in Goffstown. In theory, the proposed addition to the state’s Department of Agriculture office would help New Hampshire farmers sell their meat on the commercial market. According to the legislative services office, the initial financial cost to the general fund budget would be around $80,000, which supporters say could be paid by fees.

Even if a measure is approved by lawmakers and some of the many questions regarding implementation are answered, farmers shouldn’t hold their breath. A pending re-write of federal rules to include state-sanctioned meat inspections could be 18 months or more the making.

Bottom (Tax) Line

The Commission to Study Business Taxes meets again on Thursday and will issue an interim report on Dec. 1 (see our earlier post on the commission here.) Shira Schoenberg of The Concord Monitor had an interesting Sunday story about the election of Republican business owners to the Senate and what they have in mind for the next legislative session. (The Commission to Study Business Taxes will meet at 1:30 p.m. at Room 100 in the State House on Nov. 18).

Political Cognitive Dissonance

current House Speaker Terie Norelli

We couldn’t help but notice the distinct post-electoral perspectives in a pair of dueling statements following Norelli’s election as House Minority leader:

State Republican Party Communications Director Ryan Williams said “Terie Norelli’s election as minority leader proves that Democrats will support the same failed leaders and reckless policies that have driven New Hampshire to the brink of fiscal ruin. Democrats learned nothing from last week’s election and will continue on the same path towards higher taxes and out of control spending.”

On the other hand, state Democratic Party Chair Ray Buckley said “During the past several years, Terie Norelli has shown extraordinary leadership and our Democratic caucus in the House is united in support of her. She has a proven ability to work across party lines to without compromising the fundamental Democratic values our party stands for.”

Are they talking about the same person?

This Daily Update was written by Michael McCord.

The current use property tax status was designed to promote the preservation of open space. It may not be a deal-breaker for campaigns, but you can bet it’s a deal maker for property owners. Current Use literally refers to how different properties are valued for tax purposes, depending on their current use as open space, wetland, or active farming or timbering land. Tax rates vary depending on what the land is capable of producing, whether it’s maintained as open space, and whether it’s open to the public for recreational uses such as hiking or hunting.

Enacted first in 1973, Current Use is considered by conservation organizations like SPACE to be the cornerstone of the state’s land conservation efforts. According to the N.H. Dept. of Revenue Administration’s Current Use study, 2.9 million acres are now in current use. That’s almost 51 percent of all the private property in the state, including parts of every city and town, owned by almost 40,000 people.

The current use tax incentive helps land owners agree to keep land undeveloped, and it makes enterprises like farming more financially viable. If the land were taxed on the value it could fetch in commercial real estate, the logic goes, more property owners would cash in.

At the September meeting of the Current Use board, the decision was made to keep farmland assessments at their current rates, which can be $25-$425 per acre. New Hampshire’s Commissioner of Agriculture, Lorraine Merrill, made the case that farms—especially dairy farms, which she said make up about one-third of the state’s agriculture—are losing money. Some fruit growers lost up to 100 percent of their crops with a late freeze last May, and all ten counties have been declared eligible for disaster assistance for weather-related disruptions three years in a row.

“Banks are keeping farms in business in the hope that that values will increase and properties can then be foreclosed on,” read the meeting’s minutes. For these reasons, she urged the board to maintain current levels of farmland assessment. All present agreed.

The 14-member Current Use board will hold the last of a series of ten public forums in Concord on Nov. 8, with a regular meeting to follow. There is no agenda available yet, but the board is expected to review findings from three earlier meetings in September and October that discussed 2011 current use rates, potential guideline changes and legislative initiatives.

One proposal so far is to allow former land assessing officials to be members of the Current Use board, in addition to the three practicing assessing officials who are required to be on the board.

>> Current Use Board will hold a public forum at the Department of Revenue Administration, 109 Pleasant St., Concord, on Monday, Nov. 8 at 9:30 a.m., with a regular meeting to follow at 1 p.m.

>> For a very detailed picture of current use, the booklet outlining the program through March 31, 2011 is available online.

This Daily Update was written by Michael McCord, with contributions from Hilary Niles.