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Legislative News

Legislative Affairs Committee

December 2009

To all NNEAPS Members,

Happy Holidays to all,

Well as the year comes to a close I have to report the last month has been nothing short of crazy! In New Hampshire, HB-662-Paid Sick Leave bill has successfully gone to interim study, it looks quite good that it will not come out for further activity, but we will keep you posted on any further resuscitation efforts. Below are two items, one from the Federal level with regard to extension of COBRA subsidy. The other for New Hampshire folks is the continuation of public hearings on the rules for HB-1 which has a significant impact on S-corps, Partnerships and LLC's.

I. Federal Legislative Updates: COBRA Extension

President Obama signed into law on 12/21/09 an extension of the COBRA premium subsidy. The new law, authorized under the 2010 Defenses Appropriations Act, now provides for an additional six (6) months of subsidy on top of the existing (9) months, for a total of fifteen (15) months of subsidized coverage (COBRA provides a total coverage period of 18 months). The new law also extends the eligibility date for the COBRA subsidy premium for an additional two(2) months beyond the prior deadline of December 31, 2009. As a result of this extension, employees involuntarily terminated prior to February 28, 2010 will be eligible for the COBRA subsidy and will be eligible for up to a total of fifteen(15) months of the COBRA subsidized from the date of termination/eligibility.

Additionally, the legislation provides to beneficiaries whose subsidy has already expired the ability to obtain retroactive subsidized coverage. Employers are required by the new legislation to notify current and future COBRA beneficiaries of the new fifteen (15) month subsidy period.

II. State of New Hampshire:

Two items, the first is a link to the upcoming public hearings on the rules for HB-1 from the Department of Revenue Administration. If you are an S-Corp, Partnership or LLC, it would be in your interest to attend one of these hearings and voice your concern over the pending "income tax" on your company. Lastly, I am facilitating an informational forum sponsored by the Exeter Area Chamber of Commerce for their membership on Tuesday 12/29/09 with regard to the upcoming public hearings in January. I will submit a report after this meeting on any new information and/or talking points that you may find useful for those upcoming public hearings.

1). NH- Public Hearings: http://www.nh.gov/revenue/laws/proposed.htm

2). Excerpts from Jim Roches's testimony on the NH DRA hearing on 12-16-09.

DECEMBER 22, 2009

Dear BIA member:

BIA President Jim Roche tesified at last week's NH Department of Revenue Administration hearing on the rules to extend the interest and dividends tax to distributions from LLCs and partnerships. In the interest of clarity, we are sending you the news release distributed last week with a link to Jim's testimony.

BIA: Process for I&D tax extension appalling way to craft public policy

State's leading broad-based business organization may seek repeal of law extending the interest and dividends tax to distributions from LLCs and partnerships.

CONCORD, N.H. - Dec. 16, 2009

- At today's NH Department of Revenue Administration hearing on the rules to extend the interest and dividends tax to distributions from LLCs and partnerships, Business and Industry Association President Jim Roche again criticized the Legislature for the manner in which it inserted legislative language representing a major change in tax policy into HB 2 last session. In the final hours of the budget process before the BIA and the broader business community, particularly small business owners, had a chance to review and comment on the tax proposal, legislators voted to extend the interest and dividends tax to distributions from LLCs and partnerships.

"This is an appalling way to craft public policy," said Roche in his statement before DRA Commissioner Kevin Clougherty and DRA staff. "The lack of input from the business community, especially small business owners who are most impacted by this law, tax practitioners and the general public is, in large measure, the reason why there continues to be so much confusion, angst, misinformation and misunderstanding over this matter."

Roche promised that, unless the rule-making process resolves the significant concerns of the business community, his organization would lead an effort next session to repeal the law. "The BIA never supported this tax law change, and we were one of the only business groups, and certainly the most vocal, to raise concerns at the time of its introduction."

In addition to Roche, Karl Heafield, managing principal for accounting firm Baker Newman Noyes and chair of the BIA's Fiscal Policy Committee, testified at the DRA hearing and provided specific suggestions to correct sections of the proposed rules that remain ambiguous and unclear.

Download Jim Roche's testimony

I wish you all a happy holiday and healthy New Year, stay tuned for more activity as I am sure there is more to come. If you have any questions or comments please feel free to call me or any other NNEAPS Legislative Affairs Committee members.

Steven G. Davis, Legislative Chair

NNEAPS

sdavis@staffingsense.com (603) 772-1700
NNEAPS Legislative Affairs Committee Members:
Paul Wilson - Wilson Employment             pwilson@wilsonemployment.com
Joe Wentworth - Wilson Employment        jwentworth@wilsonemployment.com
Christine St. Cyr - Central NH Employment Services      chris@cnhesinc.com Nicole Horan- Squires Staffing                 nicole@squiresstaffing.com

" In just the past few years my recruiters have made more placements because of the training they have received from speakers like Danny Cahill, Peter Lefkowitz and many others that NNEAPS have brought in to the membership."

Dave Gladieux

President

Gladieux & Associates