Committee Summary for Senate Finance (04/01/2025)

Bill/Time	Type	Title	Sponsor
HB122 00:02:53.840 - 12:16:34 PM	Public Hearing	relative to payment of claims arising out of actions or activities of the New Hampshire national guard.	Creighton, James(R)[B+]2025
HB122 00:08:24.000 - 12:22:05 PM	Executive Session	relative to payment of claims arising out of actions or activities of the New Hampshire national guard.	Creighton, James(R)[B+]2025
HB739 00:12:41.160 - 12:26:22 PM	Public Hearing	(New Title) relative to excess funds paid to municipalities for use in school districts.	Spilsbury, Walter(R)[A-]2025

HB122: Jim Kraton, Representative for Hillsboro District 30, Antrim Support00:02:53.840 - 12:16:34 PM; Representative Jim Kraton introduced HB122, which was requested by the National Guard Bureau. The bill aims to increase the compensation limit for damages caused by National Guard troops or vehicles from $500 to $1,000 per incident. He explained that the current limit has not been updated in over 25 years and is insufficient for current costs. He emphasized the need for the bureau to be able to quickly compensate citizens for damages without lengthy processes.
HB122: Senator Information Only00:04:41.120 - 12:18:22 PM; A senator inquired about the funding source for the fiscal note, which was confirmed to be general funds. The senator also asked about the frequency of claims over $500, to which Representative Kraton responded that such claims are very few, under 100.
HB122: Kevin Grady, State Veterans Advisory Committee, Hooksett Support00:05:51.360 - 12:19:32 PM; Kevin Grady, representing the State Veterans Advisory Committee, expressed strong support for HB122. He highlighted that the bill also includes minor language updates, changing references from 'Department of the Adjutant General' to 'Department of Military Affairs and Veteran Services'. Grady humorously noted the outdated nature of the current statute, last updated in 1981, and stressed the bill's benefits for both the Guard and citizens by simplifying the compensation process for damages.
HB122: Senator Information Only00:07:14.240 - 12:20:55 PM; A senator confirmed that the bill was a request from Gerald Mikolis's office, and it had been supported in the House.
HB122: Committee Vote00:08:24.000 - 12:22:05 PM; The committee moved into executive session and voted to approve HB122 with a motion to pass 'Ought to Pass' (OTP). The motion was seconded and passed unanimously. The bill was also placed on the consent calendar, and the session concluded with a motion to return to regular session.
HB739: Unnamed Speaker Information Only00:12:41.160 - 12:26:22 PM; The speaker introduced HB739, which aims to restore language repealed in 2011. This would require communities collecting more in sweep tax than their adequacy aid to remit the excess to the Department of Revenue Administration (DRA) for deposit into the education trust fund. The fiscal impact of this change is estimated at $28.6 million, affecting around 30 communities.
HB739: Unnamed Speaker from Charles Town Support00:13:33.480 - 12:27:14 PM; The speaker supports HB739, emphasizing that it does not change the total state revenue but increases the cash on hand in the education trust fund by nearly $30 million. The amendment requested by the DRRA and DOE changes the implementation cycle to FY27, effective from July 1st, 2025, to avoid disrupting ongoing budget processes. The speaker represents Charles Town, which has the highest property tax rate in the state due to education funding costs. They acknowledge the constitutionality issues with the current SWEP tax system and support the bill as a direct solution to these issues, noting its bipartisan support in the committee and the House.
HB739: Dagel McCaffran, Mayor of Portsmouth Oppose00:17:07.359 - 12:30:48 PM; Mayor McCaffran opposes HB739, arguing that it would unfairly burden property-rich communities like Portsmouth. He explains that recent revaluations in Portsmouth shifted more tax burden onto residents due to slower commercial growth. He warns that the bill would increase local budgets and negatively impact housing development, as new tax revenues would be remitted to the state rather than staying local. He also criticizes the lack of consideration for different community choices in zoning and taxation, suggesting that the bill does not address the root issues of education funding and housing equitably.
HB739: Mark Dakota, Waterville Valley Town Manager and Chair of Education Coalition Communities 2.0 Oppose00:22:28.120 - 12:36:09 PM; Mark Dakota opposes HB739, stating that it would require Waterville Valley to send $54,200 of their SWEP dollars to the state, representing 70% of their current education funds. He argues that the bill would lead to increased property taxes in 55 donor communities, potentially forcing cuts in school and municipal budgets. Dakota criticizes the bill for creating an unfair redistribution of tax revenue, a policy previously repealed by the legislature. He urges rejection of the bill, emphasizing the need for a fair and comprehensive approach to education funding that does not disproportionately affect certain towns.
HB739: Jason Sorens from Amherst Oppose00:28:34.080 - 12:42:15 PM; Jason Sorens, from Amherst, opposes HB739 despite his town potentially benefiting from it. He expresses concern over the long-term negative economic consequences for the state, referencing his work at the American Institute for Economic Research and their support for the state in the Rand case appeal.
HB739: Unnamed Speaker Oppose00:29:14.000 - 12:42:55 PM; The speaker argued against the bill by discussing the implications of property tax recapture, suggesting that the use of mill rates to assess property tax burden is misleading. They pointed out that actual property taxes paid per household in towns like Hanover and Portsmouth are significantly higher than in towns like Pittsfield and Allenstown, despite the former being labeled as high-capacity towns. The speaker criticized the bill for potentially reducing property values in donor towns and discouraging development due to the redistribution of excess property tax funds to recipient towns, which could lead to growth control ordinances in these recipient towns. They also mentioned research by Federal Reserve economist Byron Lutz and their own findings on the effects of similar schemes in other metro areas, warning about the potential for increased land use regulation. The speaker concluded by suggesting that increasing the state adequacy grant multiplier for children with free and reduced lunch would be a better way to help poor people, rather than redistributing wealth in the manner proposed by the bill.
HB739: Paul Dashaine, Project Manager, Town of Newington Oppose00:37:02.560 - 12:50:43 PM; Paul Dashaine, representing the Town of Newington and the Newington Board of Selectmen, opposed the legislation. He highlighted that the bill would lead to a $724,000 increase in local property taxes for Newington due to the shift of cash, which he described as a mere transfer being held by towns for educational benefits. He emphasized the impact on small enrollment communities with high property tax bases like Newington, which would see increased local education property taxes to compensate for the funds taken by the state. Dashaine argued that the bill does not address the inequities in the education funding program effectively, as it only brings in $29 million into the education trust fund without redistributing it in a manner that addresses the allocations in place, labeling it as mutual misery in local property taxation.

Gray, James(Chairman)(R)[B-]2025	Innis, Daniel(V Chairman)(R)[B]2025	Carson, Sharon(R)[B]2025
Watters, David(D)[D-]2025	Birdsell, Regina(R)[B-]2025	Lang, Timothy(R)[B-]2025
Rosenwald, Cindy(D)[F]2025	Pearl, Howard (R)[B]2025