March 31, 2009

NEW FUTURES LEGISLATIVE AND BUDGET UPDATE

 
UPDATE 3/2/2009

NEW FUTURES LEGISLATIVE AND BUDGET UPDATE

The 2009 Legislative Session is in full swing. March will be a busy time as we approach the crossover of House and Senate bills and now is a good time to provide both a status report on critical bills and advance notice about possible advocacy opportunities that may present during the next six weeks.  Please note that we will use our normal Action Alert process to request your direct participation in the legislative process.  Please review the following Update and watch for upcoming Action Alerts.

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CURRENT CRITICAL LEGISLATION BEING FOLLOWED

1. Funding for the Alcohol Abuse Prevention and Treatment Fund (the “Alcohol Fund” or  “Fund”)

  • Background. In 2000 the legislature passed a law requiring that a small portion (5%) of the gross profits from the state sale of alcohol be deposited into the Alcohol Fund to provide funding to community – based prevention and treatment programs. 
    • The SFY (State Fiscal Year) 2009 budget funded the Alcohol Fund at $5.6 Million.  This appropriation was subsequently reduced by Executive Order to $4.078 Million.
    • Recognizing that in the current challenging economic and budget climate, any significant increase in the Alcohol Fund was unlikely; New Futures’ goal for the Fund in the SFY 2010/2011 budget was to provide funding consistent with the Governor’s budget instructions – which would have resulted in $4 Million in each year of the biennium.
  • Current Status
    • The Governor’s budget funded the Alcohol Fund at $2.833 Million in SFY 2010 and $2.8 Million in SFY 2011, which represents a 30% decrease from the amount actually received in the current fiscal year. This huge cut is particularly disturbing in light of the Governor’s clearly expressed goal of increasing revenue from expanded alcohol sales. Prevention and Treatment Programs funded through the Bureau of Drug and Alcohol Services have been informed that their contracts will be reduced, necessitating cuts in programs, services and staff.
    • Efforts to restore funding for the Alcohol Fund are proceeding on a number of legislative fronts:
      • Direct advocacy by our Partners and others to support increasing the appropriation for the Fund in the budget (HB1 and HB2).
      • Support for SB146 (see below).
      • Support for HB166 (see below).

 

  • Possible Advocacy Opportunities.
    • Participate in the House Finance Committee public hearings on the budget to be held on March 9 (Salem), March 12 (Claremont), March 16 (Whitefield).

www.gencourt.state.nh.us/house/committees/finance/Default.htm

  • In addition to the 3 House Finance Committee public hearings, Division III of House Finance (that subset of the full committee which oversees the DHHS portion of the budget) will hold a public hearing on Tuesday, March 17th from 4:00 PM – 6:00 PM in Rooms 210 and 211 of the Legislative Office Building in Concord.

 

2. Revising the formula for the Alcohol Fund (SB146)

  • Background. SB 146 was introduced at the request of New Futures as part of a strategy to restore the integrity of the Alcohol Fund and bring it in line with the Governor’s budget instructions by reducing the percentage of alcohol profits to be deposited in the Fund from 5% to 3.5%.The new percentage will provide at least $4 Million to the Alcohol Fund.
  • Status.  SB 146 is presently in the Senate Ways and Means Committee and will be acted on by the full Senate this month.
  • Possible Advocacy Opportunities. Advocacy with the Senate (Ways and Means and Finance Committees and the full Senate) in support of SB 146.

 

3. Increasing the Beer Tax (HB 166)

  • Background. With the exception of a temporary surcharge in 1990, the beer tax ($.30/gallon or $.028 per 12 ounce serving) has not been increased in 25 years.  The proposed $.10 per gallon increase would increase the cost of a 12 ounce beer by less than a penny and is estimated to raise and additional $3.8 Million to be dedicated to the Alcohol Fund.  A 2009 report on the economic and fiscal impact of increasing the beer tax demonstrates that increasing the tax will increase revenues but will have no measurable adverse impact on New Hampshire businesses or consumers. 
  • Status. HB 166 is assigned to the House Ways and Means Committee where it will have its public hearing on March 5th.  New Futures strongly supports HB 166 and is working with individuals and stakeholder groups to ensure that the committee receives all relevant information at the hearing. 
  • Possible Advocacy Opportunities. Advocacy with House (Ways and Means and Finance Committees and the full House) in support of HB 166 during March.

 

4. Reducing the Minimum Legal Drinking Age from 21 to 18 (HB 588).

  • Background. New Futures strongly opposes HB 588 because the research clearly indicates that reducing the MLDA will result in increased underage alcohol problems. 
  • Status. HB 588 had its public hearing in the House Local and Regulated Revenues Committee in January.  The committee unanimously voted (17 – 0) to kill the bill and to put it on the Consent Calendar for action by the full House at its session on March 4th
  • Possible Advocacy Opportunities. If HB 588 is removed from the Consent Calendar (which means that there could be floor debate on the bill on March 4th), we will likely reach out to our Partners for assistance. 

 

5. Licensure of Licensed Alcohol and Drug Counselors (HB 410)

  • Background. New Futures has worked with Department of Health & Human Services, provider groups, and other advocacy groups in support of HB 410, which builds on HB 1633 (2008) to address  critical access to treatment and workforce issues: the need to efficiently provide effective integrated treatment  to individuals who suffer from co-occurring mental illness and substance use disorders.  HB 410 would authorize appropriately qualified Master Licensed Alcohol and Drug Counselors (MLADCs) to provide such treatment to individuals with co-occurring mental health and substance use disorders. 
  • Status. HB 410 is assigned to the House Executive Departments and Administration (ED&A) Committee which will hold the public hearing on March 5th.  New Futures is working with individuals, providers and advocacy groups to ensure that the committee receives all relevant information at the hearing. 
  • Possible Advocacy Opportunities. Advocacy during March with the House ED&A Committee (Licensing Subcommittee and full Committee) in support of a committee recommendation to pass the bill and advocacy with the full House.

 

6. The Liquor Commission Modernization Act (SB 181)

  • Background. SB 181 is an omnibus bill (the bill that makes numerous, distinct changes to the liquor law) introduced at the request of the Liquor Commission to enable it to modernize and streamline its operations and increase its profitability.  It contains a number of provisions related to the organizational structure and operations of the Commission that are of no interest to New Futures.  However, we are paying careful attention to all provisions affecting advertising, the distribution of spirits and the Alcohol Fund. 
  • Status. SB 181 is assigned to the Senate Ways and Means Committee which held an initial public hearing on the bill on February 17th.  New Futures testified in opposition to a number of provisions and is currently reviewing a proposed amendment which will be discussed by the committee on March 2nd
  • Possible Advocacy Opportunities. Advocate with the Senate (Ways and Means and Finance Committees and the full Senate) during March.

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FOR MORE INFORMATION

Thank you for your commitment and efforts to reduce underage alcohol problems and to expand access to treatment for alcohol and substance abuse.  Please keep your eyes open for ACTION ALERTS and other New Futures’ communications and updates.  Do not hesitate to contact New Futures’ Policy Director, Tricia Lucas (tlucas@new-futures.org; 225–9540) or Linda King (lking@new-futures.org, 658-2770) if you have questions or need additional information.  NEVER FORGET - YOUR VOICE MATTERS.

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