Committee Summary for House Finance Division II (03/25/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:12:28.160 - 9:12:49 AM	General Working Session	Unclear

Unclear: Representative Sweeney Information Only00:12:28.160 - 9:12:49 AM; Representative Sweeney discussed the potential revenue from video lottery terminals (VLTs) following the adoption of an amendment to the budget. He highlighted that the amendment legalizes VLTs and taxes them at 30%, with 65% of the revenue going to the state and 35% to charities. He provided projections for revenue from both historic horse racing (HHR) and VLTs, explaining that removing limits on games would increase revenue. He estimated that by fiscal year 2026, the state could see $102 million from gaming machines, with charities receiving $55 million. By fiscal year 2027, these figures would rise to $128.9 million for the state and nearly $70 million for charities. He also discussed the transition period from HHR to VLTs, expecting most large operators to switch within four to six months.
Unclear: Representative Papovich Information Only00:18:45.880 - 9:19:06 AM; Representative Papovich sought clarification on the daily revenue figures for HHR and VLTs. Representative Sweeney explained that under current law with wage limits, HHR machines generate about $200 daily, while VLTs would generate around $330 daily if legalized. Without limits, these figures would increase to $300 for HHR and $425 for VLTs, particularly in areas along the Massachusetts border.
Unclear: Representative Murray Information Only00:19:53.440 - 9:20:14 AM; Representative Murray questioned the numbers provided by Representative Sweeney, seeking clarification on the differences between the daily revenue figures for HHR and VLTs. Representative Sweeney explained that the projections included the impact of removing wage limits, which would lead to increased revenue.
Unclear: Representative Hack and Phillips Information Only00:25:58.919 - 9:26:19 AM; Representative Hack and Phillips inquired about Representative Sweeney's expertise in the gaming industry and the basis of his research. Representative Sweeney mentioned his research was based on reports from other states and gaming websites, and he disagreed with the tax rate proposed by the Lottery Commission. He argued that a 30% tax rate would better incentivize the transition from HHR to VLTs, leading to higher revenue for both the state and charities.
Unclear: Representative Dy Information Only00:24:59.559 - 9:25:20 AM; Representative Dy sought clarification on the VLT revenue figures, confirming that VLTs would be legalized starting July 1st, and thus, no VLT revenue would be included in the current fiscal year projections.
Unclear: Representative Landrian Information Only00:28:26.320 - 9:28:47 AM; Representative Landrian requested the charity revenue projections, which Representative Sweeney confirmed he had available and would share with the committee.
Unclear: Unnamed Speaker Information Only00:29:40.440 - 9:30:01 AM; An unnamed speaker discussed the economic analysis of the proposed tax rates, comparing the potential revenue for operators and the state under different scenarios. They argued that a higher tax rate would significantly increase state revenue while only slightly increasing operator revenue, suggesting it might be a better deal for the state.
Unclear: Unnamed Speaker Information Only00:31:39.399 - 9:32:00 AM; The speaker discussed the economic implications of adjusting the revenue share percentage from 45% to 30%. They argued that a 45% share would act as a significant disincentive for adoption, potentially leading to losses for all parties involved. In contrast, a 30% share could result in a win-win situation, with the state gaining $128 million more from a projected $675 million. The speaker offered to provide more detailed numbers to support their argument.
Unclear: Unnamed Speaker Information Only00:32:44.000 - 9:33:05 AM; The speaker introduced the discussion on the Sweeney Amendment, which had been adopted the previous day with modifications. The amendment directs lottery revenue to adequacy and adjusts the floor space requirement from 90% to 70%. The speaker clarified that the amendment is included in the packet for informational purposes and confirmed its prior approval.
Unclear: Unnamed Speaker Information Only00:33:40.279 - 9:34:01 AM; The speaker provided an overview of the current lottery revenue estimates, which were adopted by a resolution on the House floor. They noted that the Lottery Commission had updated these estimates, and the House Ways and Means Committee had somewhat agreed to the new figures. The speaker explained that the committee could decide on potential adjustments to these estimates, starting with the difference between the base revenues and the new estimates.
Unclear: Unnamed Speaker Information Only00:34:45.239 - 9:35:06 AM; The speaker discussed House Bill 2, Section 179, which increases the maximum ticket price from $30 to $50, a decision already voted on by the committee. They also introduced Amendment 1304, which would repeal the local option requirement for Kino games, potentially generating additional lottery profits. The speaker outlined four separate adjustments for consideration, which could be voted on individually or together.
Unclear: Representative Papich Information Only00:37:15.319 - 9:37:36 AM; Representative Papich sought clarification on whether the committee was voting on the projected impacts of policies already decided or on the underlying policies themselves. They expressed a preference for voting on the impacts, acknowledging that some decisions might not have unanimous support.
Unclear: Representative Murray Oppose00:39:26.800 - 9:39:47 AM; Representative Murray expressed opposition to Amendment 1304, which would remove the local option for Kino games. They highlighted the importance of local control, noting that communities like Portsmouth and Rye had opposed Kino and valued their ability to decide on its implementation. Murray argued that removing this control would force Kino on communities against their will.
Unclear: Representative Kelly Oppose00:41:38.480 - 9:41:59 AM; Representative Kelly opposed Amendment 1304, emphasizing the loss of local control over Kino games. They argued that this amendment would affect small towns by increasing services like police without their consent, and expressed strong disapproval of the policy change.
Unclear: Representative Bean Information Only00:42:50.119 - 9:43:11 AM; Representative Bean raised concerns about the process of passing Amendment 1304 without public input, noting that the policy was decided after significant public discussion. They highlighted the importance of public involvement in such decisions and expressed unease about the amendment being added to HB2 without further public discussion.
Unclear: Representative Murray Information Only00:44:59.880 - 9:45:20 AM; Representative Murray expressed confusion about the voting process for revenue estimates related to the VT HHR Amendment. They questioned the accuracy of the estimates and sought clarification on how the lottery revenue would be designated within the education trust fund, expressing discomfort with the proposed separation of lottery revenue for adequacy.
Unclear: Unnamed Speaker Information Only00:46:05.359 - 9:46:26 AM; The speaker explained that the committee's decisions on lottery revenue estimates are crucial because they affect the funding of the adequacy account within the education trust fund. They clarified that lottery revenue would no longer go into the education trust fund but would be directly used for adequacy, reducing the need for education trust fund money in that account.
Unclear: Representative Murray Information Only00:48:25.240 - 9:48:46 AM; Representative Murray expressed concerns about the separation of lottery revenue from the education trust fund, questioning the legality and implications of such a move. They sought clarification on how the education trust fund would be affected and expressed discomfort with the proposed changes, emphasizing the need for a clear understanding of the fund's components.
Unclear: Unnamed Speaker Information Only00:50:31.480 - 9:50:52 AM; The speaker clarified that the lottery revenue would be restricted within the education trust fund to be used only for adequacy, not as unrestricted revenue. They explained that this would not appear on the surplus statement because it is not unrestricted, and reassured that the education trust fund remains a dedicated fund for education.
Unclear: Representative Kelly Information Only01:01:51.160 - 10:02:12 AM; Representative Kelly read a warrant article from Bradford, New Hampshire, opposing the expansion of taxpayer-funded private education through vouchers. The article called for accountability, transparency, and a sustainable funding plan to prevent further strain on public schools and local property taxes.
Unclear: Representative Papovich Information Only01:28:18.159 - 10:28:39 AM; Representative Papovich clarified that EFAs (Education Freedom Accounts) are not vouchers, and emphasized that the program has numerous safeguards. He highlighted that the expenditure of funds in EFAs is more transparent compared to public school spending. He suggested that the same level of scrutiny applied to EFAs should be applied to the larger public education budget to understand where the funds are allocated, especially in areas like special education.
Unclear: Representative Maray Information Only01:30:20.480 - 10:30:41 AM; Representative Maray pointed out the lack of state assessments for students participating in EFAs, emphasizing that without these assessments, it's difficult to gauge student performance. He also mentioned a disagreement on terminology used in the discussion.
Unclear: Representative Ha Phillips Oppose01:31:28.280 - 10:31:49 AM; Representative Ha Phillips expressed concern over the financial estimates related to the adoption of HB 115 for the universal EFA program. He argued that the projected costs might be underestimating the actual uptake rate, referencing data from other states. He believes the estimates are too low and anticipates higher costs, which forms the basis of his objection to the current estimates.
Unclear: Unnamed Speaker Information Only01:33:39.320 - 10:34:00 AM; An unnamed speaker explained the source of the financial estimates used for the EFA program, referencing a document from the Josiah Bartlett Center. The estimates were based on analyses of take-up rates for different student groups and adjustments to the governor's budget figures. The speaker clarified the methodology used for calculating the estimates.
Unclear: Representative Papovich Information Only01:36:03.719 - 10:36:24 AM; Representative Papovich moved to adopt Amendment 1346H, which modifies the budget language concerning appropriations to USNH and CCSNH. The amendment removes references to the Education Trust Fund as the funding source for dual and concurrent enrollment programs, aligning it with the general fund usage decided by the committee.
Unclear: Unnamed Speaker Information Only01:37:47.599 - 10:38:08 AM; An unnamed speaker further explained Amendment 1346H, reiterating that it reverts the budget language to its previous state, excluding the Education Trust Fund references which were added by the governor's budget.
Unclear: Representative Papovich Information Only01:38:50.840 - 10:39:11 AM; Representative Papovich moved to adopt Amendment 1348H, which lists positions abolished from the budget in the Department of Education and Department of Safety, primarily related to the motor vehicle inspection repeal. He noted that this amendment compiles all actions previously taken by the division.
Unclear: Representative Ha Phillips Oppose01:38:50.840 - 10:39:11 AM; Representative Ha Phillips expressed reservations about Amendment 1348H, citing that some of the positions abolished were opposed by him and others in previous votes. He sees the amendment as a housekeeping measure but cannot support it due to the partisan nature of the original decisions.
Unclear: Unnamed Speaker Information Only01:40:09.760 - 10:40:30 AM; An unnamed speaker discussed the pending decision on Amendment 1341H, which deals with the split of business profits and enterprise taxes between the General Fund and the Education Trust Fund. The decision on this amendment was deferred.
Unclear: Unnamed Speaker Information Only01:41:19.960 - 10:41:40 AM; An unnamed speaker mentioned that the committee had already discussed and decided on amendments related to Keno and the Education Trust Fund sweep to the General Fund. The discussion on Amendment 1341H was postponed.
Unclear: Unnamed Speaker Information Only01:42:35.480 - 10:42:56 AM; An unnamed speaker moved to reconsider the adoption of Amendment 1189H, which had previously added HB29 (an evidence-based bill) into HB2. The motion to reconsider was unanimously approved, and a subsequent motion to withdraw Amendment 1189H from HB2 was also passed unanimously.
Unclear: Unnamed Speaker Information Only01:45:02.960 - 10:45:23 AM; An unnamed speaker moved to authorize the Office of Legislative Budget Assistant to make technical and mechanical changes to HB1 and HB2 to reflect the committee's approved recommendations. This motion was passed unanimously.
Unclear: Representative Murray Information Only01:45:58.599 - 10:46:19 AM; Representative Murray questioned the timing of the motion to authorize technical changes, noting that there were still outstanding items to be addressed. The chair confirmed that these items would be revisited before adjourning for the day.
Unclear: Unnamed Speaker Information Only01:47:05.560 - 10:47:26 AM; An unnamed speaker outlined the plan to reconvene on Friday at 1 PM to address the remaining items, including considerations for UNH and the distribution of taxes. The timing was adjusted to accommodate a medical appointment of a committee member.