Committee Summary for House Ways and Means (04/29/2025)

Bill/Time	Type	Title	Sponsor
SB291 00:05:57.080 - 9:03:43 AM	Public Hearing	relative to the religious use of land property tax exemption.	Abbas, Daryl(R)[C+]2024
SB249 01:27:55.360 - 10:25:41 AM	Public Hearing	relative to the uncompensated care and Medicaid fund.	Birdsell, Regina(R)[C+]2024

SB291: Senator Tim Lang, District 2, Lakes Region and North Support00:05:57.080 - 9:03:43 AM; Senator Lang introduced Senate Bill 291, which aims to clarify the tax-exempt status of religious properties, particularly parsonages and parish houses. He explained that the bill was brought forward because some towns have been taxing these properties when used by non-pastoral staff, which was not the original intent. The bill seeks to allow churches to use these properties for their mission, such as housing part-time staff or running substance abuse programs, without losing their tax-exempt status. Lang emphasized that the bill does not intend to allow these properties to become commercial rental units but to support the church's mission. He also addressed questions about the bill's specifics, including the limitation to six units and the requirement that the property be on the same lot owned by the church.
SB291: Representative Almy Information Only00:09:50.320 - 9:07:36 AM; Representative Almy inquired about the tax implications for housing trusts compared to religious organizations under the bill. She expressed concern that housing trusts, which are not religious, are required to pay property taxes, and questioned if there would be a discrimination between religious and non-religious entities.
SB291: Representative Ulberger Information Only00:13:06.240 - 9:10:52 AM; Representative Ulberger sought clarification on who would live in the congregate housing units and for what religious purpose. Senator Lang responded by suggesting that these units could be used for substance abuse programs, which align with the church's mission of helping the sick.
SB291: Representative Opel Information Only00:15:52.880 - 9:13:38 AM; Representative Opel raised concerns about the potential for churches to rent out apartments for fundraising, which he felt might deviate from the bill's intent. He questioned the bill's language regarding the requirement for properties to be on the same lot as the church. Senator Lang clarified that the intent was to ensure that only properties owned by the church on that lot would be eligible for the exemption.
SB291: Representative Spar Information Only00:20:18.880 - 9:18:04 AM; Representative Spar questioned the limitation to six residential housing units and why it was not open-ended. Senator Lang explained that the limitation was to prevent churches from becoming commercial renters and to keep the use constrained.
SB291: Representative Bolton Information Only00:22:32.320 - 9:20:18 AM; Representative Bolton expressed concern about the potential increase in property values and taxes in towns like Plymouth due to the bill. He suggested there should be a funding mechanism to offset potential increases. Senator Lang clarified that the bill does not take properties off the tax rolls but aims to clarify the use of already exempt properties.
SB291: Representative Cole Information Only00:24:47.279 - 9:22:33 AM; Representative Cole asked about the origin of the number six for residential units and what would happen if a church had more. Senator Lang explained that the number was chosen to allow smaller churches to use their properties for programs like substance abuse recovery without causing zoning issues.
SB291: Representative Pearson, Hamstead Support00:30:01.600 - 9:27:47 AM; Representative Pearson, with 50 years of experience as a clergyman, supported the bill. He clarified that clergy members often receive a housing allowance, which is taxable, and explained that the bill does not take property off the local tax rolls. He emphasized that the bill allows churches to use their properties for their mission without losing tax-exempt status.
SB291: Nick Taylor, Director of Housing Action New Hampshire Support00:34:33.440 - 9:32:19 AM; Nick Taylor expressed support for the bill, highlighting its potential to increase housing affordability by utilizing existing religious land. He noted the bill's amendment to limit units to six and suggested it could go further to allow more affordable options. He clarified that the bill aims to help churches use their properties within their mission, potentially benefiting the community by providing more attainable housing options.
SB291: Nick Taylor, Director of Housing Action New Hampshire Support00:34:33.440 - 9:32:19 AM; Nick Taylor concluded his testimony by addressing a question about the potential for religious institutions to expand land usage for exempt housing. He clarified that the bill's intent is to use existing land and structures for modest expansion, not to allow widespread land acquisition for housing purposes. He emphasized that the housing is intended for people in need, such as those struggling with addiction, and not for commercial purposes.
SB291: Representative Bolton Information Only00:40:15.359 - 9:38:01 AM; Representative Bolton inquired about an existing situation in Rumney involving a Bible conference that uses its land for housing both conference attendees and others. He questioned whether this could be a model for what the bill proposes, indicating a need for further investigation into similar existing setups.
SB291: Representative Wars Information Only00:41:31.440 - 9:39:17 AM; Representative Wars discussed the intent of the bill, questioning whether it could lead to commercial use of the properties. Nick Taylor clarified that the housing would not be for commercial purposes like retail or office space but strictly for housing needs.
SB291: Representative Elberger Information Only00:43:32.400 - 9:41:18 AM; Representative Elberger asked if the bill's intent to provide housing for religious-related services might change Nick Taylor's support for it. Taylor affirmed his continued support, emphasizing the housing shortage and the need for such initiatives.
SB291: Representative Opel Information Only00:44:37.359 - 9:42:23 AM; Representative Opel clarified the scope of 'religious purposes' in the bill, citing a conversation with Senator Lang about the impermissibility of using the housing for market rate rentals to fund the church. This sparked a discussion on the need for clear definitions within the bill.
SB291: Brody Desain, New Hampshire Municipal Association Oppose00:46:37.680 - 9:44:23 AM; Brody Desain expressed concerns about the bill's implications on local tax revenue and zoning. He highlighted the bill's potential to exempt a wide range of properties from taxes, including those used for non-religious purposes, and criticized the lack of clear definitions, such as 'religious purposes'. He also noted the bill's zoning mandates and the potential impact on local zoning ordinances and site plan reviews, expressing opposition to the bill as currently written.
SB291: Danielle Pacik, City Solicitor of Concord Oppose01:04:06.160 - 10:01:52 AM; Danielle Pacik, representing the City of Concord, raised concerns about the bill's potential to remove taxable properties from the tax rolls, especially if used for secular purposes. She pointed out ambiguities in the bill's language regarding 'residential programs' and the lack of a five-year holding period for new constructions or purchases intended for housing church employees. She emphasized the need for clarity in defining 'religious purposes' and the potential legal challenges that could arise.
SB291: Ian Hewitt, Attorney for Cornerstone Support01:12:15.440 - 10:10:01 AM; Ian Hewitt supported the bill, arguing that it aligns with Governor Ayotte's housing plan to encourage churches to contribute to housing supply. He emphasized the need to remove obstacles that prevent churches from providing housing and community services, and criticized aggressive tax assessments that hinder churches. He proposed that a higher unit limit than six would allow more substantial contributions from churches to housing, and highlighted the community benefits that churches provide, which should not be compared to commercial landlords.
SB249: Regina Birdsell, State Senator for District 19 Support01:27:55.360 - 10:25:41 AM; Senator Birdsell introduced Senate Bill 249, the 'Met Dish Bill', explaining the Medicaid enhancement tax (MET) and disproportionate share hospital (DISH) payments. She detailed how MET and DISH work together, the history of the program, and the current situation following the 2018 settlement's expiration. She supports the bill, which aims to maintain the 91% payment level to hospitals.
SB249: Cindy Rosenwald, State Senator for District 13 Support01:34:03.280 - 10:31:49 AM; Senator Rosenwald supported SB249, emphasizing the importance of the 2019 settlement in maintaining payments to hospitals. She highlighted the distinction between critical access hospitals and others, and the need to ensure fair funding for hospitals.
SB249: Unidentified Speaker Information Only01:34:48.520 - 10:32:34 AM; The speaker discussed the previous settlement involving hospitals in New Hampshire, specifically mentioning Claremont and larger hospitals like CMC at St. Joe's, Southern New Hampshire Medical Center, and Dartmouth. The settlement ensured that critical access hospitals received 75% of their uncompensated care back, while larger hospitals under the prospective payment system received the balance of the 91%. After the agreement expired in June, Governor Sununu directed the Department to return 80% of the Medicaid revenues back to the hospitals. Additionally, the payment methodology was changed from disproportionate share to Medicaid directed payments, which would return money to hospitals based on the amount of Medicaid services delivered. This change also increased the federal funds match from 50% to about 65%, thereby reducing the need for general fund appropriations for Medicaid claims. The speaker also mentioned that hospitals were projected to pay $348 million in taxes, higher than the budgeted $337 million, but not all payments were collected by April 15th, leading to uncertainty about federal fund drawdowns in May due to ongoing lawsuits.
SB249: Unidentified Speaker Information Only01:37:52.159 - 10:35:38 AM; The speaker responded to a question about the classification of emergency services versus urgent care services in critical access hospitals. They explained that critical access hospitals are a federal designation limited to 25 beds and located at least 45 minutes from the next nearest hospital. Examples given included hospitals in Peterborough, New London, Claremont, and Lebanon. The speaker clarified that the type of care provided does not determine the hospital's classification but rather the hospital's designation affects how it is reimbursed by the federal government. They further discussed how uncompensated care payments help offset under-reimbursement by Medicaid, using the example of a Medicaid beneficiary receiving treatment for poison ivy at a hospital like St. Joe's, and how different federal match rates apply depending on the patient's category.
SB249: Dan McGuire, Epsom Oppose01:41:48.520 - 10:39:34 AM; Dan McGuire, representing the town of Epsom and speaking on behalf of the finance committee, opposes SB249. He believes the bill is a straightforward spending bill that would cost the state $19 million annually and should be killed (ITL) on consent. He argues that the bill, which would drain $38 million from the rainy day fund over the next biennium, is inappropriate as it is not included in the budget. McGuire suggests that if the Senate wants this bill to move forward, they should integrate it into House Bill Two and find matching funds elsewhere, such as increasing taxes or making cuts.
SB249: David Shny, Deputy Medicaid Director Information Only01:51:29.920 - 10:49:15 AM; David Shny, the state's deputy Medicaid director, provided information on SB249, focusing on the revenue projections included in the bill. He explained that the bill establishes a hospital payment pool based on the Medicaid Enhancement Tax (MET) revenue collected in the prior state fiscal year. He noted that the governor proposed increasing the pool from 80% to 87% for state fiscal year 25, with plans to reach 91% in subsequent years. Shny also discussed the potential impact of federal legislation on Medicaid funding and the flexibility provided by the bill's two-year duration. He emphasized the importance of leveraging federal funds to mitigate the impact on the state budget.
SB249: Rob Barry, General Counsel to the Division of Medicaid Information Only01:51:29.920 - 10:49:15 AM; Rob Barry, general counsel to the Division of Medicaid, accompanied David Shny to provide information on SB249. He discussed the potential impact of federal legislation on Medicaid funding and the flexibility provided by the bill's two-year duration. Barry emphasized the importance of leveraging federal funds to mitigate the impact on the state budget.
SB249: Steve Anon, President of New Hampshire Hospital Association, representing all 26 community hospitals and specialty hospitals Support02:01:45.280 - 10:59:31 AM; Steve Anon expressed appreciation for Senator Birdsell's introduction of Senate Bill 249 and the Senate's efforts to align the bill with historical trends at 91%. He described the Medicaid enhancement tax as a critical funding mechanism for New Hampshire's Medicaid program, where hospitals pay an assessment of 5.4% of net patient service revenue, which is then matched by federal dollars. Anon detailed that in 2025, hospitals expect to pay $348 million in Medicaid enhancement tax, which is more than doubled by federal matching to support Medicaid. He clarified that 91% of the tax paid by hospitals is returned to them based on various factors, with the remaining 9% and federal match supporting the state's Medicaid program. Anon highlighted the financial struggles of hospitals, the legal challenges faced due to the tax's constitutionality, and the need for a fair and reasonable solution that supports hospitals and ensures patient care access across the state. He emphasized that hospitals are willing to pay the tax as long as reimbursements are fair and reasonable, and they are looking to negotiate further to avoid significant financial losses.
SB249: Matthew Hood, Vice President of Government Relations for Dartmouth Health Support02:17:14.120 - 11:15:00 AM; Matthew Hood supported Senate Bill 249, viewing it as a step in the right direction, though he noted more work is needed to achieve a resolution. He explained Dartmouth Health's significant contribution to the Medicaid enhancement tax pool and emphasized the importance of the pool size and distribution methodology. Hood detailed the financial impact of the proposed 80% reimbursement rate, which would result in substantial losses for Dartmouth Health, potentially leading to service cuts and reduced community outreach. He discussed the challenges of uncompensated care and the need for a distribution methodology that reflects the care provided by each hospital. Hood mentioned Dartmouth Health's involvement in litigation challenging the tax's constitutionality and expressed hope for continued negotiations to resolve the issue without impacting the state's Medicaid program.

Janigian, John(Chairman)(R)[B+]2024	Ohm, Bill(Clerk)(R)[B]2018	Ulery, Jordan(V Chairman)(R)[A-]2024
Almy, Susan(D)[CT]2024	Oppel, Thomas(D)	Smith, Steven(R)[B+]2024
Malloy, Dennis(D)[CT]2024	Schamberg, Thomas(D)[CT]2024	Southworth, Thomas(D)[CT]2024
Tierney, James(R)[B-]2024	Cole, Brian(R)[B-]2024	Aures, Cyril(R)[A]2024
Bolton, Bill(D)[CT]2024	Elberger, Susan(D)[D-]2024	Smith, Geoffrey(D)[D-]2024
Soti, Julius(R)[A+]2024	Spahr, Terry(D)	Bryer, Scott(R)
Murphy, Mary(R)	Ford, Mary(R)