Daily Legislative Update

Thursday, February 26, 2009
46thDay of the 87th General Assembly

*   *   *   CALL TO ACTION   *   *   *

MANUFACTURERS SALES TAX EXEMPTION FOR UTILITY USAGE

PLEASE CONTACT YOUR STATE LEGISLATORS AND ENCOURAGE THEM TO SUPPORT A REDUCTION IN THE SALES TAXES PAID BY MANUFACTURERS ON THEIR ENERGY COSTS.

 

HB 1624 by Rep. David Dunn was filed yesterday. It would provide a complete sales tax exemption for a wide range of fuels used by a very broad range of manufacturers.

 

 

TODAY AT THE CAPITOL

House convenes at 1:30 p.m.

Senate convenes at 11:00 a.m.

 

Committee Meetings:

JOINT

8:00 AM

Room 151

JBC-PERSONNEL

Agenda

 

9:00 AM

Room 171

JOINT BUDGET COMMITTEE

Agenda

 

 

HOUSE

10:00 AM

Room 130

PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE- HOUSE

Agenda

 

10:00 AM

Room 138

EDUCATION COMMITTEE- HOUSE

Agenda

 

10:00 AM

Room 428

PUBLIC TRANSPORTATION- HOUSE

Agenda

 

10:00 AM

Room 151

REVENUE & TAXATION- HOUSE

Agenda

 

10:00 AM

Room 149

JUDICIARY COMMITTEE- HOUSE

Agenda

 

 

SENATE

10:00 AM

ROOM 272

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE

Agenda

 

10:00 AM

OSC

STATE AGENCIES & GOVT'L AFFAIRS-SENATE

Agenda

 

10:00 AM

ROOM 309

AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT - SENATE

Agenda

 

10:00 AM

Room 171

INSURANCE & COMMERCE - SENATE

Agenda

 

 

ISSUES

PHARMACY BENEFIT MANAGEMENT (PBM)

SB 460 by Sen. Percy Malone and HB 1601 by Rep. Allen Maxwell are identical bills that require entities that are managers of pharmacy benefits plans for insurers, employers and certain other health care entities or health plans to itemize individual claims, disclosing the amount paid to a pharmacist, the identity of the pharmacist and the prescription number when the PBM seeks reimbursement or payment for services provided by the pharmacists. It also provides that a violation constitutes a deceptive and unconscionable trade practice under the Deceptive Trade Practices Act. Both bills were amended yesterday to add a sponsor and clarify language. SB 460 is expected to be heard this morning in the Senate Insurance and Commerce Committee.

 

WORKERS’ COMPENSATION

HB 1362, the agreed workers’ compensation bill between the State Chamber/AIA and the AFL-CIO, is on the Senate Insurance and Commerce Committee agenda. However, it will not be heard if the committee’s consideration of SB 460 takes up most of the committee’s time.

 

FOOD TAX

SB 88 by Sen. Bobby Glover would reduce the sales tax on food and food ingredients by 1 percent. This is a priority item for Governor Beebe. The bill remains on the House Revenue and Taxation Committee agenda. 

 

 

STATE CHAMBER/AIA BILL TRACKING 

To date, the House has filed 640 bills and the Senate has filed 535 bills.

The State Chamber/AIA is tracking 259 bills and resolutions. 

 

The deadline for appropriations bills is Monday, March 2 and the deadline for regular bill filings is Monday, March 9.

 

New bills added to the State Chamber/AIA tracking today:

 

 

HB 1614  

Martin

Creates a sales tax exemption for sales to or on behalf of permanently disabled veterans for up to $25,000 in purchases per year.

 

HB 1620  

Shelby

Applies the Patient Protection Act of 1995 to a health care provider network utilized by a self-funded health benefit plan provided by the state to state employees and public school personnel.

 

HB 1622  

Overbey
Baker, G.

Authorizes municipal corporations to use eminent domain for electric transmission and distribution systems outside of corporate limits, without annexation of territory, pursuant to authorization from the Public Service Commission.

 

HB 1624  

Dunn

Creates a sales tax exemption for all fuel and energy used by businesses in the manufacturing process.

 

HB 1625  

Dunn

Provides for a 10 percent reduction in payroll rebate benefits if a business does not file a claim for the rebate payments with the Finance and Administration Department within 12 months, and provides for forfeiture of payments after 24 months.

 

HB 1635  

Reep

Declares businesses that provide support services for rail transportation eligible under the Consolidated Incentive Act of 2003.

 

 

 

Please visit our tracking site here for the complete, searchable list of bills being tracked. The full text of each bill is also available at the site.

 

 

TOMORROW AT THE CAPITOL

Committee Meetings for Friday, February 27, 2009

JOINT

None listed.

 

HOUSE

9:00 AM

ROOM 428

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE

Agenda

 

9:00 AM

130

AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE

Agenda

 

9:00 AM

Room 149

INSURANCE & COMMERCE- HOUSE

Agenda

 

9:00 AM

ROOM 138

AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT- HOUSE

Agenda

 

9:00 AM

Room 151

STATE AGENCIES & GOVT'L AFFAIRS- HOUSE

Agenda

 

 

SENATE

None listed.

 

ISSUES

POPULAR VOTE FOR U.S. PRESIDENT

HB 1339 by Rep. Eddie Cooper and Sen. Terry Smith passed the House yesterday by a vote of 56 to 43. This bill would require Arkansas ’s delegation of presidential electors in a presidential election to be appointed based on the nationwide popular vote total, rather than the popular vote in Arkansas . We believe that the loss of the electoral voting system would greatly reduce Arkansas ’s impact on electing the President of the United States . The bill has been referred to the Senate State Agencies Committee. The State Chamber/AIA opposes this bill. 

EQUAL RIGHTS AMENDMENT

HJR 1014 by Rep. Lindsley Smith and SJR 12 by Sen. Sue Madison would ratify the proposed amendment to the United States Constitution guaranteeing equality of rights to women and authorizing Congress to enforce by legislation those provisions. It requires the Secretary of State to provide Archivist of the U.S. with a copy of the resolution and provides that copies be given to Arkansas ’s U.S. Senators, U.S. House of Representatives, the Vice President of the United States and the Speaker of the U.S. House of Representatives.

WORKPLACE

HB 1552 by Rep. Lindsley Smith provides that employers shall provide unpaid break time each day to an employee who needs to express breast milk for her child in order to maintain milk supply, and to make a reasonable effort to provide a private and sanitary room for her to do so. This bill is on tomorrow’s agenda in the House Public Health, Welfare & Labor Committee.

SESSION EXTENSION

HCR 1012 by Rep. Robert Moore would extend the session until April 10. It has passed the House and must now be voted on by the Senate. It has not yet been placed on the Senate calendar.

YESTERDAY AT THE CAPITOL

ISSUES

UNEMPLOYMENT INSURANCE

HB 1478 by Rep. Mike Patterson would authorize certain information to be shared between the Department of Workforce Services (DWS) and the Department of Finance and Administration. It is on the agenda in the House Revenue and Taxation Committee.

SB 429 by Sen. Tracy Steele addresses the fact that the Unemployment Insurance Trust Fund will run out of money in the immediate future and require the state to borrow money from the federal government. Knowing that this circumstance would occur, the State Chamber/AIA Unemployment Insurance Committee and the State Chamber/AIA Executive Committee authorized our agreement to allow an increase in the taxable wage base. We asked labor for some concessions that originally they would not accept.

The Legislative Sub-committee of the ESD Advisory Council met yesterday afternoon to discuss HB 1478 and SB 429. Following a thorough discussion, the State Chamber/AIA and the AFL-CIO, who each hold five positions along with three consumer representatives on the ESD Advisory Council, agreed to support both bills after amendments are made to each bill. The most notable change will be to increase the taxable wage base from $10,000 to $11,000 effective January 1, 2010, and labor agreed to the change in quits and discharges which will also help with the trust fund.

You are probably seeing reports in the news that some states are considering and/or rejecting the federal stimulus dollars related to unemployment insurance. We are aware of this, have obtained detailed information from Washington , reviewed the information with our Unemployment Insurance Committee leadership, and expressed our concerns to the Department of Workforce Services staff and to the Governor’s office.

SSTP

SB 322 by Sen. Larry Teague received a Do Pass from the Senate Revenue and Tax Committee yesterday. It is on today’s Senate Calendar. The bill amends sales tax provisions to be consistent with the Streamlined Sales and Use Tax Agreement and provides that sales tax is levied on the withdrawal of goods from the stock of an established business.

SCRAP METAL

HB 1479 by Rep. Darrin Williams received a Do Pass as amended from the Senate Judiciary Committee yesterday. The amendment simply adds Senate sponsors. HB 1479 would create a Class D felony for the offense of damaging wires and other fixtures of telephone, cable and electric power companies or any line that could result in physical injury. It also adds new restrictions and requirements on scrap metal dealers. This is an agreed bill by the parties in interest. The State Chamber/AIA supports this bill.

TRAUMA SYSTEM

SB 315 by Sen. Tracy Steele and Rep. Gene Shelby is the legislation to set up a statewide trauma system. The bill, which received a Do Pass as Amended from the Senate Public Health, Welfare and Labor Committee yesterday, would authorize the Department of Health to grant funds to emergency medical care providers, ambulance providers, trauma rehabilitation service, and to hospitals to assist qualification as trauma centers; to create a communication network; and more. It will now go before the full Senate for consideration.

According to an article by Rob Moritz of the Arkansas News Bureau, the current plan is for there to be two or three Level 1 trauma centers in the state, 10 Level 2 centers, 17 Level 3 centers and as many as 54 Level 4 centers. Arkansas ’s Level 1 trauma centers will all be located in Little Rock so Level 1 trauma centers in Memphis , TN , Shreveport , LA and Springfield , MO would continue to service Arkansas patients that are within an hour drive of those facilities. To read the Arkansas News Bureau story in its entirety click here.

LOTTERY

The House Rules and Senate State Agencies Committees met upon adjournment yesterday to discuss the scholarship portion of legislation related to the lottery amendment. The legislation is still in draft form, but plans are for lottery proceeds to be directed into the existing Arkansas Academic Challenge Scholarship. Students with a 2.5 GPA and a 19 or higher on the ACT would qualify for a scholarship regardless of household income. Monies would also be available to non-traditional students. No one knows exactly how much the lottery will generate so the plan does not establish scholarship amounts, but rather establishes a scale based upon lottery revenues. Legislators hope to be able to provide the first lottery-funded scholarships in the fall of 2010. Rep. Steve Harrelson covered the meeting on his blog, Under the Dome, and John Lyon with the Arkansas News Bureau also covered the story. 

 

SEAT BELT AND GRADUATED DRIVERS LICENSE LAWS

SB 78 by Sen. Wilkins and Rep. Allen passed the house yesterday by a vote of 60-30 but the emergency clause failed 64-28. The House may vote on the emergency clause again if they can gain enough support to pass it, otherwise the bill will go to the Governor’s desk for his signature without the emergency clause enacted. SB 78 would repeal ACA 27-37- 704, which prohibited vehicle stops solely to determine compliance with seat belt laws. The bill would forbid the suspension or revocation of a driver's license based on violation of seat belt laws. In 2006, approximately five out of every 1,000 belted drivers were hospitalized in Arkansas after a traffic crash compared with 56 out of every 1,000 unbelted drivers. These crash-related hospitalization charges were almost $174,000 for every 1,000 belted drivers in a crash compared with more than $2.7 million for every 1,000 unbelted drivers.

SB 309 by Sen. J. Jeffress and Rep. Shelby is scheduled for a Special Order of Business in the House Public Transportation Committee on Tuesday, March 3. It would prohibit the use of a cellular phone or other interactive device while operating a motor vehicle by a driver with a learners' driver's license or intermediate driver's license. It would also place restrictions on driving hours for those with intermediate driver's licenses unless accompanied by licensed driver who is at least 21 years old or driving to or from school or church-related activity or job or due to an emergency and would restrict passengers to not more than one unrelated passenger unless accompanied by license driver who is at least 21 years old and in the front passenger seat. Motor vehicle crashes were the leading cause of death for teens from 1999 to 2005, causing 78 percent of all Arkansas teen fatalities during that time period. Studies estimate a crash reduction of 20 to 30 percent in states with strong graduated drivers’ licensing laws.

The State Chamber/AIA has policy in support of these provisions to reduce trauma in Arkansas . 

MINIMUM WAGE

HB 1464 by Rep. Jim Nickels passed the House yesterday by a vote of 67 to 27 and has been referred to the Senate Public Health, Welfare and Labor Committee. This bill would make Arkansas ’s minimum wage law match the federal government. The State Chamber/AIA does not have a position on this bill.

 

CONTACT INFORMATION

State Senators: 501-682-2902
State Representatives: 501-682-6211
State Chamber/AIA Staf
f
Randy Zook, President/CEO: rzook@arkansasstatechamber.com
Kenny Hall, Executive Vice President: khall@arkansasstatechamber.com  
Angela DeLille, Director of Governmental Affairs:adelille@arkansasstatec hamber.com
State Chamber/AIA phone: (501) 372-2222
State Chamber/AIA web site: www.arkansasstatechamber.com