Daily Legislative Update

Wednesday, March 4, 2009
52^ndDay of the 87^th General Assembly

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MANUFACTURERS SALES TAX EXEMPTION FOR ENERGY USAGE

HB 1624 by Rep. David Dunn would provide a sales tax exemption for all fuel and energy used by businesses in the manufacturing process. PLEASE CONTINUE TO MAKE CONTACT WITH YOUR STATE LEGISLATORS AND ENCOURAGE THEM TO SUPPORT A REDUCTION IN THE SALES TAXES PAID BY MANUFACTURERS ON THEIR ENERGY COSTS.

HOT TOPIC

UNEMPLOYMENT INSURANCE

HB 1478 by Rep. Mike Patterson was amended yesterday but a second amendment is needed before being presented to the House Revenue and Taxation Committee. It would authorize certain information to be shared between the Department of Workforce Services (DWS) and the Department of Finance and Administration and once properly amended is agreed to by the State Chamber/AIA and the AFL-CIO.

SB 429 by Sen. Tracy Steele addresses the fact that the Unemployment Insurance Trust Fund is almost depleted and the state will have to borrow funds from the federal government. The trust fund is funded by business and knowing the fund needed more dollars we agreed, with the advice and consent of the State Chamber/AIA Unemployment Insurance Committee and the State Chamber/AIA Executive Committee, to an increase in the taxable wage base from $10,000 to $11,000 effective January 1, 2010 while labor agreed to treat discharges like quits for two years. We had asked for a change in the calculation of weekly benefits from using the highest quarter of earnings to the average of the two highest quarters of earnings but labor would not agree. We are concerned that Arkansas ’s benefits are the highest in the region and we were looking for some help in relieving the stress on the trust fund.

In light of the economy, we are now concerned about the trust fund over a longer period of time since we will be seeing vastly increased claims plus we will have to pay back funds borrowed from the federal government. In addition, the federal stimulus package offers money for unemployment insurance but we are researching whether the stimulus dollars will require an expansion of either benefits and/or eligibility that would not go away when the dollars are gone. Randy Zook, our president and CEO, has meetings scheduled for tomorrow with the Director of the Department of Workforce Services and the Governor’s Chief of Staff.

Today’s Arkansas Democrat-Gazette has a front page article about unemployment insurance and the stimulus package. We believe the story has a major error in that it says on average employers pay $25 per employee for unemployment benefits; we believe that figure should be $250. Click here to read the article.

TODAY AT THE CAPITOL

House convenes at 1:30 p.m.

Senate convenes at 1:30 p.m.

Committee Meetings:

JOINT

HOUSE

SENATE

ISSUES

WORKERS’ COMPENSATION

HB 1362, the agreed workers’ compensation bill between the State Chamber/AIA and the AFL-CIO, received a Do Pass from the Senate Insurance and Commerce Committee yesterday. It is on this afternoon’s Senate Calendar for consideration by the full Senate.

HB 1403 by Rep. John Edwards, which is now a part of the agreement between the AFL-CIO and the State Chamber/AIA, received a Do Pass from the House Public Health, Welfare and Labor Committee yesterday and is on this afternoon’s House Calendar. It would create the Uniform Emergency Volunteer Health Practitioners Act, allowing volunteer health practitioners registered and in good standing in their state to practice in Arkansas during an emergency proclamation. The bill would make the volunteer health practitioners state employees and extend state workers’ compensation benefits to the volunteer health practitioners. This bill was put forward by the Uniform Laws Committee of the Bar Association; the state workers’ comp trust agreed to the declaration of the volunteers as state employees and the AFL-CIO and State Chamber/AIA agreed to support the bill.

PHARMACY BENEFIT MANAGEMENT (PBM)

SB 460 by Sen. Percy Malone was not considered yesterday as talks continued between the sponsor and representatives of PBM’s. HB 1601 by Rep. Allen Maxwell is on this morning’s House Insurance and Commerce Committee agenda. These 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.

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 authorize Congress to enforce by legislation those provisions. We are concerned about potential applications in the workplace. SJR 12 failed on a 4-4 vote in the Senate State Agencies and Governmental Affairs Committee yesterday. The sponsor can bring the bill back up at a later date. HJR 1014 is on today’s House State Agencies and Governmental Affairs Committee.

CLIMATE CHANGE LEGISLATION

SB 584 by Sen. Shane Broadway authorizes the Development Finance Authority to issue the Energy Cost Savings Projects General Obligation Bonds, not to exceed $300,000,000, to finance energy cost savings contracts by state agencies for improvements to state buildings. It is on the Senate Insurance and Commerce Committee agenda.

HB 1663 by Rep. Kathy Webb would provide for the building and renovation of buildings owned by the state or institutions of higher education through sustainable, energy efficient methods. It is on today’s Joint Energy Committee agenda.

This afternoon’s Joint Energy Committee agenda also includes HB 1790—a bill to enhance the development of alternative fuels and HB 1796—a bill to create the Alternative Energy Commission to study bio-energy, ethanol, solar and wind power, and other energy sources identified by the commission.

MINIMUM WAGE

HB 1464 by Rep. Jim Nickels is on today’s agenda in 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.

STATE CHAMBER/AIA BILL TRACKING 

To date, the House has filed 861 bills and the Senate has filed 780 bills.

The State Chamber/AIA is tracking 309 bills and resolutions. 

The deadline for regular bill filings is Monday, March 9.

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

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 Thursday, March 5, 2009

JOINT

HOUSE

SENATE

ISSUES

POPULAR VOTE FOR U.S. PRESIDENT

HB 1339 by Rep. Eddie Cooper and Sen. Terry Smith remains on the Senate State Agencies Committee agenda. 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 significance in electing the President of the United States . Our population would be too small to matter to the campaigns, which would focus on the large population centers across the country. We believe our nation’s founders provided small population states like Arkansas a relevant and necessary voice in the presidential elections when they created the Electoral College and it is in Arkansas ’s best interest to not change the system. The State Chamber/AIA opposes this bill. 

SSTP

SB 322 by Sen. Larry Teague is on the House Revenue and Tax Committee agenda. 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.

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 and is expected to be considered next week. 

TRAUMA SYSTEM

SB 315 by Sen. Tracy Steele and Rep. Gene Shelby is the legislation to set up a statewide trauma system. The bill 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 is on the House Public Health, Welfare and Labor Committee agenda.

YESTERDAY AT THE CAPITOL

ISSUES

SALES TAX AUDITS

The State Chamber/AIA introduced two bills yesterday to address issues related to audits related to sales tax exemptions. SB 769 and SB 770 were filed by Sen. Larry Teague and are co-sponsored by Rep. Keith Ingram.

SB 769 proposes an act to amend the taxpayer bill of rights and provide uniform guidelines for the strict construction of tax exemptions, deductions or credits. It would also set the standard for review of administrative tax determinations on appeals.

SB 770 would clarify that partial replacement of manufacturing machinery and equipment that improve manufacturing efficiency, modernize existing machinery, or economically or physically expand an existing facility, including the machinery and equipment that act as a mold or die to determine the physical characteristics of a product, are exempt from the sales and use tax.

GRADUATED DRIVERS LICENSES

SB 309 by Sen. J. Jeffress and Rep. Shelby received a Do Pass from the House Public Transportation Committee yesterday and will now go before the full House. 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, driving to or from school, driving to a church-related activity, driving to a job or driving due to an emergency and would restrict passengers to not more than one unrelated passenger unless accompanied by a licensed 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 supports this provision to reduce trauma in Arkansas .

SCRAP METAL

HB 1479 by Rep. Darrin Williams, which passed the Senate Monday, has been referred to the House Judiciary Committee to concur in a Senate amendment. 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.

WORKPLACE

HB 1552 by Rep. Lindsley Smith provides that employers shall provide unpaid break time each day to any 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 was amended and received a Do Pass as amended yesterday from the House Public Health, Welfare & Labor Committee. A human resource professionals group is working on a broader amendment to this bill.

CONTACT INFORMATION

State Senators: 501-682-2902
State Representatives: 501-682-6211
State Chamber/AIA Staff
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