Daily Legislative Update
Friday, March 6, 2009
54th Day of the 87th General
Assembly
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.
NEW BILLS
Four bills were filed yesterday by Sen. Barbara Horn, three of which seek a reduction only for specific industries. These bills are:
SB 832 Provides schedule for incremental reduction of sales and use tax on utilities used by wood manufacturers, beginning July 1, 2009.
SB 833 Provides schedule for incremental reduction of sales and use tax on utilities used by wood and agricultural manufacturers, beginning July 1, 2009.
SB 834 Provides schedule for incremental reduction of sales and use tax on utilities used by manufacturers, beginning July 1, 2009.
SB 835 Provides schedule for incremental reduction of sales and use tax on utilities used by agricultural businesses, beginning July 1, 2009. Defines agricultural business and defines utilities to include gas, electricity, and liquefied petroleum gas.
OTHER STATE CHAMBER/AIA TAX ISSUES
In addition to the sales tax reduction for manufacturers’ utility costs, the State Chamber/AIA has a package of four additional bills. The following two bills were filed yesterday:
HB 1911 by Rep. Keith Ingram seeks an extension of the income tax net operating loss carry-forward period from five years to 15 years.
HB 1949 by Rep. Davy Carter seeks an extension of the time for businesses to file for a rebate of local sales taxes from six months to the standard three years. The rebate would be for amounts of local sales taxes paid in excess of the local sales tax caps that went away after the 2007 legislative session. We fear smaller businesses without full-time accounting support will not know about this rebate until they meet with their tax advisor and that could be after the current six-month deadline has expired.
The two bills filed earlier this week in the Senate await consideration in the Senate Revenue and Taxation Committee.
SB 769 by Sen. Larry Teague and co-sponsored by Rep. Keith Ingram 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 by Sen. Teague and Rep. Ingram 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.
TODAY AT THE CAPITOL
House convenes at 10:00 a.m.
The Senate does not meet
Committee Meetings:
JOINT
None listed.
HOUSE
9:00 AM |
ROOM 138 |
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9:00 AM |
Room 151 |
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9:00 AM |
ROOM 428 |
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9:00 AM |
Room 149 |
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9:00 AM |
130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
SENATE
None listed.
ISSUES
PHARMACY BENEFIT MANAGEMENT (PBM)
HB 1601 by Rep. Allen Maxwell was debated Wednesday morning in the House Insurance and Commerce Committee but consideration was not completed. It is on this morning’s agenda.
Sen. Percy Malone announced yesterday that consideration of SB 460 will continue on Thursday, March 12 in the Senate Insurance and Commerce Committee.
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 on Tuesday, but remains on the agenda and the sponsor can bring the bill back up at any time. HJR 1014 is on this morning’s House State Agencies and Governmental Affairs Committee agenda.
STATE CHAMBER/AIA BILL TRACKING
To date the House has filed 963 bills and the Senate has filed 839 bills.
The State Chamber/AIA is tracking 374 bills and resolutions.
The deadline for regular bill filings is Monday, March 9.
New bills added to the State Chamber/AIA tracking today:
Repeals the Investor Protection Takeover Act, which applies to takeover offers involving target companies in the state. |
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Requires gas and electric utilities to submit annual energy efficiency plans to the Public Service Commission that will provide incremental savings on retail energy sales; allows for recovery of a certain level of the program costs. |
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To require that vehicles used by contract carriers to transport railroad employees are covered by insurance (incomplete bill). |
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Exempts from sales tax the utilities used in certain agriculture, horticulture, and aquaculture equipment and structures, levies an excise tax of 4.875 percent beginning in 2011, and incrementally reduces the excise tax to 0.125 percent in 2015. |
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Changes the equity investment incentive tax credit from 33.3 percent to 50 percent of the amount invested; allowing for a tax credit of 100 percent of start-up costs of forming a regional or community-based alliance fund; changing eligibility for investments. |
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Allows for a carryover of the net loss of a business to the next tax year up to 15 years, previously limited to 5 years, if the loss occurred after January 1, 2009. |
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Requires a group accident and health association to register with the insurance commissioner before issuing a group accident and health insurance policy to an association; providing for Insurance Commissioner approval of the association. |
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Exempts agricultural utilities taxed under ACA 26-52-322 from sales and use taxes, the 3 percent excise tax and additional excise taxes, levying instead a 0.125 percent excise tax and other additional rates per kilowatt hour, cubic foot, and gallon of gas. |
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Exempts electricity, natural gas and propane gas taxed under ACA 26-52-322 from sales and use taxes, compensating use and additional excise taxes, levying instead a 0.375 percent excise tax in addition to other additional rates per unit. |
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Providing that a closed block of business is a form or contract that is not a group health insurance policy; requiring closed block to be within the same classification previously closed; allowing Commissioner-approved rate increases. |
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Applies review exemptions to certain design professional contracts, information technology services, health care and educational services using funds provided by the American Recovery and Reinvestment Act of 2009. |
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To amend terms and provisions of the Patient Protection Act of 1995. (Incomplete bill) |
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To amend the Arkansas Motor Vehicle Commission Act, 23-112-101 et seq. (Incomplete bill) |
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To promote the production, development and use of lignite in the state. (Incomplete bill) |
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Authorizes the Arkansas State Medical Board to discipline physicians for ethical violations. |
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Makes an employer who pays an employee in cash and fails to withhold taxes subject to a penalty of thre times the amount of withholding. |
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Requires health benefit plans to provide coverage for a hearing aid that is prescribed by a qualified physician, beginning January 1, 2010, and requires the State Insurance Department to promulgate those rules. |
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Makes it unlawful for persons, corporations or entities to knowingly charge a rate of interest greater than 17 percent per annum for a consumer loan unless the entity is a financial institution; setting the penalty for violation at $300 per transaction. |
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To amend Title 6 concerning
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Repeals the Motion Picture Incentive Act of 1997 and creates the Digital Product and Motion Picture Industry Development Act of 2009, replacing the tax rebate program with various production cost rebates. |
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Prescribes procedures for surface owners to terminate abandoned severed mineral interests on their property, actions that constitute a presumption of use of the severed mineral interest, procedures to preserve severed mineral interests, etc. |
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Clarifies that parties to a public construction contract or agreement may enter into an agreement in which the first party indemnifies or holds harmless the second party. |
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Includes dietary supplements in the definition of food and food ingredients for purposes of reduced sales tax. |
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To Create the
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Extends the deadline for filing a rebate on local sales and use tax from six months from the date of the purchase or from the date of the tax payment, to the later of three years from the purchase date or two years from the date of the tax payment. |
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To amend the definition of miscellaneous funds used in calculating foundation funding for public school districts. (Incomplete bill) |
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Authorizes an income tax credit for restoring historic properties of up to 25 percent of the total qualified expenses incurred by the owner, limited to $500,000 on income-producing property or $100,000 for non-income-producing property; |
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Authorizes the sale of alcohol for on-premised consumption at large attendance facilities in which pari-mutual wagering has been authorized on any day of the week during the facility's business hours, except for Christmas Day. |
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Adds prekindergarten students to the average daily membership calculations for purposes of administrative reorganization. |
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Provides for establishment of a post-doctoral science and engineering grant program; authorizes the Science and Technology Authority to make rules and to administer applications and awards. |
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Amends the Risk Capital Matching Fund Act, creating a private sector advisory committee to replace the fund manager as advisor to the trustees; increases maximum size of company receiving aid from $1.5 million to $2 million. |
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Revises various provision of the Motor Vehicle Commission Act, including definition of motor vehicle and dealers, used vehicle, warranties, price of recalled parts, franchise terminations, use of temporary tags, purchases by municipalities. |
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Creates a task force to study the funding of the
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Requires the regular session of the General Assembly be moved from even-numbered years to odd-numbered years, and that the fiscal session be held in odd-numbered years. |
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Insurance Department general omnibus bill making various updates and technical corrections, including payment of workers' comp benefits by ETF, permitting biennial collection of license fees, continuing education requirements, more. |
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Revises the individual development account program of the Department of Workforce Services. (Incomplete bill) Employers. |
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Modifies the Arkansas High Cost Fund to provide incentives to encourage investment in telecommunications facilities in rural areas and to assist low income telecommunication customers. (Incomplete bill) |
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Prohibits the consolidation or annexation of a school district if the size of the resulting district exceeds 901 square miles. (Incomplete bill) |
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Prohibits the consolidation or annexation of a school district if the size of the resulting district exceeds 1,000 square miles. (Incomplete bill) |
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Prohibits the consolidation or annexation of a school district if the size of the resulting district exceeds 1,054 square miles. (Incomplete bill) |
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Corrects references in the Arkansas Code to biennial sessions of the General Assembly to conform to Amendment 86 provisions for annual sessions. (Incomplete bill) |
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Provides schedule for incremental reduction of sales and use tax on utilities used by wood manufacturers, beginning July 1, 2009. |
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Provides schedule for incremental reduction of sales and use tax on utilities used by wood and agricultural manufacturers, beginning July 1, 2009. |
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Provides schedule for incremental reduction of sales and use tax on utilities used by manufacturers, beginning July 1, 2009. |
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Provides schedule for incremental reduction of sales and use tax on utilities used by agricultural businesses, beginning July 1, 2009. Defines agricultural business and defines utility to include gas, electricity, and liquefied petroleum gas. |
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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.
NEXT WEEK AT THE CAPITOL
Committee Meetings for Monday, March 9, 2009
JOINT
10:00 AM |
Room 272 |
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10:00 AM |
Room 130 |
HOUSE
None listed.
SENATE
10:00 AM |
ROOM 171 |
ISSUES
POPULAR VOTE FOR U.S. PRESIDENT
HB 1339 by Rep. Eddie
Cooper and Sen. Terry Smith remains on the Senate State Agencies and
Governmental Affairs Committee agenda. This bill would require
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 the Joint Energy Committee agenda.
HB 1851 by Rep. Kathy Webb would include renewable energy resources as an integral part of its energy resource plan. It defines a “feed-in tariff” as a tariff that governs the purchase of energy from a renewable generation facility and is approved by the Arkansas Public Service Commission (APSC). It would require an electric public utility to purchase electricity produced by a renewable energy producer in the state at a rate established by the APSC for a period not to exceed 20 years. It further requires the cost of necessary interconnection facilities be the exclusive responsibility of the renewable electric generation facility and allow for an electric company to recover the cost of a feed-in tariff and recover and earn a return on the investment costs for an electric system upgrade. HB 1851 is on this morning’s House Insurance and Commerce Committee agenda.
Additional bills are expected to be filed on this issue today.
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 on March 12.
GRADUATED DRIVERS LICENSES
SB
309 by Sen. J. Jeffress and Rep. Shelby passed the House Wednesday and
has been re-referred to the Senate Committee on Transportation, Technology
and Legislative Affairs to concur in a House amendment. The State Chamber/AIA
supports this provision to reduce trauma in
WORKERS’ COMPENSATION
HB 1362, the agreed workers’ compensation bill between the State Chamber/AIA and the AFL-CIO, will be signed by Governor Beebe on Monday.
HB 1864 by Rick Green is a shell bill filed earlier this week that addresses transparency and accountability issues of the workers’ compensation self-insurer guaranty fund. It is not clear when this bill might be amended or considered. This bill will be opposed by the AFL-CIO and the State Chamber/AIA because it is not part of our agreement.
YESTERDAY AT THE CAPITOL
ISSUES
UNEMPLOYMENT INSURANCE
HB 1478 by Rep. Mike Patterson received a Do Pass from the House Revenue and Taxation Committee yesterday. However, due to a miscommunication the required second amendment was not made. Therefore, the bill will be amended by Rep. Patterson and sent back to committee for consideration in the form agreed to by the State Chamber/AIA and the AFL-CIO. It would authorize certain information to be shared between the Department of Workforce Services (DWS) and the Department of Finance and Administration.
SB 429 by Sen. Tracy Steele awaits an amendment to properly reflect an agreement between the State Chamber/AIA and the AFL-CIO. With the advice and consent of the State Chamber/AIA Unemployment Insurance Committee and the State Chamber/AIA Executive Committee, we have agreed to an increase in the taxable wage base from $10,000 to $11,000 effective January 1, 2010 and a change to treat discharges like quits for two years. However, this bill is being held until the impact of federal stimulus dollars is determined.
SSTP
SB 322 by Sen. Larry Teague received a Do Pass from the House Revenue and Tax Committee yesterday and will now be voted on by the House. 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 recommendation to concur in the Senate amendment from the House Judiciary Committee yesterday and will now go before the full House to concur in the 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.
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 received a Do Pass from the House Public Health, Welfare and Labor Committee yesterday and will now be voted on by the full House.
WORKERS’ COMPENSATION
HB 1403 by Rep. John Edwards,
which is now a part of the agreement between the AFL-CIO and the State
Chamber/AIA, has been referred to the Senate Public Health, Welfare and Labor
Committee. An amendment was filed yesterday to add sponsors. 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
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. It passed the House yesterday by a vote of 79 to 8. The bill has been amended once, but 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
