Daily Legislative Update
Friday, March 13, 2009
61st Day of the 87th General
Assembly
* * * * * CALL TO ACTION * * * * *
MANUFACTURERS SALES TAX EXEMPTION FOR ENERGY USAGE
HB 1624 by Rep. David Dunn and SB 875 by Sen. Barbara Horn are identical bills that will reduce the sales and use tax rate on electricity and natural gas used by manufacturers in NAICS codes 31, 32 and 33 by 3/4ths of one cent effective July 1, 2009.
We caused some confusion for the tax people with our previous reports that the tax would be lowered from 3.875 percent to 3.125 percent, which is what the bill said. However, there is a conservation tax paid on top of these rates so the rate will effectively be lowered from 4 percent to 3.25 percent.
The amendment was formally adopted on SB 875 yesterday and then the bill passed the Senate by a vote of 33 to 0. HB 1624 received a Do Pass as amended from the House Revenue and Taxation Committee yesterday and is on this morning’s House calendar to adopt an amendment that corrects an error and should be considered by the full House early next week.
Please encourage your state representative and state senator to support HB 1624 and SB 875. Also please thank Governor Beebe, Rep. John Lowery, Rep. Bruce Maloch, Rep. David Dunn and Senator Barbara Horn for their work on this issue.
POPULAR VOTE FOR U.S. PRESIDENT
HB 1339 by Rep. Eddie
Cooper and Sen. Terry Smith would assign
This bill has gone several days without consideration in the Senate committee, which could be a sign that there may not be sufficient votes to pass it. However, the fact that this bill passed the House on February 25 by a vote of 56 to 43 indicates a level of momentum that concerns us for this session as well as the next session. We ask for your contacts to continue to demonstrate how seriously concerned we are about this bill. (Click here to see how your Representative voted).
If adopted we believe it would eliminate
TODAY AT THE CAPITOL
House convenes at
The Senate does not meet.
Committee Meetings:
Joint:
None listed.
House:
9:00 AM |
ROOM 138 |
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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 |
Room 151 |
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9:00 AM |
Room 130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
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12:00 PM |
Room 151 |
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Senate:
None listed.
ISSUES
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 previously on a 4-4 vote in the Senate State Agencies and Governmental Affairs Committee, but remains on the agenda and the sponsor can bring the bill back up at any time. HJR 1014 is on the agenda in the House State Agencies and Governmental Affairs Committee.
AEDC’S LEGISLATIVE PACKAGE
HB 1939 by Rep. Rick Saunders would repeal 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. It received a Do Pass from the House Agriculture, Forestry and Economic Development Committee Wednesday, but was amended on the House floor yesterday to allow existing businesses to participate in the program.
HB 2029 by Rep. Jerry Brown and Sen. Jim Luker would remove the requirement that foreign individuals or entities file a declaration of intent with the Secretary of State upon acquiring agricultural land for non-farming purposes, until or unless the land is later used for farming purposes. This bill passed the house yesterday by a vote of 96 to 0.
HB 1910 by Rep. Keith Ingram and Sen. David Johnson would change 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. It is on the House Revenue and Taxation Committee agenda.
HB 2256 by Rep. Allen Maxwell and Sen. Jimmy Jeffress provides that biomass grown for the purpose of biofuel production is not subject to a severance tax. It was amended on the House floor yesterday and has been re-referred to the House Committee on Revenue and Taxation.
SB 1005 by Sen. Tracy Steele is a shell bill filed to amend laws regarding minority business economic development. It has been referred to the Senate Agriculture and Economic Development Committee.
HB 2076 by Rep. Kathy Webb makes various revisions to the Nonprofit Incentive Act, including reductions in the payroll and equipment spending threshold amounts that are required for eligibility to receive benefits. It is on today’s House Insurance and Commerce Committee agenda.
HB 2081 by Rep. David Dunn would repeal the Emerging Technology Development Act of 1999 and makes various changes to the Consolidated Incentive Act of 2003. It is on the House Revenue and Taxation Committee agenda.
HB 2260 by Rep. Kathy Webb would require the Arkansas Energy Office to collect data on aviation fuels; authorizes the Energy Office to require cities and counties issuing building permits to adopt the current Arkansas Energy Code for New Building Construction. It has been referred to the Joint Energy Committee.
SB 920 by Sen. Shane Broadway would create the Technology Acceleration Fund for use by the Economic Development Commission, Science and Technology Authority, and Development Finance Authority for investment incentives to improve technology development. It is on the agenda in the Senate Transportation, Technology and Legislative Affairs Committee.
HB 2230 by Rep. Kathy Webb would provide a limited
exemption for income taxes to qualified windmill blade and windmill component
manufacturing companies locating in the state after
NEXT WEEK AT THE CAPITOL
Committee Meetings for
Joint:
10:00 AM |
Room 130 |
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House:
10:00 AM |
Room 151 |
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Upon Adjournment of Both Chambers |
ROOM 138 |
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Senate:
10:00 AM |
ROOM 171 |
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Upon Adjournment of Both Chambers |
ROOM 138 |
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Upon Adjournment |
Room 272 |
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ISSUES
WORKERS’ COMPENSATION
SB 872 by Senator Larry Teague would expand workers’ compensation coverage to members of volunteer fire departments who do not engage in firefighting to be eligible for workers’ compensation. This bill is on Monday’s Senate Public Health, Welfare & Labor Committee agenda. This bill falls outside of the agreement between the State Chamber/AIA and the AFL-CIO, which will require our opposition.
HB 1864 by Rick Green is a shell bill that has been referred to the House Insurance and Commerce Committee. The bill addresses transparency and accountability issues of the workers’ compensation self-insurer guaranty fund. We do not expect this bill to be amended right away. This bill will be opposed by the AFL-CIO and the State Chamber/AIA because it is not part of our agreement.
TAX WITHHOLDING
HB 1929 by Rep. Bill Sample would make an employer who pays an employee in cash and fails to withhold taxes subject to a penalty of three times the amount of withholding. It is on the House Revenue and Taxation Committee agenda.
WORKPLACE
HB 1552 by Rep. Lindsley Smith provides that employers shall provide unpaid break time each day to employees who need 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 has been on the Senate Public Health, Welfare and Labor Committee agenda for a couple of weeks with no action. The bill was amended in the House to soften its impact on business, but a human resource professionals group has a broader amendment they would like to see added to this bill.
YESTERDAY AT THE CAPITOL
ISSUES
WORKERS’ COMPENSATION
HB 1403 by Rep. John Edwards,
which is a part of the agreement between the AFL-CIO and the State
Chamber/AIA, passed the Senate yesterday by a vote of 34 to 0. It is on this
morning’s House calendar for concurrence in the Senate amendment. The
bill would create the Uniform Emergency Volunteer Health Practitioners Act
allowing volunteer health practitioners registered and in good standing in
their state to practice in
UNEMPLOYMENT INSURANCE
HB 1478 by Rep. Mike Patterson now reflects the language agreed to by the State Chamber/AIA and the AFL-CIO. It received a Do Pass recommendation from the House Revenue and Taxation Committee yesterday morning and will now be considered by the full House. It would authorize certain information to be shared between the Department of Workforce Services (DWS) and the Department of Finance and Administration.
FOOD TAX
SB 88 by Sen. Bobby Glover would reduce the sales tax on food and food ingredients by 1 percent. It received a Do Pass recommendation from the House Revenue and Taxation Committee yesterday and will now be considered by the full House.
HISTORIC PROPERTY RESTORATION
HB 1953 by Rep. Robert Moore and Sen. Denny Altes would authorize 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. This bill was backed by many local chambers and economic developers. It received a Do Pass recommendation from the House Revenue and Taxation Committee yesterday and is on this morning’s House calendar.
PENDING ISSUES OF INTEREST
UNEMPLOYMENT INSURANCE
SB 429 by Sen. Tracy Steele awaits an amendment to properly reflect an agreement between the State Chamber/AIA and the AFL-CIO, which we hope will be finalized this morning.
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. However, we will not push these bills for consideration until the sales tax exemption for manufacturing bills is complete.
HB 1911 by Rep. Keith Ingram and Sen. Larry Teague seeks an extension of the income tax net operating loss carry forward period from five years to fifteen years. It is on the House Revenue and Taxation Committee agenda.
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. HB 1949 is also on the House Revenue and Taxation Committee agenda.
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. This bill awaits consideration in the Senate Revenue and Taxation Committee.
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. It is also on the agenda in the Senate Revenue and Taxation Committee.
RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION
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 establish 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 the House Insurance and Commerce Committee agenda. Rep. Webb hosted a meeting on this bill Tuesday afternoon and it is expected that she will continue working on the bill before brining it up for consideration. We have concerns with this bill.
HB 1903 by Rep. Joan Cash would create the Energy Efficiency Performance Standards Act of 2009, which would require electric utilities to implement energy efficiency programs for customers to meet minimum energy efficiency performance standards of .3% of the utility’s annual weather-normalized retail electricity sales in kilowatt hours in the prior year for 2009-2010, 0.5 percent in 2011, 0.75 percent in 2012, and 1 percent in 2013. It would also restrict spending by utility companies on energy efficiency programs and require that within 90 days of this act, the Arkansas Public Service commission require utilities to submit an energy efficiency plan. Utilities must also file a plan within 180 day including an annual energy efficiency plan filed with the commission. The Arkansas Public Service Commission must monitor and verify compliance. Utilities would be allowed to recover costs to implement the program. The Public Service Commission must conditionally approve or reject an energy plan within 180 days of receiving it. It provides for financial incentives if a utility exceeds energy performance standards. The Public Service Commission must report biennially on the progress and results of energy efficiency programs. We also have concerns with this bill, which is on today’s House Insurance and Commerce Committee agenda.
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 2008 by Rep. Webb creates an income tax credit of 30 percent of the cost of equipment used to collect, clean, compress, and transport landfill methane gas as an alternative energy source for commercial purposes. It is on the House Revenue and Taxation Committee agenda.
HB 2077 by Rep. Webb would allow an income tax credit for expenditures by a contractor that increases the energy efficiency of an eligible residential property. It is also on the House Revenue and Taxation Committee agenda.
HB 2078 by Rep. Webb would provide for the development of a program to assist residents with energy audits, weatherization and the installation of energy efficiency measures and to promote a workforce for that purpose. It has been referred to the Joint Energy Committee.
HB 2079 by Rep. Webb would amend the utility facility environmental and economic protection act regarding waivers for facilities generating electric energy. It has been referred to the Joint Energy Committee.
HB 2230 by Rep. Webb would provide incentives for windmill blade and component manufacturers. It has also been referred to the Joint Energy Committee. This bill is part of the Arkansas Economic Development Commission’s legislative package.
HB 2273 by Rep. Webb is a shell bill that would establish a revolving loan fund to be administered by the Public Service Commission to provide loans to homeowners for the acquisition of energy conservation measures to improve the use of energy. It has been referred to the Joint Energy Committee.
SB 440 by Sen. Broadway would extend the Legislative Task Force on sustainable Building Design and Practices. It is on the Senate State Agencies and Governmental Affairs Committee agenda.
HB 1968 by Rep. Webb is a shell bill that would prohibit conflict of interest voting by members of state boards and commissions and conflicts of interest by all public servants. It has been referred to House Rules.
HB 2260 by Rep. Webb would
require the Arkansas Energy Office to collect data on aviation fuel and to
issue a rule that requires an
HB 1902 by Rep. Cash would provide for the registration of autocycles for operation on roads; defines autocycle as an enclosed, electric, three-wheel motorized cycle with a steering wheel that carries between one and four persons. It is on the House Transportation Committee agenda.
HB 1677 By Rep. Cash would direct the Public Service Commission to establish energy efficiency resource standards that require the procurement of efficiency resources by public utilities regulated by the commission. It has been withdrawn by Rep. Cash.
HB 1748 by Rep. Steve Breedlove would allow a deduction from gross income for the purchase and use of a solar energy system. It failed on a voice vote in the House Revenue and Taxation Committee yesterday.
HB 1861 by Rep. Jane English would increase from 50 percent to 75 percent the income tax credit under the Emerging Technology Development Act of 1999, renames the Act, and adds alternative fuel sources, wind power, and electric vehicle equipment as qualifying technologies. It is also on the House Revenue and Taxation Committee agenda.
HB 2256 by Rep. Alan Maxwell would exempt biomass grown for biofuel production from the severance tax. It was amended on the House floor yesterday and has been re-referred to the House Revenue and Taxation Committee. This bill is part of the Arkansas Economic Development Commission’s legislative package.
HB 2051 by Rep. Maxwell is the Home Weatherization Revolving Loan fund Act of 2009.
The bill would
direct the Arkansas Public Service Commission to establish a home
weatherization revolving loan fund for
HB 2002 by Rep. Maxwell would add a definition for “synthetic transportation fuel,” amend the definitions of “alternative fuels” and “biomass” and increase the incentive in the Arkansas Alternative Fuels Development Act. It has been referred to Joint Energy.
HB 2109 by Rep. Bill Sample would provide incentive to promote the generation of electricity from biomass, including without limitation agricultural waste, wood waste, poultry waste and other animal waste. It is on the House Revenue and Taxation Committee agenda.
HB 2235 by Rep. David Dunn would promote conservation of energy and natural resources in certain buildings leased by the state or state-supported institutions of higher education. It is on the House Education Committee agenda.
SB 921 by Sen. Shane Broadway would create the sustainable building design program for state agencies. It is on the Senate State Agencies and Governmental Affairs Committee agenda.
SB 946 by Sen. Johnny Key would provide an income tax credit for costs of energy
efficiency home improvements, not to exceed $500 per taxpayer; provides claim
procedure; to remain in effect from
SB 973 by Sen. Sue Madison is a shell bill that would amend the tax provisions in Title 26 of the Arkansas Code to provide for the tax treatment of wind power. It is also on the Senate Revenue and Taxation Committee agenda.
STATE CHAMBER/AIA BILL TRACKING
This session the House filed 1275 bills and the Senate filed 1010 bills.
The State Chamber/AIA is tracking 536 bills and resolutions.
After a closer look at the bills filed on Monday we have added some additional bills to our tracking list. New bills added to the State Chamber/AIA track today:
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To reallocate funds in the Tobacco Settlement Proceeds Act (incomplete bill). |
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To create the Emergency Medical Services Omnibus Act (incomplete bill). |
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Proposes to increase death benefits for those killed in duty and allow choice of beneficiary. (Incomplete Bill) |
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To protect the rights of Arkansans to obtain justice in courts of law (incomplete bill). |
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Titles as the (Rail; Incomplete Bill). Arkansas Capital Plan for Rail Projects Act of 2009; to address the need to construct, improve, and invest in rail or railroad infrastructure (incomplete bill). |
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Creates the College and Workforce Readiness Acceleration program to reduce college remediation and unemployment rates among high school graduates, and develop opportunities for students in need. |
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To amend the ad valorem assessment laws and clarify the applicability of and exemptions to such laws (incomplete bill). |
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To promote consumer savings on prescription drugs. (Incomplete bill) |
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Requires the filing of a survey with all applications for permits to alter real property. (Incomplete bill) |
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Requires the filing of a survey with all applications for permits to alter real property. (Incomplete bill) |
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Provides for the lease of certain buildings with sustainable, energy efficient features by the state and state-supported institutions. (Incomplete bill) |
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Increases from $500,000 to $1,000,000 the cost of renovation of a nursing home facility that does not require a permit of approval, so long as the renovation does not result in additional bed capacity. |
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Authorizes county judges that do not have road maintenance agreements with entities hauling oil and gas production fluids to disposal sites to designate routes to disposal sites and assess a road maintenance fee of up to $5 per load on haulers. |
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Walt's Law: Allowing for the cryogenic treatment of the hypogycgoudoleboism system. (incomplete bill) |
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Establishes Dairy Stabilization Grants, administered by the Agricultural Department. Prescribes calculations of support amounts and limits. Creates the Agriculture Department Dairy Stabilization Program Fund. |
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Requires all drivers over the age of 18 to use hands-free wireless devices rather than just drivers between 18 and 21. |
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.
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
