Daily Legislative Update
Thursday, March 12, 2009
60th 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 (3.875 percent to 3.125 percent) effective July 1, 2009. There is also a provision to protect the state if claims from the reduced rate exceed $27 million in one year, which is over five times the actual amount of claims being filed and should not become an issue.
SB 875 received a Do Pass from the Senate Revenue and Taxation Committee yesterday and is on today’s Senate Calendar to formally adopt the amendment. HB 1624 is expected to be considered this morning in the House Revenue and Taxation Committee.
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 is on today’s agenda in the Senate State
Agencies and Governmental Affairs Committee agenda. This bill passed the House on
February 25 by a vote of 56 to 43 with one present (Click here to
see how your Representative voted). This bill has developed momentum that
will likely spill over into the next session. If adopted it would assign
TODAY AT THE CAPITOL
House convenes at
Senate convenes at 11:00 a.m.
Committee Meetings:
Joint:
8:00 AM |
Room 151 |
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9:00 AM |
Room 171 |
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House:
10:00 AM |
Room 151 |
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10:00 AM |
Room 138 |
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10:00 AM |
Room 149 |
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10:00 AM |
Room 428 |
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10:00 AM |
Room 130 |
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Senate:
10:00 AM |
Old Supre... |
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10:00 AM |
Room 171 |
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10:00 AM |
ROOM 309 |
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ISSUES
UNEMPLOYMENT INSURANCE
HB 1478 by Rep. Mike Patterson now reflects the language agreed to by the State Chamber/AIA and the AFL-CIO. It is expected to be considered this morning by 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.
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. Following the agreement on the sales tax reduction for manufacturers, this bill was amended to add all 100 members of the House as co-sponsors of the bill. It is expected to be considered this morning in the House Revenue and Taxation Committee.
PHARMACY BENEFIT MANAGEMENT (PBM)
HB 1601 by Rep. Allen Maxwell and SB 460 Sen. Percy Malone 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. Each bill has been presented in committee but neither has completed debate. SB 460 remains on the agenda for today’s Senate Insurance and Commerce Committee meeting.
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.
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 this morning’s House Revenue and Taxation Committee agenda.
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 yesterday and will now be voted on by the full House.
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 also received a Do Pass from the House Agriculture, Forestry and Economic Development Committee yesterday and will now be voted on by the full House.
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 today’s House Revenue and Taxation Committee agenda.
HB 2256 by Rep. Allen Maxwell and Sen. Jimmy Jeffress provides that biomass grown for the purpose of bio-fuel production is not subject to a severance tax. It was filed as a shell bill and has been referred to the House Committee on Revenue and Taxation.
SB 1005 by Sen. Tracy Steele is also 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 the 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 today’s 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 1/1/2009; exemption based on investment, job creation, tier status and wages paid. It has been referred to the Joint Energy Committee.
TOMORROW AT THE CAPITOL
Committee Meetings for Friday, March 13, 2009
Joint:
None listed.
House:
8:30 AM |
Room 151 |
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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 130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
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Senate:
None listed.
ISSUES
WORKERS’ COMPENSATION
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.
SB 872 by Senator Larry Teague would expand workers’ compensation coverage to members of the fire department 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 also falls outside of the agreement between the State Chamber/AIA and the AFL-CIO, which will require our opposition.
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 referred to the Senate Public Health, Welfare and Labor Committee. The bill has been amended once, but a human resource professionals group is working on a broader amendment 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, received a Do Pass from the Senate Public Health, Welfare and
Labor Committee yesterday and is on today’s Senate 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
IMMIGRATION
HB 1383 by Rep. Jim Nickels is a bill to allow the contractors licensing board to take action against a contractor for knowingly employing workers without legal status. It was considered yesterday as a special order of business in the House State Agencies and Governmental Affairs Committee, but did not receive a favorable vote.
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. 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 of at least $1000 and labor agreed to treat discharges like quits for two years. This bill is being held until the impact of federal stimulus dollars is determined and for a meeting of the ESD Advisory Council on Friday.
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 are 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 today’s 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 percent 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.
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 is the Methane Gas Recovery Income Tax Credit Act of 2009. It is on today’s 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 this morning’s 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 the Home Efficiency Revolving Loan Fund Act of 2009. 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 this morning’s Senate State Agencies and Governmental Affairs Committee agenda.
HB 1968 by Rep. Webb is the Conflict of Interest Prohibition Act of 2009.
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 is the Electric Autocycle Act.
HB 1677 By Rep. Cash is the energy Efficiency Act of 2009.
HB 1748 by Rep. Steve Breedlove would allow a deduction from gross income for the purchase and use of a solar energy system.
HB 1861 by Rep. Jane English is the Arkansas Emerging and renewable Energy Technology Development Act of 2009.
HB 2256 by Rep. Alan Maxwell would exempt biomass grown for bio-fuel production from the severance tax. 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.
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.
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.
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.
SB 921 by Sen. Shane Broadway would create the sustainable building design program for state agencies.
SB 946 by Sen. Johnny Key is the Consumer Energy Efficiency Income Tax Credit Act of 2009.
SB 973 by Sen. Sue Madison would amend the tax provisions in Title 26 of the Arkansas Code to provide for the tax treatment of wind power.
STATE CHAMBER/AIA BILL TRACKING
This session the House filed 1275 bills and the Senate filed 1010 bills.
The State Chamber/AIA is tracking 522 bills and resolutions.
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
