Daily Legislative Update
Wednesday, March 18, 2009
66th 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 are backed by the State Chamber/AIA, which will reduce the sales and use tax rate on electricity and natural gas used by manufacturers in NAICS codes 31, 32 and 33 from 4% to 3.25% effective July 1, 2009.
SB 875 received a Do Pass recommendation from the House Revenue and Taxation Committee yesterday and will next be considered by the full House. HB 1624 is expected to be heard in the Senate Revenue and Taxation Committee this morning.
Please encourage your state representative and state senator to support HB 1624 and SB 875. Also please continue to thank Governor Beebe, Rep. John Lowery, Rep. Bruce Maloch, Rep. David Dunn and Senator Barbara Horn for their work on this issue.
OTHER STATE CHAMBER/AIA TAX ISSUES
In addition to the sales tax reduction for manufacturers’ utility costs, we will start pushing the additional pieces of the State Chamber/AIA’s tax package today. SB 769 will be the first bill presented in the Senate Revenue and Taxation this morning. The other three bills will be presented next week. Please ask your state representative to support HB 1911 and HB 1949 and ask your state senator to support SB 769 and SB 770.
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 will be considered this morning in the Senate Revenue and Taxation Committee.
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 and will be considered next week.
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.
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 on the agenda in the Senate Revenue and Taxation Committee.
RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION
Twenty nine bills addressing renewable energy, climate change, related tax incentives and bio-fuels have been identified by the State Chamber/AIA Task Force on Energy. The following six bills were identified as bills that should be opposed. We are working on talking points for some or all of these bills. The remaining 23 bills are discussed below in this Update. Please let your state legislators know of your opposition to these bills.
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. This bill was amended earlier this week and is on the House Insurance and Commerce Committee agenda. The State Chamber/AIA opposes this bill because it would raise utility costs by an amount between $104 million and $290 million a year.
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% in 2011, 0.75% in 2012, and 1% 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 days 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. This bill is on the House Insurance and Commerce Committee agenda. The State Chamber/AIA opposes because this would result in $72 million in new costs being applied to electric rate payers.
HB 2079 by Rep. Webb would amend the utility facility environmental and economic protection act regarding waivers for facilities generating electric energy. It is on the Joint Energy Committee agenda. The State Chamber/AIA opposes.
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 is also on the Joint Energy Committee agenda. The State Chamber/AIA opposes.
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 1968 by Rep. Webb would prohibit conflict of interest voting by members of state boards and commissions and conflicts of interest by all public servants. It was amended yesterday and has been re-referred to the House Rules Committee. This bill addresses an issue that has been opposed in past sessions.
The Arkansas Employers’ Health Care Coalition opposes the following bills:
HB 2088 by Rep. Gene Shelby would require that physician profile ranking, rating and performance results are not public or used for reimbursement and providing for Insurance Department to promulgate rules for profile accuracy and transparency. This bill is too broadly drafted and would regulate activity that one could not reasonably anticipate. It is on the House Public Health Welfare and Labor Committee agenda.
SB 913 by Sen. Mary Anne Salmon would require health benefit plans to provide coverage for the diagnosis and treatment of autism spectrum disorders; prohibits insurers from terminating or refusing coverage solely because a person is diagnosed with an autism disorder. It is on the Senate Insurance and Commerce Committee agenda.
HB 1930 by Rep.
Pam Adcock would require health benefit plans to provide coverage for a
hearing aid that is prescribed by a qualified physician, beginning
SB 940 by Sen. Joyce Elliott is a shell bill that would require health insurance coverage for craniofacial reconstruction. It is on the Senate Insurance and Commerce Committee agenda.
The latter three bills are all admirable bills that unfortunately mandate coverage that will increase the cost of health care.
POPULAR VOTE FOR U.S. PRESIDENT
HB 1339 by Rep. Eddie
Cooper and Sen. Terry Smith would assign
TODAY AT THE CAPITOL
House convenes at
Senate convenes at
Committee Meetings:
Joint:
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Room 272 |
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Room 171 |
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Room 130 |
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Upon Adjournment |
Room 149 |
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House:
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Room 151 |
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ROOM 138 |
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Room 149 |
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ROOM 428 |
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Room 130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
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428 |
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Senate:
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Room OSC |
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Room 272 |
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Room 171 |
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No Meeting Scheduled |
Room 207 |
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ISSUES
UNEMPLOYMENT INSURANCE
SB 429 by Sen. Tracy Steele was amended yesterday and re-referred to the Senate Public Health, Welfare and Labor Committee. The bill revises various provisions of Department of Workforce Service law with respect to employment, discharge, recovery of overpayments, other clean-up and technical changes and is agreed to by the State Chamber/AIA and the AFL-CIO.
To help replenish a trust fund that is expected to experience a
$300 million shortfall in 2009, management agreed to a $2000
increase in the taxable wage base effective
The
amended bill also makes changes to our UI system to qualify for federal
stimulus dollars. By enacting an alternative base period to determine UI
qualification and two of four additional options
The agreed bill also has six sections of technical corrections and changes. The agreed bill does not address the $25 additional benefit payments, which are paid solely with federal dollars.
HB 1478 by Rep. Mike Patterson is agreed to by the State Chamber/AIA and the AFL-CIO. It is on the Senate Revenue and Taxation Committee agenda. The bill would authorize certain information to be shared between the Department of Workforce Services (DWS) and the Department of Finance and Administration.
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% of the total qualified expenses incurred by the owner, limited to $500,000 on income-producing property or $100,000 for nonincome-producing property. This bill was backed by many local chambers and economic developers. It is on the Senate 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 amended by an HR organization to include language that, " . . . to do so would create an undue hardship on the operations of the employer,” and a statement that, “The employee shall make reasonable efforts to minimize disruption to the employer's operations." It is on today’s Senate calendar for final consideration.
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 remains on the agenda in the House State Agencies and Governmental Affairs Committee.
TOMORROW AT THE CAPITOL
Committee Meetings for
Joint:
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Room 272 |
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Room 171 |
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House:
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Room 138 |
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Room 151 |
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Room 130 |
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Room 149 |
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Room 428 |
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Upon Adjournment of House |
Room 130 |
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Senate:
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OSC |
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Room 171 |
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309 |
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ISSUES
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.
YESTERDAY AT THE CAPITOL
ISSUES
FOOD TAX
SB 88 by Sen. Bobby Glover would reduce the sales tax on food and food ingredients by 1%. The Senate voted unanimously to concur in an amendment adding House sponsors and the bill is now on its way to the Governor’s desk for his signature.
LOTTERY
Identical House and Senate bills to implement a state lottery and the resulting college scholarships received Do Pass recommendations out of their respective committees yesterday. The Senate State Agencies and Governmental Affairs Committee and House Rules Committee considered the measures, known as the Arkansas Scholarship Lottery Act, in back-to-back hearings. You can find details on the legislation, testimony in each committee hearing and committee vote information in Mark Carter’s story on arkansasbusiness.com.
PHARMACY BENEFIT MANAGEMENT (PBM)
SB 460 by Sen. Percy Malone was amended yesterday to limit the application of the bill to state pharmacy benefit contracts, which eliminated any concerns we had for private businesses’ use of PBMs. The bill received a Do Pass as amended recommendation from the Senate Insurance and Commerce Committee.
PENDING ISSUES OF INTEREST
RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION
In addition to the six bills mentioned above that the State Chamber/AIA Task Force on Energy identified as bills to oppose, the following bills were identified as bills that we could support unless otherwise noted.
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 House calendar for an amendment.
HB 2008 by Rep. Webb creates an income tax credit of 30% 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. This is still a shell bill which is on the Joint Energy Committee agenda. Amendments will have to be reviewed to determine a final position.
HB 2230 by Rep. Webb would provide incentives for windmill blade and component manufacturers. It was amended earlier this week and is on the Joint Energy Committee agenda. This bill is part of the Arkansas Economic Development Commission’s legislative package.
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. No position was determined on this bill.
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 was amended yesterday and received a Do Pass from the House Transportation Committee. No position was taken on this bill.
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 last week but remains on the Committee’s agenda.
HB 1861 by Rep. Jane English would increase from 50% to 75% 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 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 last week and is on the House Revenue and Taxation Committee agenda. This bill is part of the Arkansas Economic Development Commission’s legislative package
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 is on the Joint Energy Committee agenda.
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.
SB 927 by Sen. Robert Thompson is a shell bill to promote the development of the alternative fuels industry in the state by establishing minimums for the percentage of alternative fuels to be sold in the state. It is on the Senate Agriculture and Economic Development Committee agenda. This bill is expected to be amended to include a mandate. The State Chamber/AIA opposes mandates.
SB 928 by Sen. Robert Thompson is a shell bill to increase state economic incentives for alternative fuel development. It is also on the Senate Agriculture and Economic Development Committee agenda. A position will have to be determined after the bill is amended.
HB 1790 by Rep. Tiffany Rogers is a shell bill that would enhance the development of alternative fuels. It is on the Joint Energy Committee agenda. This bill is expected to be amended to include a mandate. The State Chamber/AIA opposes mandates.
HB 1796 by Rep. Fred Allen would create the Alternative Energy Commission to study bioenergy, ethanol, solar and wind power, and other energy sources identified by the commission. It is on the Joint Energy Committee agenda. No position was determined on this bill.
HB 1838 by Rep. Roy Ragland is a shell bill that would provide incentives for the development of renewable energy sources. It is on the Joint Energy Committee agenda. No position was determined on this bill.
AEDC’S LEGISLATIVE PACKAGE
In partnership with the Arkansas Economic Developers, the State Chamber/AIA favors the AEDC package of bills.
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 is on the Senate Agriculture and Economic Development Committee agenda.
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 nonfarming purposes, until or unless the land is later used for farming purposes. It is on the Senate Agriculture and Economic Development Committee agenda.
HB 1910 by Rep. Keith Ingram and Sen. David Johnson would change the equity investment incentive tax credit from 33.3% to 50% of the amount invested; allowing for a tax credit of 100% 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 is on the House Revenue and Taxation Committee agenda.
SB 1005 by Sen. Tracy Steele is a shell bill filed to amend laws regarding minority business economic development. It is on the Senate Agriculture and Economic Development Committee agenda.
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 received a Do Pass from the House Revenue and Taxation Committee yesterday and is on today’s House calendar for final consideration.
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 is on the Joint Energy Committee agenda.
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 Senate Transportation, Technology and Legislative Affairs Committee agenda.
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
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 the 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. It is on the House Insurance and Commerce Committee agenda, but 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.
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.
Please visit our tracking site here for the complete, searchable list of bills being tracked. The full text and an up to date status 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
