Daily Legislative Update
Tuesday, March 31, 2009
79th Day of the 87th General Assembly
* * * CALL TO ACTION * * *
INCOME TAX NET LOSS CARRY FORWARD
HB
1911 by Rep. Keith Ingram is expected to be considered this
morning. It would extend the income tax net operating loss (NOL) carry forward period
from 5 years to 15 years. It would apply only to losses incurred on or after
ENERGY EFFICIENCY PERFORMANCE STANDARDS
HB 1903 by Rep. Joan Cash may be considered Wednesday morning in the House Insurance and Commerce Committee. This bill requires electric utilities to use their best efforts through the implementation of energy efficiency programs to meet by 2013 an annual energy savings goal of at least one percent and natural gas utilities to meet by 2013 an annual energy savings goal of at least seventy-five hundredths of one percent. The bill also limits utilities’ expenditures on these programs to two percent of its total utility sales revenues for the preceding year and the bill allows the utilities to recover the costs of the energy efficiency programs from its customers. We have previously estimated that two percent of utilities’ total utility sales revenues for the preceding year would be about a $72 million. The State Chamber/AIA opposes this bill.
HB 1851 by Rep.
Kathy Webb could also come up Wednesday morning in the House Insurance and
Commerce Committee agenda. It requires the state’s electric public
utilities to purchase at least 2% of their requirements from renewable electric
generation facilities. Renewable energy resources are more expensive than
conventional power plants and have been projected to cost from twenty to fifty
cents per kilowatt hour. The current average price of electricity in
BOARDS AND COMMISSIONS
HB 1968 by Rep. Kathy Webb was not considered yesterday by the House but remains on this afternoon’s House calendar. We fear this bill would have a chilling effect upon people’s willingness to serve the state through participation in boards and commissions. Our concerns are based upon the bill’s expansion of the conflict of interest laws including an impact on family members and the addition of criminal enforcement. Many people participate on boards and commissions because of their expertise and experience, which this bill could cause to go away. In addition to the State Chamber/AIA, others groups opposed include the Arkansas Farm Bureau, the Arkansas Municipal League and the Association of Arkansas Counties plus some individual business interests. If you haven’t already done so, please contact your state representative and urge them to vote against HB 1968.
* * * HOT TOPICS * * *
CONSTITUTIONAL AMENDMENTS
A joint meeting of the House and Senate State Agencies Committees is scheduled for noon tomorrow to finalize the recommendations on referring up to three constitutional amendments to the 2010 General Election. The State Chamber/AIA supports HJR 1007, HJR 1003 and HJR 1004.
HJR 1007 by Speaker Robbie Wills, would remove the investment and
employment limits ($500 million in capital and 500 new employees), as well as
the upper limit on the amount of bonds issued, for funding economic development
projects. It will change Amendment 82, the Super-project Amendment, to make it
more broadly applicable to projects in more areas and allow
HJR 1003 by Rep. Bruce Maloch would remove the interest rate limits on bonds issued by governmental units and loans made to governmental units. This is also a pro-economic development proposal that would help local government projects and student loans.
HJR 1004 by Rep. Eddie Cheatham would make the same changes in interest rate limits as HJR 1003. In addition, it would adjust interest rate limits to assist businesses that make consumer loans as well as address concerns by the banking industry. It was amended on the House floor yesterday.
The remaining Joint Resolutions that will be up for consideration by the Joint Committee tomorrow are:
SJR 1 by Sen. Glover would increase the terms of county officials from two to four years.
SJR 3 by Sen. Faris declares the constitutional right to hunt, fish, trap, and harvest game subject only to reasonable regulation of the Arkansas Game and Fish Commission.
SJR 5 by Sen. Baker would increase the length of terms for certain county officials.
SJR 6 by Sen. Broadway would make savings from performance-based efficiency projects revenue under the revenue bond statutes.
SJR 10 by Sen. Malone would repeal the requirement for a budget session of the General Assembly in even numbered years.
SJR 11 by Sen. Smith relates to the State Game & Fish Commission
REMAINING STATE CHAMBER/AIA TAX PACKAGE
LEGAL STANDARD FOR TAX AUDIT APPEALS
SB 769 by Sen. Larry Teague and Rep. Keith Ingram passed the House yesterday by a vote of 92 to 0. It will now go to the Governor for his signature. The bill will change the evidentiary standard of proof in tax cases appealed to court from “beyond a reasonable doubt” to “clear and convincing evidence.” Also, it provides that in a trial de novo in Circuit Court or subsequent appeal, there is no presumption that the DFA Director’s administrative determination is correct. We worked with the sponsors and DFA to reach an agreement.
CLARIFY DIES AND MOLDS EXEMPTION
SB 770 by Sen. Teague and Rep. Ingram is agreed to by the State Chamber/AIA and the Department of Finance and Administration. It passed the Senate unanimously yesterday and has been referred to the House Revenue and Taxation Committee. SB 770 expands the exemption for "dies and molds" used directly in manufacturing to specifically include other forms, tools and devices that determine the physical characteristics of finished products at any stage of a manufacturing process. It is hoped that this will change DFA's audit position on "unconventional" dies and molds; that is, items that form or change materials, but are not commonly referred to as dies or molds in practice.
REBATE EXTENSION
HB 1949 by Rep. Davy Carter was considered last week in the House Revenue and Taxation Committee. We fell two votes shy of getting the bill out of committee. We have the option of bringing the bill back up one more time and we have been working on a possible compromise but it does not look like a deal can be made and time is running very short in the session. As written, the bill would extend the time to seek a rebate of local sales taxes from six months to one year. We believe it is important for legislators to understand that the money at issue here is money that we firmly believe belongs to the businesses. Before streamlined sales tax laws went into effect, businesses did NOT pay the amounts at issue here because there was a cap on the local sales tax. Because streamlined required the removal of the caps we only agreed to support streamlined if a mechanism was created to allow a full refund to businesses. However, now that we have seen this operate for two years, we believe the six month time period is too short. It will not allow small, less sophisticated businesses time to claim the rebate.
The Arkansas Employers’ Health Care Coalition opposes the following bills:
SB 913 by Sen. Mary Anne Salmon would require health benefit plans to provide coverage for the diagnosis and treatment of autism spectrum disorders and prohibits insurers from terminating or refusing coverage solely because a person is diagnosed with an autism disorder. It will likely be considered this morning in the Senate Insurance and Commerce Committee. Employers view these types of mandates as causing a direct increase in health insurance premium costs.
SB 940 by Sen. Joyce Elliott would require group health plans and group health insurers to cover certain medically necessary reconstructive surgeries, though not cosmetic surgery. It was amended on the Senate floor yesterday and is also on today’s Senate Insurance and Commerce Committee agenda.
HB 2088 by Rep.
Gene
OTHER RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION
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 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
A couple of bills that should be studied are SB 906 by Senator Mary Ann Salmon and SB 959 by Sen. John Paul Capps. SB 906 would amend
the
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:
8:00 AM |
Room 151 |
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9:00 AM |
Room 171 |
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House:
10:00 AM |
Room 130 |
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10:00 AM |
Room 149 |
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10:00 AM |
Room 151 |
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10:00 AM |
Room 428 |
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10:00 AM |
Room 138 |
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15 Minutes Upon Adjournment of House |
Room 138 |
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Upon Adjournment of House |
Room 130 |
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Senate:
10:00 AM |
Room 171 |
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10:00 AM |
OSC |
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10:00 AM |
ROOM 207 |
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10:30 AM |
ROOM 272 |
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15 Minutes Upon Adjournment of Senate |
ROOM 171 |
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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. It is on the House Public Health, Welfare and Labor Committee agenda. This bill falls outside of the agreement between the State Chamber/AIA and the AFL-CIO.
UNEMPLOYMENT INSURANCE
SB 429 by Sen. Tracy Steele is on the House Public Health, Welfare and Labor Committee agenda. This bill is agreed to by the State Chamber/AIA and the AFL-CIO.
To address the Unemployment Insurance Benefit Trust Fund’s anticipated shortfall of at least a $300 million in 2009 and likely 2010 management agreed to a $2000 increase in the taxable wage base effective Jan. 1, 2010. In addition, Labor agreed to allow discharges to be treated in the same manner as quits. The change in the wage base will cost employers about $50 per employee per year on average and will generate about $46 million in additional benefit funding per year. The change labor agreed to will save the fund about $25 million each year.
The amended
bill makes changes to our UI system to qualify for federal stimulus dollars.
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.
REAL ESTATE TRANSACTIONS
HB 2225 and HB 2226 by Rep. Pam Adcock are a couple of bills to watch if you are involved in frequent property transactions. HB 2225 would require the filing of a survey with all applications for permits to alter real property in the state and HB 2226 would require the filing of a survey with all instruments that transfer real property in the state. They are on the agenda in the House Revenue and Taxation Committee.
IMPROVEMENT DISTRICTS
HB 1060 by Rep. Tracy Pennartz would create an income tax credit for 20% of up to the first $2 million of rehabilitation expenses for central business improvement districts, limiting the total state expenditure in a fiscal year to $20 million. It is on the House Revenue and Taxation Committee agenda.
ANTI-TORT REFORM
HB 2103 by Rep. Lindsley Smith was defeated in the House Judiciary Committee on Thursday, but remains on the committee’s agenda.
TOMORROW AT THE CAPITOL
Committee Meetings for Wednesday, April 1, 2009
Joint:
8:00 AM |
Room 272 |
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9:00 AM |
Room 171 |
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Upon Adjournment |
Room 149 |
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House:
10:00 AM |
Room 151 |
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10:00 AM |
room130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
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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 138 |
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12:00 PM |
Room428 |
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Senate:
10:00 AM |
Room 171 |
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10:00 AM |
Room 272 |
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10:00 AM |
Room 207 |
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10:00 AM |
Room OSC |
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15 Minutes Upon Adjournment of Senate |
Room 207 |
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ISSUES
UNION DUES CHECKOFF
SB 945 by Sen. Joyce Elliott would allow county employees to have union dues withheld from their paychecks. It received a Do Pass recommendation from the Senate Committee on City, County and Local Affairs on March 17 and is pending consideration by the full Senate.
YESTERDAY AT THE CAPITOL
ISSUES
ELECTION BY PLURALITY
HB 1393 by Rep. Tommy Baker was returned to the House yesterday and is on today’s House calendar to expunge the vote by which it passed. This bill would change the way city and county officials are elected by eliminating the need for a runoff if the ticket leader received at least 40% of the vote and won by a specified margin. Senators thought the bill needed additional cleanup and many were concerned about removing the requirement of a 50.1% majority to be elected. At a minimum we share that concern and may oppose the bill outright.
PENDING ISSUES OF INTEREST
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. Yesterday, the House voted 89 to 6 to concur in a Senate amendment. The bill will now go to the Governor for his signature.
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 was amended last week and 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 passed the Senate yesterday by a vote of 34 to 0 and will now go to the Governor for his signature.
SB 1005 by Sen. Tracy Steele would establish a Minority Business Advisory Council to aid minority businesses in applying for and obtaining contracts with state agencies. It would require each state agency to employ a minority business officer to work with the commission. It passed the Senate unanimously yesterday.
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 received a Do Pass from the Senate Agriculture, Forestry and Economic Development Committee last week and is pending consideration by the Senate.
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 passed the House by a vote of 77 to 15 yesterday.
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 received a Do Pass recommendation from the Joint Committee on Advanced Communications and Information Technology yesterday and will now be considered by the full House.
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
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 where is continues to await an amendment. This bill will be opposed by the AFL-CIO and the State Chamber/AIA because it is not part of our agreement.
RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION
In addition to the bills mentioned above that the State Chamber/AIA Task Force on Energy identified as bills to oppose or bills included in the AEDC package, 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 the Joint Energy 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 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 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 awaits consideration by the Senate.
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 passed the House yesterday by a vote of 90 to 0.
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.
HB 1748 by Rep. Steve Breedlove would allow a deduction from gross income for the purchase and use of a solar energy system. It previously failed on a voice vote in the House Revenue and Taxation Committee 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 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.
SB 440 by Sen. Broadway would extend the Legislative Task Force on sustainable Building Design and Practices. It passed the Senate unanimously yesterday. No position was determined on this bill.
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 passed the Senate unanimously yesterday.
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.
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 remains on the Senate State Agencies and Governmental Affairs Committee agenda. HJR 1014 also remains on the agenda in the House State Agencies and Governmental Affairs Committee.
STATE CHAMBER/AIA BILL TRACKING
This session the House filed 1275 bills and the Senate filed 1010 bills.
The State Chamber/AIA is tracking 537 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
