Daily Legislative Update

Tuesday, April 7, 2009
Day of the 87^th General Assembly

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HEALTH CARE MANDATE

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 prohibit insurers from terminating or refusing coverage solely because a person is diagnosed with an autism disorder. It failed Friday morning on a voice vote in the House Insurance and Commerce Committee. However, it only needs two more votes to pass and in the waning days of the session anything is possible. The bill is on this afternoon’s House Insurance and Commerce Committee agenda.

SB 913 will raise health insurance rates for the companies that are not self-insured approximately 2.1%. Generally the smaller businesses and non profit organizations will be the ones most impacted by this legislation.

PLEASE CONTACT MEMBERS OF THE HOUSE INSURANCE AND COMMERCE COMMITTEE AND URGE THEM TO VOTE NO ON SB 913.

Members of the House Insurance and Commerce Committee are: Eddie Hawkins—Chair, Fred Allen—Vice chair, Bill Abernathy, Mark Martin , Allen Maxwell, Bruce Maloch, Eddie Cooper, Rick Green, Willie R. Hardy, Wilhelmina Lewellen, David Rainey, John Paul Wells, David Dunn, Frank Glidewell, Johnny Hoyt, Jon Woods, Buddy Lovell, Barry Hyde, Charolette Wagner and Keith Ingram.

POPULAR VOTE FOR U.S. PRESIDENT

HB 1339 by Rep. Eddie Cooper and Sen. Terry Smith would assign Arkansas ’s presidential electors to the winner of the national popular vote rather than the winner of the popular vote in Arkansas . We have word that this bill has been pulled off the inactive list, which indicates a likelihood it could be considered this morning in the Senate State Agencies and Governmental Affairs Committee. The State Chamber/AIA strongly opposes this bill that would remove Arkansas from the Electoral College. 

Members of the Senate State Agencies Committee are: Steve Faris—chair, Gilbert Baker—vice chair, Ed Wilkinson, Steve Bryles, Kim Hendren, Randy Laverty, Bobby Glover and Bill Pritchard.

TODAY AT THE CAPITOL

House convenes at 1:30 p.m.

Senate convenes at 1:30 p.m.

Committee Meetings:

Joint:

House:

Senate:

ISSUES

CONSTITUTIONAL AMENDMENTS

A joint meeting of the House and Senate State Agencies Committees will convene again at 8 a.m. this morning to consider options for the one remaining spot to refer constitutional issues to the next General Election. Last week the Joint Committees gave Do Pass recommendations to SJR 3 by Sen. Steve Faris and HJR 1007 by House Speaker Robbie Wills and each bill has now cleared both chambers.

SJR 3 declares the constitutional right to hunt, fish, trap, and harvest game subject only to reasonable regulation of the Arkansas Game and Fish Commission. It has been approved by both the Senate and House and will be on the November 2010 ballot.

HJR 1007 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 Arkansas to better compete with neighboring states for new businesses. The Governor and the General Assembly would maintain control of which projects would be considered. It has also been approved by both the House and the Senate. The State Chamber/AIA supported HJR 1007.

Of the seven joint resolutions left for consideration, three continue to vie for the remaining ballot spot--HJR 1003, SJR 6 and HJR 1004. The State Chamber/AIA supports all three.

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.

SJR 6 by Sen. Broadway was originally filed to make savings from performance-based efficiency projects revenue under the revenue bond statutes. This resolution has been amended to include HJR 1003 and could be further amended to be identical to HJR 1003.

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.

The other resolutions that could be considered include:

- SJR 1 by Sen. Glover would increase the terms of county officials from two to four years.

- SJR 4 by Sen. Pritchard would amend the term limits law.

- SJR 5 by Sen. Baker would increase the length of terms for certain county officials.

- SJR 10 by Sen. Malone would repeal the requirement for a budget session of the General Assembly in even numbered years.

RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION

HB 1851 by Rep. Kathy Webb was considered last Wednesday in the House Insurance and Commerce Committee. It failed to receive the Committee’s approval, but remains on the agenda. The State Chamber/AIA opposes this bill.

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 Arkansas homeowners. It is on the House Insurance and Commerce Committee agenda.

SB 906 by Senator Mary Ann Salmon would amend the Arkansas code concerning the rights and responsibilities of the Arkansas Pollution Control and Ecology Commission. It is on the Senate Public Health, Welfare and Labor Committee agenda.

SB 959 by Sen. John Paul Capps would abolish dormant boards and commissions and to clarify the law concerning ongoing boards and commissions. It is on today’s House calendar.

UNION DUES CHECKOFF

SB 945 by Sen. Joyce Elliott would allow county employees to have union dues withheld from their paychecks. It previously failed in the Senate by a vote of 10 to 15. However, the vote was expunged, which means the bill could be brought up again for consideration.

TOMORROW AT THE CAPITOL

Committee Meetings for Wednesday, April 8, 2009

Joint:

House:

Senate:

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 Senate Revenue and Taxation Committee agenda. 

YESTERDAY AT THE CAPITOL

ISSUES

INCOME TAX NET LOSS CARRY FORWARD

HB 1911 by Rep. Keith Ingram and Senator Larry Teague failed to receive the committee’s approval during yesterday’s Senate Revenue and Taxation Committee; in fact the committee rejected every bill presented because of a negative impact on the budget. This bill would have extended the income tax net operating loss (NOL) carry forward period from 5 years to 15 years. It would have applied only to losses incurred on or after January 1, 2009 and would not have impacted state revenue until fiscal year 2016. We do not expect this bill to be considered again.

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 was amended yesterday in the Senate Revenue and Taxation Committee but failed to receive the Committee’s approval.

CAPITOL GAINS REDUCTION

HB 1947 by Rep. Ed Garner was considered by the Senate Revenue and Taxation Committee yesterday but failed to receive the committee’s approval. This bill would create a state income tax exemption for the net capital gain from the sale of property that was acquired by a seller after July 1, 2009 and owned for more than one year prior to the sale. The state Department of Finance and Administration says the bill would cost the state $42.8 million in fiscal year 2011 and $65.9 million in 2012.

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 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 passed the House by a vote of 86 to 3 yesterday and has been referred to the Senate Revenue and Taxation Committee.

REMAINING RENEWABLE ENERGY/CLIMATE CHANGE LEGISLATION

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 received a Do Pass as amended from the Joint Energy Committee yesterday and is on today’s House calendar to formally adopt the amendment.

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 awaits consideration by the Senate.

HB 1748 by Rep. Steve Breedlove would allow a deduction from gross income for the purchase and use of a solar energy system. It was considered by the Senate Revenue and Taxation Committee yesterday but failed to gain the committee’s approval. 

SB 440 by Sen. Broadway would extend the Legislative Task Force on sustainable Building Design and Practices. It is on today’s House calendar. No position was determined on this bill.

SB 921 by Sen. Shane Broadway would create the sustainable building design program for state agencies. It is on today’s House calendar.

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 Jan. 1, 2009 through Dec. 31, 2011. It has been withdrawn from further consideration and referred to interim study.

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 has also been withdrawn from further consideration and referred to interim study.

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