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Annual Meeting Report 2000

U.S. Chamber Accreditation

The State Chamber/AIA received accreditation status this year from the U.S. Chamber of Commerce after successfully completing an eight-step program that defines standards of excellence in organization, planning and performing. The State Chamber/AIA is one of only eight state chambers of commerce nationwide that have earned this designation.

Jack Wesenberg, who has more than 40 years of active chamber management in four states, conducted the "overview visit." He reviewed our written evaluation and attached exhibits, met with officers, committee chairmen, accreditation committee members and staff. He expressed the strengths that these individuals associate with our organization: our lobbying activity, advocacy, leadership, high regard and credibility, seminars, educational activity and a staff that performs well together and individually.

Raymond Burns, president and CEO of the Rogers-Lowell Area Chamber of Commerce and a member of the State Chamber Board of Directors, served as chairman of our accreditation committee. "This program required us to take a hard look at past accomplishments, current programs and future plans in relation to overall objectives," Burns said. "Accreditation validates the quality of our organization and demonstrates that we are one of the top chambers in the country."

Issues Briefings

Issues briefings were conducted at 16 locations across the state, mostly in conjunction with local chambers of commerce. They attracted a total attendance of 642 people. This afforded us a great opportunity to meet with members and other community leaders and update them on issues of importance to business and industry.

Ron Russell and Kenny Hall shared the podium at most of these, providing updates on ballot proposals, property taxes, education, the continued impact of term limits and other challenges facing business owners and operators. Cities visited included Altus, Arkadelphia, Benton/Bryant, Camden, Clarksville, Conway, Forrest City, Jonesboro, Magnolia, Newport, North Little Rock, Rogers, Searcy, Texarkana, Van Buren and Warren.

Governmental Affairs

In addition to addressing governmental affairs issues through our committees, which are summarized in each committee's report, the State Chamber/AIA took an active interest in campaigns for statewide elections and a leadership role in advocating positions on the November general election ballot issues.

The proposal to repeal property taxes in Arkansas was removed from the November ballot by the Arkansas Supreme Court in response to a legal challenge coordinated by the State Chamber/AIA. We are also heavily involved in active lawsuits against proposed Amendments 2 (Property Tax Relief) and 4 (Repeal of the Sales Tax on Used Goods). Our participation in the APPLES group formed a powerful coalition to protect the state from these proposals, which are either unnecessary or would jeopardize governmental stability. Our issues briefings, summarized in a separate report, and meetings with local chamber governmental affairs committees were used to advocate our positions on the ballot issues.

Political Action Committee funds were distributed to candidates through personal contacts and attendance at 41 political fund-raisers. Several meetings with 35 to 40 business lobbyists in attendance were held prior to the primary and runoff elections to share ideas and information about candidates. Our normal communication resources were utilized to keep the membership informed of State Chamber/AIA positions and activity on the ballot issues and to provide candidate listings and election results.

We were active on several federal issues with the Arkansas Congressional delegation. Some of the issues we expressed an opinion on include: OSHA ergonomics regulation, total maximum daily load environmental regulations, estate tax repeal, health care, unemployment insurance, asbestos, collective bargaining, water resources, and permanent trade relations with China.

Preparation is under way for the 83rd General Assembly, which is expected to be a session about funding or the lack thereof. Plans are being developed to implement a grass-roots lobbying network involving local chambers, Arkansas Economic Developers, business lobbyists and organizations and State Chamber/AIA board members.

Education Committee

Ray Holloway retired from International Paper and as chairman of the State Chamber/AIA Workforce Training Committee this spring. Plans are under way to add K-12 and post-secondary education issues to the focus of the committee, which as of this Annual Meeting will be called the Education Committee.

Chairman Holloway represented the State Chamber/AIA's interest on the state Non-Baccalaureate Post-Secondary Task Force.

The committee also focused on assisting activities of the state Workforce Investment Board and discussed ways to improve funding and control of the state's technical institutes.

State Senator John Riggs IV has agreed to serve as a co-chairman of the Education Committee. Education is likely to be one of the top issues considered by the 83rd General Assembly.

Environmental Issues Committee

With the legislative session coming up, the most significant environmental issues will be those that have been discussed as possible subjects of new legislation. The most significant, and likely the most controversial, will be a proposed tax on groundwater in critical areas, to be proposed by State Rep. Bill Bevis. It is reported that this bill will be based on SB 895 introduced by State Senator Jim Scott in 1999, which had proposed a tax of $0.04 per thousand gallons of groundwater withdrawn.

In response to the new federal regulations requiring the Arkansas Department of Environmental Quality to prepare a Total Maximum Daily Load (TMDL) for streams identified as "polluted," the legislature recently stated that the cities and counties should be required to regulate the runoff that has the potential to "pollute" waters within their jurisdiction. "Pollution" includes sediment-laden runoff from development activities. Part of the proposal may require "runoff monitoring" for private land development of more than one acre.

Two other areas worth watching are ADEQ's efforts to develop a wastewater operator-licensing program that is tailored to the type of treatment systems operated at industrial facilities. The significant differences between municipal wastewater treatment of household sewage, and industrial wastewater treatment of process wastewater require a more tailored educational program. Additionally, ADEQ may again propose some changes to the State Superfund laws to address some problems they have experienced in responding to abandoned, contaminated properties. This type of legislation often includes "unintended consequences" that will require careful monitoring.

Roy Murphy of Mid-South Engineering Company chairs the Environmental Issues Committee. Charles R. Nestrud of Chisenhall, Nestrud & Julian is the committee's legal counsel.

Health Committee

This committee held its inaugural meeting in August. Steve Jones of the Jack, Lyon & Jones law firm in Little Rock is the chairman. The group identified the rising cost of health care, the number of uninsured Arkansans, pharmacy costs and availability, long-term health, regulatory matters, state and federal legislative proposals and health-care workforce availability and development as areas to focus attention on as we move into the next state legislative session and a new Congress. The committee will gather technical data and invite state department heads and national lobbyists to future meetings to help explore solutions to the group's areas of concern.

Small Business Council

This group, chaired by Charles Mazander of Mazander Engineered Equipment, heard from several informative speakers this past year. Charles Miller from Senator Lincoln's office described the senator's goals and staff organization. Butch Reeves, Governor Huckabee's chief legal counsel outlined the CHART tobacco settlement plan. Susan Carter from Senator Hutchinson's office led a discussion of national issues.

Bob Blair from SBC Communications and chairman of the State Chamber/AIA Tax Committee reported the activities of the State Sales Tax Advisory Committee. Workers' Compensation Commissioner Mike Wilson kept the group informed throughout the year on workers' compensation rates and developments. Kenny Hall of the State Chamber staff reported the status of ballot issues to the group.

Chairman Mazander, MaryJane Rebick and Bud Cummins represented the Council at the 2000 Congressional Small Business Summit in Washington and reported highlights of the meeting back to the group.

Tax Committee

Bob Blair of SBC Communications chaired the most active committee of the year. This committee's action led to the implementation of updated laws to assist members of the printing industry. Mike Parker of Horne, Hollingsworth and Parker, served as counsel to this committee and was quite active in improving the state Department of Finance and Administration's handling of audits related to manufacturer's investment tax credits.

The committee also closely monitored activities of the state Sales Tax Advisory Committee and attempts to repeal the state's property tax. The state's regulations related to chemical reagents were scrutinized by the committee as a follow-up to the successful legislation of the last legislative session. The committee also kept a close eye on development of state regulations related to electric restructuring.

Unemployment Comp Committee

This committee, chaired by Dan Woods, has put a lot of work into the biennial negotiations on the legislative package. Key items of concern before the General Assembly convenes in 2001 include recovery of benefit over payments; revising new employer rates to make Arkansas competitive in attracting new industry; the statutory definition of employer; and diversion of stabilization tax money to address shortfall of funds for administration. There is federal legislation pending that would address shortfall in administration and eliminate the 0.2 percent surcharge employers are paying in FUTA taxes, reducing the FUTA tax from 0.8 percent to 0.6 percent.

The Unemployment Compensation Trust Fund balance as of August 31, 2000, was $289.3 million, as compared to $258.5 million on the same date in 1999. The fund has grown slowly but steadily over the past several years, and there is a small possibility that the stabilization tax, which is paid by all employers, could drop to 0.3 percent in 2001 from the 0.4 percent we have been paying over the past several years.

Workers' Comp Committee

This committee, co-chaired by Steve Carter of Wal-Mart and Bill Walmsley of the Walmsley & Weaver law firm in Batesville, dealt with several important issues this year. The medical fee schedule was revised by a group representing all interested parties and approved by this committee.

The committee also discussed potential issues for the 2001 legislative session, November 2000 judicial races, proposed Amendment 3 to the Arkansas Constitution and the extra-hazardous employer programs of the Workers' Compensation Commission, Department of Labor and OSHA. Commissioner Mike Wilson received unanimous support from the group to continue serving as the management member of the commission.

Communications

Our communications efforts are key to the effectiveness of the State Chamber/AIA in achieving its governmental affairs agenda. We communicate on a timely basis by various means with members, legislators, government officials and other constituents as part of our work to protect, preserve and enhance legislation that impacts the business community.

PolicyWatch, our newsletter, is published on an as-needed (but at least once-a-month) basis in an executive summary format that serves us well. Broadcast faxes and e-mails supplement our mailings. This range of communications tools allows us to quickly and efficiently deliver vital updates to member companies of all sizes, regardless of the sophistication of their available equipment.

We received excellent media coverage across the state this year on our 16 issues briefings, a news conference with the governor and our other various events and press releases.

The home page of our web site, statechamber-aia.dina.org, is continually updated with the latest editions of PolicyWatch and calls to action, along with other special publications and detailed information on meetings, seminars and events. The search engine at the top makes it easy to locate specific information, and PolicyWatch can be viewed as it appears in printed form as well as in text only.

The success of our communications efforts was recognized in July when the Arkansas Society of Association Executives honored our year-long communications program with its overall excellence in communications award.

Membership

Tamitha Bryant joined the staff as director of membership at the end of November 1999. Under her leadership, a new membership brochure was completed in April and is distributed to potential new members.

We are currently collecting data via a membership survey to update our database. The State Chamber/AIA officers and directors and the local chambers of commerce from around the state have completed it, and our general membership base received a copy of the survey in the September issue of PolicyWatch.

The Membership Committee, under the guidance of chairman Eric Barkley of Reliant Energy Arkla, met four times during the fiscal year. Committee members once again lent their time and support to help develop a strong membership base. At the end of the fiscal year our membership consisted of 1,270 companies and organizations.

Congressional Salute

The 41st Annual Salute to the Arkansas Congressional Delegation provided an excellent chance for productive contact with our senators and representatives and their staffs.

The more than 160 participants from Arkansas greeted President Bill Clinton on Sunday morning, April 30, on the White House lawn. The President and members of his staff visited with the Arkansas group for more than an hour before he boarded a Marine One helicopter for a trip to speak at Eastern Michigan University. Rob Lowe, star of the TV hit drama "The West Wing," was also on hand to see the President. Lowe posed for photos and chatted with a number of the participants.

Another highlight of the trip was the banquet on Monday evening, May 1, at the Crystal Gateway Marriott in Arlington, Va., honoring the six members of the Arkansas congressional delegation and their staffs. Congressman Marion Berry served as master of ceremonies for the evening that featured the delegation "roasting and toasting" each other. The 182 people in attendance also heard from U.S. Secretary of Transportation Rodney Slater and James Lee Witt, director of the Federal Emergency Management Agency.

Other events included separate luncheons with Congressmen Berry, Vic Snyder and Asa Hutchinson, a breakfast with Congressman Jay Dickey and a reception with Senator Blanche Lincoln.

Congressional Dialogues

The National Association of Manufacturers and the State Chamber/AIA co-sponsored dialogues with Congressman Vic Snyder on June 2 in Little Rock and Congressman Marion Berry on August 24 in Cabot. These informal lunch meetings provided an excellent opportunity to enhance communication between business leaders and their elected officials.

Small Business Awards

Governor Mike Huckabee addressed a crowd of about 200 at the 10th Annual Arkansas Small Business Awards Luncheon on June 5 at the Hilton Inn Riverfront in North Little Rock. The State Chamber/AIA honors the Small Business Administration's Small Business Persons of the Year in Arkansas each year with this luncheon and awards ceremony that recognizes the contributions made by members of the small business community.

"Each year, the winners of these awards are outstanding examples of the hard work that it takes to make a business prosperous," Ron Russell said. "This luncheon, first and foremost, recognizes the efforts of these winners. It gives us an opportunity to applaud the strong entrepreneurial spirit that runs throughout Arkansas' small business community."

Seminars

Linda Bennett rejoined the staff in April on a part-time basis as director of special projects. She is expanding our seminar schedule and also pursuing other avenues for increasing non-dues revenue for our organizations. She coordinated FMLA and ADA seminars in July and Making Workers' Compensation Work for You in September.

These joined the three existing seminars„the Annual Conference on Current Employment Law Issues, Safety Awareness and Operating Union Free„that Bill Paddack oversees.

All of our seminars are designed to update employers, managers, supervisors, human resource representatives and other employees on issues and regulations that affect the bottom line at their companies.

ASCC Nominating Committee

The Arkansas State Chamber of Commerce Nominating Committee met May 25 in Little Rock. It recommended nominees for the Board of Directors for election by the membership and nominees for officers to be elected by the board.

Joe Slayton of ALLTEL Communications chaired the committee, which nominated 44 candidates for election to three-year terms on the Board of Directors. All of these were elected by the State Chamber membership in balloting conducted by mail during the period of July 28 through August 18. Their three-year terms begin with this Annual Meeting. The committee also nominated the slate of officers listed on the other side of this program.

AIA Nominating Committee

The Associated Industries of Arkansas Nominating Committee met June 8 in Little Rock. It recommended nominees for the Board of Directors for election by the membership and nominees for officers to be elected by the board.

Sammie Cox of AEP/Southwestern Electric Power Company chaired the committee, which nominated 23 candidates for election to three-year terms on the Board of Directors. All of these nominees were elected by the AIA membership in balloting conducted by mail during the period of July 27 through August 18. Their three-year terms begin with this Annual Meeting. The committee also nominated the slate of officers listed on the other side of this program.