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Annual Meeting Report 2002

COMMITTEES:The State Chamber/AIA committees play a vital role in advancing the organizations' mission. Highlights of the year's meetings include: The Small Business Council joined the U.S. Small Business Administration's Arkansas District Office in sponsoring a Small Business Regulatory Enforcement Fairness Roundtable in February. More than 50 small business owners and managers attended and expressed concerns over the impact of federal regulations to Attorney Michael L. Barrera, appointed by President Bush to serve as the National Ombudsman. The Small Business Council joined the Tax Committee last December in hosting an open discussion with state Senator Jim Hill and state Representative Larry Teague, chairmen of their respective Revenue and Tax Committees, to discuss the Legislative Joint Revenue and Tax Committee's interim study proposal providing for "a comprehensive study to identify every feasible and desirable method by which the state might comply with the recent court order resulting from the Lake View case."

The Tax Committee met again in August to plan an attack on the proposed constitutional amendment to repeal all taxes on food and medicine and to analyze the state Department of Finance and Administrations proposed regulations regarding expenditures in lieu of tax payments.

The Unemployment Insurance Committee met in the spring and summer to analyze draft legislation proposed by the state Employment Security Department.

The State Chamber/AIA hosted four meetings of pro-business lobbyists to discuss the 2002 elections. The meetings, two before the primary, one before the runoff and one before the general elections, helped identify pro-business candidates for PAC contribution purposes. The State Chamber PAC and the AIA PAC contributed more than $40,000 combined to candidates for state House, state Senate and state constitutional offices this year.

Leaders of the Workers' Compensation Committee have initiated discussions with labor to develop legislation for the 2003 legislative session. The full committee will review and approve the proposals before declaring any changes to the workers' compensation laws as "agreed" changes. Kenny Hall was elected vice president of an organization called Kids Chance of Arkansas, which is a nonprofit corporation scholarship program designed to help Arkansas children who have had a parent killed or permanently disabled in a compensable workers' compensation accident.

The Education Committee's legislation that created the Arkansas Blue Ribbon Commission on Public Education and the State Chamber/AIAÍs filing of an amicus brief in the Lake View case kept education as the top issue in the state all year. The committee is poised to review and analyze all education legislation proposed for the 2003 legislative session. Throughout the year Kenny Hall participated in the Arkansas Two-Year College AssociationÍs vision planning to enhance workforce training in Arkansas. The education committee will consider endorsement of the final plan. Kenny Hall serves on the Arkansas Environmental FederationÍs board of directors, which provides expert analysis of environmental issues.

ACTIVITIES: In 2002 our Issue Briefings across the state continued to provide excellent opportunities to bring together business leaders for updates on issues of importance as well as State Chamber/AIA activities. Kenny Hall reported on such topics as education reform, the continued impact of term limits, ballot issues, grass-roots networking and the upcoming legislative session. Cities visited included Benton, Camden, Clarksville, Conway, DeQueen, Hot Springs, Magnolia, Morrilton, Newport, Pine Bluff, Plainview, Rogers, Russellville, Searcy, Sherwood and Springdale.

The State Chamber/AIA also sponsored two golf tournaments that raised more than $19,500 to support our governmental affairs activities. The first tournament was held May 20 at Lost Springs Golf Club in Rogers. The second at Centennial Valley in Conway on September 16. Around 150 people participated in the events.

STATE ISSUES: In January, acting upon the State Chamber/AIA's commitment to take a strong leadership role in bringing substantial education reform to Arkansas, attorney Price Marshall of the Jonesboro law firm Barrett & Deacon filed a "friend of the court" brief at the Supreme Court in the Lake View School District case. The brief asks the court to affirm the May 25, 2001 ruling by Pulaski County Chancery Judge Collins Kilgore that the state's system of funding education was inadequate and inequitable. The brief informs the court that State Chamber/AIA members are interested in the Lake View case because the quality of Arkansas' public schools will, in large measure, determine the future prosperity and opportunities of Arkansas and its citizens. This case is the legal moment that calls upon the Supreme Court to help solve one of the stateÍs gravest problems.

Nearly 6,000 Arkansans attended "Speak Up, Arkansas!" forums in all 75 counties to discuss ways to improve our public schools. Linda Bennett led the State Chamber/AIA's role of coordinating the logistics of setting up these forums in 90 different locations on the same day in April. These forums were designed to gather information from all over the state for the Arkansas Blue Ribbon Commission on Public Education.

During the brief special legislative session in June, the State Chamber/AIA was on guard and rallied the business community to defeat proposals that would have raised the state income tax and dramatically increased the severance tax.

The State Chamber/AIA also assumed a strong leadership role in opposing proposed Constitutional Amendment 3, which would eliminate taxes on food and medicine. Ron Russell is treasurer of Arkansans to Protect Police, Libraries, Education & Services (APPLES) and was the chief fund raiser for the group responsible for opposing this potentially devastating amendment. Kenny Hall made numerous speeches opposing this measure and all State Chamber/AIA communication tools were utilized to rally statewide opposition to the issue that will be decided November 5.

NATIONAL ISSUES: In addition to the annual Washington trip, the State Chamber/AIA, through its partnership with the United States Chamber of Commerce and the National Association of Manufacturers, advocated several issues with all members of the Arkansas congressional delegation. Some of these issues included: estate tax repeal, class action reform, trade promotion authority, national energy policy, healthcare reform, highway funding, economic relief, collective bargaining and nuclear waste storage.

GRASS ROOTS: The Issue Briefings described above play a key role in developing and maintaining grass-roots communication throughout the state. State Chamber/AIA staff attended several local chamber banquets and participated in many local chamber events. Also, the State Chamber/AIAÍs participation in the Arkansas Partnership strengthened relationships with local chambers of commerce and economic developers across the state. State Chamber/AIA staff attended meetings and events hosted by the Arkansas Chamber of Commerce Executives, Arkansas Economic Developers, Arkansas Self-Insured Association, the Arkansas Association of Two-Year Colleges, the Arkansas Highway and Transportation Department, the Arkansas Society of Association Executives (ASAE) and the Arkansas Society of Professional Lobbyists (ASPL). Kenny Hall completed a three-year term on the board of ASAE and began a term as treasurer of ASPL this year.

Ron Russell continues to serve on various panels, including the ESD Advisory Council, the workersÍ compensation negotiating team, the Southern Education Foundation Arkansas Advisory Committee, the Charles A. Frueauff FoundationÍs education committee, the Health Care Coalition and the Arkansas Tort Reform Association.

International Trade

Angela DeLille joined the staff in September as director of international trade.

She will work with State Chamber/AIA President & CEO Ron Russell in developing a focus on international trade while also assisting in governmental affairs and lobbying efforts.

DeLille will be working to raise awareness of the importance of international trade and to help Arkansas companies become more successful exporters. While this position is in the developmental stages, the State Chamber/AIA is excited about the opportunity to assist Arkansas companies expand internationally and to promote Arkansas businesses in the international marketplace.

Communications

Timely communications continue to play a pivotal role in our governmental affairs efforts.

We publish our newsletter„PolicyWatch„in a summary format that is available on our web site. We also regularly distribute an e-mail newsletter„Policy E-Watch, which is also posted on the web site. We use broadcast e-mails and faxes throughout the year to quickly communicate news about issues and events with our members.

During the special legislative session earlier this year, we produced a comprehensive daily message that was e-mailed to our members each morning and posted on the web site. This legislative report outlined the dayÍs most important issues.

Our communications efforts were recognized last fall by the Arkansas Chapter of the International Association of Business Communicators (IABC) with Bronze Quill awards for our overall program as well as for printed materials for the Annual Meeting and the Congressional Salute. Bill Paddack is serving as president of IABC/Arkansas this year. Congressional Salute

The Washington trip was once again popular and successful. This 43rd version of the Annual Salute to the Arkansas Congressional Delegation on May 4-7 provided Arkansas business leaders with a chance to convey thanks to our senators and representatives and their staffs while also advocating our positions on current issues of importance.

On Monday, May 6, attendees were briefed at the U.S. Chamber of Commerce before heading off to separate luncheons with Congressmen John Boozman, Marion Berry, Mike Ross and Vic Snyder and an afternoon briefing with Senators Tim Hutchinson and Blanche Lincoln. Hutchinson served as master of ceremonies at the evening banquet at the Capital Hilton Hotel in Washington, D.C. Small Business Awards

Frank J. Siccardi, D.V.M., president of Coenco, Inc., of Fayetteville, was honored as the Arkansas Small Business Person of the Year at the 12th Annual Arkansas Small Business Awards Luncheon on June 3 at the Hilton Inn Riverfront in North Little Rock.

Each year the State Chamber/AIA honors the U.S. Small Business Administration's Small Business Persons of the Year in Arkansas with this luncheon and awards ceremony. The event recognizes the contributions made by members of the small business community. Membership/PINNACLE

Nic Byers joined the staff in April as director of membership and marketing. He is making it a priority to personally call on prospects as well as member companies.

During tough economic times like we have experienced the past year, it is not uncommon for organizations like ours to struggle with our membership numbers and the dues revenue they represent. WeÍve been fortunate, however, that our PINNACLE program and last springÍs Total Resource Campaign have helped make up the shortfall.

Ron Russell continues to meet with CEOs and plant managers across our state, offering them the opportunity to participate in the PINNACLE program. We are extremely fortunate to have members willing to invest at this level. As a result, the State Chamber/AIA has been able to upgrade our computer capabilities and add a governmental affairs position to assist in lobbying and to develop a focus on international trade. The continued commitment of PINNACLE members allows us to maintain our effectiveness on the behalf of the Arkansas business community. Congressional Dialogue

On July 1, we teamed with the National Association of Manufacturers and the Manufacturing Executives Association of Fort Smith to co-sponsor a dialogue with Congressman John Boozman in Fort Smith. Informal lunch meetings such as this one provide excellent opportunities to enhance communication between business leaders and their elected officials.