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Annual Meeting Report 2003

During the 84th General Assembly, the State Chamber/AIA used a multitude of resources to pull off a successful session. Our governmental affairs team of Ron Russell, Kenny Hall and Angela DeLille worked closely with lobbyists from member companies and other associations-individually and through coalitions-to achieve results. Our daily legislative update-delivered by e-mail each morning and also posted on our web site-was the key to keeping members informed and enlisting grass-roots support. Here are highlights of the most significant accomplishments.

Tort Reform: The State Chamber/AIA was a leading participant in the "Committee to Save Arkansas Jobs" coalition that successfully pushed a tort reform measure into law. The act caps punitive damages, changes joint and several liability and revises medical malpractice rules.

Education: Three important bills became law with the State Chamber/AIA's support. Separately they provide an early care and education program for children ages three and four, bring Arkansas into compliance with the federal "No Child Left Behind" legislation and require all districts to participate in public school choice. Our Education Committee, in conjunction with our Tax Committee, has carefully maintained the position that it will only support significant tax increases in the fall special session IF meaningful changes are made to the existing education system.

Constitutional Issues: The State Chamber/AIA played a key role in the legislature's referral of two constitutional amendments to the November 2004 ballot. If approved by voters, one would extend term limits and the other would authorize the General Assembly to approve general obligation bonds for economic development projects.

Economic Development: As a member of the Arkansas Partnership, the State Chamber/AIA was successful in helping pass an incentives package developed by the Arkansas Department of Economic Development.

Healthcare: An important plan to reduce the burden on healthcare costs caused by uninsured care was passed with the support of the State Chamber/AIA and the Employers' Health Care Coalition. Many business members of the State Chamber/AIA Health Committee are also active in the Employers' Health Care Coalition.

Labor & Employment: The State Chamber/AIA led a large group that defeated a bill that would have eliminated Arkansas' employment-at-will laws. Three union expansion proposals were blocked with our help, but a bill that mandated specified public employers to allow payroll deduction of union dues passed.

Taxation: The State Chamber/AIA blocked attempts to exempt food from the sales tax, a bill that would have removed the discount for prompt remission of sales tax collections and one that would have changed the laws on when a product comes to rest in Arkansas. The State Chamber/AIA Tax Committee facilitated modifications to legislation that will make possible the collection of sales taxes on Internet and catalog sales. The committee met several times to discuss the various tax bills that were filed and drafted a letter to the legislature encouraging members to find funds that could be used to shore up the budget temporarily and then include revenue increases to pay back any borrowed funds with revenue enhancements expected to be considered in a fall special session. The State Chamber/AIA discouraged a 10 percent income tax surcharge, a 4 percent surcharge on utilities and the removal of significant tax exemptions. During the special session called to address the state's budget shortfall, the State Chamber/AIA asserted the position-developed by our Tax Committee-that we were opposed to a proposed one-cent sales tax increase, but would not oppose the tobacco tax, a small temporary income tax surcharge or small temporary sales tax increase. The legislature approved a 25-cent per pack increase on cigarettes, a 7 percent increase in smokeless tobacco taxes and a temporary 3 percent income tax surcharge.

Unemployment Insurance: The State Chamber/AIA's Unemployment Insurance Committee helped develop and pass legislation that would protect the unemployment insurance trust fund.

Transportation: The State Chamber/AIA helped pass a bill that provides a sales tax exemption on the purchase of semi-tractors and trailers and one that repeals escort vehicle requirements for vehicles with lengths in excess of 90 feet.

Workers' Compensation: Our Workers' Compensation Committee met to discuss an "agreed" bill between the AFL-CIO and the State Chamber/AIA; however, shortly after the session began, an agreement was signed by both parties to bring no new legislation and to oppose all bills proposing changes to the workers' compensation laws. Acting in accordance with this agreement, three unwanted workers' compensation proposals were defeated. Two subcommittees have been formed, one in the process of reviewing Rule 30 and another studying the solvency of the Death and Dismemberment Trust Fund.

Activities: The State Chamber/AIA hosted an informal meeting in February between Senator Mark Pryor and leaders of small- and medium-sized businesses. Pryor had requested the meeting to discuss issues and circumstances that might be unique to Arkansas, especially in regard to smaller companies. We also set up a meeting between Pryor and our PINNACLE members in August at Tyson Foods' world headquarters in Springdale. Ernest P. Joshua Sr., founder and CEO of J.M. Products, Inc., was inducted into the new Arkansas Small Business Hall of Fame during the 13th Annual Arkansas Small Business Awards Luncheon in June at the Wyndham 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. Gov. Mike Huckabee was the guest speaker and helped present the awards. The State Chamber/AIA Annual Fall Golf Classic, which helps fund our governmental affairs activities, was held in September at the Maumelle Country Club.

Trade: Although much of DeLille's time this past year has been devoted to helping with our lobbying efforts at the legislature, she continues to develop an international trade emphasis for the State Chamber/AIA. She has met with diplomats from Japan, China and Nigeria in addition to building contacts throughout Arkansas and in Washington, D.C.

Communications: In addition to the communications efforts previously mentioned, PolicyWatch, our printed newsletter, continues to provide information to our members on issues and events on a monthly basis. Two of our printed pieces were honored last fall by the Arkansas Chapter of the International Association of Business Communicators in its awards competition. Bill Paddack received Bronze Quills for the 2001 Annual Meeting program/report and the 2002 Congressional Salute program/poster.

Other State Issues: As a member of Arkansans to Protect Police, Libraries, Education & Services (APPLES), the State Chamber/AIA was a strong voice in the opposition to Constitutional Amendment 3. The amendment, which would have eliminated taxes on food and medicine, was defeated at the polls in November 2002.

National Issues: The State Chamber/AIA, through its partnership with the U. S. Chamber of Commerce and the National Association of Manufacturers, advocated several issues with members of the Arkansas congressional delegation, including estate tax repeal, class action reform, oil exploration and the airline crisis.

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