Daily Legislative Update
Wednesday,
April 1, 2009
80th Day of the 87th General
Assembly
* * * CALL TO ACTION * * *
INCOME TAX NET LOSS CARRY FORWARD
HB 1911 by Rep. Keith
Ingram received a Do Pass from the House Revenue and Taxation Committee
yesterday and is on today’s House calendar. Please contact your state representative and urge them to vote for HB
1911. It would extend the income tax net operating loss (NOL)
carry forward period from five years to 15 years. It would apply only to
losses incurred on or after January 1, 2009 and would not impact state
revenue until fiscal year 2016.
ENERGY EFFICIENCY PERFORMANCE STANDARDS
HB 1903 by Rep. Joan Cash is expected to be considered this 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 estimate that two percent of utilities’ total utility sales revenues for the preceding year would be about $72 million. The State Chamber/AIA opposes this bill.
HB 1851 by Rep. Kathy
Webb is also expected to come up today in the House Insurance and Commerce
Committee. It requires the state’s electric public utilities to
purchase at least 2 percent 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
HB 1903 and HB 1851 would each cost
Members of the House Insurance and Commerce Committee are:
Eddie Hawkins—Chair, Fred Allen—Vice chair, Bill Abernathy,
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 prohibits insurers from terminating or refusing coverage solely because a person is diagnosed with an autism disorder. It received a Do Pass from the Senate Insurance and Commerce Committee yesterday and is on today’s Senate calendar. This bill could raise health insurance rates by at least 1 percent. The State Chamber/AIA opposes this bill. Please contact your state senator and urge them to vote against SB 913.
* * * HOT TOPICS * * *
CONSTITUTIONAL AMENDMENTS
A joint meeting of the House and Senate State Agencies Committees is scheduled for noon today 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, HJR 1004 and SJR 6.
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.
SJR 6 by Sen. Broadway was originally filed to make savings from performance-based efficiency projects revenue under the revenue bond statutes. This resolution is expected to be amended to include 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 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 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
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 is on the House Revenue and Taxation Committee agenda. 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 but we fell two votes shy of getting the bill out of committee. We made compromise offers to the Municipal League before and after the hearing on this bill but the offers were not accepted. At this stage of the session it is doubtful we will attempt to run this bill again.
In addition to SB 913 mentioned above, the Arkansas Employers’ Health Care Coalition opposes the following bills:
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 the Senate Insurance and Commerce Committee agenda.
HB 2088 by Rep. Gene Shelby would require that physician profile ranking, rating and performance results are not public or used for reimbursement and providing for Insurance Department to promulgate rules for profile accuracy and transparency. This bill is too broadly drafted and would regulate activity that one could not reasonably anticipate. It is on the House Public Health Welfare and Labor Committee agenda.
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 272 |
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9:00 AM |
Room 171 |
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12:00 PM |
Room 151 |
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Upon Adjournment |
Room 149 |
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House:
10:00 AM |
Room 149 |
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10:00 AM |
ROOM 428 |
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10:00 AM |
Room 130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
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10:00 AM |
ROOM 138 |
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10:00 AM |
Room 151 |
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12:00 PM |
Room 428 |
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Senate:
10:00 AM |
Room OSC |
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10:00 AM |
Room 207 |
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10:00 AM |
Room 272 |
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10:00 AM |
Room 171 |
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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 is on today’s Senate calendar.
ELECTION BY PLURALITY
HB 1393 by Rep. Tommy Baker is on today’s House calendar to be withdrawn from further consideration and is expected to be referred to interim study. 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 percent of the vote and won by a specified margin.
ANTI-TORT REFORM
HB 2103 by Rep. Lindsley Smith was defeated in the House Judiciary Committee last week, but remains on the committee’s agenda.
TOMORROW AT THE CAPITOL
Committee Meetings for Thursday, April 2, 2009
Joint:
7:30 AM |
Room 207 |
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8:00 AM |
Room 272 |
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8:00 AM |
Room 151 |
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8:00 AM |
Room 130 |
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9:00 AM |
Room 171 |
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House:
10:00 AM |
Room 428 |
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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 130 |
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Senate:
10:00 AM |
Room 171 |
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10:00 AM |
ROOM 207 |
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10:00 AM |
OSC |
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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 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.
YESTERDAY AT THE CAPITOL
ISSUES
BOARDS AND COMMISSIONS
HB 1968 by Rep. Kathy Webb was defeated on the House floor yesterday by a vote of 38 to 47. We joined the Arkansas Farm Bureau, the Arkansas Municipal League, the Association of Arkansas Counties plus some individual business interests in opposing this bill. We feared this bill would have a chilling effect upon people’s willingness to serve the state through participation in boards and commissions.
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 received a Do Pass recommendation from the House Public Health, Welfare and Labor Committee yesterday and is on today’s House calendar. This bill falls outside of the agreement between the State Chamber/AIA and the AFL-CIO.
UNEMPLOYMENT INSURANCE
SB 429 by Sen. Tracy Steele also received a Do Pass recommendation from the House Public Health, Welfare and Labor Committee yesterday and is on today’s House calendar. 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.
SB 429 makes changes to our UI
system to qualify for federal stimulus dollars.
IMPROVEMENT DISTRICTS
HB 1060 by Rep. Tracy Pennartz would create an income tax credit for 20 percent 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 has been amended nine times and received a Do Pass yesterday from the House Insurance and Commerce Committee.
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 percent to 50 percent of the amount invested; allowing for a tax credit of 100 percent 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.
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 is on the House Agriculture, Forestry and Economic Development Committee agenda.
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 passed the Senate yesterday by a unanimous vote and will now go to the Governor for his signature.
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 awaits consideration by the Senate.
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 awaits consideration by the House.
WORKERS’ COMPENSATION
HB 1864 by Rick Green is a shell bill that was referred to the House Insurance and Commerce Committee weeks ago. The bill addresses transparency and accountability issues of the workers’ compensation self-insurer guaranty fund. If this bill were to be amended it 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 passed the Senate yesterday by a vote of 25 to 0, but is being held in the Senate Chamber. Once released, the bill should go to the Governor’s desk for his signature.
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 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 percent to 75 percent 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 has been referred to the House State Agencies and Governmental Affairs Committee. 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 has been referred to the House State Agencies and Government Affairs Committee.
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
