Daily Legislative Update
Friday, April 3, 2009
82nd Day of the 87th General
Assembly
* * * CALL TO ACTION * * *
INCOME TAX NET LOSS CARRY FORWARD
HB
1911 by Rep. Keith Ingram and Senator Larry Teague is on
Monday’s Senate Revenue and Taxation Committee agenda. Please contact your state senator and urge them to vote for HB 1911. It
would extend the income tax net operating loss (NOL) carry forward period
from 5 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. The
federal government and 25 states allow 20 years, eight states allow 15 years,
one state allows 12 years and five states allow businesses10 years to recover
losses. DFA estimates that more than 75 percent of Arkansas NOL’s expire due to
Members of the Senate Revenue and Tax Committee are: Paul Miller—Chair, Bobby Glover—Vice chair, Denny Altes, John Paul Capps, Steve Faris, Terry Smith, Larry Teague and Sharon Trusty.
CLARIFY DIES AND MOLDS EXEMPTION
SB 770 by Sen. Larry Teague and Rep. Keith Ingram is agreed to by the State Chamber/AIA and the Department of Finance and Administration. It received a Do Pass from the House Revenue and Taxation Committee yesterday and is on today’s House calendar. 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. Please contact your state representative and ask them to vote for SB 770.
REBATE EXTENSION
HB 1949 by Rep. Davy Carter received a Do Pass from the House Revenue and Taxation Committee yesterday and is on today’s House calendar. The bill would extend the time to seek a rebate of local sales taxes from six months to one year. We believe it is important for legislators to understand that the money at issue here is money that we firmly believe belongs to the businesses. Before streamlined sales tax laws went into effect, businesses did NOT pay the amounts at issue here because there was a cap on the local sales taxes. Because streamlined required the removal of the caps, we only agreed to support streamlined if a mechanism was created to allow a full refund to businesses. However, now that we have seen this operate for two years, we believe the six-month time period is too short. It will not allow small, less sophisticated businesses time to claim the rebate. Please contact your state representative and urge them to vote for HB 1949.
* * * HOT TOPICS * * *
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 is on today’s House Insurance and Commerce Committee agenda. This bill will raise health insurance rates for the companies that are not self-insured, which is generally the smaller businesses and non-profit organizations. The State Chamber/AIA opposes this bill.
CONSTITUTIONAL AMENDMENTS
At a joint meeting of the House and Senate State Agencies Committees on Wednesday, the Committees gave Do Pass recommendations to SJR 3 by Sen. Steve Faris and HJR 1007 by House Speaker Robbie Wills.
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 passed the Senate yesterday by a vote of 29 to 0 and will now go to the House for consideration.
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
Each session, the General Assembly can refer up to three constitutional amendments to the next General Election ballot. A second meeting to consider the remaining joint resolutions has been scheduled for Monday at 11:00 am. HJR 1003, SJR 6 and HJR 1004 have the most momentum and the State Chamber/AIA supports them.
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.
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 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
In addition to SB 913 mentioned above, the Arkansas Employers’ Health Care Coalition opposes the following bill:
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 is on the Senate Insurance and Commerce 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
SB 906 by Senator Mary Ann Salmon
would amend the
SB 959 by Sen. John Paul Capps would abolish dormant boards and commissions and to clarify the law concerning ongoing boards and commissions. It passed the Senate unanimously yesterday and has been referred to the House State Agencies and Governmental Affairs Committee.
TODAY AT THE CAPITOL
House convenes at 10:00 a.m.
Senate convenes at 10:00 a.m.
Committee Meetings:
Joint:
8:00 AM |
Room 171 |
|
|
House:
9:00 AM |
ROOM 428 |
|
|||
9:00 AM |
Room 149 |
|
|||
9:00 AM |
Room 151 |
|
|||
9:00 AM |
ROOM 138 |
|
|||
9:00 AM |
130 |
AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE |
|
Senate:
9:00 AM |
Room 171 |
|
|||
9:00 AM |
Room 207 |
|
|||
9:00 AM |
Room 272 |
|
ISSUES
RENEWABLE ENERGY TARIFF
HB 1851 by Rep. Kathy Webb was considered 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.
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 received a Do Pass recommendation from the House Revenue and Taxation Committee yesterday and 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 come up for consideration again.
NEXT WEEK AT THE CAPITOL
Committee Meetings for Monday, April 6, 2009
Joint:
10:00 AM |
Room 130 |
|
|||
11:00 AM |
Room 151 |
|
|||
Upon Adjournment |
Room 171 |
|
House:
None listed.
Senate:
9:00 AM |
Room 207 |
|
|||
10:00 AM |
ROOM 309 |
|
|||
15 Minutes Upon Adjournment of Senate |
Room 207 |
|
|||
Upon Adjournment of Senate |
Room OSC |
|
|||
Upon Adjournment of Senate |
Room 272 |
|
ISSUES
END OF SESSION
The legislature is still expected to adjourn on Thursday, April 9.
YESTERDAY AT THE CAPITOL
ISSUES
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 passed the House yesterday by a vote of 94 to 0.
PENDING ISSUES OF INTEREST
POPULAR VOTE FOR U.S. PRESIDENT
HB 1339 by Rep. Eddie
Cooper and Sen. Terry Smith would assign
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 received a Do Pass as amended from the House Revenue and Taxation Committee yesterday and is on today’s House calendar to formally adopt the amendment.
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 today’s House calendar.
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 was debated on the Senate floor yesterday, but was pulled down by the sponsor.
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 passed the House yesterday by a vote of 73 to 0 and will now go to the Governor for his signature.
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 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 received a Do Pass from the House Revenue and Taxation Committee yesterday and is on today’s House calendar.
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 is on the House State Agencies and Governmental Affairs Committee agenda. 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 is on the House State Agencies and Government Affairs Committee agenda.
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
