Daily Legislative Update

Wednesday, March 20, 2013

66^th Day of the 89^th General Assembly

 STATE CHAMBER/AIA TAX BILLS

TAX REDUCTION FOR MANUFACTURERS AND IPPs

***HB 1218 by Rep. Lane Jean and Sen. Bill Sample will likely be amended again before it is considered by the House Revenue and Tax Committee. It has been amended to remove the final step of the proposed excise tax reduction on one portion of the sales of utilities to manufacturers in NAICS codes 31-32-33, reducing the tax on sales of utilities to facilities that use combined-cycle gas turbine technology to 1 percent by 2015 (but not 0 percent, as in the last engrossment of the bill). The bill also continues the phased reduction of the excise tax on the purchase of natural gas used in the production of electricity. However, the one-eighth (1/8) of one percent conservation tax and the temporary sales tax of one-half (1/2) of one percent highway tax would not be eliminated for manufacturers or independent power producers. _

 TAX REDUCTION FOR REPAIR AND REPLACEMENT PARTS

***SB 334 by Sen. Jake Files and Rep. Tommy Wren will be amended soon. This bill would provide a refund of sales and use taxes for expenditures on repairs and replacement of certain machinery and equipment used directly in manufacturing. As originally drafted, the bill set a six-year schedule for gradually increasing the refund to 100 percent in 2018. However, the one-eighth (1/8) of one percent conservation tax and the temporary sales tax of one-half (1/2) of one percent highway tax would not be eliminated. SB 334 is on the Senate Revenue and Tax Committee agenda. _

 If you have not already done so, now is the time to contact your legislators and tell them about the importance of these job-creating and job-protecting tax reductions to your business. You may find contact information on the General Assembly’s website.

 YESTERDAY AT THE CAPITOL

ISSUES

UNEMPLOYMENT INSURANCE

***SB 857 by Sen. Alan Clark passed the Senate yesterday by a vote of 34 – 0 with 1 not voting. SB 857 would require the Department of Workforce Services to enforce provisions concerning ineligibility for extended unemployment benefits for failure to accept or seek work and to report results to the Legislative Council quarterly. Amendment No. 1 would create specific requirements for the director’s reports to the Legislative Council and require the Department to facilitate electronic reporting of unemployment benefit recipients who refuse to take jobs or fail drug tests. It also would require the Department to notify employers with instructions for reporting such cases and remove liability for an employer who makes such a report with the belief that it is true. _

 NIGHT SKY PROTECTION

***HB 1568 by Rep. Stephen Meeks failed on a voice vote in the House Public Health, Welfare and Labor Committee yesterday. The bill would require public entities to install only shielded, energy-efficient, outdoor lighting when replacing or adding permanent outdoor fixtures. It would regulate roadway signage, reduce light pollution and would prohibit excessive light trespass generally. _

 TODAY AT THE CAPITOL

House convenes at 1:30 p.m.

Senate convenes at 1:30 p.m.

 Committee Meetings:

 JOINT:

 SENATE:

 HOUSE:

 ISSUES

ECONOMIC DEVELOPMENT CONTRACTS

***HB 1145 by Rep. Jim Nickels remains on the House Agriculture, Forestry and Economic Development Committee agenda. Rep. Nickels has told us he plans to run the bill this week. HB 1145 would limit the authority of local governments to contract with not-for-profits for economic/industrial development services. It would also prohibit a contract with a not-for-profit that makes any political contributions during the term of the contract and would require a not-for-profit that provides services to file an annual report with the local government. The State Chamber/AIA is opposed to this bill. _

 EMINENT DOMAIN

***SB 787 by Sen. Joyce Elliott would require that the court appoint and the condemning entity pay for legal representation for property owners in any eminent domain proceeding who do not have attorneys. It would also require compensation for property taken to include costs of relocation. This bill is on the Senate Judiciary Committee agenda. _

 WORKERS’ COMPENSATION

***SB 802 by Sen. David Sanders would specify that owner/operators providing commercial motor vehicles or drivers to a motor carrier under contract are not employees of the carrier but independent contractors for purposes of workers’ compensation law. It is on the Senate Public Health, Welfare and Labor Committee agenda. _

 ***SB 813 by Sen. Jon Woods would amend Workers’ Compensation law to require a complaint of muscle spasms to be an objective finding, with a specific diagnosis of palpable muscle spasms to qualify as a compensable impairment. It is on the Senate Public Health, Welfare and Labor Committee agenda. _

 UNEMPLOYMENT INSURANCE

***SB 542 by Sen. Missy Irvin would require that the Department of Workforce Services track false statements and misrepresentation by applicants for unemployment benefits and report to the Legislative Council. It is on the Senate Public Health, Welfare and Labor Committee agenda. _

 ***SB 780 by Sen. Cecile Bledsoe would add types of employee conduct which can disqualify persons from receiving unemployment benefits when the conduct leads to their termination. It is on the Senate Public Health, Welfare and Labor Committee agenda. _

 ***SB 850 by Sen. Jim Hendren would reduce the rate of the Unemployment Stabilization Tax from 0.7 percent to 0.5 percent and, when assets of the Unemployment Compensation Fund are less than 0.4 percent of total payrolls during the preceding calendar, from 0.8 percent to 0.6 percent. It has been referred to the Senate Public Health, Welfare and Labor Committee. _

 ***SB 875 by Sen. Bart Hester would reduce weekly unemployment benefits from 66 2/3 percent to 60 percent of the average weekly wage for insured employment, with a maximum benefit amount of $325.00 per week. It has been referred to the Senate Public Health, Welfare and Labor Committee. _

 ***SB 1112 by Sen. Robert Thompson would repeal most of the changes made by the Department of Workforce Service’s (DWS) bill in the 2011 Regular Session. Act 1040 of 2011 extended the expiration date from 2011 to 2015 for mandatory deposits of portions of proceeds from the stabilization tax in the UI Trust Fund and Workforce Services Training Trust Fund. The language in SB 1112 addresses UI eligibility related to certain employment in an educational setting. It has been referred to the Senate Public Health, Labor and Labor Committee. _

 ***SB 1116 by Sen. Ronald Caldwell would provide for an increase in an employer’s additional contribution assessments of the unemployment insurance stabilization tax. It has been referred to the Senate Public Health, Welfare and Labor Committee. _

 AVAILIBILITY OF SALES AND USE TAX RECORDS

***SB 825 by Sen. Uvalde Lindsey has been referred to the Senate Revenue and Tax Committee. This bill would require the Department of Finance and Administration to prepare a quarterly report listing all businesses remitting sales and use tax and making the report available to county and municipality administrators upon request. Sen. Lindsey is not expected to run the bill in its current form. The State Chamber/AIA joins several associations in opposing this bill. _

 STATE CHAMBER/AIA BILL TRACKING

This session, the House filed 1,300 bills and the Senate filed 1,192 bills.

 The State Chamber/AIA is tracking 612 bills and resolutions. For the complete, searchable list of bills being tracked please visit our tracking site. The full text of each bill is available at the site. 

THIS WEEK AT THE CAPITOL

Committee Meetings: Thursday, March 21, 2013

 JOINT:

 SENATE:

 HOUSE:

 ISSUES

STATUTORY FORECLOSURES

***HB 1847 by Rep. Jim Nickels is scheduled for a Special Order of Business tomorrow, March 21, in the House Judiciary Committee. HB 1847 would abolish the authority and procedures to perform statutory foreclosures. It would direct county circuit clerks to conduct judicial sales of real or personal property, prescribe a fee schedule and allow fees collected to be used to offset administrative costs or the sale and general operation of the circuit clerk. _

 HIGHWAY FUNDING

***HB 1418 by Rep. Jonathan Barnett may be considered in the House Transportation Committee on Thursday. HB 1418 would now phase in over 10 years only the sales and use tax on new and used vehicles. The phase-in would not take place until general sales tax revenue as a portion of General Revenue reaches $2.25 billion (raised from $2.2 billion). The bill also allows the revenues allocated to the County Aid Fund and the Municipal Aid Fund to be used for any county or municipal purpose (respectively), in addition to roads, streets and bridges. _

 INDEMNITY CLAUSES

***SB 762 by Sen. Jeremy Hutchinson would prohibit enforcement of indemnity or hold harmless clauses in motor carrier transportation contracts. An amendment was filed that would exclude insurance contracts from the rules created in this bill. SB 762 received a Do Pass recommendation from the Senate Judiciary Committee, but the bill has not been considered by the Senate. _

 ***SB 917 by Sen. Bruce Holland would extend provisions regarding the unenforceability of a construction contract hold harmless clause to limit liability for death or bodily injury to the construction company’s surety or insurer. It is on the Senate Insurance and Commerce agenda. _

 UNEMPLOYMENT INSURANCE

***SB 575 by Sen. Linda Chesterfield passed the Senate last week and has been referred to the House Public Health, Welfare and Labor Committee. This bill would amend various provisions related to unemployment compensation including the addition of a definition of misconduct in connection with work as a disqualification for benefits, procedure for recovery of overpayments and more. SB 575 was filed on behalf of the Department of Workforce Services. The State Chamber/AIA supports this bill. _

 EMINENT DOMAIN

***SB 367 by Sen. Jim Hendren is on the House Judiciary Committee agenda. The bill provides for compensation of private property owners whose property loses fair market value as a result of a government regulatory program. It does not apply to a property owner if the regulatory program does not directly apply to the property. _

 UNITARY COMBINED INCOME TAX REPORTING

***HB 1845 by Rep. Jim Nickels would define tax haven and unitary business and require corporations with nexus to Arkansas engaged in a unitary business with another corporation to file a combined income tax report. This bill is on the House Revenue and Tax Committee agenda. The State Chamber/AIA is opposed to this bill. _

 WORKERS’ COMPENSATION

***SB 515 by Sen. Cecile Bledsoe would amend Workers’ Compensation Law, providing that an employee who retains a compensable injury is entitled to benefits during the healing period only if the employer does not have work available with the employee’s medical restrictions. This bill received a Do Pass recommendation from the Senate Public Health, Welfare and Labor Committee, but has not yet been considered by the Senate. _

 ***SB 589 by Sen. Jon Woods received a Do Pass as Amended recommendation from the Senate Judiciary Committee last week, but has not been put on the Senate calendar. Amendment No. 1 restricts the scope of this bill to firefighters and law enforcement officers only, removing mention of medical and other emergency personnel. The amendment also removes the provision that would increase temporary and total disability from 26 to 52 weeks (as was included in the original bill). As originally drafted, this bill would have defined an emergency responder for purposes of workers’ compensation for mental injury or illness as a compensated person or volunteer who is acting in an assigned role in public safety and emergency services. It would also have increased temporary total disability from 26 to 52 weeks. The State Chamber/AIA is opposed to this bill. _

 ***HB 1846 by Rep. Jim Nickels would repeal § 11-9-102(9)(B), which exempted real estate agents from the workers’ compensation law. It is on the House Public Health, Welfare and Labor Committee agenda. _

 EMPLOYEE HANDGUNS ON COMPANY PROPERTY

***HB 1269 by Rep. John Catlett remains on the deferred list in the House Judiciary Committee. The bill would prohibit an employer from basing an employee’s employment status on concealed handgun licensure and would require employers to permit employees with handgun licenses to possess a handgun locked inside a vehicle in the employer’s parking lot. It includes exemptions for certain properties owned by chemical, oil or gas companies and for property owned by a person other than the employer that is subject to a mineral lease. It also precludes liability of an employer for damages resulting from an employee’s possession of a handgun and states that the employer does not have a duty to patrol or secure the parking area. In response to State Chamber/AIA member comments, we are opposed to this bill.

 Please make sure you have expressed your opposition to this legislation when speaking with your state representative, especially those who are members of the House Judiciary Committee. Contact information for Committee members can be found here and a listing of all legislators is available here.