Wednesday, March 13, 2013
59th Day of the 89th General Assembly
STATE CHAMBER/AIA TAX BILLS
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 at www.arkleg.state.ar.us
TAX REDUCTION FOR MANUFACTURERS AND IPPs
***HB 1218 by Rep. Lane Jean and Sen. Bill Sample is on today’s House calendar for amendment. Amendment No. 5 removes 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 currently drafted, the bill sets 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. _
TODAY AT THE CAPITOL
House convenes at 1:30 p.m.
Senate convenes at 1:30 p.m.
Committee Meetings:
JOINT:
| 7:30 AM | Room B, MAC | JBC-PERSONNEL | Agenda |
SENATE:
| 10:00 AM | Room 171 | JUDICIARY COMMITTEE – SENATE | Agenda |
| 10:00 AM | Room 272 | PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE – SENATE | Agenda |
| 10:00 AM | Room 207 | EDUCATION COMMITTEE – SENATE | Agenda |
HOUSE:
| 10:00 AM | Room 149 | INSURANCE & COMMERCE- HOUSE | Agenda |
| 10:00 AM | Room 151 | STATE AGENCIES & GOVT’L AFFAIRS- HOUSE | Agenda |
| 10:00 AM | Room B, MAC | CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE | Agenda |
| 10:00 AM | Room 130 | AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE | Agenda |
| 10:00 AM | Room 138 | AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT- HOUSE | Agenda |
| 12:00 PM | Room B, MAC | HOUSE RULES | Agenda |
| 10 Minutes upon Adjournment | Room 151 | STATE AGENCIES & GOVT’L AFFAIRS- HOUSE | Agenda |
ISSUES
HIGHWAY FUNDING
***HB 1418 by Rep. Jonathan Barnett is on today’s House calendar for amendment. Amendment No. 2 restores the specifically designated percentage allocations to the three funds described (as in the original bill), and requires the Chief Fiscal Officer of the State to make these allocations after making the deductions required under § 19-5-202(b)(2)(B)(i). HB 1418 would phase in over 10 years the sales and use tax from road-user items to the highway fund. The phase-in would not take place until general sales tax revenue as a portion of General Revenue reaches $2.2 billion. Amendment No. 1 changed which sales tax revenue streams are used in the allocations described in the bill. It removed specifically designated percentage allocations to the County Aid Fund, Municipal Aid Fund and State Highway and Transportation Department Fund, but retained the year-by-year, phase-in percentages of the revenue shift as described in the original bill. _
AVAILIBILITY OF SALES AND USE TAX RECORDS
***SB 825 by Sen. Uvalde Lindsey was not amended yesterday and is again on today’s Senate calendar for amendment. The amendment would add several co-sponsors and remove Sen. Maloch as a co-sponsor. 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. _
SCHOOL CHOICE
***SB 65 by Sen. Johnny Key is scheduled for a Special Order of Business this morning in the Senate Education Committee. The bill would repeal the Public School Choice Act of 1989 to create the Public School Choice Act of 2013, transferring most of the repealed language from the previous law but omitting any mention of race as a factor in approving or denying a transfer except in the case of a conflict with a court order remedying the past effects of segregation. It would require school boards to adopt standards for approving or denying transfers and require all school districts to participate in the program. _
ECONOMIC DEVELOPMENT CONTRACTS
***HB 1145 by Rep. Jim Nickels is on the House Agriculture, Forestry and Economic Development Committee agenda and we believe it may be heard in committee this morning. The bill 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 eminent domain proceedings who do not have attorneys. It would also require compensation for property taken to include costs of relocation. This bill has been referred to the Senate Judiciary Committee. _
WORKERS’ COMPENSATION
***SB 589 by Sen. Jon Woods is expected to be heard in the Senate Judiciary Committee this morning. This bill would define 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 increase temporary total disability from 26 to 52 weeks. The State Chamber/AIA is opposed to this bill. _
***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. _
***HB 1556 by Rep. Jim Nickels would increase the maximum allowed premium tax on a workers’ compensation insurance policy from 3 percent to 4 percent and credits any funds that exceed 3 percent to the Death and Permanent Total Disability Trust Fund. It is on the House Insurance and Commerce Committee agenda. The State Chamber/AIA is opposed to this bill. _
UNEMPLOYMENT INSURANCE
***SB 38 by Sen. Jeremy Hutchinson is on the deferred list in the Senate Public Health, Welfare and Labor Committee. The bill would require applicants and recipients of unemployment benefits to be tested for illegal drug use. _
***SB 542 by Sen. Missy Irvin would require the Department of Workforce Services to track false statements and misrepresentation by applicants for unemployment benefits and report those to the Legislative Council. It is on the Senate Public Health, Welfare and Labor Committee agenda. _
***SB 575 by Sen. Linda Chesterfield 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. This bill was filed on behalf of the Department of Workforce Services and 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 857 by Sen. Alan Clark 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. 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. _
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 557 bills and resolutions. We are most of the way through a first glance at the almost 700 bills and resolutions that were filed on Monday, March 11, and we have added more than 130 new bills to our tracking list. We will finish reviewing the bills tonight and have the complete listing in tomorrow’s Daily Legislative Update.
In the meantime, please visit our tracking site for the complete, searchable list of bills being tracked. The full text of each bill is available there.
THIS WEEK AT THE CAPITOL
Committee Meetings: Thursday, March 14, 2013
JOINT:
| 7:30 AM | Room 272 | JBC-SPECIAL LANGUAGE | Agenda |
| 9:00 AM | Room A, MAC | JOINT BUDGET COMMITTEE |
SENATE:
| 10 Minutes upon Adjournment | Room 171 | INSURANCE & COMMERCE – SENATE | Agenda |
| 10 Minutes upon Adjournment | OSC | STATE AGENCIES & GOVT’L AFFAIRS-SENATE | Agenda |
HOUSE:
| 10:00 AM | Room 151 | REVENUE & TAXATION- HOUSE | Agenda |
| 10:00 AM | Room 138 | EDUCATION COMMITTEE- HOUSE | Agenda |
| 10:00 AM | Room 130 | PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE- HOUSE | Agenda |
| 10:00 AM | Room B, MAC | PUBLIC TRANSPORTATION- HOUSE | Agenda |
| 10:00 AM | Room 149 | JUDICIARY COMMITTEE- HOUSE | Agenda |
ISSUES
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 last week but has not yet been considered by the Senate. _
INDEMNITY CLAUSES
***SB 762 by Sen. Jeremy Hutchinson would prohibit enforcement of indemnity or hold harmless clauses in motor carrier transportation contracts. An amendment has been filed that would exclude insurance contracts from the rules created in this bill. It received a Do Pass recommendation from the Senate Judiciary Committee last week, but Sen. Hutchinson agreed to hold the bill while several organizations reviewed the legislation. Please look closely at this bill and contact us immediately if you have concerns. _
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. _
NIGHT SKY PROTECTION – Special Order Next Week
***HB 1568 by Rep. Stephen Meeks 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. HB 1568 has been set for a special order of business on March 19 in the House Public Health, Welfare and Labor Committee. _
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. The most recent amendment authorizes the Department of Human Services to disallow an employee to keep a handgun in his or her vehicle if the employee conducts certain activities in the course of work such as transporting children or persons with mental illness. In response to State Chamber/AIA member comments, we are opposed to this bill.
If you have not already done so, please contact your state representative, especially members of the House Judiciary Committee, and encourage them to oppose HB 1269. Contact information for Committee members can be found here. _
WORKERS’ COMPENSATION
***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. _
UNEMPLOYMENT INSURANCE
***HB 1682 by Rep. Bruce Cozart would remove from the definition of employment wages for purposes of Workforce Services law the exception for individuals that have been free from control and direction in connection with performance of the service. It is on the House Public Health, Welfare and Labor Committee agenda. _
