Daily Legislative Update

Monday, February 11, 2013

29^th Day of the 89^th General Assembly

TODAY AT THE CAPITOL

House convenes at 1:30 p.m.

Senate convenes at 1:30 p.m.

Committee Meetings:

JOINT:

SENATE:

HOUSE:

None listed.

STATE CHAMBER/AIA BILL TRACKING

To date, the House has filed 284 bills and the Senate has filed 262 bills.

The State Chamber/AIA is tracking 136 bills and resolutions.

New bills added to State Chamber/AIA tracking today:

Please visit our tracking site for the complete, searchable list of bills being tracked. The full text of each bill is available at the site.

THIS WEEK AT THE CAPITOL

Committee Meetings for Tuesday, February 12^th:

JOINT:

SENATE:

HOUSE:

ISSUES

EMPLOYEE HANDGUNS ON COMPANY PROPERTY

***HB 1269 by Rep. John Catlett 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 is on the House Judiciary Committee agenda. Your feedback on this bill is requested and appreciated.                                                    _

INDEPENDENT CONTRACTOR STATUS

***HB 1259 by Rep. Robert Dale provides that persons working as independent contractors for an employer are “employees” and persons who report to IRS money paid to an independent contractor are “employer” for purposes of the Division of State New Hire Registry. It has been referred to the House State Agencies Committee.            _

UNEMPLOYMENT INSURANCE

***HB 1018 by Rep. Jim Nickels is set for a special order of business this Thursday, February 14 in the House Public Health, Welfare and Labor Committee. The State Chamber/AIA opposes this bill, which would increase the maximum potential unemployment benefits in a benefit year from 25 to 26 times the worker’s weekly benefit amount. The Department of Workforce Services estimates increasing Arkansas’s jobless benefits from 25 to 26 weeks would increase benefit payments – and reduce the Trust Fund balance – by approximately $6 million per year.

Additionally, HB 1018 bill would reverse a key piece Act 861 of 2011, the unemployment insurance legislation that the Chamber and others worked with Sen. Jonathan Dismang and Rep. Davy Carter to pass during the last regular session.

If you have not already done so, please contact the members of the House Public Health Committee and ask them to vote against HB 1018.                    _

***HB 1261 by Rep. Denny Altes would increase the time period for filing an appeal to the Department of Workforce Services regarding an administrative decision. It is on the House Public Health, Welfare and Labor Committee agenda.                            _

***SB 38 by Sen. Jeremy Hutchinson would require applicants and recipients of unemployment benefits to be tested for illegal drug use. It remains on the Senate Public Health, Welfare and Labor Committee agenda.                                                           _

ECONOMIC DEVELOPMENT CONTRACTS BILL AMENDED

***HB 1145 by Rep. Jim Nickels was amended last week to limit the authority of local governments to contract with not-for-profits for economic/industrial development services, rather than repeal that authority entirely as in the original bill. The amendment 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.             _

TAX REDUCTION FOR MANUFACTURERS AND IPPs

***HB 1218 by Rep. Lane Jean and Sen. Bill Sample seeks to further reduce the sales taxes paid by manufacturers classified in NAICS codes 31-32-33. It would reduce the sales tax on manufacturers’ utilities from 2.625 percent to 1 percent in 2013 and exempt them from sales tax in 2014. The bill also continues the phased reduction of the excise tax on the purchase of natural gas used in the production of electricity with exemption occurring in 2016. 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. HB 1218 is on the House Revenue and Tax Committee agenda. This bill was filed on behalf of the State Chamber/AIA. Please encourage your legislators to support this job-saving bill. _

NET OPERATING LOSS CARRY-FORWARD

***SB 108 by Sen. Keith Ingram and Rep. Jeremy Gillam would extend the period for which a net operating loss may be carried forward for purposes of state income tax to 10 years or until the loss has been exhausted or absorbed by the taxable income of a succeeding year, whichever is earlier. State and Federal Net Operating Loss (NOL) tax rules apply to businesses that report a taxable loss for a given tax year. These losses can be applied against previous years’ earnings or against future earnings. More than 40 states permit NOL carryovers of 10 – 20 years. Eighteen (18) states permit NOL carry back and carry forward. The IRS permits a carry back of three years and carry forward of 20 years. Arkansas is one of seven states that restricts NOL carry forward to five years only. Extending the carry-forward period for net operating losses is a piece of the State Chamber/AIA’s 2013 Legislative Agenda. Please encourage your legislators to support this bill. SB 108 has been referred to the Senate Revenue and Tax Committee.          _

EMINENT DOMAIN

***HB 1042 by Rep. Nate Bell would provide limitations on the acquisition of private property by eminent domain for private interests. It remains on the deferred list in the House Judiciary Committee while Rep. Bell works on the bill.                                    _

***HB 1192 by Rep. Kim Hammer would prohibit improvement districts from using the power of eminent domain to acquire lands or rights-of-way for their use. It is on the House Judiciary Committee agenda.                                                                     _

CONTACTINFORMATION

State Senators: 501-682-2902

State Representatives: 501-682-6211

To view schedules, calendars, bill information and legislator information, visit:  www.arkleg.state.ar.us.

To view live stream video and audio from the Arkansas House of Representatives, visit www.arkansashouse.org.