Daily Legislative Update
Friday, February 15, 2013
33rd Day of the 89th General Assembly
YESTERDAY AT THE CAPITOL
UNEMPLOYMENT INSURANCE
***HB 1018 by Rep. Jim Nickels was defeated by a vote of 8-10 in the House Public Health, Welfare and Labor Committee yesterday. The State Chamber/AIA opposed this bill that would increase the maximum potential unemployment benefits in a benefit year from 25 to 26 times the worker’s weekly benefit amount. _
EMINENT DOMAIN
***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 received a Do Pass recommendation from the House Judiciary Committee yesterday and will likely be considered by the full House next week. _
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 “employers” for purposes of the Division of State New Hire Registry. We have received a number of comments about this bill and have expressed your concerns to Rep. Dale. At this point, Rep. Dale does not plan to pursue this legislation in its current form. _
TODAY AT THE CAPITOL
House convenes at 10:00 a.m.
The Senate does not meet.
Committee Meetings:
JOINT:
None listed.
SENATE:
None listed.
HOUSE:
| 9:00 AM | Room 130 | AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE | Agenda |
| 9:00 AM | Room 151 | STATE AGENCIES & GOVT’L AFFAIRS- HOUSE | Agenda |
| 9:00 AM | ROOM B, MAC | CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE | Agenda |
ISSUES
STATE CHAMBER/AIA BILL TRACKING
To date, the House has filed 368 bills and the Senate has filed 340 bills.
The State Chamber/AIA is tracking 192 bills and resolutions.
New bills added to State Chamber/AIA tracking today:
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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.
NEXT WEEK AT THE CAPITOL
Committee Meetings for Monday, February, 18th:
JOINT:
| 10:00 AM | ROOM 130 | PUBLIC RETIREMENT & SOCIAL SECURITY PROGRAMS-JOINT | Agenda |
SENATE:
| 10 Minutes upon Adjournment | Room 309 | TRANSPORTATION, TECHNOLOGY & LEGISLATIVE AFFAIRS – SENATE | Agenda |
HOUSE:
| 10:00 AM | Room 151 | ADVANCED COMMUNICATIONS AND INFORMATION TECHNOLOGY – HOUSE | Agenda |
ISSUES
TAX REDUCTION FOR REPAIR AND REPLACEMENT PARTS
***SB 334 by Sen. Jake Files and Rep. Tommy Wren would provide a refund of sales and use taxes for expenditures on repairs and replacement of certain machinery and equipment used directly in manufacturing. 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 has been referred to the Senate Revenue and Tax Committee. This bill was filed on behalf of the State Chamber/AIA. Please encourage your legislators to support this important legislation. _
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. We have received a significant amount of feedback from members and as such, and at the direction of the Executive Committee, the State Chamber/AIA is opposed to this bill in its current form. _
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. _
UNEMPLOYMENT INSURANCE
***HB 1032 by Rep. Denny Altes remains on the deferred list on the House Public Health, Welfare and Labor Committee agenda. It would require the Department of Workforce Services to conduct bi-weekly interviews with persons making claims for unemployment benefits. _
***HB 1033 by Rep. Denny Altes remains on the deferred list in the House Insurance and Commerce Committee. It would require employees to contribute 0.5 percent of all wages to the Unemployment Compensation Fund. _
***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. Sen. Hutchinson presented the bill to the Senate Public Health, Welfare and Labor Committee on Wednesday, but the committee had several concerns about the bill and questions related to the potential costs. Sen. Hutchinson agreed to pull the bill down while the Department of Workforce Services conducts a fiscal impact study that should be ready next week. _
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 is on the Senate Revenue and Tax Committee agenda. _
SCHOOL CHOICE
***SB 65 by Sen. Johnny Key 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. SB 65 was amended yesterday to add about a dozen cosponsors and has been re-referred to the Senate Education Committee. _
***SB 114 by Sen. Joyce Elliott would repeal the Public School Choice Act of 1989, replacing it with the Arkansas Interdistrict Public School Choice Act of 2013. It is on the Senate Education Committee agenda. _
***HB 1181 by Rep. Kim Hammer would repeal and replace the Public School Choice Act. It is on the deferred list in the House Education Committee. _
