Daily Legislative Update
Thursday, February 7, 2013
25th Day of the 89th General Assembly
Members of the Arkansas Senate and House of Representatives spent a good amount of time this week gathering details regarding the Big River steel project. The Senate met in a “committee of the whole” on Monday with the House following suit yesterday. In a committee of the whole, the entire legislative body is considered one large committee, providing a forum for all members of the legislative body to hear a presentation and ask questions just as they would during the regular committee process.
Roby Brock with Talk Business reported, “The 525-job Big River Steel Mill, to be located near Osceola, Arkansas, will require the State Legislature to approve a $125 million bond program to help with start-up costs related to the big plant.” Amendment 82 to the Arkansas Constitution authorizes the use of general obligation bonds for major economic development projects, provided the projects meet a set of strict guidelines. The total cost of the steel mill super project will be $1.1 billion. Brock provides details in the following links in an excellent summary of the Big River project, as well as the Senate and House debate.
TODAY AT THE CAPITOL
Senate convenes at 9:00 a.m.
House convenes at 1:30 p.m.
Committee Meetings:
JOINT:
None listed.
SENATE:
| 10 Minutes Upon Adjournment | OSC | STATE AGENCIES & GOVT’L AFFAIRS-SENATE | Agenda |
| 10 Minutes Upon Adjournment | Room 272 | CITY, COUNTY & LOCAL AFFAIRS COMMITTEE – SENATE | Agenda |
| 10 Minutes upon Adjournment | ROOM 171 | INSURANCE & COMMERCE – SENATE | Agenda |
HOUSE:
| 10:00 AM | Room 149 | JUDICIARY COMMITTEE- HOUSE | Agenda |
| 10:00 AM | Room 151 | REVENUE & TAXATION- HOUSE | Agenda |
| 10:00 AM | Room B, MAC | PUBLIC TRANSPORTATION- HOUSE | Agenda |
| 10:00 AM | Room 138 | EDUCATION COMMITTEE- HOUSE | Agenda |
| 10:00 AM | Room 130 | PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE- HOUSE | Agenda |
ISSUES
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 today’s House Revenue and Tax Committee agenda, but we do not expect the bill to be heard today. This bill was filed on behalf of the State Chamber/AIA. Please encourage your legislators to support this job-saving bill. _
EMINENT DOMAIN
***HB 1042 by Rep. Nate Bell would provide limitations on the acquisition of private property by eminent domain for private interests. It is on the deferred list in the House Judiciary Committee while Rep. Bell works to address concerns some organizations some have expressed about 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. _
UNEMPLOYMENT INSURANCE
***HB 1018 by Rep. Jim Nickels would increase the maximum potential unemployment benefits in a benefit year from 25 to 25 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.
Rep. Nickels’ bill would reverse a key piece of Act 861 of 2011, the unemployment insurance legislation the Chamber and others worked with Sen. Jonathan Dismang and Rep. Davy Carter to pass during the last regular session. HB 1018 has been set for a special order of business on Thursday, February 14 in the House Public Health, Welfare and Labor Committee. The State Chamber/AIA opposes this bill. _
***HB 1032 by Rep. Denny Altes would require the Department of Workforce Services to conduct bi-weekly interviews with persons making claims for unemployment benefits. This bill remains on the deferred list on the House Public Health, Welfare and Labor Committee agenda. Cost information is not yet available. _
STATE CHAMBER/AIA BILL TRACKING
To date, the House has filed 265 bills and the Senate has filed 256 bills.
The State Chamber/AIA is tracking 126 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.
TOMORROW AT THE CAPITOL
Committee Meetings:
JOINT:
None listed.
SENATE:
None listed.
HOUSE:
| 9:00 AM | Room 138 | AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT- 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 |
| 9:00 AM | Room 130 | AGING, CHILDREN AND YOUTH, LEGISLATIVE & MILITARY AFFAIRS- HOUSE | Agenda |
ISSUES
UNEMPLOYMENT INSURANCE
***HB 1033 by Rep. Denny Altes would require employees to contribute 0.5 percent of all wages to the Unemployment Compensation Fund. It remains on the deferred list in the House Insurance and Commerce Committee. Cost information is not yet available. _
***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. _
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 is on the Senate Education Committee agenda. Like SB 114 and HB 1181, the fiscal impact for SB 65 has been determined to be “unknown” contingent upon the number of net transfers in each school district. _
***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 has been moved to the deferred list in the House Education Committee. _
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 has been referred to the House Revenue and Tax Committee. 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. _
CONTACT INFORMATION
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.
State Chamber/AIA Staff:
Randy Zook, President/CEO: rzook@arkansasstatechamber.com
Kenny Hall, Executive Vice President: khall@arkansasstatechamber.com (on medical leave; contact by e-mail)
Angela DeLille, Director of Governmental Affairs:
adelille@arkansasstatechamber.com
Andrew Parker, Director of Governmental Affairs:
aparker@arkansasstatechamber.com
State Chamber/AIA phone: (501) 372-2222
State Chamber/AIA web site: www.arkansasstatechamber.com
