Week 12 Arkansas Legislative Scorecard 2019

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The 92^nd General Assembly should wrap up this week, with Wednesday likely the last day of the regular legislative session. Last week saw the final major pieces of legislation pass or fail. SB576, a bill with an internet sales tax passed on the house floor with 68 yes votes. That legislation is a net tax increase on the people of Arkansas until/if corporate tax reform measures are implemented in FY2027 according to DFA estimates.

SB571, a bill originally filed raising taxes on cigarettes and vaping to fund a redistribution of wealth program (EITC) failed in the House Rev and Tax committee. A Thursday meeting of that committee was canceled, closing the door for the legislation to move any further. That bill is now headed to an interim study according to the sponsor, Sen. Jim Hendren.

A bill that would help Arkansan’s looking to buy a used car was officially defeated. The Governor opposed the bill. It would have exempted from sales tax used cars purchases for less than $7,500. Currently, the exemption is for vehicles under $4,000.

Legislation that would end the private insurance form of Medicaid Expansion in exchange for a fee for service plan was defeated in the House Public Health committee. Government bureaucrats from DHS and the Insurance department testified against the plan, defending the profits flowing to insurance companies. Instead of paying premiums to insurance companies, the legislation would have only paid for actual medical services used by Medicaid expansion beneficiaries. The $8 billion appropriation bill for DHS was passed this week after initially stalling due to work options being struck down by a judge. It is estimated that removal of the work option may cost taxpayers $20 million.

The revenue stabilization act that budgets and funds state government was revealed on Friday. The Governor’s budget provides a $124 million increase in state spending from last fiscal year for a total spend of $5.75 billion. This does not include the increase in federal spending. That bill will be heard this week by the legislature before they recess the session.

You can read details on some of the top stories from last week below, courtesy of Conduit News and Conduit for Action:

• Arkansas Taxes Too High – Map It
• Arkansas Senate Votes In Favor of Defunding Sanctuary Cities
• School Choice Could Become a Reality in Arkansas
• Arkansas Bill Would Require All Public Meetings Be Recorded
• Bill Would End Arkansas Works, Change to Fee for Service Medicaid Expansion

 

Week 12 Scorecard

OPPOSE – HJR1008 – Making It Harder to Pass Citizens Initiatives

By: Rep. DeAnne Vaught (R – Horatio) / Sen. Mat Pitsch (R – Fort Smith)

This is a proposed constitutional amendment that would make it harder for a citizens led initiative to propose and pass constitutional amendments to the Arkansas constitution. Currently, signatures from at least half of the eligible voters in fifteen of Arkansas’ 75 counties must be collected to make it on the ballot. This amendment would increase that rate to 3/5^th of all counties, or 45 of all counties. It would also require all measures to be submitted by January 15 of the election year, moving up the due date by almost six months.

The bill does not decrease the number of referred constitutional amendments the legislature can propose, currently three each legislative session. It does raise the threshold to pass referred amendments from a simple majority to a 3/5^th majority vote for the legislature.

It removes the “cure” period in which groups could get additional signatures if it is determined they have a minimum necessary to continue but some are struck by government actors. Any lawsuits challenging the sufficiency of a proposed amendment must be filed by April 15 of the election year. No changes to challenging the sufficiency of legislatively referred amendments is included.

While the legislature maintains their power to change the Arkansas constitution, and have done so numerous times over the past few legislative sessions, this would make it harder or nearly impossible for a citizen led initiative to qualify for the general election ballot. It appears now that the legislature has gotten their terms extended, pay increased, and taxes inside the constitution they want to shut the door on citizen amendments to change that. It goes against the principles of a more open, honest, and accountable government.

 

Week 11 Scorecard

SUPPORT – HB1929 – Ends Arkansas Works, Changes to Fee for Service Medicaid Expansion

By: Rep. Josh Miller (R – Heber Springs)

This bill would end the current form of Obamacare Medicaid Expansion, called Arkansas Works. In its place a task force would be formed to study a transition to a more traditional Medicaid fee for service program. Currently, insurance companies are paid premiums of over $500 per month for every person enrolled in the program. The insurance companies receive the payments regardless of whether a person ever uses the insurance or receives healthcare services. The change to the more traditional “fee for service” structure would only pay for services that are actually used by the Medicaid Expansion beneficiaries. Thus taxpayers would only pay for healthcare, and not health insurance that lines the pocketbooks of big insurance companies.

While Obamacare Medicaid Expansion itself is a massive expansion of welfare and dependency on government costing billions, this version should be cheaper than the current Arkansas Works setup. A cheaper alternative is supportive over a more expensive one. This change may also undermine the big insurance company’s stranglehold over the Arkansas General Assembly with their massive donations and lobbying pressure. Insurance companies stand to lose nearly $2 billion with this change.

• Failed in House Committee

 

SUPPORT – SB539 – School Choice Tax Credit

By: Sen. Blake Johnson (R – Corning)

This bill would provide educational scholarships for students to attend the schools and educational facilities that are best for them. It would be funded by private donations to private organizations who would oversee the scholarship program. The donations would qualify for tax credits to offset income tax liability for the donors. The program is capped at $3 million per year.

This bill is being proposed in place of SB620. This is a good bill that increases a parent’s choice for the best education of the child. There are no mandates that a student participate. School choice long term should increase a person’s economic freedom with less dependence on government schooling.

• Failed in House Education Committee

 

SUPPORT – HB1928 – Recording of All Public Meetings

By: Rep. Vivian Flowers (D – Pine Bluff)

This bill would require that all public meetings either be audio or video recorded. The recordings must be kept for at least one year and are subject to the Arkansas Freedom of Information law.

This bill would increase transparency and provide a more honest and open government.

• Passed House, On Senate Calendar

 

 

Previous Week Scorecards Note: Some previous legislation may have been amended affecting the original analysis of the legislation.

 

Week 10 Scorecard

SUPPORT – SB620 – SCHOOL CHOICE PILOT PROGRAM PULASKI COUNTY

By: Sen. Blake Johnson (R – Corning)

This bill would establish a new scholarship school choice program for students in Pulaski County (Little Rock area). $3.5 million would be set aside to fund the scholarships. Low income students that qualify for free/reduced lunch would be eligible for the scholarships to be used at a private school in Pulaski County. Up to 500 scholarships could be funded through the program.

This is a good bill that increases a parent’s choice for the best education of the child. There are no mandates that a student participate. School choice long term should increase a person’s economic freedom with less dependence on government schooling.

• In Senate Education committee.

 

OPPOSE – SB571 – $100 Million Tax Increase for Redistribution of Wealth Program

By: Sen. Jim Hendren (R – Gravette)

This bill would increase cigarette taxes by 20%. It would add a new tax on vaping (e-cigarettes) at 67%. The bill creates a new welfare check program that redistributes the wealth from the

Tax increases through an earned income tax credit (EITC). This would be set at 5% of the federal EITC, but could increase if revenue is available from the cigarette taxes.

In the first year, the bill takes $55 million off the top for general revenue. For the second year and ever year after that $83.7 million is taken off the top of general revenue. All revenue from the new 67% vaping tax would go to general revenue. The only money that could be used for the EITC is what is left over from cigarette taxes after the first $83.7 million is taken off the top for general revenue.

The standard deduction is increased, and the lowest income tax bracket is lowered. According to small business owners who testified against the bill, it would close down vaping shops around the state leading to layoffs of employees.

This is a bad bill that would decrease economic freedom, especially for smokers and vapers, hurt small business vape shops and gas stations, and increase dependency on government with an EITC.

• Passed Senate, In House Revenue and Tax Committee. Dead. Referred to Interim Study.

 

OPPOSE – SB576 – Internet Tax 2.0

By : Sen. Bart Hester (R – Cave Springs)

This bill includes a new Internet Sales Tax. The Internet Tax 2.0 goes further than proposed legislation in 2017. It would place a new point of sale tax on internet purchases, including third party sellers. These “marketplace facilitators” were not included in previous legislation nor the legislation upheld by the U.S. Supreme Court.

Simply put, the Internet Tax 2.0 would grow government at the city, county, and state level. It will mean less money in the pockets of Arkansans and more into the government coffers. Some will argue that this is not a new tax and that Arkansas has had a internet sales tax since 1949. We know this is not correct for two reasons. One, the internet did not exist in 1949. Two, there is new legislation

The bill includes some corporate tax reform measures, but it overshadowed by the larger and long-term impacts of increasing the taxing and regulatory authority of online commerce.

At the end of the day this bill grows government at all levels and decreases a person’s economic freedom. It has long term repercussions and takes Arkansas down a slippery slope of taxing and regulating online commerce.

• Passed Senate, Passed House, headed to Governor for signature.

 

Week 8 Scorecard:

SUPPORT – HB1752/HB1753 – Improving the Minimum Wage Law

By: Rep. Robin Lundstrum (R – Elm Springs)

HB1752 would amend the Arkansas minimum wage law by exempting employers with less than twenty-five employees, a private nonprofit developmental service provider, and private nonprofit organizations with an annual budget less than $1 million. HB1753 would exempt people under 21 and college students from the minimum wage law.

In the 2018 General Election voters approved an increase to the minimum wage that rises to $11 per hour by 2021.  For large companies, the costs are passed on to consumers through higher prices or inferior products/services.

This directly increases costs to small businesses and for many, the drastic rise may cause them to close their businesses entirely. Workers making minimum wage are hit hardest as companies look to cut hours or terminate employees to adjust for the increases.

Arkansas has the highest minimum wage in the area. When adjusting for percentage of median wage, Arkansas would have the HIGHEST minimum wage in the entire country.

CFA does not support a minimum wage law. The free market and free people should be allowed to freely contract for providing goods and services.

Exempting the groups in the proposed legislation would provide lower labor costs for small businesses in Arkansas and improve economic freedom.

• Failed on House Floor.

 

SUPPORT – SB521 – Expanding Freedom of Information Law

By: Sen. Kim Hammer (R – Benton)

This bill is a response to SB231 failing in committee, legislation also filed by Sen. Hammer. The bill would expand application of the freedom of information law by updating the definition of what is a public record subject to FOIA. Records by a private foundation with the primary purpose of providing direct financial support to a public university or college would not be considered public records. This would allow FOIA attempts for records through the places like the Razorback Foundation, Red Wolf Foundation, and other foundations that support government universities.

This would increase transparency, expanding access to information on the uses of taxpayer money and government purposes. The “private entity” shield should be pierced.

• Referred to Senate State Agencies Committee

 

OPPOSE – HB1705 – Stifling Free Speech Against Candidates for Judicial Office

By: Rep. Jimmy Gazaway (R – Paragould)

This bill would stifle free speech and statements made against judges and candidates for judge in Arkansas during campaign season. Any money spent that attempts to influence a vote for or against a specific candidate or set of candidates or the public’s perception of a candidate or set of candidates would be defined as an expenditure requiring disclosure of who is spending that money. With such a broad definition any Facebook boosted post, newspaper article, blog post, or any other statements could effectively become an independent expenditure requiring disclosure. Public posting of the name, address, place of business, occupation, and employer name must be disclosed of any person making statements that may influence a person’s perception of a judicial candidate.

Almost any statement, good or bad, could influence a person’s perception of a candidate for office. The bill would put a chilling effect on a person’s ability to engage in free speech and also to educate voters on what a candidate for office has done. A provision of the bill seeks to exempt news articles, opinion pieces, editorials, and communications between organizations but a lawsuit would likely have to ensue to determine what would fit under that exemption.

The bill would also allow special interest opponents of free speech to bring a lawsuit against a person to force compliance with the new regulation. This would almost immediately send a flurry of lawsuits by individuals who want to attempt to silence speech with which they disagree or believe may influence voters against their position. That is a wide-open door for shutting down free speech.

The effort is in response to ads, mailers, and other information provided during the recent Arkansas Supreme Court race that informed the voters of Arkansas of the true, documented, publicly available information about Justice Courtney Goodson. While possibly unflattering, the information, as any information would, influenced the perception of a candidate for office. Goodson won re-election despite the mailers and tv ads.

This is bad legislation that would stifle free speech against government and government actors. Transparency is for government, privacy is for the people.

• Pulled by House Sponsor.

 

OPPOSE – SJR15 – Creating Lifetime Legislators with Cooling Off Periods

By: Sen. Alan Clark (R – Lonsdale)

This is a proposed constitutional amendment that would change term limits for legislators, providing for lifetime service with short cooling off periods, and permanently banning the people of Arkansas to set term limits for their legislators, with the legislature themselves only being able to set term limits moving forward.

Specifically, the bill would allow any legislator to serve 12 years in the state legislature before sitting out. A legislator would have to sit out for 4 years but could then return to the legislature. They could do this for an unlimited number of 12-year periods, as long as they sit out four years in between. Currently, after the legislature increased term limits a few years ago with a misleading ballot title, legislators can serve 16 total years.

This ballot title itself is misleading in that it says it is “reducing term limits” for the general assembly. While it would decrease the amount of consecutive time served, from 16 years to 12 years, it would drastically open up the amount of time a legislature can serve in Little Rock to an unlimited amount. The bill would allow current legislators who would cap out at 16 years to return immediately after sitting out for four years. That is just one term for State Senators. The bill would also adjust judicial term limits and set them at twelve years, with four year cooling off periods in between.

Finally, the bill would forever ban the people of Arkansas from decreasing or changing in any way term limits of their elected officials. Instead, the legislators themselves would be the only ones who could adjust term limits.

This is a government growth measure that would ensure further entrenchment of state legislators into the system of big government controlled by special interests. The longer a legislator is in Little Rock the closer they get to special interests and lobbyists and further removed from the people of their district. We should not increase the time a person can be a legislator and should not prohibit the people from changing term limits on their elected officials.

• The title has changed. Does not include judicial term limits. Passed Senate, Passed House. Will be on general election 2020 ballot.

 

Week 7 Scorecard:

SUPPORT – HB1642 – Removing Certificate for Natural Hair Braiding

By: Rep. Les Warren (R – Hot Springs)

This bill removes the natural hair braiding certificate issued by the state. Currently a person must pay $30, sign an affidavit of practicing for two years, affidavit by an employer or customer who has witnesses them working for two years, and if coming from another state pass a test to get their certificate to perform natural hair braiding.

This bill will allow greater economic freedom for a person to engage in natural hair braiding without a costly and cumbersome government permission slip.

• Referred to House Public Health Committee

 

OPPOSE – HB1568 – New Healthcare Council to Lobby Legislators

By: Rep. Lee Johnson (R – Fort Smith) / Sen. Missy Irvin (R – Mountain View)

This bill is substantively the same as SB192 by Sen. Missy Irvin. It would set up a new council to “evaluate and provide recommendations to the General Assembly regarding scope of practice changes” according to the bill. This council would consist of members mostly from state boards of licensing in healthcare.

The council is tasked with providing evaluation and recommendations on the following:

1. Practitioners seeking to establish new healthcare professions to be licensed;
2. Healthcare professionals seeking to expand or narrow the scope of practice of a healthcare profession;
3. Determine if those seeking new licensure or changing scope of practice have knowledge, training, experience, and skills to provide that proposed care;
4. Examine the impact on public health and safety, economic impact, whether the benefits outweigh the harm, and provide recommendations to the General Assembly to support legislative decision making.

Unfortunately, this bill creates a new council for healthcare professions that sounds eerily similar to a Paul Harrell Parody. The parody discusses the formation of a state board governing state licensing boards. Of course, only in the name of public safety. You can listen to that parody HERE.

It is likely the practical effect of setting up this council is to allow healthcare industry titans to further control licensing and scope of practice changes in Arkansas. It would almost ensure that legislation effecting scope of practice of licensure of any healthcare profession would have a unified, organized voice backed by a fancy healthcare council’s endorsement.

There are already so many ways that the healthcare care industry gets their way in Arkansas politics. Through the political process they are routinely the highest contributors in campaign donations. The healthcare industry also has the Arkansas capitol filled with lobbyists during the legislative session. They hold large events and feedings for state legislators. With a closer and closer decline to socialized medicine, they also have tentacles entrenched in state government.

There are special rules about when a scope of practice bill must be filed (early in the session) and how an interim study proposal may be needed to run the legislation at all. This bill makes it harder on legislators to pass occupational licensing reform. This session alone has seen deregulation and expanded scope of practice bills fails in Public Health committees.

It is already nearly impossible to expand the scope of practice or reduce licensing burdens here in Arkansas. Setting up a new council to better organize and speak on behalf of “the industry” would be unnecessary. Instead of creating this new council, the General Assembly should allow the current legislative process to proceed. There are already enough safeguards for public safety.

Setting up this council could lead to more regulation and less scope of practice expansion for healthcare professionals. This would decrease competition, raise prices, and reduce economic freedom for Arkansans.

• Failed on House Floor.

 

OPPOSE – SJR7 – Adding Additional Legislative Session

By: Sen. Trent Garner (R – El Dorado)

This proposed constitutional amendment would provide for an annual regular legislative session for no more than 60 days. Currently the legislature meets every other year for a regular legislative session. The proposed amendment would also allow the legislature to call special sessions. Currently, only the governor can call a special session and they are limited to items he lists on the agenda. The proposed amendment would get rid of the 30-day fiscal sessions held in even number years.

This proposed change in the Arkansas constitution would grow government by having legislators in Little Rock twice as long, increasing per diem and mileage costs. It would provide twice the opportunities for new laws that could increase the size and scope of government here in Arkansas.

• Referred to Senate State Agencies

 

Week 6 Scorecard

SUPPORT – HB1321 – Homestead Property Tax Credit Increase

By: Rep. Lanny Fite (R – Benton) / Sen. Blake Johnson (R – Corning)

This bill would increase the homestead property tax credit by $25 to $375 per year. The bill would also require study of the formula for calculating the homestead property tax credit amount and the sales and use taxes levied to fund the credit. It would require county assessors to submit a report on the total number of parcels of real property that are used as homesteads. Based on these reports, reductions to the homestead property tax credit down to no lower than $300 could occur.

This bill improves economic freedom by allowing homeowners to keep $25 more of their own money by using this tax credit each year.

• SB447 Passed in its place

 

SUPPPORT – HB1541 – Funding Roads Without Raising Taxes

By: Rep. Julie Mayberry (R – Hensley)

This bill will be competing with the Governor’s highway plan. His plan raises taxes on gas and diesel and extends a half cent sales tax increase that is scheduled to expire in 2023.

This legislation would provide funding for highways without raising taxes. The bill requires that sales and use tax revenue from the sales of used and new vehicles, trailers, and semitrailers would be directed for road use. There are some conditions that must be met to allow the revenue to be directed for road use. The money would be allocated on a monthly basis.

Conditions Necessary to Direct Revenue for Roads:

1. Gross general revenue must be above $2.5 billion.
2. Items “off the top” (example) are deducted before any funds would go to road use.

The amount of money directed to roads from these items would increase by 10% per year over ten years if gross general increased by at least 3% from the year before.

This bill would provide highway funding for roads without raising taxes. It is a prudent, significant, and long term to fund highways without raising taxes. It is the result of governing and finding existing tax revenue instead of raising taxes and should be supported rather than the Governor’s SB336 or HJR1018 which raise taxes.

• Never heard in committee

 

SUPPORT – SB189 – Increasing Access To Healthcare with APRNs

By: Sen. Dave Wallace (R – Leachville) / Rep. Robin Lundstrum (R – Elm Springs)

This bill would remove the requirement for a collaborative practice agreement so that Advanced Practice Registered Nurses (APRN) will have prescriptive authority, thus improving access to healthcare in Arkansas. Currently, an APRN must have a collaborative practice agreement with a licensed physician to prescribe medications. The agreements can range from 10-14% of gross receipts of a nurse practitioners’ practice being paid off the top to licensed physicians under these agreements. Twenty-two states and the Veterans Administration (VA) do not require the collaborative agreements. President Trump’s administration has stated that these agreements are not necessary for the public’s health and safety.

The agreements are anti-competitive and impede additional choice and access to care due for patients. The bill would not allow prescription of schedule two narcotic drugs. APRNs are billed at 80% of the physicians’ rate for healthcare paid under state welfare programs.

The bill will provide more economic freedom for APRN’s to practice in more areas without the collaborative agreements. It could save individuals 20% of costs to see a primary care physician allowing them to keep more of their own money.

• In Senate Public Health Committee

 

SUPPORT – SB298 – Unemployment Tax Cut for Employers

By: Sen. Kim Hammer (R – Benton) / Rep. Robin Lundstrum (R – Elm Springs)

This bill is a reduction in the unemployment tax that employers must pay. Currently, the unemployment tax trust fund is over $700 million. This fund is there for people to draw unemployment benefits if they lose their job. The fund will continue to grow, but how much employers pay will be reduced. Specifically, the wage base on which the employer tax would be based would drop based on the unemployment rate and the balance of the unemployment fund.

This bill would increase economic freedom for employers allowing them to keep more of their money.

• Signed into law.

 

OPPOSE – HB1519 – Raising Legal Age to 21 to Buy Cigarettes, Vaping, E-Cigarettes

By: Rep. Lee Johnson (R – Fort Smith) / Sen. Missy Irvin (R – Mountain View)

This bill would raise the legal age to purchase tobacco products, vapor products, e-cigarettes, and other nicotine products to 21 years old. Currently the legal age limit is 18 years old. The change does not apply to those serving in the military.

This bill reduces a person’s personal freedom to purchase legal products. The government should leave people alone.

• This bill incorporated into HB1565 – signed into law.

 

OPPOSE – SB347 – New Privilege Tax on E-Cigarettes

By: Sen. Will Bond (D – Little Rock)

This bill would place a special privilege tax on e-cigarettes of 16%. The tax would be imposed by September 1, 2019. The first ten million ($10 million) raised from this tax would go to the newly created University of Arkansas Medical Sciences (UAMS) National Cancer Institute Trust Fund. Any additional revenue raised would go directly to the cash fund for UAMS.

This bill grows government by raising taxes.

UPDATE – Language from HB1519 and SB347 has been amended and included in HB1565. CFA will now score HB1565 as an OPPOSE position.

• Updated bill HB1565 signed into law.

 

Week 5 Scorecard

OPPOSE – SB336 / HJR1018 / SJR14 – Highway Tax Hike Plan

By: Sen. Terry Rice (R – Waldron) / Rep. Jeff Wardlaw (R – Warren) / Sen. Lance Eads (R – Springdale)

The Governor’s highway plan is divided into two different legislative measures – a bill and a proposed constitutional amendment. The constitutional amendment would implement a new half-cent sales tax in place of the half-cent sales tax increase scheduled to expire in 2023. The proposed constitutional amendment would be referred to the voters in the General Election in 2020 to vote up or down for the tax increase being extended permanently.

The bill would create a new sales tax at the wholesale level on gas and diesel. The new law would raise the state gas tax to 24.4 cents per gallon and the diesel tax to 28.5 cents per gallon. The bill would also levy a new, annual registration fee of $100 for hybrid vehicles and $200 for electric vehicles. The bill would also divert general revenue from casino gambling to support roads.

Currently, Arkansans almost $1 billion annually in state money towards highways. This measure would increase that annual amount by $414 million. Arkansas already has the highest tax rate on gas in the region. According to reporting by the Arkansas Democrat Gazette, the average person in Arkansas currently pays $318 for highway maintenance.

Overall, the bill would mean a few things for Arkansans:

• Paying more at the pump through higher gas taxes
• Paying more for all items through extension of a half-cent sales tax increase
• Paying more for items that are transported due to higher diesel taxes
• Over $4 billion in tax revenue spent on highway maintenance over the next 10 years

This bill grows the scope of government, increases dependency on government, and decreases Arkansan’s economic freedom taking more money from them and making items more expensive. Instead of cutting spending, they are simply raising taxes.

• Signed Into Law

 

SUPPORT – SB308 – Civil Asset Forfeiture Reform

By: Sen. Bart Hester (R – Cave Springs) / Rep. Austin McCollum (R – Bentonville)

This bill would make it harder for governments to steal people’s stuff before ever being convicted of any crime. Currently, police and prosecutors are allowed great leeway in seizing assets they believe to be part of a crime. Arkansas receives a D- grade from the Institute for Justice for its civil asset forfeiture laws.

Currently in Arkansas, the government only has to show it is more likely than not that seized property is related to a criminal activity and a person must prove their innocence to get the property back. Since 2000, over $80 million in assets have been seized in Arkansas.

This legislation would require a person to first be convicted of a felony offense related to the property being seized. This would not prevent property to be forfeited as part of a negotiated plea agreement. Some exceptions like the death of the property owner or deportation of the property owner would apply.

This bill would decrease dependency on government and protect a person’s private property rights.

• Signed Into Law

 

WEEK 4 SCORECARD

SUPPORT – SB231 – Expanding Freedom of Information Law

By: Sen. Kim Hammer (R – Benton)

This bill would expand application of the freedom of information law to “a private entity expending a minimum of twenty percent (20%) of its time, resources, or efforts I support of a government entity.” Government sometimes set up private entities to carry on taxpayer funded functions. These private entities are then exempt from the freedom of information act, keeping taxpayers in the dark on what the entity is doing with taxpayer money. The bill would capture those entities and make them subject to the Arkansas freedom of information law.

This would increase transparency, expanding access to information on the uses of taxpayer money and government purposes. The “private entity” shield should be pierced.

• Failed In Committee

 

SUPPORT – HB1284 – Advanced Practice Nurse as Primary Care Provider for Medicaid

By: Rep. Justin Gonzales (R – Okolona)

This bill would allow Advanced Practice Nurses (APN) to serve as primary care providers under the Arkansas Medicaid program. The bill should save taxpayers money by allowing APNs to charge their lower reimbursement rates. It should also increase access to care for those in rural areas where a physician may not be located but an APN resides.

With lower reimbursement rates, taxpayers who pay for the Medicaid program could see savings. Reimbursement rates for lab tests, x-rays, and other tests would still be subject to the physician reimbursement rate. This bill would decrease dependency on government by allowing qualified persons to provide taxpayer funded services for a lower rate while maintaining standards of care.

Mr. David Mitchell from the Arkansas Center for Research in Economics (ACRE) appeared on Conduit News Radio with Paul Harrell to discuss allowing APNs to serve as primary care providers and the potential savings. You can watch that interview HERE and read Dr. Mitchell’s piece on this topic HERE.

• Failed in House Public Health Committee

 

SUPPORT – HB1412 – No Taxpayer Money for Teacher Unions/Groups

By: Rep. Jon Eubanks (R – Paris)

This bill would prevent public funds to pay for membership dues for a teacher or classified employee’s professional organization. This would ensure that taxpayer money is not used for organizing and lobbying activities that a teacher’s professional organization may engage in.

Taxpayer money for education should go towards educating children, not for dues in professional organizations. The teacher or employee could still use their salaries to pay for the membership dues.

This bill decreases dependency on government funded lobbyists who may then lobby for bigger government and against school choice. Even more is needed to defund government funded lobbying.

• Senate version of this bill passed in Senate Education Committee

 

OPPOSE – SB260 – Prohibiting PAC to PAC Contributions

By: Sen. Bart Hester (R – Cave Springs)

This bill would prohibit political action committees (PAC) to contribute to other PACs. This bill was filed as part of an “ethics” package, yet PAC contributions are already disclosed through a transparent process. Any contributions to a PAC above $500 must be disclosed and is publicly available. You can know who gave the donation, their address, employer, and occupation.

While there are necessary ethics reforms needed (Medicaid Disclosure, closing lobbyist loophole, more resource for the ethics commission), contributions to PACs and their involvement in elections is simply free political speech and unrelated to ethics reform. Any further restrictions on free speech in Arkansas should be rejected. Any efforts to stifle or silence political opposition under the name of ethics is itself unethical behavior.

• Referred to Committee

 

WEEK 3 SCORECARD

SUPPORT – SB170 – Housing Design Freedom

By: Sen. Bart Hester (R – Cave Springs)

This bill would prevent cities and counties from passing and enforcing onerous “design standards” to which a house must adhere. Design standards may be enforced by a city or county if the structure is in a historic district or the regulations are directly related to safety code requirements or as a condition in a National Flood Insurance Program.

The type of protected design elements includes exterior building color, type or style of exterior housing material, roof structures or pitches, location, design, placement of windows or doors, the number and types of rooms, interior layout of rooms, and the minimum square footage of a structure.

Unfortunately, more cities and counties are attempting to pass new ordinances that would restrict a person’s choices in the design of their home. The added regulations can lead to increased costs for home builders and could provide less opportunities for affordable housing for Arkansans.

The bill would address the issue in cities and counties and provide more economic freedom for individuals and home builders to build the types of homes that the market will bear, and not those that a government entity dictates.

• Signed Into Law.

 

SUPPORT – SB211 – Income Tax Cut

By: Sen. Jonathan Dismang (R – Beebe)

This bill would cut the top income tax rate in Arkansas from 6.9% down to 5.9% through fiscal year 2022. The bill would save taxpayers $97 million per year once full phased in. The current 6.0% rate for middle income filers would drop to 5.9% as well.

This is the Governor’s tax cut bill and does not include any tax increases in the legislation. The bill would decrease the size of government by reducing revenue and increase economic freedom by allowing job creators and working Arkansans to keep more of their money.

• Signed Into Law

 

SUPPORT – HB1342 – Sales Tax Cut on Used Vehicles

By: Rep. John Payton (R – Wilburn)

This bill would exempt vehicles purchased for less than $7,500 from sales tax. Currently the limit is $4,000. When vehicles are bought new the full sales tax is applied and paid. Any additional taxation on used vehicles would be double sales tax paid on the same vehicle.

This bill should result in less money flowing to state government, and thus provide more economic freedom for Arkansans. It will allow Arkansans to purchase a used vehicle without having to pay an extra 7-10% for sales tax (that has already been paid once on a vehicle). Those who might could afford a financed car at $7,000 might not be able to pay a due now sales tax bill of $700+ upon purchase of that vehicle.

• Passed House; Failed in Senate Revenue and Tax Committee.

 

SUPPORT – HB1343 – Transparency in County Government Spending

By: Rep. Spencer Hawks (R – Conway)

Requires a county clerk publish publish the county’s annual financial report on a website owned or maintained by the county. Currently, a county only has to release the report in a newspaper published in the county.

This bill would provide for more transparency of government spending at the county level. According to a report by the Arkansas Center for Research in Economics (ACRE), a 2013 report revealed that Arkansas counties are the worst in the nation in publishing public information on their websites.

This bill would provide more transparency on the county level of what government is doing with the people’s money, allowing for a more honest, open, and transparent government.

• Signed Into Law.

 

OPPOSE – SB192 – New Healthcare Council to Lobby Legislators

By: Sen. Missy Irvin (R – Mountain View)

This bill would set up a new council to “evaluate and provide recommendations to the General Assembly regarding scope of practice changes” according to the bill title. This council would consist of 23 members, mostly from state boards of licensing in healthcare.

The council is tasked with providing evaluation and recommendations on the following:

5. Practitioners seeking to establish new healthcare professions to be licensed;
6. Healthcare professionals seeking to expand or narrow the scope of practice of a healthcare profession;
7. Determine if those seeking new licensure or changing scope of practice have knowledge, training, experience, and skills to provide that proposed care;
8. Examine the impact on public health and safety, economic impact, whether the benefits outweigh the harm, and provide recommendations to the General Assembly to support legislative decision making.

Unfortunately, this bill creates a new council for healthcare professions that sounds eerily similar to a Paul Harrell Parody. The parody discusses the formation of a state board government state licensing boards, in the name of public safety. You can listen to that parody HERE.

It is likely the practical effect of setting up this council is to allow healthcare industry titans to further control licensing and scope of practice changes in Arkansas. It would almost ensure that legislation effecting scope of practice of licensure of any healthcare profession would have a unified, organized voice backed by a fancy healthcare council’s endorsement.

There are already so many ways that the healthcare care industry gets their way in Arkansas politics. Through the political process they are routinely the highest contributors in campaign donations. The healthcare industry also has the Arkansas capitol filled with lobbyists during the legislative session. They hold large events and feedings for state legislators. With a closer and closer decline to socialized medicine, they also have tentacles entrenched in state government.

There are special rules about when a scope of practice bill must be filed (early in the session) and how an interim study proposal may be needed to run the legislation at all. This makes it harder on legislators to pass occupational licensing reform.

It is already nearly impossible to expand the scope of practice or reduce licensing burdens here in Arkansas. Setting up a new council to better organize and speak on behalf of “the industry” would be unnecessary. Instead of creating this new council, the General Assembly should allow the current legislative process to proceed. There are already enough safeguards for public safety.

Setting up this council could lead to more regulation and less scope of practice expansion for healthcare professionals. This would decrease competition, raise prices, and reduce economic freedom for Arkansans.

• Withdrawn by sponsor; House Version Failed on House Floor

 

Week Two Scorecard

SUPPORT – HB1251 – Expanding Scope of Practice for Optometrists

By: Rep. Jon Eubanks (R – Paris)

This bill would expand the scope of practice of optometrists in Arkansas. It would add additional therapies, rehabs, ophthalmic surgery, and laser surgery procedures excluding retinal surgery under the scope of practice. Ophthalmic surgery is defined, and credentialing requirements would be established by the State Board of Optometry for the performing of those surgeries.

By expanding the scope of practice, the bill would increase the choice that a patient has. A patient can choose their optometrist to perform some types of ophthalmic surgeries. The more choice a patient has, the more economic freedom they enjoy.

• Signed Into Law

 

SUPPORT – HB1255 – Least Restrictive Licensing Requirements

By: Rep. Jim Dotson (R – Bentonville)

This bill would require a licensing entity to adopt the least restrictive requirements for licensing, registration, or certification for those previously licensed in another state. The licensing entity would have to adopt a rule that is least restrictive that allows for state-to-state reciprocity.

This bill would allow more competition for those looking to come to Arkansas and work. Competition could lower prices or boost quality of services for consumers, and thus provide more economic freedom to Arkansans. It will decrease dependency on government and instead rely on the free market and people’s choices.

• Passed House; Referred to Senate Public Health Committee.

 

SUPPORT – SB157 – Repeals Licensure of Electrologists

By: Sen. Bob Ballinger (R – Berryville)

This bill would repeal the licensing requirement for Electrologist. Electrologists are those providing laser hair removal services. They will no longer have to go through similar education and training requirements that a cosmetologist would have to undergo.

By repealing the licensure requirement, people would be free to engage in this work without a government permission slip. This could provide more choice to consumers and thus more economic freedom. This bill decreases dependency on government to be a regulator, and instead promotes free market choices for regulation.

• Placed on deferred list in committee.

 

SUPPORT – SB166 – Repeals Licensure of Plant Nursery Workers

By: Sen. John Cooper – (R – Jonesboro)

This bill would repeal a law that required a license for a nursery worker. Currently, a nursery worker must obtain a license if they are growing for sale florist stock, trees, shrubs, vines, cuttings, grafts, scions, buds, fruit pies, and other seeds of fruit and ornamental trees.

By repealing the licensure requirement, people would be free to engage in this work without a government permission slip. This could provide more choice to consumers and thus more economic freedom. This bill decreases dependency on government to be a regulator, and instead promotes free market choices for regulation.

• Withdrawn by Sponsor.

 

OPPOSE – HB1260 – Gas Tax Increase

By: Rep. Dan Douglas (R – Bentonville)

This bill would create a new sales tax on gas and diesel at the wholesale level. The tax would be a “per-gallon” sales tax. It would be calculated by taking twelve-month average wholesale selling price of motor fuel/diesel and multiplying that by 3.5%. This new wholesale sales tax on gas would be in addition to the current retail sales tax on gas and diesel, which is the highest in the region.[1] If gas prices go down, the rate from the year before will be used.

The tax increase would then be distributed 70% to the State Highway Fund, 15% to the County Aid Fund, and 15% to the Municipal Aid Fund.

The bill would separately direct sales tax revenues from the sale of used cars to funds for highways if, and only if, general revenue of sales and use tax exceeds $2,500,000,000 ($2.5 billion). In Fiscal Year 2018, general revenue from sales and use tax was $2,448,576,804.[2]

If extra revenue exists, then $30 million (in the first year) from used car sales tax revenue would go towards highways. In the second year $60 million, third year $90 million, and $120 million in the fourth and subsequent years.

This gas tax increase would grow government by raising taxes on the people and would therefore diminish economic freedom in the state.

• Placed on deferred list in committee.

 

Week One Scorecard

SUPPORT – SJR2 – Ending Sovereign Immunity (To Allow Lawsuits Against Government)

By: Sen. Dave Wallace (R – Leachville)

In 2018 the Arkansas Supreme Court ruled that the plain reading of the Arkansas Constitution Inwas clear – the state could not be made a defendant in any of her courts. This reinstituted the doctrine of “sovereign immunity” that would prohibit citizens from filing lawsuits against their state government.

SJR2 is a proposed constitutional amendment that would allow the state to provide causes of action under law in which a person COULD sue the state. Absent this type of change the doctrine of sovereign immunity could be used more routinely to block any and all lawsuits against the state.

This proposed constitutional amendment would provide for a more honest and open government providing strong incentives for the state to treat all persons equally and to stay within the constitutional confines found in the Arkansas constitution. This type of measure is also needed to ensure that illegal exaction lawsuits may continue. Illegal exaction lawsuits are brought to prevent government from illegally spending taxpayer money.

• Still in Committee. Unlikely to be one of three proposed constitutional amendments.

 

SUPPORT – SB52 – No Pensions for Criminal Government Employees

By: Sen. Mark Johnson (R – Little Rock)

2018 saw the culmination of rampant corruption investigations into former Arkansas legislators for bribery and fraud. The best-known incidents included the trial, conviction, and sentencing for former State Senator Jon Woods who got over 18 years in prison for his corruption charges. Investigations continue and indictments are still coming.

This legislation would strip the pension/retirement benefits for public employees who are convicted a felony that is tied to their public position. For example, because former Sen. Jon Woods’ felony convictions were due to his position as a state senator, he would have his pension benefits stripped.

This bill would provide even stronger incentives for public officials and public employees to reject temptations for illegal and corrupt behavior, thus providing a more open and honest government.

New Bill filed on topic – SB234, SB238;

• All versions of bill failed in committee.

 

SB118 – Protecting Free Speech on College Campuses – SUPPORT (Updated Version – SB156 – Signed Into Law – Act 184)

By: Sen. Kim Hammer (R – Benton)

SB118 would protect free speech on college campuses in Arkansas. The legislation would address what are commonly called “free speech zones” where colleges try to contain free speech within defined areas of a campus. Free speech zones would be prohibited under the bill. The legislation would prohibit colleges from suppressing free speech including ideas and opinions they find offensive, jarring, conservative, liberal, or otherwise objectionable. Colleges would no longer be able to prohibit organizations and others from getting prior permits in order to exercise their free speech rights. Colleges could not charge security fees based on the content of a speech and could not disinvite a speaker because the college may not like the content or viewpoint of a speaker.

This legislation would provide for a better marketplace of ideas and stop the silencing of conservative speakers on college campuses. Students would have a cause of action to enforce their free speech rights against government actors. This legislation would provide a more open, honest, transparent government that is accountable to the people.

 

OPPOSE – HB1002 – New Internet Sales Tax

By: Rep. Dan Douglas (R – Bentonville)

HB1002 is essentially the same as SB140 of 2017 (which failed last session). In 2018, the U.S. Supreme Court upheld similar legislation passed in South Dakota allowing for an internet sales tax under certain conditions. HB1002 is tailored to that same law upheld by the Supreme Court. While it may now be constitutional, passage of a new internet sales tax is by no means required. Like Obamacare Medicaid Expansion, it is up to each state on whether they want to pass a massive tax increase or not.

What you need to know about the Internet Sales tax is that it is a TAX ON YOU, not on out state remote sellers. YOU pay the tax. It also grows government at all levels – state, county, and city. Passage of the law would mean that there would be less money in the pockets of Arkansans and thus the economy, and instead in the coffers of city, county, and state government. The Governor has already assumed that an Internet Sales Tax will pass this session and included the increased revenue into the budget. It is likely that the language in HB1002 may be incorporated into other tax legislation as part of the Governor’s tax reform plan.

The Internet Sales Tax is simply a way to grow government and raise tax revenue. It will decrease economic freedom for Arkansans. Very few elected officials campaigned and were elected on a promise to pas a new internet sales tax on the people of Arkansas. Many even promised the opposite – to not raise any taxes and to lower taxes.

• Placed on Deferred List. Language incorporated in SB576.

 

OPPOSE – HB1060 – Adding Continuing Education Requirements for HVACR Licensees

By: Rep. Roger Lynch (R – Lonoke)

This same type of legislation was filed by Sen. Jeremy Hutchinson (now indicted) last session. The bill would require continuing education requirements for heating, ventilation, air condition, and refrigeration (HVACR) licensees. The bill allows the HVACR licensing board to set up a program, assess fees, and set hour requirements for continuing education. To have a license renewed they must show completion of the continuing education requirement.

This new requirement is increased regulation on HVACR licensees. While some in the field may advocate for the legislation, some may use it has a sword to stifle out competition. The increase compliance costs would be passed along to consumer through increased prices or lower quality service. Without less competition and increased compliance costs prices will rise and consumers will lose. This reduces economic freedom and leans on government intervention rather than a free marketplace.

According to the state legislative website Roger Lynch is “Self Employed – Heating, Air Conditioning”.

• Put on Deferred List in Committee

 

 

[1] https://taxfoundation.org/state-gas-tax-rates-july-2018/

[2] http://www.arkleg.state.ar.us/bureau/fiscal/Publications/H.%20%20Tax%20Handbook/2018%20Tax%20Handbook.pdf