Week 3 Legislative Summary

We are three weeks into the session, and there have been 541 bills filed to date: 339 in the House and 202 in the Senate. Both chambers are beginning to review the various tax cut proposals that are being considered. There is no doubt that tax relief will be provided in some form as a way to deal with the state's current revenue surplus of $843 million -- the main issues this week and in the coming weeks include how this relief will be provided to Arkansas taxpayers.

I have signed on to the governor’s proposal to cut the 6 percent state sales tax on groceries by half this session -- this proposal would have an annual impact of $130 million on the state. At last count, it had 30 Senate sponsors and 42 House sponsors and is awaiting action in the Senate. Meanwhile, Speaker Benny Petrus (D-Stuttgart) will propose a three-bill package to benefit low- and middle-income workers, retirees and manufacturers. These bills would (1) provide $80 million in income-tax rebates for low- and middle-income workers, (2) raise the minimum taxable income for retirees from the current $6,000 to $10,000, for a tax savings to retirees of about $21 million, and (3) reduce the state sales taxes on utilities for manufacturers from 6% to 3%.

Now that we are in receipt of the Act 57 "Adequacy" Report, legislators are beginning to consider the funding mechanism and foundation figures for educational needs. No numbers have been publicly proposed, but the figures I've heard discussed should please local school districts. I also anticipate a portion of the state's revenue surplus being used to satisfy one-time needs for school facilities.

Also this week, we heard a presentation by state highway officials on highway needs. Highway officials cited $16 billion in needs in a transportation "wish list" over the next decade but projected just $4 billion in funding. Our state's total annual gross general revenue collections amount to about $5 billion.

Also during the week, the House approved many proposals, including:

(1) HB 1134 by Rep. Earnest Brown (D-Pine Bluff), to relieve paying back child support obligations if a DNA test disproves paternity. The bill now goes to the Senate. This legislation was discussed on the blog previously after the Arkansas Supreme Court urged the legislature to review this issue.

(2) HB 1157 by Rep. David Wyatt of Batesville, to allow judges to award custody and visitation rights to children’s step-grandparents. I voted against this measure (it passed 57-40) for a variety of reasons. One is that a child's step-parents are not even recognized for visitation under Arkansas law. I believe that this bill put the "cart before the horse." Further, the Arkansas Supreme Court struck down this statute in 2002 after finding it to be overbroad. I believe this proposal would give the court further reason to revisit this statute based on the same reasons.

(3) HB 1230 to increase from four years to six years the length of time that must pass between an inmate’s successive petitions for executive clemency. The bill applies to about 550 inmates sentenced to life without parole. supporters say will be better for victims’ families and will ease the paperwork crush on the state. The state parole board will still have the authority to shorten the time period under certain conditions, such as the inmate’s health and if new-found evidence puts the inmate’s guilt into question. The bill goes to the Senate.

(4) HB 1130 to codify the Uniform Statutory Rule Against Perpetuities. This bill recognizes the common law rule and allows for the reformation of the transferor's intentions. The Arkansas Constitution prohibits perpetual transactions, and this legislation allows for non-vested future interests in property under certain conditions.

(5) House Bill 1200 to replenish the $500,000 Governor’s Emergency Fund. The account had a zero balance around the end of the year. The $500,000 appropriation is available for the rest of this fiscal year, which ends June 30.

I'll continue to keep you posted. Please call or e-mail if I can be of service.