Week 4 Legislative Summary

The 86th Arkansas General Assembly is now four weeks old, and there have been 677 bills filed to date: 414 in the House and 263 in the Senate. We are getting to a point where the busiest committees are setting controversial matters for "special orders of business." For instance, on Tuesday, the House Judiciary Committee will consider the proposed "Castle Doctrine" filed by Rep. Mike Burris (D-Malvern), and on Wednesday, the House Committee on Insurance and Commerce will continue considering the bill to create the offense of "unlawful consumer loans" (i.e., prohibiting payday lenders from charging fees interest in excess of the 17% restriction in the Arkansas Constitution), of which I am a co-sponsor.

It appears as though we'll see a culmination in the competing tax cut proposals being offered in the legislature. As of today, it appears as though some "give and take" will allow both sides to get some/most of what they are seeking for the state's taxpayers. The Senate has approved Governor Beebe's proposal to cut by half the state sales tax on groceries, and that bill is now in the House, where it may be held in committee until negotiations continue. The three-bill alternative package to benefit farmers, retirees and low- and middle-income earners is on Monday's voting calendar. A reduction in the state's 6% grocery tax will help grocery stores and shoppers alike in southwest Arkansas.

Legislative analysts and experts are beginning to discuss the "matrix formula" and proposed figures for the educational foundation funding (as well as non-foundation categorical funding). The appointed Special Masters have also convened to review the work of lawmakers. As you know, the Arkansas Supreme Court declared the public school system unconstitutional in 2002 but has kept the case open to periodically review legislation affecting public schools. I visited extensively this week with newly-elected Attorney General Dustin McDaniel -- who defends the state in litigation involving our educational funding mechanism -- and I'm becoming confident that the legislation and appropriations made in this legislative session will finally put an end to the Lake View litigation regarding the "adequacy" of our public school systems.

These educational discussions will trump major decisions on budget bills and proposed tax cuts, delaying those measures until lawmakers consider educational funding and school facility needs of hundreds of the state's school districts. Because public schools receive more than 50 percent of state general revenues, the biggest decisions on the state budget, including tax relief, will await the school reports.

Also during the week, the House approved:

(1) House Bill 1030, by Rep. Scott Sullivan (D-DeQueen), which raises the state’s homestead exemption from $300 to $350. A 2000 constitutional amendment cutting property taxes established the $300 credit, as well as a half-cent sales tax increase. Proceeds from that sales tax hike went into a trust fund that now totals some $60 million, more than enough to pay for the $22.5 million in tax relief provided by the additional $50 credit, according to supporters. The bill now goes to the Senate.

(2) House Bill 1173, by Rep. Keven Anderson (R-Rogers), which repeals the mandate for schools to conduct BMI measurements. The original law also set nutrition standards for schools to follow, including restrictions on the sale of soft drinks and junk food. The nutrition guidelines would remain in effect.In 2003, the General Assembly approved the Body Mass Index (BMI) law, the first in the nation and one that has since been duplicated by several other states. The BMI is a ratio of height-to-weight and used as measurement of whether a person is overweight or obese. I voted to repeal this mandate and discussed my reasoning -- that the BMI is a poor, outdated indicator of obesity -- in detail on my blog. Opponents of the repeal thought that the experiment has worked and has become a model for the nation and cite a University of Arkansas for Medical Sciences study showing support for the law by a majority of parents and students. Approved in the House on a 71-26 vote, the bill now goes to the Senate. It was one of the more controversial votes of the session so far.

(3) Approved HB 1202, by Rep. Chris Thyer (D-Jonesboro), giving farmers a break on fuel taxes. The bill eliminates the state sales tax on off-road diesel fuel and replaces it with a 6-cents per gallon excise tax. The switch will save farmers about $15 million a year, according to testimony. Farmers were particularly hurt during the surge in diesel and gasoline prices earlier this year. School districts and city and county road departments also will benefit from the bill. Off-road diesel fuel contains a special dye, and it’s illegal for any vehicle used on roads to use the dyed fuel. The bill and its financial costs have already been built into the governor’s proposed balanced budget. The bill now goes to the Senate.

(4) Approved HB 1293, by Rep. Betty Pickett (D-Conway), to allow protective orders issued in domestic abuse cases to remain in effect for up to a decade. State law now sets the duration of protection orders at no less than 90 days to no more than two years. Setting the limit is still up to judges (up to 10 years). There was some heavy discussion in House Judiciary on this bill, as many legislators voiced concerns over what takes place in a pratical sense regarding protective orders: the perpetrator failes to show for court and does not realize the far-reaching repercussions of a protective order until it is too late.

(5) Approved HB 1145, by Rep. David Evans (D-Searcy), to require a school district to notify the family of a student who has been suspended. It is called "Webb’s Law," named for a Searcy student who recently died in a drug overdose. The boy’s father, unaware he had been suspended, dropped him off at school prior to Webb's death. The bill goes to the Senate.

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