Capitol Notebook: Senate Approves Governor’s Tax Cut Measure, PO Task Force Bill Drops

A key part of Gov. Asa Hutchinson’s legislative agenda moved from one end of the capitol to the other Thursday as plans for a House committee hearing are being ironed out.

The tax cut proposal by Hutchinson will now make its way to the House after the state Senate overwhelmingly approved the plan Thursday.

The state Senate voted 30-3 Thursday morning to approve Senate Bill 6, cosponsored by Senate President Pro Tempore Jonathan Dismang, R-Searcy and House Speaker Jeremy Gillam, R-Judsonia.

The bill, which passed the Senate Revenue and Taxation committee Wednesday by voice vote, is geared toward middle-class taxpayers.

Under the bill, the plan would immediately cut taxes by 0.1 percent in 2015 for people making $4,300 to $20,999.

Next year, the rate for people making between $21,000 and $35,099 would go from six percent to five percent; while people making $35,100 to $75,000 would go from seven percent to six percent.

The bill also included an amendment by Sen. Bill Sample, R-Hot Springs that would change the exemption rate on capital gains from 50 to 30 percent.

The bill drew support from 22 Republicans and eight Democrats, while three Democrats voted no.

Voting in favor of the bill were Dismang, Sample and Republicans Cecile Bledsoe, Ron Caldwell, Alan Clark, Linda Collins-Smith, John Cooper, Jane English, Jake Files, Scott Flippo, Jim Hendren, Jimmy Hickey, Jeremy Hutchinson, Missy Irvin, Blake Johnson, Jason Rapert, Terry Rice, David Sanders, Gary Stubblefield, Eddie Joe Williams and Jon Woods.

Democrats voting in favor of the bill were David Burnett, Eddie Cheatham, Stephanie Flowers, Keith Ingram, Uvalde Lindsey, Bruce Maloch, Bobby Pierce and Larry Teague.

Voting against the bill were Democrats Linda Chesterfield, Joyce Elliott and David Johnson.

The bill now goes to the House.

Late Thursday, the bill was forwarded to the House Revenue and Taxation committee, where the chairman of that committee, Rep. Joe Jett, D-Success, said it could be taken up next week.

FLOOR ACTION
The state House voted 93-0, with Rep. Vivian Flowers, D-Pine Bluff voting present, to approve House Bill 1013.

The bill, sponsored by Rep. Nate Bell, R-Mena, would amend state law involving commissioners appointed to sell property under judicial decrees.

Bell told the House that a 2013 law barred circuit clerks from the sales. The bill would seek to include county clerks in the law.

“If the county clerk’s office is appointed as commissioner for a sale of real or personal property under judicial decree, the fee awarded to the county clerk’s office under this section shall be collected by the county clerk and paid into the county treasury to the credit of a fund to be known as the ‘county clerk commissioner’s fee fund,’” the law reads.

Under the bill, the money collected would be used to offset administrative costs “associated with the performance of the commissioner’s duties and for general operational expenses of the office of county clerk.”

While not naming any names, Bell said he had heard of county clerks in the state profiting from the sales and wanted to extend the law to county clerks.

PRIVATE OPTION BILL INTRODUCED
Late Thursday, the Arkansas Health Reform Act of 2015 was introduced.

The bill – Senate Bill 96 – sponsored by Sen. Jim Hendren, R-Gravette would address issues brought up in a speech Thursday by Gov. Asa Hutchinson at UAMS on the private option.

The nine-page bill has not been referred to a committee.

A 16-member group – called the Arkansas Health Reform Legislative Task Force – would work on the future of the program with a Dec. 31, 2015 deadline to turn in a report with recommendations.

Under the bill, the group would be made up of:

· The President Pro Tempore of the Senate or his or her designee.
· Five members of the Senate appointed by the President Pro Tempore.
· The state Senate Majority Leader or their designee.
· The state Senate Minority Leader or their designee.
· The state House Speaker or their designee.
· Five members of the House appointed by the Speaker.
· The state House Majority Leader or their designee.
· The state House Minority Leader or their designee.

The state’s Surgeon General would also serve as a non-voting member of the group.

The group would meet within 30 days of the bill becoming law and have a Dec. 31, 2015 deadline to make a recommendation.

“The purpose of the Task Force is to recommend an alternative healthcare coverage model and legislative framework to ensure the continued availability of healthcare services for vulnerable populations covered by the Health Care Independence Program established by the Health Care Independence Act of 2013 upon program termination,” the bill reads. “And explore and recommend options to modernize Medicaid programs serving the indigent, aged and disabled.”

OTHER BILLS INTRODUCED
The following major bills were introduced Thursday in the Arkansas General Assembly:

House Bill 1133 (Rep. Scott Baltz, D-Pocahontas) – To create a program for licensure of community paramedics.

Senate Bill 95 (Sen. Jon Woods, R-Springdale) – To create a sales and use tax exemption for certain service organizations.

House Bill 1127 (Rep. Scott Baltz, D-Pocahontas) – To extend the Legislative Arkansas Blue Ribbon Committee on Local 911 Systems until 2017, and to declare an emergency.

Senate Bill 91 (Joint Budget Committee) – An act for the State Crime Laboratory appropriation for the 2015-2016 fiscal year.

Senate Bill 88 (Joint Budget Committee) – An act for the Office of Medicaid Inspector General appropriation for the 2015-2016 fiscal year.

House Bill 1135 (Joint Budget Committee) – An act for the University of Arkansas at Little Rock appropriation for the 2015-2016 fiscal year.

House Bill 1136 (Rep. Stephen Magie, D-Conway) – To amend the prescriptive authority of advanced practice registered nurses and physician assistants; to extend prescriptive authority to Hydrocodone combination products if expressly authorized by a physician.

BACK NEXT WEEK
Both the House and Senate will be off Friday and will reconvene at 1:30 p.m. Monday.

However, the House Agriculture, Forestry and Economic Development committee will meet at 9 a.m. Friday in Room 138 in the capitol.

The committee is supposed to take up House Bill 1111, sponsored by Rep. Warwick Sabin, D-Little Rock. The bill would create the Partnership for Public Facilities and Infrastructure Act and regulate public-private partnerships for public facilities and infrastructure.