Capitol Notebook: PO Funding Bill Signed By Governor, New Tax Cut Bill Emerges

Gov. Asa Hutchinson signed the funding bill for the state’s Private Option program securing spending authority for the state’s innovative and controversial Medicaid expansion program for another fiscal year.

Hutchinson had advocated for an extension of the funding and, in a separate bill, asked lawmakers to create a task force to study the program’s future fate in the context of larger health care reform.

A spokesman for Hutchinson confirmed that the Governor signed SB 101, the funding measure for the Private Option, on Monday with little fanfare.

The bill to create the 16-member task force, SB 96, passed the Senate on Monday and is expected to be signed by Hutchinson on Tuesday.

LOCAL VS. STATE CONTROL
In other business, the State Senate approved several bills, while there was action in the House to amend a tax cut bill recently signed into law by Gov. Asa Hutchinson.

The Senate voted 24-8 to approve Senate Bill 202, sponsored by Sen. Bart Hester, R-Cave Springs.

The bill, which now goes to the House, would create an Intrastate Commerce Improvement Act for the state.

In the bill, Hester said its goal is to “improve intrastate commerce by ensuring that businesses, organizations and employers doing business in the state are subject to uniform non-discrimination laws and obligations.”

“A county, municipality or other political subdivision of the state shall not adopt or enforce an ordinance, resolution, rule, or policy that creates a protected classification or prohibits discrimination on a basis not contained in state,” the law read. “This section does not apply to a rule or policy that pertains only to the employees of a county, municipality or other political subdivision.”

According to published reports, the debate over the issue deals, in part, with an ordinance repealed by voters in Fayetteville in December.

That ordinance would have barred discrimination in housing, work and public accommodations involving sexual orientation or gender identity, content partner KUAR reported Monday afternoon.

The vote also drew the opposition of state Democratic Party leaders.

“This bill strips local control from our communities. Arkansas is home to some of the world’s most notable Fortune 500 companies, like Wal-Mart, who have adopted good business policies that prohibit discrimination in the workplace, and yet, some Republican legislators would prefer to move our state backwards with this overreaching bill,” the statement from party chairman Vincent Insalaco, 1st Vice Chair Joyce Elliott, 2nd Vice Chair Janet Johnson-Henderson and Treasurer Tyler B. Clark read.

FLOOR ACTION
A bill that would have created enhanced penalties for crimes against people over 65 years old failed in the House.

The House voted 46-29, with four present, on House Bill 1117. The bill was five votes short of passage. Rep. Mark Lowery, R-Maumelle, who sponsored the bill, said the bill would have protected the elderly who are vulnerable to crimes.

The bill would have covered felony charges, ranging from fraud to physical assault. A person convicted in the case would have faced between one and 10 years in prison in addition to the prison sentence they may have received for the crime, Lowery said.

However, there was opposition to the bill due to concerns over creating a protected class of citizens.

Rep. Robin Lundstrum, R-Springdale, said she had worked as a counselor at a hospital, helping people ranging in age from 18 months old up to 73 years old.

Lundstrum said she believed the age of the victim should not matter, noting, “It is the cruelty of the crime that matters.”

Rep. Michelle Gray, R-Melbourne, said while she believed the intent of the law was good, she could not support the bill due to concerns of violating the 14th Amendment’s Equal Protection Clause.

The House also voted 93-5 to approve a resolution, setting a recess date for the legislature.

House Concurrent Resolution 1004, sponsored by Speaker Jeremy Gillam, R-Judsonia, would set an April 10 recess date for the legislature as well as a May 8 adjournment date.

Rep. Bill Gossage, R-Ozark, said the legislature could leave earlier than the April 10 date if work is completed on time.

NEW BILLS
The House and Senate clerk’s offices were busy Monday as nearly 60 bills were filed by 4 p.m. Monday.

Among them were bills to amend a tax cut bill signed into law Friday, the budget for the main campus of the state’s largest university and to reimburse counties that are housing state inmates.

Rep. Joe Jett, D-Success, and Sen. Jake Files, R-Fort Smith, filed House Bill 1291.

Jett said the bill – now a shell bill that was referred to the House Journal Committee Monday – would seek to amend the capital gains portion of the law.

In the law signed by Hutchinson, legislators agreed to a 40% exemption rate on capital gains. The number was down from the previous 50%, but lower than a rate approved in a Senate amendment by Sen. Bill Sample, R-Hot Springs.

Jett said his committee and its counterpart in the Senate would look at putting the exemption rate back to 50% and return a $10 million exemption rate that was in the law as well.

Setting the rate at 50% would have a $10.1 million impact to the state budget, while the $10 million exemption would have a $1.2 million impact, Jett said.

Sen. Missy Irvin, R-Mountain View, introduced Senate Bill 269, the appropriations bill for the University of Arkansas at Fayetteville, Monday.

The $692 million budget, which would cover expenses from June 30, 2015 until July 1, 2016, has $250 million set aside for operating expenses as well as $121 million for capital improvements.

Nearly $800,000 is set aside for the University of Arkansas School of Law, with another $250,000 for the Research and Technology Park on campus.

The Joint Budget Committee also introduced House Bill 1316.

The bill would appropriate $10 million to reimburse counties for housing state inmates. The issue was discussed Monday by Hutchinson during a meeting with county judges in Little Rock.

TUESDAY’S SCHEDULE
The following is a list of committee meetings set for Tuesday in the Arkansas General Assembly:

Joint Committees
7:30 a.m. – JBC-Personnel, Room B, MAC.
9 a.m. – Joint Budget Committee, Room A, MAC.

House Committees
10 a.m. – Education, Room 138.
10 a.m. – Judiciary, Room 149.
10 a.m. – Public Health, Welfare and Labor, Room 130.
10 a.m. – Public Transportation, Room B.
10 a.m. – Revenue and Taxation, Room 151.

Senate Committees
10 a.m. – Agriculture, Forestry and Economic Development, Room 309.
10 a.m. – City, County and Local Affairs, Room 272.
10 a.m. – Insurance and Commerce, Room 171.
10 a.m. – State Agencies and Governmental Affairs, OSC.

The House and Senate will convene at 1:30 p.m. Tuesday.