Capitol Notebook: Elections, Tax Bills Line Agenda

It was a hodge-podge of activity Monday as legislators started what could likely be the last full week of the 2015 legislative session.

A capital gains tax cut bill was amended Monday after sponsors found a mistake in the wording of the bill, while several election and energy related bills got a full airing in committee and on the floor.

CAPITAL GAINS TAX AMENDED
A mistake found in the wording of a capital gains tax cut bill led to House members approving an amendment Monday.

The bill, House Bill 1402, will seek to reinstate a 50% exemption rate for capital gains set during the 2013 legislative session.

A 40% exemption rate was set earlier in the session when lawmakers approved a tax cut bill. The House Revenue and Taxation Committee voted Thursday to approve the bill in committee.

The original amendment, from Rep. Joe Jett, D-Success, called for the 40% rate to go up to 45%, retroactive to Feb. 1, 2015; and then to 50% effective July 1, 2016. Also, a $10 million exemption rate would stay in place.

The new amendment would strike the 50% rate from Jan. 1 to Feb. 1; set the 45% rate, beginning Feb. 1, 2015; and keep the remaining rates in effect.

The new amendment will go back through committee Tuesday; and head back to the House floor Wednesday, Jett said.

SIMULTANEOUS RUN BILL
The House voted 62-14 in favor of a bill to allow a candidate to run for more than one federal office at the same time.

The bill, Senate Bill 803, was sponsored by Sen. Bart Hester, R-Cave Springs and Rep. Nate Bell, R-Mena. Under the bill, a federal candidate “may be a candidate for President or Vice President of the United States and United States Senate or United States House of Representatives in the same primary and general election.”

The bill, which heads back to the Senate, has drawn some interest since it was filed earlier this month. At a committee hearing, Hester said he had Sen. Tom Cotton, R-Ark., in mind when he filed the bill. However, Hester has said he did not speak to Cotton about the bill.

UTILITY BILL
The Joint Energy Committee approved House Bill 1633, sponsored by Rep. Warwick Sabin, D-Little Rock, which will allow a utility to enter into a power purchase agreement.

Under the bill, a power purchase agreement would be an agreement between a “generator of electricity and a utility for the sale of electricity, generation capacity or ancillary products to the utility.”

“A utility shall not enter into a power purchase agreement for a term of more than five years or recover the cost of the power purchase agreement in rates unless the (Arkansas Public Service) commission finds that the cost of the power purchase agreement is reasonable and prudent; provides savings for retail customers as compared to other generation and power supply options over the term of the power purchase agreement,” the bill noted. “The power purchase agreement is required by public convenience and necessity; the power purchase agreement is necessary to supplement or replace the utility’s existing generation sources; and approval of the power purchase agreement is in the public interest.”

The bill now heads to the House floor.

ELECTION BILLS FAIL
The House State Agencies and Governmental Affairs Committee voted against two election-related bills Monday.

During a meeting at the Capitol, committee members heard from committee chairman, Rep. Nate Bell, R-Mena, about House Bill 1422 and Rep. Clarke Tucker, D-Little Rock, on House Bill 1425.

Under Bell’s bill, a special election could only be held in either the May primary or November general election.

Bell told the committee that he worked nearly four years to help structure the bill. The bill would not have included school board elections, but would include school millage votes in the May and November setup.

Currently, school board elections are held in September while millage votes can be held at any time during the year.

However, the bill would not have applied to special elections to fill vacancies, special runoffs or other special elections set by law. Bell said his bill would help increase voter turnout and build transparency in the political system.

Tucker’s bill would have required reporting and disclosure of so-called “electioneering communications.”

“A person who has made electioneering communications in an aggregate amount exceeding $5,000 in one calendar year shall file a statement with the Secretary of State within three days of the disclosure date of each electioneering communication but no later than the close of business on the day before the election,” the bill noted.

Tucker said the bill would open up the state’s political campaign finance records to scrutiny from the public. However, Dan Greenberg, an official with the Advance Arkansas Institute, said the bill would harm the free speech rights of people who contribute to groups.

ON THE ROAD
A bill that supporters say would attempt to get uninsured drivers off Arkansas’ highways was approved Monday by the House.

The House voted 54-21, with one present, in favor of House Bill 1871. The bill, sponsored by Rep. Bob Johnson, D-Jacksonville, would create an online motor vehicle liability insurance verification system in the state.

Johnson told the House that his bill would “put teeth” into current state law. Under the bill, a person’s vehicle could be impounded if the person, who does not have insurance, has an accident or is pulled over.

Johnson said the system would be created by a third-party and have about a $1.5 to $1.8 million price tag. Currently, funding is not available for the system. Once funding is set, the program would start Jan. 1, 2017, Johnson said.

The bill now heads to the Senate.

DAVE & BUSTER’S
The Senate voted 33-0 Monday to amend the state law on coin-operated amusement devices, while attempting to bring a national restaurant chain to Little Rock, content partner KUAR reported.

The bill, Senate Bill 745, is sponsored by Sen. Jeremy Hutchinson, R-Benton. According to the so-called “Chuck E. Cheese” state law, the prize value of games played once is limited to $5 or less.

If a person plays and wins multiple tickets, the number goes up to $12.50.

However, people can win prizes in the $500 range at Dave & Buster’s, KUAR reported. Hutchinson has said the restaurant would be built in southwest Little Rock.

The bill now heads to the House.

TUESDAY SCHEDULE
The following committee and caucus meetings are set for Tuesday in the Arkansas General Assembly:

Joint Committees
8:00 a.m. – Joint Budget Committee-Personnel, Room B, MAC.
9:00 a.m. – Joint Budget Committee, Room A, MAC.

House Committees
10:00 a.m. – Education, Room 138.
10:00 a.m. – Judiciary, Room 149.
10:00 a.m. – Public Health, Welfare and Labor, Room 130.
10:00 a.m. – Public Transportation, Room B, MAC.
10:00 a.m. – Revenue & Taxation, Room 151.
1:00 p.m. – Advanced Communications & Information Technology, Room 151.
10 Minutes after Adjournment – Revenue & Taxation, Room 151.
Upon adjournment – Education, Room 138.

Senate Committees
10:00 a.m. – Agriculture, Forestry & Economic Development, Room 309.
10:00 a.m. – City, County & Local Affairs, Room 272.
10:00 a.m. – Insurance & Commerce, Room 171.
10:00 a.m. – State Agencies & Governmental Affairs, OSC.
Upon adjournment – Judiciary, Room 171.

Caucus Meetings
8:00 a.m. – House Freshman Caucus, Room 138.
12:00 p.m. – Arkansas Conservative Caucus, Room 272.

The Senate will convene at 1:00 p.m., while the House will convene at 1:30 p.m. Tuesday.