Capitol Notebook: Prison Reform, Capital Gains Tax Proposals Clear Committees

Lawmakers approved a key policy initiative of Gov. Asa Hutchinson as well as an extension of a capital gains tax bill.

The House Judiciary Committee approved Senate Bill 472, sponsored by Sen. Jeremy Hutchinson, R-Benton and Rep. Matthew Shepherd, R-El Dorado. Both lawmakers told the committee that the bill would address many of the issues the prison system currently faces.

Gov. Asa Hutchinson announced earlier this year his plan to overhaul the criminal justice system in the state.

The proposal includes a “pay for success” program to look for ways to reduce recidivism; working with non-profit groups and others to help with job training; having more funding for specialty courts like drug, mental health and veterans courts; as well as allowing police officers and Arkansas Department of Community Corrections officers to have the authority to do warrantless searches on probationers and parolees.

“We have to get a handle on our criminal justice issues,” Shepherd told the committee. Sen. Hutchinson said the bill also invests “for the first time ever on substantive treatment.”

Rep. Camille Bennett, D-Lonoke, thanked Hutchinson and Shepherd for their work on the bill.

“I want to commend you on the bill. You did a great job, incorporating other people views on this,” Bennett said. “You two are in for a long vacation after working on this.”

Former State Rep. Dennis Young told lawmakers he supported extending the time limit for probation officers to work on reports to 90 days, instead of the 45 days mentioned in the bill. Young, who also served on the Arkansas Parole Board until early this year, said he had an opportunity to learn more about the parole issue.

“I thought I knew everything on it, but I found out I don’t know Jack,” Young said.

The bill now heads to the House.

COMMITTEES
A bill to reinstate the exemptions on the state’s tax rates on capital gains got the go-ahead from a key House committee Thursday. The House Revenue and Taxation committee approved House Bill 1402, sponsored by Rep. Matthew Shepherd, R-El Dorado.

Lawmakers approved a capital gains tax cut earlier in the session, setting a 40 % exemption rate as part of an overall deal. In 2013, lawmakers voted to set a 50% rate during the session. The committee voted to approve an amendment from Rep. Joe Jett, D-Success, who chairs the committee.

Under the amendment, the 40% rate would go to 45%, retroactive to Feb. 1, 2015. After that, the rate would go from 45% to 50 %, starting July 1, 2016. Lawmakers also left in place a $10 million exemption amount.

The bill now heads to the House.

FLOOR ACTION
The House approved a Senate version of a bill to allow lawmakers to seek reimbursement for legislative expenses. The House Management Committee approved Senate Bill 1049, sponsored by Senate President Jonathan Dismang, R-Searcy; while the House voted 89-0 on the proposal.

The bill, which would allow lawmakers who serve in leadership to receive up to $3,600 a year for office expenses, would remove the nearly $14,000 a year in reimbursements currently allowed for in law.

The bill now heads back to the Senate.

The House also voted 60-22 to approve a bill allowing for a time frame in which a public school employee can opt in or out of joining a union. The bill is House Bill 1957, sponsored by Rep. Grant Hodges, R-Bentonville.

The bill would allow an employee to opt in or out of joining a union at any time, instead of the current 30 day period in the fall, Hodges told the House. Hodges said the bill would empower school employees to decide for themselves on the issue. However, Rep. John Walker, D-Little Rock, who spoke against the bill, said it would hurt unions.

The bill now heads to the Senate.

FRIDAY SCHEDULE
The following committee meetings will be held Friday in the Arkansas General Assembly:

House Committees
8:30 a.m. – City, County & Local Affairs, Room B, MAC.
8:30 a.m. – State Agencies & Governmental Affairs, Room 151.
8:30 a.m. – Insurance & Commerce, Room 149.
8:55 a.m. – Agriculture, Forestry & Economic Development, Room 138.

Senate Committees
9:00 a.m. – Education, Room 207.
9:00 a.m. – Judiciary, Room 171.
10:30 a.m. – Insurance & Commerce, Room 272.

The House will convene at 10:00 a.m., while the Senate will be off.