Legislative update: Highways, prisons and a new caucus

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

There’s been movement on a few big issue items in the legislative session and this post aims to provide an update.

HIGHWAYS
One-half of House Speaker Robert Moore’s, D-Arkansas City, highway plan made it out of a Republican-dominated House Public Transportation Committee on Thursday.

HB 1902 would tack an extra five-cents on the cost of diesel fuel to extend an Interstate highway bond program, pending voter approval in a special or general election. The bill passed on a voice vote. The House will consider the measure as early as today (Mar. 11). The other half of Moore’s tax package for highways — a proposed constitutional amendment for a half-cent sales tax increase for roads — will look for referral through the House State Agencies Committee.

One of the Transportation Committee members supporting the voter referral on the diesel tax question was Rep. Denny Altes, R-Fort Smith. Altes tells Independent journalist Jason Tolbert: “The Tea Party and everyone else says that the voters should decide whether they are going to tax themselves or not so I am all for that. If the voters want to tax themselves that’s fine. … Taxes are a necessary evil. Without taxes we don’t have good water; we don’t have sewage; we don’t have highways, bridges.”

PRISONS
On Wednesday, the full Arkansas Senate listened to debate on the Governor’s prison reform package, a 167-page bill that overhauls prison sentencing, the parole system and probation process in an effort to contain growing costs related to the state’ criminal justice system.

The measure, which has been modified to accommodate concerns from the state’s prosecutors, sheriffs, police chiefs and judges, passed the full Senate on a 31-0 vote.

NEW CAUCUS
There’s a Republican Caucus, a Democratic Caucus, a Black Caucus, a Country Caucus, a Two-Year College Caucus and a Hunger Caucus. Add the Shale Caucus to the roster.

A bipartisan group of 16 legislators representing the Fayetteville Shale region of north central Arkansas have formed a new caucus — the Shale Caucus — to "discuss and protect one of the main economic engines of their districts."

"We, and many of our colleagues, agree that we need to send the right message to the business community that we appreciate their business and can find ways to work pro-actively through issues. The Fayetteville Shale Play is important to the long-term economic future of our districts and also the State of Arkansas. We are confident this will be a constructive working group that will strengthen the relationship between this important industry and the people of Arkansas,” a statement from the caucus read.

The Shale Caucus could face their first test today (Mar. 11) in House Insurance and Commerce.

HB 1992, which would eliminate a severance tax reduction for "high-cost" wells, is expected to be considered. The bill could threaten drilling activity in the region, in part due to the low price of natural gas in the commodities markets.

Link here for more details on that bill and an interview with Southwestern Energy executive Mark Boling, who discusses the economics of drilling as well as some interesting comments on the mystery of earthquake activity in Arkansas.