House State Agencies & Govt'l Affairs Committee
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Representative Nate Bell
Unverified
0:00
We have a very simple amendment to add additional co-sponsors to the bill and would ask that, with the courtesy of the members, to add the
Representative Bruce Westerman
Unverified
0:13
co-sponsors. So moved. All in favor, aye. All opposed, nay. Congratulations, you passed
Representative Nate Bell
Unverified
0:21
your amendment and you want to present the bill. I would like to pass over the bill today and add it to the next Wednesday's calendar. All right. Thank you very much.
Representative Jim Nickels
Unverified
0:33
Representative Nichols. If it's appropriate, I'd like to ask Representative Bell a question regarding this bill. It may be
Speaker 10
0:44
ready when he does present it. When he does present
Representative Jim Nickels
Unverified
0:48
it, he's going to present it next Wednesday. Well, I know, but it might help him a little bit in doing it. It's just a quick question or comment. You're recognized, Representative Nichols. Rep. Bell, I'm a big supporter of whistleblower protection-type bills, but the current bill, and it's been a while since I looked at it, but you cannot sue the state of Arkansas.
That's in our Constitution. And I think the Whistleblower Protection Act in Arkansas is a suit against the state of Arkansas. So think about possibly substituting claims commission jurisdiction or something, but I'd hate for us to have a very good whistleblower protection act and then it ends up in court based upon the Arkansas Constitution and then it is thrown out.
So I just throw that out as a caution and would suggest that you look at that issue in regards to your act. So thank you for that. Thank you, Representative Nichols.
Representative Nate Bell
Unverified
2:03
Representative Bill? Representative Nichols, I appreciate your comments. I would encourage you to read the bill in the final form that was filed because the bill actually refers all actions to the Claims Commission for adjudication and does not take it outside of that process. So I encourage you to reread the bill.
Speaker 11
2:18
Thank you. Representative Bell, House Bill 1044, are you ready? You're recognized. Members, you'll
Speaker 16
2:40
also see that there's an impact, fiscal impact statement on the bill that Representative Bell is about to present thank you madam chair members of
Representative Nate Bell
Unverified
2:51
the committee appreciate the opportunity to present the bill today before we get started I do also have an amendment adding co-sponsors and would like to ask the courtesy
of the committee to go ahead and add that amendment
Representative Bruce Westerman
Unverified
3:08
to the bill prior to getting started motion thank you all members in favor aye all opposed nay thank you you're recognized
Representative Nate Bell
Unverified
3:18
thank you would would direct everybody's attention just as
we get started to the fiscal impact statement there is a
relatively small savings to the state of about two hundred sixty seven thousand dollars if this bill is enacted that is not the purpose of the bill not to seek savings but to put us in a situation where we are we treat each other fairly Currently, our mileage reimbursement is all over the place, and Representative Bain and I have actually done some research on this. BLR and, I believe, Leg Audit reimburse at 51 cents. House and Senate are at 55 and a half.
All state employees, all other state employees are reimbursed at 42 cents. and it's just fundamentally unfair that we as legislators have put ourselves in a position historically where we are reimbursed at a higher rate than other people who travel in the same kind of vehicles as we do and do the same kind of business for the state that we do and that's that's the purpose of this bill I believe the state employees Association has would also like to testify for the bill today and with the chair I'd like them to
present their point of view on
Representative Bruce Westerman
Unverified
4:33
that would be fine who's here please step up to the table
Danny James
Unverified
4:54
and identify yourself thank you madam chair my name is Danny James I'm the executive director for
Speaker 24
4:59
the Arkansas State Employees Association and I do appreciate this opportunity opportunity to come visit with
you briefly concerning Representative Bell's bill number 1044. Welcome Mr. James. Go ahead. Thank you. If I may, I'd like to read a very short prepared statement. Good morning. ASEA or the Arkansas State Employees Association supports and always has supported legislation that promotes effective and efficient government we have received feedback over the years
from state employees regarding a uniform rate of mileage reimbursement among state employees and state officials and we support this legislation it does promote effective and efficient government and we would appreciate your support for house bill 1044 thank you thank you any questions do you need
Danny James
Unverified
5:57
the members of questions representative
Representative Jim Nickels
Unverified
6:08
nichols uh yes uh and i appreciate this bill and uh we'll
we'll vote for it but there is also and i don't know if this would correct that problem or not I don't know if the state can even afford it, but there are certain state employees that received $0.33 a mile who worked for the health department. And when I tried to raise their mileage to the $0.42 that other state employees get, I was basically told that that would bankrupt the home health care program and they would not be able to survive.
So, I slowed down my efforts. Will this bill in any way impact very low wage employees with a very low mileage rate? Does it raise their mileage from 33 to 42 cents a mile? They are state employees. Representative Nichols, that's actually a very good
Representative Nate Bell
Unverified
7:10
question. and it's something that we looked into in part of representative bain in my research
to a potential follow-up bill to this according to the bureau legislative research those employees who are those folks who are reimbursed at that lower rate are subcontractors and not directly state employees and as such they would not be touched in the scope of this bill i i am very empathetic to their situation and it's something that i do think we need to review at some point but according to the to the information that we've been provided they they would not fall under the scope of this
Representative Jim Nickels
Unverified
7:49
bill well i don't know who gave you that information but the irs has said they are
employees of the state of arkansas so uh that's
Representative Nate Bell
Unverified
8:02
fiscal services division has told us that that for purposes of this act that they do
Representative Jim Nickels
Unverified
8:11
not fall under it okay thank you representative hobs
Speaker 41
8:28
i do not i do not It might be a side effect of term limits
Representative Nate Bell
Unverified
8:41
there, Representative Hobbs. Thank you. Thank you, Madam Chair. Thank you.
Representative Bruce Westerman
Unverified
8:57
Representative Westerman? We do have a question. You're recognized for your question. Representative Bell, I see here that says the legislative council shall review a modification
for the reimbursement rate promulgated by the chief fiscal officer of the state. I noticed the language in the legislation also directs the chief fiscal officer of the state that said the rate. Have you gotten any pushback from DSNA on that? I know I filed a bill that directed DSNA on some activities, and I was told that that was putting legislative authority over the executive branch. But I was wondering if you had gotten any pushback from them on that. I have
Representative Nate Bell
Unverified
9:32
received absolutely no feedback from them regarding this bill.
I did meet with them just prior to the start of this committee regarding another bill that was on the agenda today and they certainly didn't mention this bill at all at that point of being concerned to them I I would assume that if they had concerns they would have
Representative Bruce Westerman
Unverified
9:50
indicated them at that time okay and also does this leave final authority with legislative council or with DSNA on setting
Representative Nate Bell
Unverified
9:58
degrees in and in the interim if there were a situation that was an emergency and the rate needed to go up let's say gasoline went to ten dollars a gallon or something far-fetched like that it would the authority would rest
with the ALC otherwise since we now have the fiscal sessions and we budget
essentially we go through the budget process as part of the recommendation recommended rule
Representative Ann V. Clemmer
Unverified
10:33
thank you representative Clemmer I believe this question is probably best for Mr. James. Do you know about how many miles on average state employees?
Is there an average? Can you give me any data on how many miles a state employee drives on a given?
Danny James
Unverified
10:50
Thank you for your question. At this point, I don't, but I do believe Representative Bell has the information on that. I do have on my laptop
Representative Nate Bell
Unverified
10:58
at my regular seat. If I can have the indulgence of the committee for just a moment, I'll get that.
Speaker 62
11:21
I have to wake these up with our good control off the lead cycle here. I
Representative Ann V. Clemmer
Unverified
11:35
understand, Representative Bell. While you're pulling that up, could I ask my follow-up? Do we have average miles driven by the people that are affected, which I guess is primarily legislators? I don't have
Representative Nate Bell
Unverified
11:46
that data. I do have the total miles driven by legislators, so we could get that with a simple calculation
this information was provided by Kevin Anderson to representative Bain on Tuesday the total state employee travel paid was 16 million forty five thousand eight hundred and fifty three dollars that equated according to his numbers at I believe 38 million or yeah 38 million miles seems like a huge number but and at 56 and a half cents if we were going to go to the IRS rate cost
would be 21 million five hundred and eighty-five thousand so they're the net cost difference to put everybody at IRS rate annually when you can't factor in legislators all affected people under the scope of this act is five million five hundred eighty seven thousand seven hundred fifty dollars that's a secondary issue to this act this this the purpose of this bill is to get us to a fair starting point but that is something that representative Bain and I
are working together on is to try to find out what is a reasonable way to to begin moving us towards the irs rate as a on the whole thank you for that information representative hutchison my
question was answered ma'am thank you thank you madam
chair if i could just follow up with representative clemer one more i didn't address one question that she had as far as the total miles by legislators was a little over eight hundred and seventy four thousand
Representative Butch Wilkins
Unverified
13:33
miles my co-chair has a question i really don't know how lowering one mileage rate is going to help that I have been a state employee and have driven the vehicle under the mileage and I lost my butt. I just wonder I wasn't on welfare because of it. Working as a wildlife officer and driving a lot of miles and putting a lot of wear and tear on the vehicle.
And mileage rate is really not just to pay for gasoline. And you know it's tires, battery wear and tear, depreciation on the vehicle. It should be covering a lot of things for all state employees that are driving their own vehicles. I would be interested in raising the mileage rate for other state employees, but we're a part-time employee who use our vehicle for a lot of purposes
other than this driving back from Little Rock, which I have never claimed mileage for. I mean, I use my vehicle just like a regular state vehicle. if i go to a farm bureau meeting or a chamber meeting or whatever i go to i don't pay mileage for that and it is part of my job so my question here is that how are we really helping other state employees by even considering lowering our our mileage
Representative Nate Bell
Unverified
15:12
rate i actually think there's a very
simple answer to that and the answer is we get a little more sensitive to their situation when when we're in the same situation. It comes down
Representative Butch Wilkins
Unverified
15:23
to fairness. I am very serious, and I have, I mean, I'm very sensitive to their situation. I would be fully in favor of raising their rate if it's not enough. But, you know, I don't think my personal experience, I'm not going to be here. I mean, two years, I'm gone. I'm out of politics. but i think it's uh i don't want for my purpose now i'll tell representative bell this uh for my
purpose and my way of thinking i don't want to lower the rates for the next people coming in when it's very hard for them to justify doing the job that we're doing anyway to
Representative Nate Bell
Unverified
16:04
their families and others representative wilkins i'm i'm very sensitive to that as well you know it's a long ways here for me and I I easily lose 40,000 a year in my private sector job to have this job and I know many of us are in the same situation and it's it clearly is a concern we're all going to every legislator who supports this is
going to take a hit in their pocketbook but at the end of the day it's the right thing to do and I just ask all of you as we as we've looked at this and that you know for the new folks who came through orientation remember that we're here to do what's right and at the end at the end of the day I'm going I am very supportive of getting everybody at some point to the IRS rate when we can do it in a reasonable methodical manner representative Bain and I are working together right now to find to come up with a good bipartisan bill that moves
us in that direction we're I don't think we're gonna be able to come up with six million dollars this year fifty five million five hundred thousand to do it in one year but I believe that we can start in that direction and I but I I believe we need to start the process on a fair and equal playing field rather than trying to work two ends towards one another and
Speaker 16
17:21
continue the unfair practice. Thank you, sir. Thank you, Matt. I have a question, if I may. This only refers—this is only going to apply to privately owned vehicles.
That's correct. I noticed you added in here any constitutional officers and their employees and state elected officials and their employees. How many of those people drive POVs? Do all the constitutional officers drive POVs? I do not know the
Representative Nate Bell
Unverified
17:47
answer to that, Madam Chair. I don't have
Speaker 16
17:51
that information. And this only applies to state employees who are driving their private vehicles? That is correct. Does a state employee get any other reimbursement when they use their own vehicle?
Do they get any reimbursement to help them in any other way other than gasoline? I believe in – Or is the
Speaker 81
18:14
money to be used any way they see fit? Mr.
Representative Nate Bell
Unverified
18:19
James may know that better than I do, but I believe there are some higher ed employees that get a car allowance, but I believe that makes them ineligible for reimbursement. Okay,
Speaker 16
18:30
so if a state employee is getting a reimbursement for, what did you just refer to the reimbursement as?
Representative Bruce Westerman
Unverified
18:39
Some of them get a car allowance. That car allowance can be used to purchase a vehicle or just to reimburse themselves for the use of the vehicle they have. My understanding of
Representative Nate Bell
Unverified
18:48
the car allowance, in particular in higher ed, I know some of the university presidents and I think some of the administration at the administration level get a car allowance or other as part of their compensation package. But it's my understanding that they don't receive a mileage reimbursement. That is in lieu of a mileage reimbursement. Is it your understanding or is it your knowledge? It is my understanding.
Representative Bruce Westerman
Unverified
19:10
It is not my hard knowledge. I'd like to know the answer to that, to be perfectly honest. Okay. Any other questions? Representative Hopps. thank you madam chair
Representative Debra M. Hobbs
Unverified
19:22
your question led to one that i have typically when a state employee is on state business are they being paid a salary i'm certain that they are yes ma'am and uh
are state legislators paid for their time when they are traveling we we're paid a salary based on
Representative Nate Bell
Unverified
19:43
based on our service to the state on an annual basis
Speaker 41
19:48
so that would be correct but okay so you could argue that for both ways i suppose
Representative Ann V. Clemmer
Unverified
19:59
thank you thank you madam chair representative climber did you have a follow-up this is also for mr james since we got the number
Speaker 55
20:06
of total miles driven by state employees
Danny James
Unverified
20:09
how many state employees are factored into this there thank you for your question uh depending on whose figures you
Speaker 24
20:14
listen to uh including higher ed and there's
in the neighborhood of 54 000 do we know
Representative Ann V. Clemmer
Unverified
20:21
all 54 000 probably don't get reimbursed for miles at any point i would imagine that
Representative Ann V. Clemmer
Unverified
20:30
know how many people drove the 38 million miles i do not know that as far as if we wanted to collect data i think that would be interesting to know I live fairly close to the capital and cutting my reimbursement rate won't
hurt me that much some of my colleagues have gone through a couple of cars I'm sure representative Bell is already wearing out a car driving back and forth from MENA so I just I was just curious how many state employees drive the number of miles that many of my colleagues do. Representative Klemmer
Representative Nate Bell
Unverified
21:09
it helps if you start with a one-out car
Representative Ann V. Clemmer
Unverified
21:13
well and that was my case and i finished wearing it out just driving from bitten
Representative Nate Bell
Unverified
21:17
to here i did i did want to comment to members that that your tax advisor i'm certain
probably has already taken this into account in prior filings because our current rate is not at the irs or it wasn't at the irs rate until this year um you you are still able to deduct the difference between the irs rate and your reimbursement rate so the total hit to each of you individually is not going to be the reduction in rate it's going to be the difference in the reduction in rate and whatever your tax bracket deductibility becomes for that mileage difference but that's that's a question
for your tax pro but but it wait you
Representative Ann V. Clemmer
Unverified
21:58
won't take the entire hit and representative bill I appreciate what you're bringing to the
committee just Just for the sake of the discussion, and just so that legislators don't add to their reputation as heartless, money-sucking, whatever other terms we have, I would just like to submit for discussion that our legislative body is paid us, part-time legislature,
and currently our salary is $15,680. I would put out there just, again, for the sake of the whole discussion and the whole picture, I doubt very many state employees are making what the legislators make. And if I could just add to
Representative Nate Bell
Unverified
22:48
that, I'm confident that for the hours that we put in, that we probably, well, I'm certain the state minimum wage law, we're well under it. Thank you for that.
Representative Ann V. Clemmer
Unverified
23:01
I just, again, I'm not, I appreciate the legislation you're bringing, but since, again, we're talking about something that will hit
many legislators very hard, I wanted to put that out there. And I'm looking forward to
Representative Nate Bell
Unverified
23:12
everyone's support of Representative Bain and my bill that we plan to introduce later in the session. Thank
Speaker 12
23:23
you. Representative Miller, did you have a
Representative Josh Miller
Unverified
23:26
question? Thank you, Madam Chair. It's not too much a question as it is a statement.
I live in Heber Springs, and I make the drive every evening and every morning. And I knew before I decided to run for this particular office what the sacrifices were going to be. I do believe we have a real problem with what Representative Nichols brought up. We have state employees, and I know there's some fluttered language that makes them not state employees, but technically they are.
They need to be brought up to a fair level, and I have a hard time with us making more than the average state employee, and those folks making a lot less, so I definitely want to speak in support of Representative Bell's deal. Thank you. Thank you, Representative Miller. Representative Ritchie? Thank you, Madam
Speaker 104
24:29
Chair. just a question you talked about how we can deduct
Speaker 105
24:35
on our taxes can we do the difference between the federal rate and the mileage rate can we get state employees can they do the same thing they
Speaker 109
24:56
can Representative Dotson thank you Madam Chair you said okay so this bill does puts everybody 42 cents why not 43 cents or above 43 cents and what is
the cost difference on a percent basis as we go up i know the total to bring everybody up five and a half million but what's the difference the purpose of this bill was to get
Representative Nate Bell
Unverified
25:20
us to a fair starting point it's first step in what i hope to be a process
but the research that we have actually has some conflicting data as to what that cost is I have seen one number that said that it was a hundred and eighty one thousand I've seen another one that said it was about three hundred eighty three thousand it's my
belief that the total we're better off working with the total number and then dividing our way back I there apparently there's some dynamic effect inside those numbers that I've missed or we're just getting conflicting information but if If you take the $5,587,000 that I've mentioned, I'd have to move back up to get the exact correct number. I have it written down here, $5,587,750. That's what BLR has told us, Fiscal Services Division, said it would take to get everybody at the IRS rate.
So you can divide that back from the IRS rate to the $0.42, and if somebody has a calculator and wants to do that, we can have a number pretty quickly. but uh that i would think that is the most accurate way to approach it thank you that that's not a that's not in the scope of this bill this bill is
Speaker 12
26:35
designed to get us to a fair starting point thank you are there any other questions from
Representative John K. Hutchison
Unverified
26:40
committee members representative hutcheson thank you madam chair and first of all i'm 100 in agreement with you representative bill and
this it's all about fair we are all be fair but
Speaker 113
26:49
uh since we brought since we're on the subject uh maybe somebody could clarify this all right these vehicles with the stickers on the side of right everybody familiar with that the government state or whatever now is that is there some kind of
Representative John K. Hutchison
Unverified
27:06
reimbursement there to the agency or is it like what you know what i'm trying to say i think i do sir and
Representative Bruce Westerman
Unverified
27:14
mr james i think you can address that as well i will tell you you may be
Speaker 24
27:24
included in that question would be our 36 or 37 arkansas state employee association vans that we have that travel the state and bring state employees to and from their home area in the little rock and of course that is through our step co band pool and it's a private entity and there's no no my
Speaker 117
27:46
it's just kept up as a yes yes how many of those are that are there in our
Speaker 88
27:55
state are you are you now referring to the Arkansas
Speaker 120
28:00
State Employee Vans or anybody I mean I understand that's the way it should be I'm not against
Speaker 24
28:06
it well we have i think it's approximately 36 we just purchased four more latter part of last year but i think those are used basically as backup vans so they're not on routes but i think at this point in time we have 36 now as regard to the agency vans from either any of the agencies the forestry association or or any other agencies i do not have figures on that but all of them
Speaker 113
28:31
like another word representative wilkins surely that wasn't surely that was that your truck that you had to use as being a game order that wasn't what you're saying was it not exactly
Speaker 122
28:43
what i was saying not not not later on early in my career okay i'm sorry yeah we started strong really i can understand i can understand anyway thank you for you let me
Speaker 16
28:56
ask and representative hutchinson And you're talking about some of the vehicles that have state agency.
Speaker 113
29:02
You're also talking about those, not just the state employee. No, you know, I mean, kind of like a business would run a business. It's their vehicle, and, you know, surely they don't – they might have to keep up with the mileage, I'm sure, to
Representative Bruce Westerman
Unverified
29:19
their superiors, but it's not reimbursed that way, is it? Correct. That's a vehicle owned by the agency. Thank you. Thank you. Thank you. Any other questions? representative bell a lot of questions a lot of questions have been asked today
and to get further information do you want at this time to possibly consider taking the bill and getting that
Representative Nate Bell
Unverified
29:41
information and bringing it back specifically i've heard madam chair's question are there any other additional questions or if not i'd be glad to i would like to get this bill moving along if if with your agreement I would certainly agree to get your question answered and deal with it on the Senate end if it requires amendment if you would be in agreement with that if not then we'll I'll I'd like to
respond to your concerns it's the committee wishes not just madam chairs wishes but I I
Representative Bruce Westerman
Unverified
30:11
just I'm asking I was giving you deferring to you since several questions were asked I'm not aware
Representative Nate Bell
Unverified
30:17
of any other questions that haven't been answered does somebody else have an open question that we haven't been able
Representative Bruce Westerman
Unverified
30:25
to deal with other than yours I was referring to the 42 cents and representative Dotson okay okay I
Representative Nate Bell
Unverified
30:31
think we can calculate that out of representing Dotson are you okay with it without having that calculation done at this point if so madam chair with your agreement on the that I will get an
answer for you prior to Senate passage I would I
would appreciate if we go ahead and move this floor
Representative Bruce Westerman
Unverified
30:51
to the floor i'm sure that's what you would appreciate that it'll depend on the vote of the committee absolutely representative westerman do you have a motion at this time i'm please excuse me this this is my first time i've had to officially do this i'm supposed to move to the audience for questions i'm sorry or comments are there any members of the audience that
Speaker 16
31:10
want to speak on this bill speak against the bill
Speaker 85
31:17
okay thank you the staff is keeping me in line thank you very much representative westerman
Speaker 42
31:22
now i can recognize you move do pass so move as amended as amended all
Representative Bruce Westerman
Unverified
31:35
right all in favor aye aye all opposed nay the ayes have it thank you very much members of committee
Speaker 133
31:47
next bill up is representative hillman is he in the
Speaker 16
32:07
room there he is you're welcome to come to the end of the table and present 1121
Speaker 126
32:20
if you're bringing anyone else to the table just have them identify themselves when they get there thank
Jimmy Corley
Unverified
32:29
you very much thank you very much madam chairman my name is jimmy corley executive director of the arkansas
Speaker 11
32:37
state board of public accountancy thank you you're recognized to
Speaker 139
32:41
present your bill i know everybody says that madam chairman that this this little bill won't do anything and i think this is truly one of those
Speaker 140
32:53
if you will look on your agenda actually what this one does and i'm
Speaker 141
32:57
going to ask jimmy to maybe explain a little bit better than i
Speaker 139
33:01
can but actually what we're doing is moving one line of the current law down to the next paragraph if i can get your machine to work i can read it
Speaker 134
33:26
you're presenting 1121 at this time yes
Speaker 139
33:28
ma'am 1121 i'm going to ask jimmy if he will explain the bill for jimmy
Speaker 146
33:35
you're recognized thank you very much appreciate the chance to be here to speak to this
Speaker 148
33:39
bill hopefully you all received an email with a just a one page or whatever one page summary of what we're trying to do with this bill it's very simple trying to raise our stipends for our board members from sixty dollars to 110 dollars if anyone did not receive that one like a hard copy i've got that right here anybody if not uh our board
members have not asked for this this is basically generated from my research and looking around at other boards and just the thought that our board members give a lot of their time they give up a lot of feelings most of our members are cpa practice owners or partners and firms and this is just simply to ease
Speaker 16
34:21
pardon me let me interrupt you for a minute sure not seeing it okay all you're doing is changing code 903905 concerning the stipend i'm not
Speaker 126
34:30
seeing what changes in the stipend i'm
just seeing that it changes to a different
Speaker 148
34:36
part of the code my understanding representative is all the boards that are allowed sixty dollars per meeting are under code 2516903 the boards that are allowed 110 dollars fall under 2516905 that explains it thank you so we're just trying trying to increase our stop-ins to offset the financial burden of serving on our board. I would say, in our summer, you'll see the financial impact is minimal.
It's about seven-tenths of a percent of our annual budget, around $8,000 estimated cost increase. And again, this is not something the board is going to have to have. They're not going to resign if they don't get it, but something I thought would be very good for our organization it's very timely you would ask for this after that last bill that was presented
Representative Bruce Westerman
Unverified
35:25
that was not good luck was it your total budget at this time is what uh one million two hundred
Speaker 16
35:31
and seven thousand that's correct what do you have in your cash fund at this time around a
Representative Bruce Westerman
Unverified
35:38
million six you have a million six your budget's a million two okay are there any questions from the committee representative nichols motion proper time
Speaker 153
35:59
any other questions representative dots thank you madam chair
Speaker 155
36:03
how many board members are there just for the fact we've got seven board members and how often are they uh paid this additional fifty dollars we have seven board
Speaker 148
36:15
scheduled board meetings where they meet physically at our offices. There are also going to be teleconferences, subcommittee meetings, other meetings that would be reimbursable under law. We kind of use those numbers to get to our estimated cost increase. So every meeting has an extra $50 times seven? Well, the policy is if they meet more than an hour, there's a stipend paid. If not, there's no stipend paid. Thank you.
Representative Bruce Westerman
Unverified
36:45
Representative Westerman. Thank you, Madam Chair. Could you just clarify where your funds come from? These aren't general revenues. They're fees paid by members, if I understand
Speaker 148
36:58
it correctly. That's absolutely right. Our agency is funded 100% by CPAs in the state. They pay their license fees every year. We do get some income from fines if we have a problem with the CPA. but almost all of our income comes through license fees
and no general revenue is involved whatsoever. Is there any support or
Representative Bruce Westerman
Unverified
37:20
opposition from CPA organizations? I've got some members of the Arkansas Society of
Speaker 148
37:25
CPAs here who can speak to that. I've talked to them. They're okay with it. Also, the Arkansas Society of Accountants, we've talked to them. They're okay with it. I've not heard of any opposition and truth that they're the ones that will be funding this is this
Speaker 159
37:46
increase representative Hutchison yes thank you madam chair
this was budget I mean no sir
Speaker 148
37:53
my understanding is a stop an increase requires a law change and law changes can't be budgeted because you don't know if it's gonna pass or not but all
Speaker 51
38:04
your money from the appropriation yes yes thank you thank you and representative Westman
Representative Bruce Westerman
Unverified
38:13
thank you for bringing that up for freshmen a cash fund is different it's not out of general revenue it's a fund that's usually generated from the organization such as
this one within itself so that was a very good question thank you representative Hobbs you're nodding does that
Speaker 11
38:30
mean you're wanting questions okay thank you you're
Representative Debra M. Hobbs
Unverified
38:33
recognized thank you madam chair how much are the license fees
Speaker 148
38:40
For an active CPA, which is someone licensed to do any type of tax work, audits, reviews, it's $110 per year. For inactive CPAs, someone maybe in the industry who does not want to issue reports, does not want to do our continuing education requirement, that's $55 a year.
Representative Debra M. Hobbs
Unverified
38:58
Okay, and do you anticipate having to raise the licensing fee? No, ma'am. Our fees
Speaker 148
39:04
have stayed static since 2003. We've got a healthy fund balance. I don't expect that to be an increase for many years. Thank you. Thank
Speaker 12
39:14
you, Madam Chair. Any other questions from committee members?
Speaker 163
39:20
Representative Hutchison. Yeah, I mean, just out
Speaker 113
39:23
of curiosity, why do we have that? Why do we have to okay this? Why don't the members of the CPA?
Speaker 45
39:30
He just explained that to us. It has to be a law change. It's what now? It has to be a
Representative Bruce Westerman
Unverified
39:37
change in the law, and the legislature is the only one who can make those changes. I'm sorry for not doing that on that. No problem. I'm sorry about that. Thank you. And
Speaker 16
39:46
any members of the public, if we're done asking questions from the members of the committee, I didn't see any more hands. Any members of the public that would like to speak for this? Against? Representative Nichols, I'll recognize you for that motion.
Representative Jim Nickels
Unverified
40:01
Move do pass, Madam Chair. Second. All those
Representative Bruce Westerman
Unverified
40:06
in favor, aye. All opposed, nay. Congratulations, Representative
Speaker 126
40:11
Hillman. Would you like to just stay there and present 1122? Yes, ma'am,
Speaker 139
40:19
I'd be glad to. This next bill is also dealing with CPAs, and as you know, they operate under a statute and from time to time they like to go back and look at the statute and see what has changed since the last time it was revised and that's what they've done with this bill it
has been through all the different organizations and the state agency and they have all agreed on it and they have assured me that it will be non-controversial so we
Speaker 144
40:46
will see at the will this committee you'll figure out if they were telling you the
Speaker 16
40:59
were any questions from committee members I have a question on page
Speaker 126
41:09
pardon me let me see if it's one or two it's slow moving here you're dealing with the home office can you explain that
Speaker 148
41:17
change just trying to add a definition so people understand what exactly a home office means there's
Representative Bruce Westerman
Unverified
41:23
a lot of us here that would like that definition
Speaker 148
41:26
well the IRS has got their own definition you know there's different definitions out there but we felt like we needed one for for our licensees to be able to go back and hang their hat on you know if an issue arose so that's the language we've come up with that we think would best suit our licensees
the rest of the changes seem to
Speaker 16
41:50
be more language-oriented grammar oriented to clear it up is that correct that's correct representative pickerson madam chairman
Representative Mary P. "Prissy" Hickerson
Unverified
42:01
just motion any other questions from committee members would anyone from the
Representative Mary P. "Prissy" Hickerson
Unverified
42:17
against the bill representative hickerson you're recognized for that motion thank you madam chairman motion
Representative Bruce Westerman
Unverified
42:28
do pass all those in favor aye all those opposed nay congratulations thank you
Speaker 16
42:37
madam chairman remember the dinner this evening with your invitation committee members and next Wednesday try
Speaker 126
42:43
and be here just a few minutes early we're going to do our picture
Speaker 133
42:49
of the committee motion to adjourn motion all in favor aye
Agenda
Documents
No documents posted.
Speakers
Representative Nate Bell
Unverified
Representative Bruce Westerman
Unverified
Representative Jim Nickels
Unverified
Speaker 10
Speaker 11
Speaker 16
Danny James
Unverified
Speaker 24
Speaker 35
Speaker 41
Representative Ann V. Clemmer
Unverified
Speaker 62
Representative Butch Wilkins
Unverified
Speaker 81
Representative Debra M. Hobbs
Unverified
Speaker 55
Speaker 12
Representative Josh Miller
Unverified
Speaker 104
Speaker 105
Speaker 109
Representative John K. Hutchison
Unverified
Speaker 113
Speaker 117
Speaker 88
Speaker 120
Speaker 122
Speaker 85
Speaker 42
Speaker 133
Speaker 126
Jimmy Corley
Unverified
Speaker 139
Speaker 140
Speaker 141
Speaker 134
Speaker 146
Speaker 148
Speaker 153
Speaker 155
Speaker 159
Speaker 51
Speaker 163
Speaker 45
Speaker 144
Representative Mary P. "Prissy" Hickerson
Unverified