House State Agencies & Govt'l Affairs Committee
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Bills discussed (2)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
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HJR1001
· 3 mentions in chapter, transcript
Matched: “HJR1001”
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Pre-2017 bill | ||
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HJR1003
· 1 mention in transcript
Matched: “…1, then we will go to the Senate's bill, then we will go to House Joint Resolution 1003, then we will go to the Senate's bill and alternate down th…”
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Pre-2017 bill |
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Speaker 1
0:00
To present your proposal, ladies and gentlemen, we're taking up House Joint Resolution 1001. Good morning. Appreciate the opportunity to
Representative Jonathan Barnett
Unverified
0:23
be here this morning. I know that we tried to get together before, and we actually did get together on a subcommittee basis.
And so we're here, and thank you very much for letting us present this morning. I'm here today to present to you House Joint Resolution 1001. It's the proposed constitutional amendment to go before the voters in the November 2012 general election. All provisions are contingent upon that approval of that ballot question by the voters of this great state, as you all are well aware of. In this bill, it's asking for a temporary 1.5 percent general sales tax increase.
This increase does not apply to food or food ingredients. Those are all excluded. This bond program authorized the Commission to issue up to $1.3 billion in general obligation bonds. The revenue derived from this program is to be used for a four-lane highway construction or improvements, including adding capacity to existing four-lane interstate highways. The proceeds from the AHTD's portion of the tax dedicated to return the bond debt over
a 10-year period of time. So it's a 10-year temporary tax, it's a 10-year bond program, and it has the sunset. The revenue from the tax is to be divided 70, 15, and 15, which is the formula that we live with and have for years and years. So that's to be divided among the state, the counties, and the cities. And you're all familiar with that program, 15 goes to the city, 15 goes to county, 70 goes to the Highway Department less than 3% in the states and central services, approximately
$160 million for the state, $34 million for the counties, and $34 million for the cities in new revenue annually for the life of the bonds. One penny, and this is a new part of maybe some funding program, one penny, which is approximately $20 million per year, of the current motor fuels tax will be permanently dedicated to creating the state aid street fund to be used on city streets off the state highway system this provision will not expire when the one
half percent tax increase expires so a one cent of the twenty one half cent existing flat tax gas tax will be dedicated to the city streets for a city street city aid street program that will be in addition to their 15% that they're getting presently if all the bonds are issued the construction told me approximately 1.8 billion dollars could be undertaking on the selected routes over a 10-year period I do have a lot of support the Arkansas
State Chamber of Commerce supports this the Municipal League supports it The Association of Arkansas Counties supports it. The Arkansas Trucking Association supports it. Arkansas Good Roads Transportation Council supports it. Arkansas Chapter of the Associated General Contractors support it. Arkansas Asphalt Association supports it. The Arkansas-Oklahoma Chapter of the American Concrete Pavement Association supports it. And hopefully you will support it too. And we'll be glad to say more, answer questions.
And I do have with me Dan Flowers, who's the director of the highway department with me today, and Jack Williams, who is a local attorney that specializes in bonds and so forth, but who is the author of the bill. So hopefully we can answer some questions if you have them. Representative Roebuck, you're
Representative Johnnie J. Roebuck
Unverified
4:30
recognized. Thank you Madam Chair Representative Barnett
you talked about $160 million for the state and $34 each for the cities and counties talk to me about the $160 and over the 10 year period can you tell us where this will happen what roads I'm going to let Mr. Flowers
Representative Jonathan Barnett
Unverified
4:50
address that I can answer it but I think he can do it better
Speaker 13
4:56
thanks MR. Thank you, Mr. Chairman. I'm Dan Flowers, Director of the State Highway and Transportation Department.
The purpose of this amendment is to develop funding for building out our four-lane highway system in the state, a system of roads that covers access to all parts of the state if fully developed. Obviously, this will not be able to do them all, but it would be a good start in fast forwarding those projects. Our four-lane grid system is made up of the interstate highway system and the major primary
routes over the state. Some examples are Highway 82 in South Arkansas, 167 in South Arkansas, and in North Arkansas Highway 65 north, 412 across the top of the state, those type roads that carry the lion's share of the traffic and virtually all of the commercial traffic or trucks. I didn't hear you mention Highway 7.
Highway 7 is not a part of the four-lane grid system. However, the utilization of this new revenue for building out those four-lane sections would certainly take the pressure off of our other funding, our normal federal aid and state funding that would be available for such routes as Highway 7 and others. Okay, so I can write that down. It's coming from you today. It just did.
Representative Johnnie J. Roebuck
Unverified
6:35
I guess you can. Thank you. So it's on the record.
Well, I know that Representative Vines and I both understand that Highway 7 is vital to the tourism industry in our area, so I appreciate you making that clarification for me. Thank you. Representative Cowley.
Representative Larry Cowling
Unverified
7:02
Thank you. Ms. Flowers, how much would, I know not how much, but would some of this go on I-49 in the area that I've had?
Speaker 13
7:12
MR. I proposed I-49, future I-49 or existing Highway 71 is a route that's on the four-lane grid system and would be a candidate for the use of these funds. MR. Thank you, sir.
Representative Clark Hall
Unverified
7:31
MR. Any other questions from the committee? Representative Burnett, are
you through with your presentation? MR. I think so.
Representative Jonathan Barnett
Unverified
7:43
I do want to mention to everybody that I have spoken to every member of the House independently and tried to explain this bill to them and answer their questions. And obviously, if you look at the co-sponsors of my bill, I did work hard to attract as much support as I could. And we do appreciate a good vote, appreciate the opportunity to be here, and appreciate the opportunity to let the people of this state decide on an infrastructure program that would economically benefit them.
Representative Clark Hall
Unverified
8:14
Thank you so much, Mr. Chairman. Are you closed for your... I just closed. Thank you. Is anyone in the committee in the audience who would like to
Representative Eddie L. Cheatham
Unverified
8:26
speak against this proposal? For it? Rep. Cheatham? Thank you, Mr. Chair. Mr. Chair, I appreciate Mr. Barnett and his proposal, but I also appreciate all the five members that have brought proposals to us, so I'd like to recommend that we move all five out to the joint committee meeting in order they were filed. Representative Lee? Yes, ma'am.
Speaker 33
8:46
If we do that, then what will the process be when we
Representative Clark Hall
Unverified
8:51
meet as a joint committee? We will meet. Let me get the mic here. We will meet tomorrow upon adjournment with the Senate, and we will start with House Joint Revolution 1001, then we will go to the Senate's bill, then we will go to House Joint Resolution 1003, then we will go to the Senate's bill and alternate down the list until we get a
three or none or one, but no more than three can be referred out to the public. So we are
Speaker 33
9:27
going to go in order of how they were filed? These numbers,
Representative Clark Hall
Unverified
9:32
House 10-01, 10-03, 10-04, 10-05, 10-10. Okay, so how they were filed, the dates they
Speaker 33
9:37
were filed on. Yes, ma'am. And as soon as three go out, then that's it. That's it. Right, I understand. They
Representative Clark Hall
Unverified
9:46
alternate between the House. We're going first.
This House is. Okay. Thank you. Any other questions? We have a motion to refer out five House Joint Resolutions. All in favor say aye. Any opposed? Your motion passed. We will refer them all out. Thank you all for coming today. We are adjourned until tomorrow afternoon upon adjournment in room 171 at upon adjournment of both the House and the Senate. Thank you all for coming.
Agenda
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Speakers
Speaker 1
Representative Jonathan Barnett
Unverified
Representative Johnnie J. Roebuck
Unverified
Speaker 13
Representative Larry Cowling
Unverified
Representative Clark Hall
Unverified
Representative Eddie L. Cheatham
Unverified
Speaker 33