City, County & Local Affairs Committee- House

Jackson will get started here this morning and I would like to of full amount of order this morning Senator Hammer us I think representative Johnson you're gonna run this for senator Hammer. Okay we're going to hear senate bill four ninety six down by yourself for the record and you may proceed representative Lee Johnson District forty seven thank you Mr chair committee committee this is a companion bill to fire reorganization bill that we passed out of the house yesterday this is a bill that combines two boards when we were working on this bill senator Hammer now we were that the challenge were having was transferring the fire marshal over the Bill pass out of the house yesterday combined these boards in transferred fire marshal services this bill just combines the boards we we again we filed this not knowing for sure if we'd be able to work out the details of the other building we'd like to keep this moving along the path it It for in case you did don't members like going on last night this takes the fire safety board it dissolves that Moussa members from it over to the fire protection services board and then enhances some of the duties of fire protection services board that currently resides under Adam I'll be happy to try to answer questions and that gentleman here with me if there any questions they can speak to it as well. Committee is there any questions. Seeing none is anybody in the audience like to speak for against the bill. Three nine would you like to close from them Mr thank you okay what's wishes of the committee. I have a motion to pass any discussion on the motion. All in favor say aye I ask those opposed say no graduation thank thank thank you Committee. Okay up next we have Senate bill four oh four. Senator Penzo anybody here to run that bill. Okay if not Representative long. next up let's run Senate bill Five fourteen I'm issued for fourteen please. Senate bill four fourteen. The sponsors. If you would please identify yourself for the record in you may proceed presenting us senate bill four fourteen thank you chairman committee macalin done House District ten if it's okay with you I have two gentlemen joining me at the table. Barnett from Saddam Springs Arkansas enter branch XNA. Right. You may proceed thank you. Good morning Committee. This morning I have Senate bill four fourteen it's a bill that has been thoughtfully and painstakingly developed amended amended again with input from people on all sides of this issue the purpose of this bill is to amend the regional airport Act regional airports are created under the regional airport Act in owned and operated by the regional airport authority governed by a board of directors. There are three regional airport here in Arkansas. Delta regionalen cult. Arkansas International Airport in Blytheville in Northwest Arkansas airport and hyphal. These are different from municipal airports like little rock airport where the airport is wholly owned and operated by the city. This bill does three things. First it clarifies the immunity given to regional airports. And airport authorities it is identical to the language that is an ACA twenty one dash nine dash three oh one which is status is immunity for cities counties and other political subdivisions of the state of Arkansas generally speaking government owned and operated airports across the country are often afforded the same protections second it adds conflicts of interest provision that mirrors what currently applies to city councils in quorum court's to be sure that the members of the board board or not divided in their interest. Third it removes the entertainment or excuse me improvement district language from the act which takes away the airport's ability to tax airports are forbidden from asking counties municipalities from money and now they cannot tax either therefore there is no representative or taxation without representation. Finally this bill creates a process for regional airport authority to be annexed to R. D. and X. from an is a municipality the steps to the annex or without specifically requires a good faith negotiations and requires special factors and considerations to be addressed. So let me give you a little bit history. Five cities and two counties Northwest Arkansas came together in a contract under this act to create the regional airport board the northwest Arkansas regional airport board first met in nineteen ninety a year later they conducted a feasibility study. The following year in nineteen ninety two a site was selected. And the five cities and two counties who were contracted together to create the airport agreed to place the airport in an unincorporated area of Benton County to avoid any territorial disputes among the cities. In nineteen ninety five the northwest regional airport had a groundbreaking two years later in nineteen ninety seven the city of Highfill said a special election another hundred sixty two registered voters fifty four voted and forty voted in favor of the annex the seven governing cities and counties had no input in this annexation. In nineteen ninety eight the airport opened. And the next legislative session in nineteen ninety nine the airport attempted to detach through legislation so this is not a new issue. The airport receives money from its parking vendor rentals and airline feet the airport is presented by the original agreement from asking the cities or counties from money. and again additionally this bill removes the airport's ability to leverage a millage. Currently hi Phil has levied a two percent sales tax on the import and all that money goes back to Highfill. Money is not being spent on the airport improvements roads fire or police being an airport authority the airport has their own police and fire and maintain their own roads. This tax amounts to about six hundred thousand dollars a year that goes to Highfill and not to the upkeep and growth of the airports the airport the city's or the counties that comprise the airport authority. The desire of this bill is to be fair to the five cities in the entirety of the two counties who created this authority. All of the city's around the airport is subjected to the noise and traffic intrusion including cities like Cave Springs and Centerton but only Highfill has benefited monetarily from the annexation. And repairing this bill I did seek out the input of the prior mayor the current mayor as well as the past and current members of the airport this is not an easy issue to resolve. Again the fourth point of this bill is to create a process for regional airport authority to be annexed or to de annex permanent miss municipality. I does not automatically detect Highfill in the airport. So while this is going to be I want you to understand how complex and thorough process of again exception would be so here are the steps. First the authority must state and pass a resolution by two thirds of the members of the board that they like to the annex the authority must file a petition for the annexation with the county that Jennifer has any special considerations that should be agreed to a forty touch meant. The municipality within Valerie sponsoring the agree but if they disagree they will include special considerations. The authority can then accepted or not and the Clerk was that a hearing date if they cannot come to an agreement. If they can't come to an agreement they shall enter into mediation. If the mediation is unsuccessful then a court can order the detachment with final terms and special considerations which must include all obligations including outstanding bonds and indebtedness to be mapped. Northwest Arkansas the only regional airport that has been annexed by a non member of the authority this is a very unusual situation. When Northwest Arkansas airport was envisioned it was to be an and non incorporated part of the county so that no city would own it. This regional airport act and its amendments are designed to allow the regional airport authority to operate as it was designed and intended to do and with that I'll take any questions. Okay representative rye you're recognized yes thank you Mr chairman of representative mandate before all this started you know where you're at now did did the state actually have control of the airport of hers who doing it no Sir as I understand it and correct me if I'm wrong but as I understand it we created this regional airport Act which allows cities municipalities and counties to create a regional airport. And so without authority five cities in the two counties Benton and Washington County came together and created this error. Okay any other. Representing Anders you're recognized thank you Mr president I'm just curious how much dot calendar us how much money does I feel get from that the two and a half percent tax about six hundred thousand dollars annually. Correct okay thank you. I have a few questions yes okay I had to County judges it laps over into two different counties correct and second you repeat the question or is the airport in one county airport is solely in Benton County okay but Benton and Washington County along with five cities okay created at the I have have you talked about DNA seen through the county court system and Benton County. So there's not any way under current law Fortner Port Authority to detach we don't have any voters so we represent the entire region but nobody lives at the airport and so the dentist the current mechanism would allow it there's an argument to be made that you might be able to detach into a city due to not having services provided at the airport which the current state of things but that would again be a against the will of the the region for us to go into say Bentonville that's not a preference of. So I said that's why you're here today correct okay yes Sir. Any other questions. Seeing none we've got several signed up today to speak on this issue. you would. Okay speak against the bill. Is not Chris Holland. Yes yes you would please identifies yourself for the record who you represent you may personally yeah. My name's Chris Sullivan mayor Highfill. Speaking against the bill Mr I ask the. If I can bring Casio it up as well we kinda where we're we're don't wanna waste your guys time so we're not trying to At the same information over and over and over yes that would be fine please come up thanks are if you would please identify yourself for the record and may proceed but said on the other from the other might. As I stated in by yourself and you may proceed. Is that on okay Cassie Elliott landowner powerful. Mr I'll just let her start out of she's got a lot of information about the annexation the stuff and we have proof of of how they happened back in the nineties saw that Cassie Sturch there. Okay I'm gonna and go through some information first and just assuming that I know you all are busy and I thank you for seeing us today and but just so you know about the history of hyphal and I move to high school in late nineteen ninety four and lived there until the twenty nineteen my son and mother in law continue to live on our farm. In January or February of nineteen ninety five my husband and I signed a petition to annex into the city of hyphal although when Terry as did many people in the area our farm is located approximately one mile east from downtown hyphal the original portion of hyphal and one mile west of XNA so we're right exactly between the old high school and then and the airport site. We petition at that time because we believed being in a city. Sorry my computer died and that being in the city would be advantageous to control of land use and property values given the ex and I would be there soon I had a little bit of background in and I'm real estate we also wanted to have we also knew that it would protect us from sprawl sprawl in mismatch land uses that might crop up if not planned correctly we also wanted to have police protection in as at the time we were in the county. So. We. We got involved in city government later on that to reiterate what the mayor was talking about about nineteen ninety five dash one was when the city council and April fourth nineteen ninety five annexed that what would be the airport land later that month the airport started purchasing land the first one being a tract I'll call the here and tract that was closed on in on April twenty sixth and then they later purchased more land. Another annex that was annexation that was mentioned by the sponsor was done in nineteen ninety seven and that was the area east of the airport I have all of these ordinances and maps and everything from the county clerk's office if any of you all would like a copy. In nineteen ninety nine I became more involved as a Planning Commission secretary and also is the city Clerk in hyphal almost immediately XNA had filed a bill to de annex from the city of Highfill the mayor city attorney and Scott been wanting to hand. Then director of XNA at the time worked out an agreement known as active fourteen twenty of nineteen ninety nine I also have copies of it. But I will read you an excerpt. From that the property in operations of an authority shall be exempt from the enact enactment of any rules regulations or ordinances permit requirements and enforcement by the municipality municipality may enact and collecting sales tax a liquor tax in a hotel motel and restaurant tax on the operations located on the property of the authority that other taxes or fees and acted bond municipality pertaining to the property or operations of the authority shall require the approval of the authority so hyphal. Negotiated came to an agreement in nineteen ninety nine. As per that acts and agreed to give up all of their authority over the airport. Anything that any other municipality could do. In exchange for the sales tax. X. and I wanted to be left alone they did not want to be regulated in the years in between Highfill works with the airports established sounding at the request noise ordinances had come up to Highfill city water and maintain a good relationship even though they did not have representation on the XNA board or the ability to enact any type of ordinances fees owning or any other municipal practices that usually are customary for other cities within the state hi Phyllis been decades working on building infrastructure. The next morning and. They're building infrastructure as per the original agreement with XNA to support not only XNA that the growing or areas around it for example the water system sewer system planning and zoning fire department including swift water rescue police department and road maintenance Heysel was incurred bonds of approximately seven million dollars to pay for the services they have provided to the residents of the community this was based on their original agreement with the airport that would keep the sales tax revenue in the city to assist in paying back these bonds it also allows the current city council employees and staff to plan for future growth if they didn't want to be in Highfill city limits why didn't they do this in nineteen ninety nine before Highfill incurred debt before Highfill had three thousand plus residents to support before they had a staff or even a city hall even though XNA makes provisions for payments of these bonds as the city continues to grow it will need to add to issue additional bonds and won't be able to do so without the sales tax from XNA it will need to continue to plan for their growth and have the option to issue bonds cities are continually having to maintain their water and sewer lines and in Arkansas we have aging infrastructure that is in need of upkeep and continual job. It is unfair to consider this bill given the history of the small but rapidly growing community how can small communities plan for long term growth if they face the threat and their largest revenue source being able to de annex offer them to continue to grow the airport XNA has an annual budget of twenty four million dollars the city would lose six hundred thousand plus each year and could not support the basic necessities of their community it is an airport for all of northwest Arkansas but it is not in anyone's backyard except hyphal high school has a plan for water services sewer services future roads emergency services a host of other services and amenities that residents and landowners now expect airport impact the area around it not just the parcel of land it resides upon I spoke to mayors and some neighboring cities last night. As I work with cities on a daily basis I am a grant writer so I did speak to them mayor bill Edwards of center ten opposes this bill mayor Randall nonpublic of case springs opposes this bill Maher Robert start Decatur opposes this bill mayor Harold outfit from head home Springs opposes this bill the residents of hyphal who use these services and depend on them every day oppose this bill in council members from some of the cities have also contacted me the Municipal League opposes this bill as well as Scott Borman who is the director of the water utility that serves all all of northwest Arkansas also opposes this bill and I do have texts and emails from all of these people to show proof of this I urge you as a legislator for the state of Arkansas that if you do not understand the ramifications of this bill to this community and surrounding cities that you vote no for senate bill four fourteen please realize it can also impact your town when a business in your town that serves the area decides to de annex maybe it is a landfill or trash collection service maybe a water utility or some type of the museum park. There is no reason why private business the answers to an appointed board should have the power to dismantle a whole town in the residents for their own gain I would stand beside your town if I was in the same situation it's what's right to do we as a society say that we're encouraging rural development and opportunities for low income housing if this bill does not support that the homes in the hyphal area are mostly newer homes that are our problems are probably most of the most affordable in the area yet now these people will not be able to have adequate fire protection police protection and basic services such as water and sewer it is all in certain for this time how these services will continue without the city having the sales tax revenue from the airport for which they depended for over twenty plus years please vote no percent. The mayor would you like to speak. Yes Sir. The. At the last twenty twenty senses hypoplasia just lower fifteen hundred people since then the northwest Arkansas regional Planning has is that roughly thirty five hundred so we're we are a growing community of. So with the growth comes infrastructure needs you know and that's what we use the the sales tax for I know a question got asked about the how much sales tax we received from the airport it's it's just a gas and that's what you know I sent out email and I've asked over and over we need help from you all representatives the Senate whoever we can get help from to tell us how much sales tax Highfill actually gets from the airport because that's just a guess on my part the airports part we're just guessing six seven hundred thousand dollars you know of our million dollar sales tax it could be nine hundred fifty thousand dollars because the only thing we have is a dollar general store and a gas station as far as businesses go in the city. As of right now so. If if the sales if the tax that we're getting off the airport is much more than this could very easily bankrupt the town you know if if all the sales tax got taken away so that's that's where we're asking you guys for help we need you know a study done on this to to see how it's actually going to affect us so you guys can make a better decision more educated decisions like you know yes it's not going to you know they're going they'll survive or or no there we're not going to survive that's the question that we've asked and over you know many times of and just you know last week when we're in the Senate hearing. We did offer at a deal twice to the airport I've got my city council you know they're they're notified and no they're on standby you know for any any immediate city council emergency council meeting if we need to have one to come to an agreement with air port wine here so we are willing to to negotiate a deal but we've we've we've been turned down of the there's a few things in the bill you know obviously they talked about this this taxation not representation got taken out. But the ability for hand and I'm not a lawyer so the way I read the bill is the ability for them to purchase land. An Indiana exit it spells it out in or how they can do that but it doesn't it doesn't stop and say just the original footprint of the airport so in the future when they by they could buy more land on the east or west side high school surrounds airport on three sides basically four sides there's a little section there that's been on the north end. A. So they could buy land and is more likely going to come out of high school. You know and that will take land away from us for any commercial or industry development that will provide us with sales tax down the road you know so that's the other thing is is to asking asking. The board here to help us clarify that to to make it to where it doesn't hurt high for twenty years down the road as well you know this is going to hurt us now you know. Without knowing don't I can't tell you a guarantee where if we're going build recover or not but if we know down the road is not going to hurt us as well we need that we need to know that answer as well and also in the in the in the bill all it states that all of our unused or not even unused all of our sales tax would have to go to paying back these bonds if there was not agreement reached between high for an airport you know this bill passed will that happen and we have to lay off every city employee that we have fire police water I mean basically our city would just go under and I know it's not anybody's and I don't think anybody wants that to happen. But that's the language that I want you guys to know that's in this bill that we have asked and asked to try to get changed and we're just asking you guys for your help you know and then the models to tell us how much were ask you actually getting from the Department finance you know from the airport you know I got told that you guys might be able to you and and the Senate that the House and the Senate could help us reach out to the FAA to do a study to see how actually how much comes out of there you know and will affect us so we know and we can better plan for this I just ask you guys to vote no for and if not ask you to do a study you know to help us. Know what is actually going to happen. Thank you guys for your time. Yes the representative McGrew you're recognized. Okay I move to sorry I was the only way down there so I came over here sorry I was like where is he. Sorry representative Hudson just trying to keep everyone on their toes today I am thank you both for coming in and providing us testimony on this and I know that you talked about the effect if if this bill did go through in terms of you know having allow city employees and and then you also spoke kind of generally about the cost to the city right now in terms of fire police everything that that benefits the airport can you give us more specific numbers on what that looks like as of now with the cost of the city is in terms of providing the services for the airports benefit. So are you talking about what's what it cost us to provide fire police of. The second I got placed he can give you a a really close cost on the on the police side now you know and and the question got asked what we provide the airport with two we provided with water we have sewer on the northwest side of a once or they can hook up to our server the offer's always been out there ever since we we've got server. Ten years ago you know so that that offers is still on the table always has been on they will always will be on the table we offer the airport you know fire and police even though they do have their fire and police department there we are the first in on that every time they call for our help we provide him with the same service we do you know any citizen of of of high school you know so on the fire department said we are a volunteer fire department of we do we do have guys eight to five Monday through Friday Monday through Sunday actually seven days a week that work to be able to cover you know whether because of their poor calls in the city of hyphal and they just work part time that's that's an Allori basically paying fifteen dollars an hour you know just the the the standard rate of whatever city around there is pain so the fire departments budgets probably a couple hundred thousand dollars a year you know maintenance and training and stuff like that and I'll let Chief web here speak on the he saw. Blake Webb chief of police for the city of hostile as far as public safety is concerned are you know we're we're small agency and usually have one officer to two officers on duty at any given time and there's thirty four square miles of state highway within our jurisdiction which the airport that's in the middle of that the amount of traffic flow to include traffic accidents D. W. eyes things of that nature severely impact or abilities on a regular basis and we provide the services to the passengers the use the airport and to the any anything that comes in and out of the airport is passing through and touching or jurisdiction at some point it's. The services we provide as a police and fire department or something that I think is a benefit to the airport and any time they need assistance we're there for them I think that that will continue to be the case as long as we can do so okay as far as budget and things like that are concerned it's it our daily operational budget would significantly be affected I don't have specific numbers I think our full time officers you know we're starting pay is it's close to thirty seven thousand dollars for a regular patrolman and that's fairly new on the low end right now as far as northeast Arkansas is concerned it's it's been a long process first even get to that point retention of employees is also the thing that we have had some difficulties with as far services though provided I I think that they would significantly be impacted given the nature of this legislative action. And something else that's also paid others them want service by Pafford EMS that covers the hive on the and and the sea high point airport so and that's eighty seventy six thousand you're somewhere don't don't quote me it was within a couple or a couple thousand dollars seventy six thousand right there. Yes follow up. Thank you that was helpful can you tell me that I I mean I was in the airport pays taxes to go to high school do you know what that with the tax rate is that the airport is paying for services and is it different from what everyone else. So no it's two percent an airport actually itself does not pay taxes just the vendors in a car rentals of liquor the the the bars the the restaurants and stuff the actual actual airport itself does not pay taxes yes ma'am. Mayor could you tell me what your your Total sales tax receipts are for the entire city I think we budgeted to pull that up on here I'll I don't I don't we'll pull the budget up right here and on this bill tell you. So total sales tax I do believe so I think what we budget this year. The. I'm hoping. just the million twenty five a thank total sales to. In what percentage does the airport representa out that sales tax that's that's what we're asking you guys that's what we've been asking is when will we're just guessing six seven eight hundred I mean this is the best yes on both of our parts of the non. Yeah I mean this is it I mean that's just a guess so of like I said all we have the dollar general and a gas station so if they mount up four hundred thousand dollars worth of taxes I'd be surprised but. All right to a representative right you're recognized for yes Sir thank you Mister chairman Sir let me ask you this. The folks at. In charge of the airport. That area is that that's not entertain on is is that not out in the in the rule part of the county. No Sir that's that was self so the people that own that land and nine in the nineties and owned four hundred years right before the airport started buying land all Cass is one of them all them landowners petitions went around and signed the paper they all run you know sign their name and their land on a piece of paper and self annexed in to the city of hyphal nineteen ninety five before any land was bought by the airport well let me see is if they want to be on their own you know and there's a certain portion of bills is coming from you and other towns why don't you just let them take care of all the the funding and let them run their employer. They do run the airport well it will mean that we do not run therefore we have no okay but that one's answer is they will the are they not asking for possession. Earlier for the airport is there's it's just in our city what worsens cooperate here where's the squabble yeah. we'll the first bill it was you know we got told that they wanted money you know was it was to do the infrastructure upgrades any of the airport but that the the taxing is out of there so whenever whenever if and when they detach from high school that two percent sales tax it will be paid and it'll be gone there will there will be a a tax on their number will will will they not be responsible for coming up with extra funding needed. Four we make it our mission calendar what she's asking for if they get there why will they not be counted in charge and all the revenue go toward or what way to pay the bills. Now they will have so the way the bill is wrote is so they can do a few things correct me if I'm wrong is one is to pay the bonds off they can either write a lump sum check they can continue the sales tax in the bonds are paid off in two thousand thirty eight I thank they can continue they would have to continue that sales tax until two thousand thirty eight and then at that point time it would be over what what why don't you do this want why don't y'all work this out to where they can they can have the control of the situation you'll get out of paying any kind of bills and let them be responsible for that bond money this own. What what can show workers. We've we've set we try to set up multiple times we've tried to sit down multiple times we would like I said last week we we offer twice I deal a very favorable deal and got got shot down thank you thank you Sir thank you Sir and. Representative Holcomb you're recognized. Thank you Mr Merola make sure I understood something you said it did I hear you say that the the airport pays no taxes to hospital only the vendors pay taxes that I understand it correctly that is correct Sir okay thank you. Represent Hodges you're recognized I'm yes I was wondering how much money is being paid on the outstanding bonds of six hundred thousand a year. J. seeing no other questions I appreciate your testimony. Thank you guys appreciate it. Ugh now signed up to speak for the bill Tom Lundstrum. Please identify yourself for the record and who represent in may pursue. Thank you Mr chairman name is Tom Lundstrum I'm from Elm Springs I am a member of the XNA board of directors and I don't want to belabor any points of already been made but I just do want to reiterate that the airport is a creation of the five major cities in northwest Arkansas in the two counties it was created with the specific intention of never being in an incorporated city. That was never the intention. From day one to be an incorporated city in fact the tacit agreement among the seven members of the authority or to not annex any airport property. And none of the members of the authority including those cities contiguous to the airport ever have annexed any property even though they certainly could have if they have chosen to take a hostile approach in an axis. So I would just ask that we honor the original intention for the Northwest Arkansas airport authority to remain an independent entity not incorporate not located in any incorporated municipality. The fact that Highfill annexed this was their decision not mine. The last thing I'd like to say is that. representative Ryan representative Hodges both ask questions regarding the funding in terms of dollars so I'm not an accountant but I think simply said from a cash flow perspective to the city of hyphal if they are receiving six hundred thousand dollars from the airport in sales tax revenue. From airport activity and they are pain which they just said six hundred thousand dollars a year. In money out to satisfy their bonds. If the airport pays their bond payments it's a wash to the city yes the revenue goes away so does the six hundred thousand dollar expense it's a net wash to the city of hyphal no money in correct no money out correct that wash I just ask for a good vote on this thank you. The question thank you yes I do have a question representative right you have to register thank you one more time Mr chairman. Why can't the folks that's involved in this now why can't they do a quit claim date and do some contracting in get rid of their part of it and give it to you all. I can't answer for them okay thank. Thank you Mr thank you. Okay a. Speaking against the bill the auction. Speaking against the bill Dustin call. The. Okay okay thank you. All right For the bill as well as a second. Yeah I think that's all I've got is or anybody else that would like to speak against the bill out there. My name. Speak against the bill. Okay we'll get to second I'm trying to. is or someone like to speak against the bill. Seeing no one. Bryan King. That you. Please come or well. All or okay all right to please come forward and state your name and who you represent you may speak for the bill. Thank you Mr chairman my name is Brian Burke I am the general counsel director of compliance for northwest Arkansas national airport might direct employer is the northwest Arkansas regional airport authority before I get in my specific comments more of a general comment when I was. Probably my second your first year of law school or so I came home Labor Day weekend as I as I did for many years going up to to go duck hunting in the fields out the rule part of been county with my dad and his friends and there are signs of something we did year after year and it was always a fun thing in after one of those hunts Mario my father and I were driving down the dirt road we pulled up to the slow rise me stopped me pointed out in this field. Nothing around for miles and so that's where they're going to build the airport said airport. Airport he proceeded to tell me a little bit about what would now be will become Northwest Arkansas national airport to tell you that little story to tell you this. The people who who. Together the airport authority put it together with the specific intent that it would be located. Not in the city not one of the five cities not in any city but out in the county and as I've heard it before describe for out in the middle of nowhere and at the time that's exactly what it was the reason for that in in its and let's hear from northwest Arkansas you might you might not know this. Until Northwest Arkansas got as big as it did there was a large amount of territorial is Bentonville and Rogers hated rivals Springdale and Fayetteville hated rivals I don't think anybody rival was silence springs Jonathan but Silence springs also part of this and been washed in counties also a part of this they got together and decided that the best thing for the region was to have this at the time regional airport out in the middle of nowhere or nobody owned it nobody could claim to lay claim to it and this bill would kind of level the playing field if you will to ensure that that forward thinking and vision is honored and and if with that I'd like to get in some specific comments about the history of annexation. I miss Elliott talked to you about annexation taking place in nineteen ninety five. And what I can tell looking at their ordinances in nineteen ninety five there was some sort of ordinance passed by the city of hyphal that attempted to annex However many thousands of acres into the city of hyphal I'm not sure whether it passed or failed because there's not really any evidence to that effect it looks like they tried again sometime later that year but what is really important and and I've only back up that that they did try again in nineteen ninety five they had an election on December fifth of nineteen ninety five and and the I have the the ordinance is the that show that at the time hundred fifty two registered voters in the city of hyphal sixty five of them voted in the election thirty in favor annexation and thirty against annexation nineteen ninety five. So I think what really happened is that people figured out that they needed to do something different procedurally. so in November of nineteen ninety six hyphal passed an ordinance setting a special election for January eleventh nineteen ninety seven the property to be described in the petition it is a property that in the petition that was supposed to be an act was was laid out on a on a legal description like you would see on a warranty deed was also laid out on a map that was in the file. And the map is rather large and there's no good way to to copy it. So I took a picture of it like we all do our from. This is the property they got annexed an eyeful as a result of an election that was held on January eleventh nineteen ninety seven all this property is outlined in orange and shaded in pink was the property that was annexed in the city of Haifa by a vote of fifty in favor and fourteen against in nineteen ninety seven by that time construction on the airport had already start. And even even if you if you listen to miss Elliots timeline in nineteen ninety five when they're ordinance first was passed on a deficient though it may have been on April fourth of nineteen ninety five. Northwest Arkansas regional airport authority had already acquired thirteen separate parcels. For the airport between ninety nine between ninety seven and the time of control or ninety five in the time of the construction commenced later that year or so much more property was acquired so this process kind of lumbers on until we get to nineteen ninety seven. And and the annexation election is held and some seven thousand acres including the entirety of the airport campuses annex in the hive nineteen ninety seven after the airport is well under construction your for open for operation in November of nineteen ninety eight so the the annexation information that you were provided I think is is a little bit inaccurate. I said earlier I talked about the the planning of this airport the leaders who meticulously planned this airport they work hard to ensure that it would not be located in any municipality large or small but despite this careful planning situation occurred we're a small neighboring town is not part of the airport authority not bound by the airport agreement was able to consume the entirety of the property on which the airport is located and and represent of rye I think to address some questions that you had the airport owns that property the northwest Arkansas regional airport authority is a public corporation it can own property it can sue it can be suited it operates just like any other municipality it has it has those abilities in those powers it owns that property the quit claim deed is necessary no contract is necessary to convey that property to the So that was nineteen ninety seven nineteen ninety nine was the first legislative session following that an exhortation leaves the eighty fourth General Assembly and a bill was introduced to enable regional airport authorities to have the ability to detach similar to what is and Senate bill four fourteen It did not come out of committee that way it was it was passed in such a way that the the de annexation provisions one we're not contained it was a compromise. And compromises it there's been some suggestion that there's agreement some sort of binding agreement that prevents this bill from being passed prevents XNA from from doing what it would look like to be able to do under under this bill but compromises just that it is a compromise. I'm sure all of your working very hard to get a lot of stuff done in the waning days of the session and probably as we sit here today your colleagues are out in the hallways compromising trying to get legislation passed that is the nature of the legislative process but I don't think any of you would would agree that a compromise that you make today is binding on you or or ties your hands are tied as your colleague Singh is. Twenty years from now should situation arise that requires a lot to be changed I don't I don't think any of you would would agree with that and that's just simply not the case it is the nature and it is part and parcel of the legislative process. The trying to wrap this up but I do have a few other things that I would like for you to know the. The businesses that operate Northwest Arkansas national airport pay sales tax pursuant to a to percent thanks actually to one percent sales taxes the city of hyphal has levied they get that money they also have some outstanding bond indebtedness as Mister Lundstrum pointed out to you the payment that they receive the on behalf of or or on account of the operations at XNA is roughly equal to their annual bond service for their annual debt maintenance on those bonds so in the event that the detachment occurred. The bill is written in such a way that those bond obligations would have to be satisfied that sales tax would have to continue to be collected and paid over the city five was if the annexation had not occurred and languages specific in the bill. so hi full would have. Roughly a decade we think maybe a little less maybe a little more the roughly a decade to figure out what's going to happen when that when that sales tax money goes away two things are gonna happen the bond indebtedness is going to go away so as Mister Lundstrum pointed out you may not have money coming in but you won't have money going out either it's a wash the other thing is that you northwest Arkansas is growing by leaps and bounds and as the mayor told you they've gone from roughly sixteen seventeen hundred people in the twenty twenty cent census to approximately thirty five hundred people I don't think there's any reason to think that that growth is not going to continue it certainly will continue their opportunity to to take advantage of organic sales tax increases in organic growth to replace those revenues I think is Certainly something that is that is that is going to happen and they have the ability to plan for that I have a long time to plan for that. Seven of of taking enough of your time today I'm proud to be here representing XNA and and and speaking in support of this bill won't leave you with one last thought. The purpose of this bill is not to immediately because property to be detached from the city of five for the purpose of this bill is to create a level playing field so the northwest Arkansas regional airport authority considered a table with the officials from the city of high school and have meaningful conversations and meaningful negotiations about what our collective future looks like as neighbors but many of you know you can't have a successful meaningful negotiation if if one party doesn't have something that they can give that they can also take away northwest Arkansas regional airport authority in Northwest Arkansas national airport has nothing nothing that it can take away sitting at the table with the city of hyphal unless this bill passes and so I appreciate your time today would ask for a good vote on this bill I'm happy to answer any questions. Yes NO questions we appreciate your test thank you Mr chairman okay I'm showing I have no one else speak against the bill is ringing everyone else that was the Bill. If not Jonathan Barnett to speak for the bill. Please identify yourself for the record and and who you represent you may proceed. John compartment Saddam Springs but also improve their port board and I'm just contagious a second thank you guys probably your. enough but Sam Walton J. behind you all the lands. Very important people refers Arkansas wanted this airport many years ago and wanted to be a airport authority that would be independent of all the municipalities have both been in washing counties in that was the. The cities of fed bill Springdale Rogers been bills on spring to the two counties they didn't get a vote whether they were annexed or not he didn't get a vote yet they established this airport authority. And the. You know the the airport we've been a good neighbor title Mike my uncle was one of the founding members of hi first name was at Holland and related to the mayor here today so I spent a lot of times a child in hi full and no it will if you will remember John Stossel back in the. Nineties did a report on twenty twenty and he he stood behind had behind him was the high full airport and how full of population it said forty eight and John Stossel who was mocking orders Arkansas because we didn't think we needed an airport the member John McCain had the G. L. G. A. L. come in and testify in symbol by the way testified before that general accounting office with the John McCain was wrong they said that we would ever be successful and we're very successful airport. But we're we're very young airport and when we have a lot of did you know Little Rock spend reports around a long time tolls airport pair how long time. So. We have a lot of dead and we were very rested in paying that debt off as well to be healthy hi full there was no intent for any of these bodies are cities or counties to be an ex it was not the purpose and they reached away out there and grab this and they benefit from it very nicely they probably got one of the better police departments fire departments they're they're actually like a lot of northwest Arkansas cities I would consider them to be a very wealthy city. But it's this this issue should be taken care of many many years ago it hasn't been we we hop off you if you drive too high for them takes very long to go to hospital but they are growing there they've got subdivisions going in as well as all of western Benton County it's all growing in the airport is going in within five to seven years our airport public will be larger than the Little Rock airport and but we are appointed and controlled by the mayor's in the city councils of those five cities and by the county judges of board Washington County and they're quorum court's so we are we're under the authority. We're getting ready to build this new airport access road if you all been up there it in three four years you'll have a airport access road off of the the the Springdale bypass and so it and it will benefit hyphal immensely apple's gonna be fine financially we're going to pay the balance off we're not going to we want to continue to be good neighbors and we're going to continue to negotiate good faith but we do need to have the independence it's it's hard pressed even tracked a hotel at the airport because we can't even tell on what they're taxes going to be they might put a hotel motel tax on there maybe be baby paid thirteen cents on the dollar one thing that wasn't said today is there also collecting four cents of sales tax on rental cars they tried it one time put a tax on the aviation fuel and if a stock whose that to any how we're we're here in good faith and again we want to continue to be good neighbors appreciate your all's time and your effort and be glad to answer any questions. Okay I see no questions we appreciate your testimony. Okay and you branch speaking for the bill. Thank. Okay is there anyone else would like to speak against the bill. For the bill. Not. Representative Michael ended would you please come in. Close for your bill. Thank you chairman thank you committee for your patience without testimony today I know we've heard several long bills this session so I appreciate you hearing just one more I want to reiterate the high points of the bill so the bill does four things it clarifies the immunity given to the regional airport authorities similar to what we already have in statute for cities counties and other political subdivisions in Arkansas it adds a conflict of interest provision which make sure that our board is not divided in their interest it also removes the improvement district language which means the board can no longer put a millage on the counties for the airport so there is no taxation without representation and then finally it does create a process to be annexed or to de annex from a municipality this does not automatically D. annex the airport and from Highfill if the detachment does occur it could be between eight and fourteen years before all the bond that are paid off and before hi Phil NO longer receives any of the taxing revenues that they've gotten so again the way that the bill set up in the way some people have said is that hyphal devs receive about six hundred thousand dollars a year as best we can estimate that money goes to pay off the bonds so it's not like they're just getting six hundred thousand dollars of revenue to do whatever whether develop so it does go directly to have the bonds they also brought up the issue of the water the airport does use the high water service and they will continue to use that have a water service part of detachment is not detaching from the water so that is something that will continue in Haifa will continue to get revenues from that and then. One other thing that was brought up that I do want to clarify as well is that the airport is highly regulated it's a quasi governmental agencies so it does have really high regulations if you've ever dealt with airports the FAA you know the amount of regulations that they are under so this is not something that will flood over into other communities and we're going to see all sorts of the annexations happening this is very specific within the regional airport Act to have this teeny the annexation available it literally affects three regional airports in Arkansas one is implies bill one that's in code and one that's in hive hi Phil so just wanna clarify that and then just want to reiterate that this airport is the only airport that is located in a non member authority so there were five cities that came together when a Northwest Arkansas was still kind of a baby if we can if that can be true and they came together the five cities in the two counties came together and created this authority in this airport was annexed into a non member thirty so they have literally. Have no part portion of the contract created this airport When northwest Arkansas regional airport was envisioned it was designed to be a non incorporated part of the county so that no city would own it they wanted to have no territorial disputes over the airport the regional airport Act in the amendments that we are recommending are designed to allow northwest Arkansas regional airport authority to operate as it was designed and intended by its founders and with that I make a recommendation for do pass and ask for a good vote. Thank you Committee thank you chairman okay up next we have the. Senate bill five thirty seven. Represented McNair if you would please identify yourself for the record. And you may proceed. Thank you Mr chairman Ron McNair. They represented district five Boone County. I did write mobile approved in the. I'm here running Senate bill five thirty seven for senator king exactly home at a funeral This is an adjustment to what we passed and twenty one affecting small town police officer. at the time we have a lot of come conversations and visited with Jamie cook the Secretary quite a bit. And because we were kind of opposed to how it's going to be I was going to affect our small towns. But anyway we were we were told that the the Bill pass that the small town and I ran over and rain so I'm sorry. can could get a waiver. Of on regulation. In an op I believe which don't we but anyway she laughed and then the the new director came in and courses says you know this is what it says so that through in our area I don't know statewide but in our area not through a lot of our small towns out of compliance with even went back as far as affecting summer school resource officer. This lineup. One one hundred percent supportive of our law enforcement vote that this would run to try to. To change that they meant to amend it back the way it was. an attacker from discrepancy on maybe some of the wording but anyway it came out a Senate committee with no questions came off the floor thirty five to nothing but then I found out this morning there's several at. Have an issue with it but To the bill sponsor and to my folks and my district I felt like I still needed to run the bill man I'm sure we may have people you know time but what what it did us include lots of small towns they just they can't afford a full time. police chief or officer. And when it when it does get out of compliance then you're you're basically even a part time that you had you you couldn't do law enforcement so it was able to leave in our small towns without any project. And I don't have a lot of information but like I said I'll just ask if I would run it I don't know it really upset the. Our area I don't know if that affected other towns and and again I thank the one of the changes was a a population of a thousand I was just told no that probably should have been lower but again. We're at the end of and I had to run it so I would like to see this problem fixed if there's a better way to fix it well I don't know that when I have time legislatively this time but it did happen is to be out in conversation for our small towns to be able to to have protection. You know because we we've got you know you got towns on the gender of your county and the the county sheriff. In my opinion are can't take care of it so I said I know there's several people that are granted to probably want testifies. I'm finished presenting a bill. Okay we have a couple questions here The representative golfing you're recognized represent McNair would you consider maybe putting this an interim study so that we can come up with the solution you and I have discussed this at length and I think we're on the same page that there needs to be certifications and things like that and that there was an agreement because I ran the original bill around and I got down within the table with Jamie cook and and she certainly did and then that was the understanding so would you maybe consider putting this an interim study so that we can work with the Department and come up with a of. A way that they can apply and do all that because my conversations and I'm getting to my question in my conversations with the Department is that they're more than willing to make sure that that process is worked out but of my question is would you be interested or care to put this an interim study so we can work that process out. J.. The well one thing it's not necessarily my bill. And senator elected senator came to the back home in a funeral so he was he was going to present I've had a conversation because the problem needs to be fixed. We've we've had this problem for two years now and it's not been looked at and. And from study from what I've seen. Usually doesn't materialize anything but that's one reason I am here today is because we do need to have a conversation and if that saw if that's the best way to do it. And not that I have real high hopes of the bill passing. But if if if if the if it if it does fail could not still be put into interim study. After staff. Represent college you're recognized. Thank you Mr chair I'm just trying to maybe it's too late in the session or something that I'm not following what you're doing here I. What was the change before and what are you trying to do now. Well it was give. Dr Martin tell you want to change business within it was it was date you couldn't. You had to have a full time. Certified. Officer all I've got is the change that are going back to. Which they were they were just asking. Modeste was of political subdivision having a population of one thousand or less under the last federal decennial census may appoint a number of part time law enforcement officer's equal to two our time law enforcement officers for each part time chief of police employed part time by the appointing law enforcement agency which like most likely passed down there you have to be a lawyer I understand what that Senate. But and and and this is presented I thank Bob by one of the police chief of the town that was a bad. Okay as so was it about we had we were requiring full time chief an hour not seven percent. We were happy apologized for not that's okay I'm not trying to justify does not. Eight they have police chief of and in a couple of the town that I know of I mean that they have lots of experience. But they didn't I guess it was the accreditation or the updated training or whatever but in fact one of the police officers and while the town center is passed and I were out of compliance is that Camden right now at seventy two years old trying to get we can be very certified to service town but thank you I'm not for unqualified people being out there and we absolutely need to to remedy this and From what I'm hearing interim study might be the. The best the best way to do that I would feel more comfortable doing that if it was not bill. Hi okay I think representative Dalby sponsored that bill and she's up And so she might clarify that a little bit. Thank you Mr thank you Mr chair I'll try to put this into a form of a question so we follow the follow the rules but it's my underserved. First time is it it's my understanding having been involved in that bill way back when this bill that we passed last session was a result after the protest that we had little rock in the governor had a task force and these were the recommendations in guys backed your young check your head yes or no because you all can remember probably better than I in was a task force in this is why the recommendations in part of the recommendation was the need for law enforcement to somebody in all towns that had in law enforcement have somebody who is certified. And that that that this because there's a lot of training that goes there and you know those kinds of things and so when it came to the small towns it was not of. It wasn't. You're gonna lose your police force it was cool it was you've got to get somebody certified the state was providing that training at no cost as I recall and that if you couldn't afford a full time when you could have a part time issue it was just the need to have someone who had been through the training to understand so we just didn't have untrained people out on the deal and so some of these of cities small towns needed some might needed some relief but still needed the training a and the so that was built into the bill and I think that there was a misunderstanding of from the cities that they thought they had to have full time and they had to have all the. Different accoutrements that went with it but that was not necessarily the case that there were some things built into that bill of that allowed for the small cities to still with the training not lose their police force that kind of thing wouldn't you agree. I agree there but there was some misunderstanding on it but I but they do the ones like that and and it might maybe only Boone County was affected I don't know but up I know that they were contacted after secretary cook laughed and and said you know that they would be out of compliance with me make. Representative ride you're recognized yes Sir thank you Mr chairman you know representative running I've seen this happen before little town like to run to it's got the same situation now what they will end up doing and a good share of over there inmate is budget go of use a little bit but they just went to hear in higher next year dancing to take care of that area that was certified. Well that's true yeah but again that. If the funds are there were a lot of problems the would be relatively easy to solve a. All the chair If we work to. But the final disposed here to talk against it. Can I make their comments before the just. Yeah I'm I'd like to do that talking talking here so we'll have that their input in what we need to try to get fixed all right all right it's a project that will open okay hold just second rep representative open well Mister Mister. You know I'm not trying to run your committee I'm just suggestion for about time we've got looks like six or eight different agencies back there to speak against this could we get condenser testimony little bit to move this along they're all they're all against the bills or maybe one or two a good Speaker read a spit everyone it would it would that help expedite little bit I'm if if I'm I hope I'm not being outlined by suggesting that thank you Sir represent Holcomb I don't think you're on line at all Get late in the session I tell you what let me let me call I tell you what let's do it this way who would like to speak please step forward here and come to the table and device so for the record and. And who you represent and will you may proceed to. My name's Brad king I'm the deputy director law enforcement standards and training. I am a representative dollars correct Dan director cook with part of that group that governor appointed never several recommendations. One of those And I was a committee to improve law enforcement in Arkansas one of the things that that came out of that committee was that. Part time and auxiliary are sensually the the same animal everyone gets paid the other one doesn't your basic training is a hundred twenty hours currently in cholesterol it's a minimum of a hundred ten. A full time officer goes to a five hundred twenty hour basis. And that's consideration right now of the current director is gathering cadre of trainers from around the state it's probably going to go to six hundred hours or so long I can tell you from experience policing it more complicated in the twenty first century there was in nineteen seventy seven when I started. So as a result trying requirements have increased exponentially. But at the end I was thinking on this This was passed and and twenty one. And. direct indirect or cook did tell those agencies that you thought that the commission could your waiver if there were some special circumstance we did schedule an agency to come before the commission And the commission has group had discussion long term Maksym after the testimony. And I said I concluded that the wording in this bill does not give them the authority to give a waiver so what they did was they gave the agencies six months to come into compliance so in the standards office which consists of myself and two agents interviewed mistranslated FOR we changed our tack to We're we're more of an existing age they would try to help You know sanctions are are a last resort we work for these agencies over the last two years there's only last I checked this morning. Out maybe five agencies that it haven't come into compliance read conversations all of them they're trying One of the things we did to help them will change the definition of full time. From forty hours and the four basic to someone that works more than twenty four is that the four basic part time is someone working twenty four hours or less. There's That hours difference was changed to accommodate small towns and that's how most of them have come into compliance. There are other Small agencies that have retired police officers that are the chief you know I worked thirty years now that's where they live there the police chief and we were good in that regard that. If there was a suggestion to make this better. Hi I we are not opposed to reducing the number down to two fifty and just language that the person has attended a full basic academy I will accomplish a lot of Full time people left whatever reason they've been full time they're in another area work now but they but they still want a law enforcement and and there are a lot of those people out there currently. Thank you Sir. Lieutenant colonel J. center with the Arkansas state police Hugh Finkelstein a chief of staff department of public safety your may proceed okay my concerns on this bill is just again into a day and age there were in with the transparency with the culture and climate across the country on training in law enforcement in the standards the main things that came out. it concerns me up allowing a police chief to serving the in a supervisory capacity the minimum number of hours and then to put them in a position of authority over other part time officers with minimum training is our biggest concern and I think if. Phrase of it's predictable it's preventable and I think this is this is where we can prevent something from happening. The only thing I would add is before as chief of staff for of maybe twenty five years as a state prosecutor a teach for the criminal justice institute warrantless search and seizure all over the state of in doing that for about twenty years and won the search and seizure is a lot of what happens on traffic stops and just issues that does that patrolman C. every day and it's complicated for people who've had the full five hundred twenty or six hundred hours it's complicated for for me who who's dealt with this my entire career to have a hundred twenty hours and no supervision we're going to have a situation that is definitely foreseeable where a person is going to be injured or they're going to do something that violates Fourth Amendment and somebody who is committed a serious crime is gonna walk free because of lack of knowledge lack of supervision that's just what we're trying to prevent with this. Questions. Seeing none we appreciate your testimony. Is there anyone else that would like to speak. Just say. Okay. Represent McNair your. Ready to close. Well we we started Michael. Thank you Michael. Of. I'm in I'm complete a hundred percent supportive of our law enforcement always have been The the problem I know some very small towns probably are not ideal in the law enforcement. But and the experiences I've had there's a lady taking care of their towns. pretty well of hope with what they've got of. And per or not be able to do anything I mean I know it's a problem that we need to fix somehow. like I said it seems like it might be limited in numbers I hope it is but I are I think at this point in from water by testified that we do need to come up with right some kind of fix and I think there was a male an amendment that didn't. For some reason I was on the Senate and but I if it wasn't accepted so and it's too late to worry about amendments to die with that being said the bill sponsor may shoot me but I think I would to move to put it in the entrance that you. All right we appreciate that thank you. Okay I tell you what I was I have no other bills here to be heard I don't think we've got anybody here to present any bills to. If not I don't know if we will meet again if if we do I'll give you notification but the Speaker will have to tell me you're going to meet again in the. Yeah all right and with that.