Revenue & Taxation- House

On the agenda by representative Beatty would be up first however he is presenting a bill so we're going to without objections get to House Bill eighteen oh three representative Mayberry. We have a couple of hand outs that's that's going to be sending your way and we also have an amendment I believe is correct that the staff will also be handing out so take a look at those will give you a few minutes to look at that. I have copies of it. All right representative Mayberry feel free to introduce yourself and your guests and then we can proceed without adopting the amendment sure a state representative Julie Mayberry District ninety two. My name is Amy Fortner on the current Arkansas school nurse association president and that school nurses senate Arkansas. You wanna explain amendment I do members I apologize this bill was filed very quickly on Thursday after an education meeting and I meant to make sure that it said four million instead of five million because that more adequately reflects the fiscal impact that eighty each gave on the bill and I filed it unfortunately without seeing that so that's why I'm changing it from five million to four million five members any questions on the amendment. Ninety nine I need a motion to adopt the amendment I'd like to make a motion to adopt the motion adopt amendment by representative Mayberry all those in favor signify by saying aye. Posed okay your amendment is adopted and you can proceed with presenting your bill as amended Sir. Members I appreciate the opportunity to bring forth some information to members who might not have been able to hear information about the value of our school nurses and what they do in the state of Arkansas we've had these discussions for nearly ten years and the Education Committee and so I am excited about the opportunity to discuss it over here because we have been looking for ways to support our school nurses I think many people believe that school nurses are the ones that just give out bandaids and look for for lice and they do so much more than that they are a committee E. R. they see everything they are saving lives they're giving out medication they're helping detect child abuse they're helping with mental health services they are doing so much and they're doing it on their own where is when you're at a hospital or a clinic you have other resources to help you the school nurses are overwhelmed and we have been trying to increase the number of school nurses but we also are dealing with the lack of pay for school nurses the Bill. We won't get too much into it but the bill that was shot down yesterday and if this passes I'd like to see if we can bring it back up but it would have move school nurses from a classified position to a certified position in the school district and what the difference and that is classified it's typically a position that is a janitor a pair or Pere Pro a school secretary you don't have you might have a degree but you don't have to have a degree. Our nurses are certified they have licenses many of them have bachelor's degrees and yet they are not compensated at the same level as others who have bachelor's degrees in the school districts and without compensating those salaries a little bit more we're going to lose very valuable people at our school districts that are keeping our kids and faculty healthy. I can talk for hours on this topic. But no one would probably say it better than the school nurses so I'm gonna let them talk. Good morning you're recognized. Thank you representative eve thank you for allowing us this time to speak for just a few minutes this morning and then speak to this bill I think it's vital that you know some of the data and keep appointed care that's provided with Arkansas school nurses I believe you have a copy of the school health survey from twenty twenty to which some of the data that I want to point out today comes from everyone around here is probably aware of how crucial that school nurses were during the covered pandemic as we recover we're still hoping that students are performing to their highest educational level the part of this recovery includes identifying students that have high absentee rates in our schools school nurses are the ones that are calling to check on students when I missed two or more days in a row and we look at for resources to help get them back in the school determine what needs or need to be met school nurses are coordinating care needed to get them safely back to school and ready to learn in their seats according to the school served out in front of you and two thousand twenty two there are ninety six thousand nine hundred and seventy four students that missed more than ten percent of their school days. That's a lot. School nurses had support from school health services in state school nurses at different divisions to make sure that we have professional development and training in order to take care of our students and provide the best practices for all of our state staff and students thirty five percent of the students in Arkansas state have a chronic health condition and school nurses help manage maintain these during the school day these com cal conditions include allergies asthma diabetes seizures substance abuse anxiety and depression there are so cardiovascular issues and I respiratory depressions there are more than twenty two thousand prescription medications given alone during the school day from the school nurse last year actual doses of medication as far outweighs that number. School nurses have countless training hours for current mental health concerns in our school most students don't ask to see the counselor the therapist they're going to ask to see the nurse their symptoms are going to present and manifested away when they say my stomach hurts I have a headache they're not going to ask to see a therapist I want to see the person that can help them out. From the data collected on twenty two health survey there a hundred and sixty one overdoses during the school day. From substance abuse. school nurses are critical components in the opioid crisis and advocating for prevention providing treatment and training for school personnel. There were twelve thousand six hundred fifty eight times at school nurses and counselors use the team approach to talk about student health care needs. There were five the sudden cardiac arrest at school from students and many more from adults six internal crosses the events that occurred requiring school nurse services. Four thousand seventy eight hundred students were screened for hearing and vision during the school day from the school nurses across the state fifty nine thousand eight hundred and eighty six first aid treatments are amended to school personnel alone not including students. The reason we're here today is the school nurse turnover rates have more than doubled Arkansas lost twenty percent of school nurse workforce last year alone mostly due to income concerns that was over two two hundred nurses we have a current district that has had resignations for almost sixty percent of their nurses this year alone. Two thirds of our school nursing working population have had an ash divisional job outside their school district for income just to have the family survive. School nursing positions require nursing experience trying to entering into the school district and that's including the Arkansas road responsibilities from the Arkansas department. I'm sorry the Arkansas board of nursing. Having consistent nursing staff at our school play a big role in decreasing errors in aiding students to confide in a sum and creating a report but low pay wages increase nursing turnover decreases experience levels and trust that our students have built in us I know it's difficult for a lot of you to understand that health and how it looks an educational setting but the whole child concept was been adopted as the best practice in our state schools for students school nurses are often not supported due to lack of understanding our job the salary is far below average nursing pay and for most bachelor and master prepared school nurses were all well paid below the certified stitchers and register for the same educational level. This bill could increase in outcomes for receiving physical health and mental health care coordination I'm asking for your support and making sure to help retain and recruit school nurses to provide the highest quality of care in our educational settings thank you for making sure that our students have nursing services and are able to be in their seats are right to learn here in Arkansas. So what this bill actually does is try to find a funding source the education committee very much agree that we need to support our school nurses I don't think that was that a bitter debate over there it was just there was a three point nine million dollar fiscal impact on it and the question became you know what how are we gonna fund that well I actually have an idea and I think that it's a good one and that's what's before you today we know that there is a soda pop tax in the state of Arkansas started in nineteen ninety four about forty million dollars every year comes in from that soda pop tax and it goes into the medicate Trust Fund and right now that Medicaid trust fund is over six hundred million dollars and so we certainly have room to wiggle you can look I gave you documents so you can see I'm I'm not lying I'm. You're you're looking at the same number as I'm looking at and. We the Medicare trust fund can only be used to do the federal match on Medicaid that's what it's set up for. However if we before that soda pop tax money goes into that Medicaid trust fund if we remove four million of that and set it aside for school nurses that will get a spot in the proposal today is to get a spy for two years and that would allow time for the Education Committee to consider this an adequacy. this is kind of like. When do we make a rule change. Okay committee members I know you understand that when we make a rule change. I've been frustrated time and time again. That. Compensating our school nurses increasing the number of school nurses giving them higher salaries or whatever it's never considered inadequacy because it's not required. Well then when I try to make it required in the legislative session they say well it's not part of adequacy. So what I'm hoping to do is to take this little pot of money that we know is a small amount it is not going to affect the big scale of what what we're looking at it's four million dollars for the next two years four million and four million so eight million total it does have a sunset clause that would allow the next legislative body to figure out do we want to continue with that or do we want to do something else but it will make the education committee when they look at adequacy may take these new numbers into consideration. And we spend so much time fixing emergencies when things get to crisis situations we spend very little time trying to prevent problems our school nurses are working on preventing problems they're detecting that child abuse before it gets bad when that child comes in as she said they don't go to a counselor and say Hey I'm having problems at home. They usually say my tummy hurts my head hurts and then the school nurse starts asking more questions or starts looking at the body maybe even their stomach and realizing you know what they're constipated there not being fed properly they're being abused at home. We can stop those things on the front end before they get bad and I do believe that the use of the soda pop the soda pop tax money is a legitimate use for it because it it is for medical purposes. It was going into a Medicaid trust fund. This is for medical purposes and and meeting the weakest most vulnerable in our state. And many of those children are on Medicaid or our kids and even helping our faculty and if we can prevent problems we're going to save money on down the road I'd be happy to take any questions thank you representative Mayberry appreciate the testimony representative Cavenaugh you're recognized. Thank you Mr chair representative Mayberry have you spoken to the DHS about taking the money out of the Medicare trust fund I have had conversations with them I will tell you that they never told me no they did ask if I could look more into using Medicaid to compensate our school nurses more we have looked at that year in and year out they do actually have someone AT that tries to help school districts bill Medicaid more effectively and I don't know if you will if anyone wants to comment on that but they do try to bill Medicaid as much as possible to help compensate and some of that money already does many school districts will say that it's the paperwork is burdensome and I'm happy to work with DHS they they did say that they would try to work more with eighty ET on trying to make some of that paperwork less cumbersome did they say what the issue would be with taking the money out of the Medicaid trust. There is really no comment I don't know if there's someone here from DHS would like to comment on it I don't want to speak for them Mr chairman can I have someone from DHS come down and speak to this that please. You just introduce yourself for the record and you can chime in. Thank you Sir Clark quite department Human Services so are our primary concern around this is this yes we do have a large trust fund right now and the reason is that we received an enhanced federal match during the cove a public health emergency that is going away it's tapering down now and will be gone by the end of the year and that means that we're about to start tapping that trust fund in order to make up that difference in that loss of federal revenues and if if you have not noticed in RSA we just come out Medicaid funding is flat and it's flat because we anticipate drawing down that trust fund and so that's that's where the source of Arkansas artists around this. So as you draw down this trust fund how fast do you think you'll end up drawn it down do you have any idea about that yet we had projected that the trust fund at the end of this next five AM would be two hundred million or below which in the context of ten billion dollars a year is not very much but I'll emphasize that that's going to depend greatly on a lot of factors that we can't control we're starting to remove people from the rolls who've been an eligible we have to keep on during the public health emergency at this point we don't know if it's going to be fifty thousand a hundred fifty thousand to fifty thousand people who come off the rolls and that's going to dictate how much we have spent and where we end up on the trust fund balance and if we took the trust fund down and we spend it down to nothing where would we be. We'll be going back to you all for general revenues yes okay thank you. I think your representative Cavenaugh representative rate you're recognized. Thank you Mr chairman representative Mayberry I know I think. You agree this is an unorthodox way of approaching the funding for this but I I one of my questions is related to the adequacy process and the school funding matrix you know. As I sort of sympathize with the comments that representative back made in the Committee meeting in Education the other down your bill about it it does make me uncomfortable to fun things outside of the matrix if that is the process that we use can you walk me through the steps that you've made to try to get this included in the adequacy process for ten years I've been trying to increase the number of school nurses I've been before that Education Committee over and over again trying to get it into law that we have more school nurses which then would effectively make then have to it increases the amount of funding for school nurses this is been over and over and over again and and let me back up to to the the funding outside I want to remind you all of learns is funded pretty much outside of the matrix so I if if if that's such a big deal then why did we why did we pass that I mean I've just I've I've got to ask that question but this is just temporary so back to DHS concern and I understand that and I'm one that I I want to say Medicaid and Medicaid trust fund I have been on the house floor in the past saying we need to make sure that we're preserving the soda pop tax and preserving Medicaid trust fund I would not do this if I thought that it was going to put things out of balance I believe by compensating these nurses you are actually going to save Medicaid dollars because you know what happens when that student doesn't have the school nurse where did they go they go to the ER and so your cost is going to go up tremendously when the school nurse could probably triage it instead of going to the emergency room or a medical condition getting so bad that they then have to be put into the hospital so I believe that spending this little bit of money right here for two years will save money and will part. Tect Medicaid even more I agree with your rationale for wanting to do this with the nurses that's why I voted for your bill yesterday thank you What I guess what I'm trying to wrap my head around is. You if this what if this is been what has been the push back from the Education Committee in terms of increasing the salary I mean you said two things one was increasing the number of school nurses but I think the main concern of five remember from your presentation is raising the salary of the existing nurses so that it's competitive what has been the push back from the Education Committee on changing that if if if it's been if it's been a an issue that's you've been ringing the alarm bell on for ten years why have they not included it because they always say we don't have the money for it and the school superintendents would say we are not funded adequately to provide the number of nurses or the salaries that you want it is the same thing every single time here's an opportunity to give us a little bit of a job while we have this access then it would be eventually keeping in mind I'm I'm actually I'm paying attention to representative backs concerns and he very much said he doesn't want this in and you know another fund anyone sit through adequacy this would give us the opportunity for two years to get a spotlight. And then would allow it to be considered when they do all that the studies that they do saying this is the new amount that we have to compensate at and then could be part of adequacy going on I don't know how to fix it other than that I've tried every single way that I know how do I and I'm not this is just not you you know more about this area of this school nurse area than I do so I'm asking questions I don't know the answer. Do some of our schools use did they use our services where they they they paid the salary during the school year but they're contracting with a company that pays their salary during the summer or are they all full time employees of the of the districts I'm I'm good at I can answer that but I'm gonna lead our school nurse answer that. To my knowledge the we're not senator any outside sources also comes from the school district I'm I'm a salaried employee and I know what my salary is year to year and it doesn't change. I just think that might be another way to attack this problem that could provide they could raise the salaries of those nurses I don't know if that's something you consider not. Well the school nurses are paid through through the school district so the money has to go to this school district I mean you're saying I guess I'm not understanding what you're so we can visit more offline okay okay. I thank representative for the next on the list representative right you're recognized. Thank you thank you Mr chairman just questions of Mister chairman Cares ACT. Can we not going to the carers act for the I mean we're only talking two years it's they're asking for and cares Act is there could we. I'm a let representative Jean answer the question okay. We are. We were able to hear. No. Our. Our. Americans with. They're still out there. Gary well could we use the money that you're speaking of. If you can get the governor to write a letter and then it will go before the legislature you could if you deem it. The appropriate. Well okay so so here's the little dilemma with that I have a bill that died on the House floor yesterday that essentially stops it and that's all I was trying to do was get it out so we can keep it moving forward to say if there is money being found the Amendment that I wanted to put on on the Senate side would say if funding is found then it could go into effect you know right away but otherwise it would be considered in twenty five twenty six school year but that bill died yesterday so if there is our money and the governor didn't want to put some money aside to that I would be all for that but I need the bill to get through the house and over to the Senate for that to take place because otherwise you have money that doesn't. At do you do you see where I am and I mean I mean I'm here in the last week this is not how I want to do this. I'd like more time I filed the bill long time ago it takes a long time to get a fiscal impact on the fiscal impact came back it was a lot higher than what it should have been a and I asked him to recalculated with different numbers that were more accurate and here we are in the last week so I apologize this is not me waiting to the last second to do this well a please. Mr Speaker Yeah go ahead June you need to try that. Thank you. Thank you representative representative will you're recognized. Thank you Mr chairman. Resenja Mayberry the first of all let me state that the school nurses. I know for sale are very important. To the student body. Thank you Lou fill a role which is is generally has pointed out the deal with a lot of situations above and beyond just of the cut funding or head or arms garage or something like that or strippers of the deal with the other emotional issues that only the you can find out Mike my question is what what would keep us. What would what would keep us from saying. It including those in the matrix or including it in the education of funding just to say this is going to be this could be viewed as a loan and then if and when the next session comes up whenever we see present to answer questions committee could request appropriate asked for additional money to pay back the eight million and plus continue the salary increases as their in place at that time is that not that would that would be an option to what it I guess it would be an option but I don't know if that and it is something that's ever been done I'd have to ask if any is there ever a loan that then is paid back to somebody else that I I I don't know that's way out of my. Area of expertise maybe someone from the FNA can I I don't know. Well I don't know this so that we have to call is loan if we can find six million dollars to save Henderson state one nine filed messed up screwed up and the whole board nobody's ever been prosecuted down there we can find money for that but we can't put the money for school nurses this is go go to of I hear you representative will thank you so much you know it seems that. Money is found for a whole bunch of things that. People deem is important and I've been trying to find money for ten years did you did you study to most of Lawrence is al's mother is outside this all new money years outside of the metric outside the matrix yes and I mean I I I don't want to speak to that I if you want if I need to explain how that money is. Thank you thank you make your point the money can be found when we won't we don't want it we just don't have a convenient way of funding thank you Mr. Representative brown you're recognized. Thank you Mr chair Representative. Mayberry have I believe maybe you can confirm this. The I'm an I know that the matrix is very flawed. And I know that we've provide money to the matrix and then the districts spend it the way they want to. Have you talked to anybody about I doubt about fixing the matrix to include school nurses that the matrix does include school nurses but not enough and and the matrix funds school nurses to a certain degree absolutely and you go back into the same cycle of superintendents saying that they don't receive enough money that money is used for other purposes and I don't want to get too much in the weeds here but I promise you I've had all these discussions. on. It and it comes up every time I'd be happy to share with you so. This is actually this is what all the school nurses may this is funding versus spending and and the adequacy report and I think it even says in here. Survey says is sixty one percent of superintendents reported that their districts for and moderate or extreme need of more funding for nurses the matrix funds point six seven F. T. E. nurse for every five hundred students the state law requires districts to have at least one nurse per seven hundred fifty I can read all this and Andy I was gonna say y'all might get a little bored because I can get way into the weeds on this we we started this out by having a group of people when when my husband first came to the legislature we knew that this was an issue that was important we personally. My daughter who has spina bifida. I credit the school nurses with her graduating high school. She had fabulous teachers along the way. But it's because of the school nurses and a school nurse being on every campus. That allowed her to be in school. she would not have graduated. And she graduated. With a three point four I believe and with two AP classes. And I could not have put her in that public school had there not been a school nurse on that campus so I recognize the value of that. And so when we started off finding out that not every school campus has a nurse. I was heartbroken. And so we started years ago trying to say well maybe if we get groups of people together we had a task force and we had we had a Advisory Council. Went through this whole study two different times presented all that information to Education Committee this is what this group and it was made up of superintendents and nurses and parents and a variety of of people involved Department of Health and we can't presenting information. Well there's no funding for there's no funding for it there will never be funding for it unless I can get some of you to help stand up and help me. For two years. Four million dollars. This year and next year will force our education department to find the money to continue to fund it. Represented by marriage so to say that I know that we're trying to get to a point where we could maybe do away with that so the tax. But. I'm going to support your bill the county we have to do something. It's critical for our schools thank you. Representative Cavenaugh you're recognized. Mr at present the Mayberry do you know what they put in the matrix for two for nurse's salary do you know what number they use in the matrix for that. Go ahead. I believe last week in the Education Committee it was announced by department of ed two point five F. two E. for school nurses and counselors yet what's the salary they use in the matrix hi it is I've got it here Sturch I'm sorry so much information to go through I want to say it's. Because that's I'm sorry I my eyes are blurry right now. I'm I'm sorry I'm a little flustered okay thank you. This says nurse funding person versus spending foundation funding forty three million dollars. spending they spend twenty six million dollars I think is the point that you're trying to get out I'm trying to find out his number that the matrix recommends that the teachers I mean that that nurses debate in the matrix that's the number I'm trying to find it is actually what they say teacher should make that's actually what's in there and this gets us back into the argument that the superintendence. Argument for a long time if it is what teachers should be in the matrix is that around fifty two thousand or something like that that's in the matrix that is actually put in there for salaries for nurses is that what's in there is salary and the and benefits and and all that will benefits would be on top of that in the matrix the line item teachers around fifty two or something or it was and then when you add all the other stuff the benefits as everyone around seventy plus thousand so are the are you saying they're using the same thing for nurses. I I believe so okay all right thank you. Representative ray you're recognized. Thank you Mr chairman represent member I guess my my question is just that well I appreciate I appreciate that your bill has a sunset clause on it because I don't like this. Funding mechanism that you've used but I think a sunset clause. Mitigate some of that my question is what if in two years what will you do in two years. If the Education Committee does not incorporate this into. Adequacy well they have to. Why is that because we would we would require it with the other bill if it doesn't die which is dead right now. Okay so you would not pursue any legislation to extend this. I I would not know I mean I I would hope I listen to representative back I listened to that committee I I try very hard to listen to your concerns and address them over and over again. The concern of that committee was that they wanted it funded through adequacy the only way to force them to funded through adequacy is to make it required and so that's the bill that I was trying to pass yesterday to get it over to the Senate to say you know if there's no funding it would not go into effect until twenty four twenty five twenty six school year so so with the bill yesterday the failed how does that help me understand functionally how that impact how how to these two bills work together and and where and how to how we go forward given that that bill failed. So if we pass this bill today hopefully it gives new life to the other bill and there might be someone who voted no who'd be willing to help me bring it back up and and pass it out and then we can pass bills both bills out because now we have funding for it no big deal. That's that's my hope. You get representative right. Representative Beatty recognized. The representative Mayberry I want to go into a little bit I think follow up on what representative Cavenaugh was asking and and being your attempt to answer her question you're talking about the funding versus the spending and the two and a half FT's you stated that the funding in in the matrix was forty three million is that correct. Foundation funding it says forty six million nine seventy the schools spend. no no no no I'm sorry. It was the wrong page. Sorry I turned it over the wrong side sorry forty three million seven oh eight they spend twenty six million but they receive other funding through other sources through Medicaid through other state and federal sources and they actually spend more than what the foundation funding I mean I'd be happy if you want to make a copy listen this up there they actually spend more on the school nurses. Then what the founding of foundation funding supplies for them well that that's kind of where I'm going with this the foundation funding. Right now it's what about if I did my math right seventeen million seven hundred eight dollars more than what they're spending now that funding on nursing based on the number you provided I think everyone in this committee or anyone that has any any knowledge of school nurses and knows the importance of that and that's the reason that both bodies placed the forty three million dollars in in the funding matrix for school nurses so my question is if we increase that to forty eight million are fifty five million what guarantee do we have that the people that make the decisions at the local level will utilize the money that the that the legislature provides to the schools to adequately fund school nurses because the other bill requires that they are at the same level as the teacher salary. The bill that died on the House floor says that they made a a a nurse with a bachelor's degree would start at the same level as a teacher with a bachelor's degree and that would require the school to compensate them at the same amount and then and are in because you can be in our in and not have a bachelor's degree they would receive ninety percent of that salary and if it's an LPN at whatever they would receive eighty percent of that salary so we're ironing that out to make sure that the school districts are in fact using the money that we're giving them to pay the school nurses what they should be compensated because we've now put it into law so I'm I'm thankful you ask that question I hope that explains some things sometimes I have a lot of information up here and I don't know what you know or don't know and and all that and I I've been on your into and you're just trying to ask the questions and thank you for that is I I think hopefully that might explain what the problem is I think that explains a lot of follow up to I think that explains a lot of what the problem is that the other question I would have is specifically. With the forty three million that we have in funding now how much more do we need in dollars into the funding matrix to cover this is is it exactly the five million or is there isn't two million or three million what what is the the difference between raising those nurses to that level that's needed above the forty three million that we have in the matrix now VOL eight AAD ee calculated that number at three point nine factoring in what they initially did is they said every R. and had a bachelor's degree and that's why that amount was seven and a half million dollars and I said well not every are in has a bachelor's degree and we had those numbers and we have recalculated so it was down to that ninety percent that's why that amount was was less but that would allow those school districts to compensate in that one hundred percent ninety percent eighty percent and get us at and enforce those schools to do to do that because as you know when you put money into the matrix it's a funding not a spending this would make them spend it to compensate those school nurses and I will say the average salary of school nurses around the state it's forty four thousand dollars you know Texas it's sixty thousand dollars but let me tell you all the school nurses you know we have a nursing shortage and all the school nurses could get jobs making a whole lot more at a hospital and they're just about ready to leave because they're being called to all these other locations. And they would make a whole lot more. So this my last last point so really this bill. In of itself would not solve the problem we would actually need to bill that failed on the house floor yesterday so we need both bills for this to work absolutely thank you representative Beatty that is exactly my point. They will work in tandem. All right members any other questions. I see not mark can you tell me what the what we spend the Medicare trust fund on in general. six it's used to provide the state match for Medicaid program so we know with Medicaid we have to pay a state match it ranges anywhere from ten percent up to half for administrative costs for medical medical claims you working ten percent thirty three percent and so we use it for that state match for the Medicaid program. And and I should add just one little thing so like to remind people this on the for the soda tax Pacific Lee one thing we used for that is the even out our payments through the year digital revenue sometimes can come in spurts and stops in there many times the past when we've gone several months without getting additional general revenue from DFA and so in those cases we use this that soda tax money that's in our trust fund use that to fill in that gap temporarily. I remember something with Medicaid transporters Fund being spent on like these area agencies on aging or something is that any money come out of that no Sir we don't don't use that now but many of them are Medicaid providers and so they bill claims for the services they provide as far as just flat funding no Sir. President will your recognized. Why am I how much interest do we are in on that six hundred million and where is it going. I am not sure offhand how much interest comes in on that my understand the interest would just accumulate with that account in order to be added to the balance so far as you know that interest is not dedicated to anything else. Not that I'm aware of. Thank you thank you Mr and any other questions. Thank you mark we do have someone signed up to speak against the bill. Mr Dennis farmer. Thank you Mr do it yourself for the record you million thank you Mr chairman Dennis farmer with the Arkansas beverage association where the trade association for all the major softer distributors in the state and I've had lots of fun for thirty years now working on this issue and how this tax affects a lot of people it was mentioned in Education Committee that it is ripe for repeal and we hope that we're going to get there saying we are now the only state in the country that has an excise tax on soft drinks soft drinks of the only food product in the state that have this still tax on them so policy wise we know we're in the right but we're not in a vacuum and because we're tied to Medicaid we have to work real hard to make sure not do anything to upset you the services that Medicaid recipients receive or the reimbursement to providers make and so our biggest concern over this is that when the soft drink tax was passed along with all the other eight new tax increases that happened in this special session ninety two all went to general revenue. During the ninety three specials during the ninety three regular session a two year you're Clark was put on the soft drink tax for Medicaid. Which still exist and that has a way of happening down here that will say it's only for two years obviously no bill was re introduced the session to reduce phase out or repeal the soft drink tax of those monies would be there for the nurses for the next two years but our concern is that this is been a pretty bad political football from the very beginning and we don't need to see another player at the end of the field this can be kicking this around what we trying to do something so that is our primary concern about it I'd be happy to answer any other questions about the soft drink tax and how it is used with the Medicaid trust fund and we know this is a different time coming up now with all the redetermination having a very large surplus what we did witness back in the early two thousands when the soft drink amend the Medicaid trust fund built up to three hundred and eighty million dollar surplus of which was three hundred and sixty million dollars of soft drink tax revenues that had not been spent over the six years prior to that that all of that was basically used to offset and reduce the amount of general revenue that was sent to Medicaid to help pay for further reductions in the sales tax on food which is why when governor Hutchinson came in in two thousand fifteen you have to send an additional ninety three million dollars in general revenue to medicate so none of this is in a vacuum and we're in a tough spot trying to find their way out with good principled basis for doing that and not cause harm to Medicaid we free this is going to make it that much more perilous to try to get that accomplished in the future happy to answer any questions thank you Sir representative brown you're recognized. Thank you Mister senator farmer your your main concern is not that that this soda pop tax money would be available for two years your main concern is that this two years would would morph into more and more and more years absolutely could and part of is we have a challenge right now that in two thousand seventeen we agreed to go to the full sales tax rate on soft drinks and candy to get a nine room or there's a six million dollar reduction in the soft drink tax and to hold Medicaid harmless there was that six million sent through RSA to the Medicare trust fund that practice stopped during this biennium so Medicaid is are receiving six million dollars less from the soft drink tax than they were before and so if this were to happen for two years but then that air market still be in existence and two thousand twenty five if that got added then that further this is in our between a rock and a hard place with now not only Medicaid but with school nurses as well thank you. Thank members any other questions of Mr farmer. Fifteen nine thank you thank you appreciate it. Nineteen no one else signed up to speak to anyone in the audience want to speak for or against the bill. Thanks any number Senate of Mayberry would you like to close for your bill. I'm I'm glad you came up and talked a little bit about the soda pop tax so I did want to to say that I do understand as I mentioned you know last term try to get rid of the soda pop tax I was one adamantly opposed to getting rid of it because it wanted to protect Medicaid trust fund. My thoughts on the soda pop tax if we're gonna eliminate taxes in this state or give tax incentives this isn't the one that we get rid of. So that is part of the reason why we have a lot of the health problems that we have in this state rots your teeth contributes to diabetes obesity at Setra. It's kind of like a sin tax brings in forty million dollars a year if we get rid of that I don't really believe that consumers are going to see the difference your soda pop is not going to go down in price it's going to stay the same we have so many other tax incentives that you all as members of brought forward sat here that I think could do so much more. For the state and helping every day our Kansans economic incentives and I believe that that's what we need to focus Members I ate I love all of you I know all of you are working hard. I appreciate each one of you but I'm a little frustrated. Again how on earth I'll go back to when do you make a rules change. And I will make a motion to. Pass this bill as amended. Members you heard the testimony and representative Mayberry has made a motion do pass as amended any discussion on the motion. Senator Rapert you're recognized. Thank you Mr chairman there are. There are things that I like about this bill I like that sun sets and I. Genuinely appreciate the problem that is trying to solve and I'm thankful that representative Mayberry has. Brought the bill to education the other day because I was not previously aware. Of the discrepancy in pay between. School nurses and and private sector But there's other parts of the bill that I don't like you know. As I've tried to learn more about the budget and. You know try to get to understanding you know it tenth of what representative gene has already forgotten about the budget one of the things that has bothered me is how many of these dedicated funding streams we have and it frustrates policy makers as we try to it ties the hands of policy makers in the future when we have so many dedicated funding streams I worry I'm I believe representative Mayberry's intent that this is to be temporary but like so many things in government things that were told or temporary end up becoming permanent. There's a lot of that that we see that happen with the half cent sales tax I can think of a lot of other examples so that gives me a lot of concern So the those are my concerns I had I don't think I'll be supporting the bill today thank you there was any other discussion. Representative right you're recognized. Thank you Mr chairman. I just don't think it is right to have a school without owner's you need to pay only need to pay over a. In full million dollars is not a heck of a lot of money. We went to millions and millions of dollars I think we need to pass this. Members any other discussion. All right all those in favor signify by saying aye aye opposed so I'm rule the nose haven't thank resent Mayberry. All right members so we're gonna have to skip around to try to get people back to committees In just a second. Members without objection we're gonna skip the house bill four forty one representative Joe we Kerr I believe here. Senate bill four forty one. Represent a car you're recognized to present your bill thank you Mr chair joy Kerr District thirty four Senate Senate bill four forty four four forty one it up it amends current statute right now manufactures in Arkansas they enjoy the benefit of a sales tax exemption for purchases on machinery and equipment and what we look at on this it extends. intimate also it removed obsolete language under Section twenty six fifty two four oh two relating to the machinery and equipment that used by the manufacturer. Regarding dies molds repair parts but replacement parts. And what it does it also applies to services to install alter clean refinish replace repair of machinery equipment and it's also use directly in manufacturing article of the commerce. Now what we do is it would extend extend the exemption to machinery or the equipment that's purchased for future use so they would keep an inventory of parts and so that's kinda where part of the problem lies there in is up if they're staging for unexpected breakdowns in production the production line they purchased those parts maintain them in an inventory. But when they do that they have to apply tax compliant position at the time of the purchase then they have to report that and remit tax on a monthly basis and then kind of the consequence of that. Is that they either have overpayment of tax or not enough and then there are subject to a possible upset the assessment of audit so this this would clear that up this is a bill initiated by Senator Dave Wallace and senator Chesterfield and he asked me to present that to you guys and. I would be a. Remember any questions questions is this president cabin are recognized my questions really for DFA. Good morning committee Paul gearing DFA. More important with thank you thank you Mr chair something in your fiscal impact. Look out to me and maybe have a question it talks about the equipment or machinery that is withdrawn from inventory for the purpose other than the outlined above is taxable at the time a withdrawal from inventory and then the tax amount is from the original purchase price so my question is if they put this machinery and and it's used for its life cycle and basically they have to replace it because it's lived out its life cycle are they the and having to pay taxes on that because or pulling it out in the door will not be thank you president cannot be happy to defer to the to the company that's interested in this legislation but my understanding is that so we have currently an exemption for repair parts and repair services for exempt machinery equipment and that the and that's the exemption was phased in over time some point it was a partial refund of the sales tax that was paid and the issue that the company was required clarification for was that they wanted to build an inventory of the repair parts for the exempt machinery equipment but if they had a piece of machinery equipment that was not within the the manufacturing string that was not an exempt piece of machinery equipment they want to have to be able to purchase those repair parts that might be able to go on to an egg an exempt piece of machinery or a non exempt piece of machinery and then at the time that they pull it out of their inventory of repair parts they could install it on the non exempt piece of machinery and the pay tax on it because it would be an example pair part. Okay so basically we're just talking about a part we're not talking about an actual machine used in the manufacture process we're just talking about a part that you would put back on the machine as you do repairs that's my understanding yes and I'm I'm getting nods from. My colleagues thank you hi representative right you're recognized for a question. Thank you. You know chaired and been long ago that place was just desolate area. Now we've got a new core we got big river steel we got jobs in averaging about a hundred thousand dollars a job. This is just part of business to keep business big business going and it's a great fire area and I don't know what we do without. Thank. Thanks for the question representatives have. Members any other questions. All right saying none thank you Paul for coming down thank you no one signed up to speak for against this bill anyone in the audience like to speak for or against the bill axing unrepresentative car would you like to close for your bill yes Sir I'd like to close and I appreciate how the Senate was thirty five zero on this and I would ask for a good vote thank you. that's generally not a good idea at this point the. Representative will you're recognized the motion is appropriate to now that time that a motion do pass this is a motion do pass by representative wouldn't second all those in favor signify by saying aye. Posed Razzies nice haven't you pass your bill. Thank you Mr chairman thank you Committee thank you. Members next on the agenda we're gonna move to Senate bill three fourteen. Senate bill three fourteen Senator Dave Wallace representative Wardlaw you're recognized thank you Mr chair I've got with me representative car because he's representative for that area this just extends the date on the qualified still specialty products and it has a positive impact for the state and with that I'd be happy to answer any questions members any questions representative wouldn't. The motion is appropriate to. Members any questions it's that time seeing none no one signed up to speak for against anyone in the audience to speak for or against. All right see number absent Wardlaw just closed I'm close and I appreciate a good vote right representative will you're recognized recommend due pass with a motion do pass the second all those that should any discussion on the motion seeing none all those in favor signify by saying aye. No Is have it thank you Mr Committee. Members are going to. Skip around just a little bit one more time. We're gonna skip over to Senate bill four eighty eight this would be a Senate bill by Senator Hickey and representative Lanny Fite representative fight you are recognized to present your bill when you get ready. Lanny Fite distributed senate bill four eighty eight. thank you Mr Mister chairman Committee here what this bill does it is delete some obsolete language of voting machines were bought out of this fund back in nineteen. excuse me to the in twenty nineteen and is eliminates that language and also in that year also it transferred funds from the property tax relief fund to the cat catastrophic reserve fund in this language stops at sweep and it leaves that money in the property tax relief fund as you know we have have sent that is collected for the purpose of property tax relief and would leave that money in there I'd be happy to answer any questions member any questions from an account no no physical impact we can't okay we'll make sure no no no fiscal impact all would you agree. No fiscal impact confirmed by the FNA thank you. Members any other questions are saying no we have no one signed up to speak for or against with anyone in the audience like to speak for or against. Seeing numbers and if I would you like to close for your bill I'm close right bill I appreciate a good vote members you heard the the presentation of the bill which will of committee I have a motion do pass by representative hall well any discussion. All those in favor signify by saying aye. Post graduation you pass your bill thank you Mr. Our members we're gonna go back to the top of the agenda and work our way down we're going to house bill ten forty five by representative Beatty. House bill ten forty five. You have more. Representative Beatty when you get seated you are recognized to present house bill ten forty five. Thank you Mr chairman members of the committee I'm here to present house bill ten forty five It's for the to enhance economic competitive by repealing the throwback rule in brief brief summary this bill would adopt one major corporate tax reform to make the state of Arkansas more competitive by shifting the tax burden away from the jobs and investments the corporations making the state repealing the throwback rule make Arkansas more attractive to manufacturers and wholesalers by not taxing income from sales that are shipped to other states about half the states are less than half the states don't have throwback rules I think the number that dues proximately eighteen. Right now many fate business is in the State face an income tax penalty to locate in Arkansas the basically the throwback rule states that sales from a facility in Arkansas or source to back to the state of Arkansas are thrown back if the taxpayer is not subject to income tax in the destination state what this will do is increase what this does is increases to the Arkansas apportionment factor and the Arkansas tax burden on corporations manufacturers wholesalers and on top online retailers are often subject are often protected from income tax in the destination state by United States Public Law. But the effect is to turn the sourcing back to the facility thus taxing the jobs and investments that those corporations have made in Arkansas there's also a special rule that sales from our to the federal government our source to the rich the original facility and that's a problem for the defense industry in our state. Strong manufacturing states have been repealing the throwback rules over the last decade Missouri Alabama Indiana have all repeal there's within the last ten years the I. sixty five I. seventy five manufacture corridor in the south and Midwest have no throwback rules repealing throwback helps the parts of Arkansas that rely the most on industrial and distribution jobs. You know this is not a new idea with this bill the tax reform task force back in twenty seven twenty eighteen chaired by Senator Dismang address these issues and throwback was was of a large item in in that report from the task force we give him credit for in that task force for addressing this issue and bring it to the forefront. The bill would phase out throwback over seven years. Destination for sources to the federal government over seven years it would cut the money throwback rule I think in the bill it's about fourteen point two nine percent a year over the next seven years until that would go to zero the cost is approximately seventy four million dollars over the over the seven year period and any. One point I'd make this the best bang for the Buck to encourage jobs and investment in Arkansas right now we have several industries are looking to locate to the state to make investments in plant and facilities and throw back is the number one talking point when when we first met with and spoke with these these out of out of state and some international companies Brokeback's important it's approximately eight percent to nine percent of their total tax burden and is a big issue that puts us at a disadvantage to neighboring states when they choose to locate primarily in the defense industry if you look at summer defense contractors in South Arkansas that have operations in Alabama if they have to make a decision on where goods are going to be manufactured based on this rule there would be no increase in production are in additional line in Arkansas that would go to Alabama so places a Senate disadvantage and with with those issues I appreciate a good vote we have support from the executive branch we have support from the Senate many of you have signed on as co sponsors the state chamber I think they're folks here that will speak in favor of this bill this will be the best thing that we can do for the businesses of Arkansas and with that I'll entertain any questions members any questions. All right well done no questions did anyone from the chamber want to come speak up for the bill or against the bill I guess at this point. You would just introduce yourself for the record you again. Thank you Mr chairman thank you member of the committee thanks Michael Parker I'm a tax lawyer with right into Jennings law firm I'm also tax counsel for the Arkansas state chamber of commerce in associated industries of Arkansas have assisted the chamber on issues such as this including this issue for a number of years representative Beatty explained this a whole lot better than I could the chamber supports it and uh we appreciate it. I'd be happy to answer any questions thank you members any questions. I think thank you for your testimony. When no one else on to speak for or against the bill would anyone in the audience like to speak for or against this bill. Missing Mr chairman I I I can't allow our our find representive ADC not to at least address the the committee you bet you bet if you would just introduce yourself for the record you again and I'm sure they miss me jim Hudson the team's staff partner commerce Joe counts for eighty C. and without a secular things already been said would stress a really important point not only in terms of attracting new companies to Arkansas but anchoring existing companies this is not a give back or give away it's really it's an unfair penalty unfair tax penalty and so to the extent that you're talking about a defense manufacturer who's got facilities in Alabama they're gonna make a under informed business decision about where they locate their business and we could lose jobs to Alabama to Missouri so the governor supports this bill we would ask that you support as well and have to take any questions thank you members any questions. Martina thanks coming down. Anyone else want to speak for against the bill. Pressing numbers anybody would you like to close for your bill Mr chairman not enclosing just I would just say that the again this is this is the most important legislation that we can pass for Arkansas businesses and you've heard the comments of of of all the folks have spoken today and I just appreciate a good vote from the committee with that offer motion do pass our members have a motion do pass any discussion on the motion. All right seeing none all in favor signify by saying aye. Proposed regulation the ayes have you passed your bill. That's going to take us down. President but he might as well stay there house bill eighteen eighteen. Thank you Mr chairman House Bill eighteen eighteen this is a bill that we heard earlier in session I think that bill numbers house bill fourteen thirty five and it dealt with in a the law concerning pre payment of sales tax and increase the threshold for that requirement for retailers that pre pay sales tax and declared emergency and basically when we were discussing that bill the threshold for pre pay was set at two hundred thousand dollars many members of the committee address that but that number was established in nineteen eighty seven and has never been adjusted so what this bill has just one one change we would raise that threshold for pre payment to five hundred thousand dollars there's no revenue impact there is a cost shift of one month that should be in your impact statement approx for twenty five million dollars and I I don't have anyone that's supposed on on this issue so with that I'm close not entertain any questions. Members any questions on this bill. No one signed up to speak for against the. All still here. Yes Sir. It's called you want to add anything to this one about the revenue shift. Questions members any any questions about the revenue shift. No. Regenerates effort definitely or no minds questions representative baiting yes Sir you're recognized representative may have slipped a few times since we discuss this bill but can you tell me how you chose the five hundred thousand figure I think through the estimates of the FNA is as well as at when we were discussing this early on and I don't have the exact number of outputs that put it in the the online calculator what two hundred thousand dollars the equivalent was in nineteen eighty seven it brought that forward and a half million dollars was approximate number that we said loan to be close with the number that the calculator provided that make sense thank you thank you representative right now representative Cavenaugh you're recognized. You know may I can't say thank you Mr chair I did go on the record again I hate this law but I do appreciate coming in and updating the amount because it has been outdated for how many people should be pre paying the tax I just have to go back on the record and say I hate this law thank you. All righty. Thank you representive any other questions. Seeing none no one signed up to speak for against would anyone in the audience like to speak for or against. Ninety nine representative Beatty would you like to close for your bill Mister chairman I'm close now for motion do pass I remember your presentation of the bill we have a motion do pass by representative Beatty's any discussion on the motion. Nineteen none all those in favor signify by saying aye hi oppose congratulations the ayes have it. That's going to take it down to House Bill eighteen twenty one representative Ron are you in that bill for representative fight. Thank you thank you Mr chairman Mr chairman. I am honored to get to do this for the day This one deals with. With the folks at. That are over at the aging program. And they have to have ways to get to the grocery store every now and then they got have little help again getting them to Lunch for their fed every day. I mean there. Plus these folks are limited in the amount of money that they they have but we have a bill here. That actually will fund ninety percent of it like for a vehicle that they may need of land and they all need to all worn out and about it but this will give ninety percent federal money to to our local agent programs. And I just wanna let let Mister bill take a little bit more about it. Please enter yourself in your you're welcome just to speak German baby bill Stovall representing on behalf of Arkansas trans Association one slight amendment to representative rise presentation it's actually eighty twenty match rather than ninety twenty currently there's a five percent rental car tax on the books the shares seventy five twenty five between the Arkansas Public transit fund at our DA and and the Public School Fund being sensitive to the public school funds need for four dollars we did not ask to take anything away from them we just freezing their amount at the seventeen year average in the in any growth that might come would go to the two are not for the public transit fund to help try to find the twenty percent match of the additional nine million plus a year that the feds have promised us over the next five years in these do go to the over a hundred senior citizen centers disability a developmentally delayed that a schools and other organizations around the state over a hundred or so the qualified to to access the strains of fun. Hi readers question to the question representative Cavenaugh. Thank you Mr chair first I'll say you know I've always been supportive of the help of our senior citizen that work on that very hard all the time my question is we're actually Friesen this at one point three million dollars for the education but with you cabinet that you're actually reducing how much education is going to get because they're no longer going to get twenty five percent of the gross. With the new or learns Act and the experience in that why would we choose to cap that although I'm supportive of senior citizens get money we still have to find that learns Act one of those things are going to rely on is this money so why we choose in the cap that when we've got. Beyonce with the a big bill to pay certainly I resent Cavenaugh I met with the CFO at the department of education last fall in quite frankly I'm not sure it's something they depend greatly on they didn't know the history of wine was over there I shared that with them I never got an approval I never got opposition at of it either I mean I think that what people look at is that public school fund with two and a half make billion dollars in general revenue over billion dollars uniform rate of tax from property tax and over six hundred million dollars in adequacy that the fifty to a hundred thousand dollars it might be sacrificed annually here is a. Is that consequence on that that that would be my view on do you know how much money we're going to need for alarms yes ma'am okay I'm not just I've just been told okay and and that that continues to grow yearly in their commitment to the to the learns Act continues to grow Is the governor of the department of education support of this bill I I I I'm not aware of any support from them more opposition I have visited with about okay. Thank you Mr. Are there any other questions from committee. C. nine a I think Mr Stovall you're the only person signed up to speak for against the Bill So you Reggie Reid you're ready clothes for your bill Sir ready close and and appreciate. I'm sorry the representative right we we have a question from the chairman that's okay this. Is this going to cap the amount of money that that would go into the education part of the of the fund mean a little bit that forever no more from this from this fund entails use you or somebody else comes on the men's yes Sir there's no more growth that goes into it but I did take a seventeen year average and while while sometimes it happens sometimes is down eight PP he gives them but probably what they would Rick realistically forecast let me say this if the hundred thousand dollars is collected twenty five thousand dollars is the actual loss of the Public School Fund over above the one point four million and we we even left the the last three years in that average you know the pandemic change rental car behavior significantly twenty twenty one were kind of flat but twenty twenty two came up significantly and we kept all of that into that every for seventeen years has been divided between seventy five twenty five PM I think my concern was just. You know where we're at with teacher pay and and limiting the amount of available funding for that but anyway and any other questions. And. And no one else signed up to speak for against anyone the audience want to speak for against. Sinan represented by would you like to close for your bill yes or oppose thank you very much ma'am you for presentation of the bill what is the will of the committee. The. There's no motion at this time okay. All right. The motion. Do pass okay by with a motion do pass. Any discussion representative Mayberry you're recognized. I'm in support of this. But I just want to point out that we're taking money and putting it to the side for teacher salaries. Just a simple statement thank you thank you represented Mayberry members any other discussion. Seeing none all those in favor this bill signify by saying aye. Opposed. Those haven't your bill is failed person have. All right members that takes us to. Senate bill four nineteen. Got it okay. Senator when the chairman makes it to the end of the table you you're recognized for senate bill not of it I have thoroughly enjoyed the hazing this morning I've been I've got a great great job last down have you started You're recognized. You did all right of members this is Senate bill four nineteen extends a sunset date for the medical marijuana privilege tax not let Senator Dismang explain the building there's a four percent tax is collected at the wholesale level then again at the retail level this just extends that we've extended it now since implementation the medical marijuana act it currently funds the NCI project at UAMS we're going to be finding that with one time money and in here just a little bit you'll see another account that's gonna be created that these funds will flow to. I have to take any questions any questions from committee. Represented by Mister Rick just for information how much is that four percent bring in sixteen million okay thank you. Representive right. Thank you Mr chairman I I guess I'm just not familiar with this with this tax and why it was sunset ID can you just explain how we got here today well there's no guarantee that the medical marijuana continue on it and as you all are well aware there's been awful tends to turn that recreational at that point you know this disappears and so this is not for you know a a an amount of money that we should putting in our RSA or depending on in the forecast and it's been in a set aside since we started collecting it again we were doing the national Cancer Institute designation we have the one time funds to be able to make that a priority get you M. S. out of having to be concerned about what happens every two years in regards to this the desires to utilize these funds really to kick off the GME program in the states about ten million dollars per year that is only going to have to be paid out twice so two years before it gets its feet underneath it and is able to to kind of operate on its own and so we felt as though again that's a that's a good source of money for that GMA program it's a statewide need in addition to that again there be another bill in a minute it's for food and security we're being asked for you will be asked to vote later on to to fill or make all of the the partial payments read in regards to the reduced free lunch if we're not able to to achieve the federal funds that we'll be able to use funds from that from this account to be able to to make up for those copayments okay thank you thank you. Any further questions from committee. see none we have no one signed up to speak for against the bill thirty one of the audience would like to speak for against the bill. see none You ready close for your bill. Yeah we're we're closer bill and I make a motion to pass. We have a motion one of the wishes of the committee. I'm sorry you just made the motion Any discussion. All in favor say aye. Any opposed congratulations your bills passed. Just go down the list for thirty four all right you're recognized to present how Senate bill four thirty four. All right Senate bill four thirty four again it deals with the income tax withholding act nineteen sixty five a listener does make it plain. Hi so that drop right now the requirement is if you have over to entity by police you have to file electronically that drops that amount down to one twenty five at the BFA was originally asking for fifty or a hundred I'm not and I'm not sure I kind of did a little investigation on to make sure that you know for instance people that are operating their payroll three quickbooks had ability to file online it does that automatically in there very I honestly don't know how you would do payroll for a hundred twenty five people on people and do it at an paper into it accurately and so again This Is drop set threshold down to a hundred twenty five that will eliminate the need for DFA to manually enter three hundred and thirty thousand W. twos on an annual basis since is going to greatly reduce their workload at DFA for able to achieve this not felt like a hundred twenty five cutting that to fifteen have was a was a fair balance. Any questions from committee. Again we don't have anyone signed up to speak for against the bills the one of the audience that would like to speak for against the bill. see none recognized close for your bill we're close I make a motion to pass. Committee we have a motion do pass any discussion. All those in favor. Any opposed congratulations your bill is passed for sixty one movie known to Senate bill four sixty one. All right. Same song over the road and there Senator Dismang present the bill. Our members currently this has no revenue impact there's an eight million dollar cap on the amount of credits that can be awarded each year currently we've not achieved that cap inside this given year that this was the first day that we bumped up I think from four million if I remember right but what we do is change the underlying policy and really trying to create sentence for our small towns are smaller communities to be able to revitalize those historic you know buildings and structures that are in in those districts there's not as much of a need or I'm a guess a need there's not as much of an incentive in a smaller town to be able to invest those dollars bring this back to life so what we're going to do is essentially if you're under ten thousand population that credit would be moved to forty percent if you're between ten and fifteen population to be thirty five percent and everybody would movement be moved up to that thirty percent and in my opinion I mean this is the future of Arkansas it's these old existing buildings I think this is people what people want to see this is what revitalizes the downtowns and this is where I don't care what your age ranges I mean it your folks have a great appreciation for what's happening in the downtown communities and this is going to spur others for that economic development and move that along at a faster pace. Questions from the committee. See no questions again sorry representative right. Thank you Mr chairman so. I understand there's an eight million dollar cap on this particular credit how you said we don't hit that credit how close do we come to hitting that credit to I want to say we're at sixty seven million but again this is that we did that two years ago and there was a lot of projects were in the backlog so I would think you mean I'm I'm not sure where we are and how many will be able to utilize in the future but what we were saying is it is actually larger communities for the most part they're taking advantage of it want create the incentives here to to really benefit the small towns communities to. Really hope hold together what was the the center. So by by putting sort of a multiplier in here. Obviously we still can't go over the cap but. With this do you for see this getting it getting the spend closer to the cap and I would hope is increasing the spent yet because one thing to keep in mind is that eight million has already been removed from our forecast was removed two years ago and so we've we've budgeted for an eight million dollar reduction in revenue year over year for the the program so again there's no change in our forecast. Okay thank you represent warrant. Thank you Mr chairman not so much a question is just conversation for the committee I really appreciate this bill coming up before us we're just from what I've been involved in in the economic development of historic buildings and hot springs we're really way behind with contiguous states this is something that we've got to continue to work on because other states around us the of a lot of incentives to restore these old historic buildings and I I just think this is a direction we've got to keep moving in so that we do get a lot more the development of all buildings done in our state so thank you for doing this. Any further questions from committee. Senator would you like to close for your bill. No clothes make a motion to pass. I have a motion to pass all those in favor. He opposed. Congratulations your motion now your bill is passed. I move in the Senate bill four sixty two. Senate bill four six to do just moved moves the sunset date for the larger projects so that's a major historic rehabilitation projects from twenty twenty five twenty thirty. There is no revenue impact. Are there any questions from committee representative gene. Would this be a project like Arlington them for your call may be a juror the VA that that's where that that'd be a major project yes does it have a dollar amount the I think a man outstanding checks that the state has committed to but has not funded because is this has to be funded I think it's roughly seventeen million amongst three projects if I understand things correctly okay thank you. Representative right. I'm sorry I lost track what what number we on for sixty two. Okay. Any further questions from committee. Again we have no one signed up to speak for against the bill is there anyone in the audience would like to speak for against the bill. Seeing none you prepared close a close that I make a motion to pass. Committee we have a motion do pass all those in favor say aye. Any opposed. Congratulations your bill is passed will move on to Senate bill four seventy nine. But can we Mr Chaykin we skip for thirty nine for now so I get back up there and he needs to go in a minute go to four eighty two followed by. Four five forty nine. I guess we'll make that exception to the identified airman five eighty two members we're gonna skip down to Senate bill four eighty two. Hi Senate bill forty two deals with the apportionment formula for railroads and I'm but senator does not give the details hi this is to contain content that continuation of the policy that's already in place there would there need to be some additional clarity that was going to require a rule change by the FAA as I think you all are aware there's emit I'm not sure what the policy is on the second floor regards rules but I think you got up to adopt one you have to do eighty three a I'm not sure R. two all right so to be able to just provide clarity to these entities right now this is the bill is just to state in law continuation was already the understanding of how those businesses operate that allows a railroad entity to pick between the three factor apportionment or the single sales factor again it's a continuation so there is no revenue impact. You heard bill three questions from committee. I see no questions again we have no one signed up to speak for against the bill and ask the audience again if there's anyone that would like to speak for against the bill see none you're recognized to close and close to make a motion to pass usually have a motion do pass all those in favor. Any opposed. Congratulations your bill has passed. Now will move down to Senate bill five forty nine. You're recognized. Senate bill five forty nine is the income tax reduction bill that we're all familiar with I think most of us are co sponsors I let Senator Dismang talk about that members just quickly if it moves us from four point nine percent four point seven percent effective one one twenty three and that is for your personal income taxes on the corporate side images from five five point three to five point one also effective one one twenty three it is remote retroactive so there is some additional cost in that first year but just keep in mind we are building a sizable surplus in which this will just kind of eat away at a little sooner and I don't think that's necessarily a bad thing it because it does it is retroactive will have an immediate impact on everyone's paycheck that makes about two thousand twenty two thousand twenty four thousand three hundred dollars because it will trigger a change in withholding tables with that I would be happy to take any questions are there any questions from committee. See no questions again we have no one signed up to speak for against the bill I would ask if there's anyone in the audience and like to speak for against the bill see none you're recognized to close for your bill close numbers I make a motion to pass well before we take this vote I'll say that the eyes and nose have been kind of weeks on this tax cut I expect if you gonna vote I that we hear a good sound on the vote so all those in favor say aye hi in any opposed congratulations your bill has passed. Senator you're recognized to present. Senate bill four seventy nine yes Sir Senator seventy nine Essentially what is going to do is it's going to take the you M. S. NCI S. Disney should trust fund and we're gonna shift that to restrict the new restricted is there fine that's going to be used to address food insecurity health needs specifically we we're wanting to expand our our graduate to medical education program the state adding more residency slots and help to pay that the reduced lunch copay. One thing just keep in mind that this is going to restrict reserve account this won't be the last time the seating in the programs that come out of this be something that the governor is going to submit a letter request on it we will actually agree to an Legislative Council so there is a I think quite a bit of oversight how these funds are utilized and also keep in mind as we discussed before the for instance the medical marijuana privilege tax is one that only last two years at a time it is not on going in this is not to be used on programs that would have a long term impact of building someone's base and revenue stabilization. Members any questions. Ninety nine with for no one signed up to speak for against anyone the audience wanna speak for or against. Seeing none representative would just close for your bill closed all right members very that has one of the bill what is will of the committee. Regeneron has a motion to pass all right any discussion not seeing none all in favor signify by saying aye. Those that have a congratulations you passed your bill thank you Mr chairman committee members thank you just wanna say it's always a pleasure to have you in our committee center you're always welcome thank you I appreciate it next time I try to stick around just a little longer. Hi members that's all we have on the agenda without objection we have one bill on the deferred house bill eighteen fifteen without objection going to send that bill to interim study to take a little bit deeper look at it at the request of the bill sponsor saying nothing not sure if we'll have another meeting or not yet waiting on some more information from the Senate side I'll keep informed the best I can so with that we are adjourned.