Revenue & Taxation- House

And without a definite a and to extend the program has no financial impact so that's what we're here for today is extended two more years make sure these folks can get the benefits that they were deserved. I appreciate a good vote members any questions. Nineteen no questions. No one signed up to speak for against anyone the audience want to speak for against this bill single resented Wardlaw which ought to close for your bill I'm close Mr I appreciate a good vote that means you heard a presentation of the bill what is the will of the committee. Motion do pass by representative rye any discussion all those in favor signify by saying aye. Posed by that thank you Mr Committee. I members are going to go to House Bill twelve ninety nine representative Cooper. Member's house bill twelve twenty nine I'm sure you've seen it on the agenda it does have a financial impact so today we're going to be hearing the Bill and asking questions and we'll go from there. The representative Cooper you're recognized in members I I apologize that I'm not totally prepared I don't have any my talking points with you on this bill today because I. It was a little bit surprised we're gonna discuss it this afternoon but I appreciate your taking the time to hear it but house bill twelve ninety nine creates a tax credit for donations are made to pregnancy resource centers so if you're familiar with the pregnancy resource center it's a a pro life organization first of all they provide ultrasounds pregnancy tests counselling to mothers who are in need at no cost to those mothers so these are very worthy organizations there are several across state of Arkansas and we're just looking for a way to help these organizations representative could where you had an amendment but since it's for informational purposes only do you want to skip the adoption of the amendment the which would you like to adopt the amendment or it's it's that it's probably not necessary since information only got twenty no we had it in case that something you wanted to do this okay just to mention a point of that absolutely okay the the original cap on the tax credit we were asking for was two point five million and so the amendment changes that to one million we're just lowering that cap just to maybe try to to increase the The desire or the possibility of getting the bill passed so several months ago the teenager publicans approached me with the idea about this bill this is something that you need to public is very passionate about something that that they really worked hard on and I have them here with me today and they can speak to this bill much better than I can because this is their their project this is their baby that they've been working on for several months so I'm going to allow us to introduce himself and then talk about what the bill does. All right thank you representative Cooper Mister chairman and like you said my name is Peter strong pro I'm a senior at Russellville high school and I'm a member of the executive board for the Arkansas federation teenager publicans so at our convention last summer our membership unanimously passed a resolution. Looking at how we wanted to handle policy or in regards to families and children that moving forward because our convention was held the day after versus Wade is overturned by the Dobbs decision so we had a really special opportunity to take our membership and. Put a resolution forward that says here's what we wanna do moving forward to support families in Arkansas part of that resolution that was this legislation so what H. B. twelve ninety nine does is it establishes a tax credit for contributions made to a crisis pregnancy center so these are centers across the state about forty to fifty of them that are providing ultrasounds STD testing clothes food formula diapers parenting classes they work with the court systems to help reunite families in regards to foster care and that sort of thing and they have seen an increase in demand for their services across across the board since the dogs decision. So what the bill says and does is it establishes a fifty percent tax credit based on a donor's total contribution over the course of the fiscal year so the money is as the bills are in the money is evenly distributed to every clinic that applies so if forty clinics apply. Then each at the rate of one million dollars that the amendment proposes each clinic would be able to distribute twenty five thousand dollars worth of credit to their donor so here's the way that that would work would be the clinic applies at the state to be a member of the program the state recognizes you are a crisis pregnancy resource center you don't provide abortions you. provide services on site as opposed to telehealth. And the bill the first page in the top of the second page of the bill walks through all the requirements for what APRC is and what they do. And so it then after the clinic has been approved by the state the. Donor the clinic use as a marketing tool so it's not a direct subsidy the clinic instead goes and they tell the donors they say the people that are regularly finding them now you can claim a tax credit worth fifty percent of your donation so with the end goal being that the donor is able to then increased their donation and stills in still donate donate more but the money out of pocket is effectively the same. So the donor within receives a tax credit worth fifty percent of their total donation over the course of the fiscal year so all in all this bill at a rate of one million dollars would. Lead to a forty clinics or to apply each clinic would have an additional fifty thousand dollars that they are able to then use for services they can increase their the number of their staff they can. Buy a new alter some machine I I know one of the clinics in my area and the rest of a clinic recently had a new ultrasound machine donated. That thing that machine ran about fifteen thousand dollars so. This additional money is going to be vitally important especially moving forward. Because Arkansas's been ranked as the number one most pro life state. In the in the union for the last three years. It's important that we continue taking steps to support families over and above just outlawing abortion ACT one eighty is an amazing is an amazing piece of legislation but it left a demand for services. Across the state that are clinics need help meeting so. I know that there is a program that was established last year and is going to continue to be in effect through this year that establishes grant funding for these clinics. As well as pregnancy help organizations across the state so that includes adoption agencies maternity homes this bill is fundamentally different it's not a direct blank check it's not a hand out it's incentive to increase the generosity of our Kansans across the state so we couldn't think of a better way to. Find inspiration for this bill than seeing you know what other states for doing so we looked at Missouri Missouri has had this legislation in place since two thousand and seven so they started out with a maximum of two million dollars and cents increased it to three point five million and then they and they eventually in twenty twenty one got rid of the captain General so. What this bill is doing is establishing a pilot program pretty much it saying here's a way to cut taxes while funding clinics. Let's see if that works Missouri has a fifteen year track record of it working wonderfully the clinics and their the Missouri right to life said our clinics love it they all the clinics have a web page like they have is a page on their website dedicated to using it for marketing using it as a way to increase support to their clinic so they can provide for more people so it's it's a solid bill we've got that right to life with miss rose she's on board with that we've I know many of you are co sponsors a believer approaching twenty in the house and we have been working on it for about six months so we. Are excited to see where it's going and the positive impact that it's going to have for our cans in the cross the state I'll take any questions if you've got a. Other questions from committee a representative Cavenaugh. Thank you Mr chair my question probably for representative Cooper on this do we did we happen to notice why is this different than if we can just do a charitable deduction I mean is it are they not available to get that deduction someone that donates to them sure I mean these are nonprofit organization so they can they can receive of charitable donations the what the the difference is is you the taxpayer you if you donated them mercy without deduction of course that comes off your gross income but if you receive a tax credit that's coming off what you owe in taxes so the tax credit is more beneficial to you as a taxpayer in this is a non refundable right yes ma'am okay thank you. Thank you representative. Representative rate you're recognized. Thank you Mr chairman and thank you representative Cooper for bringing this bill and Mr Renfro thank you for being here as well one just this is not really well I'll make it in the form of a question but it's more of a recommendation or suggestion on the Max the maximum amount that someone could take on the credit at fifty thousand per year is is pretty high if you only have a one million dollar cap I mean conceivably twenty people could could could fulfill the credit you may want to make it remember to consider making it more. More like the political contribution tax credit were to a smaller amount but maybe make it dollar for dollar instead of you know to you know one dollar credit for every two dollars donated and that way if your goal is to encourage more people to engage in philanthropic giving that may encourage more people to a larger number of people with the same amount of money to participating given I think that might be better for the better for the organization in the long run just a thought have you considered something like that. We would definitely consider that thank you. You could represented right yes okay thank you for the question and representative brown you're recognized. Okay. I got bad information appears. She did this is what all right members any other questions. Right president of lent you're recognized. Is actually more of a statement and the real familiar with the activity of the the center in our area and the work they did in the and it's you know they work really hard. And provide a service to to people that need that service at a time when they really need that service and so I'm in favor of this bill even though it's a wise of affecting our total revenue thank you. So now you have a question representative brown. You're recognized. And I to know at the work of the pregnancy crisis centers and of regular donor and and. I just think that they do wonderful work we have we are the most pro life state in the country and and we are probably going to have more people needing their services and this is a way with into thank to provide the additional funding that they're going to need. Yes ma'am so what we actually conducted a survey with the members of the Arkansas pregnancy network so that's the association of. it's Association of these crisis pregnancy centers across the state and the survey is now indicated that they have seen an increase in demand for their services and funding. To the best of my knowledge has remained consistent and so what we're looking at as a way to boost that on top of what they're already getting and just one other point that I. I forgot to get out earlier this bill would also potentially reduce we don't have the study for it but it will also potentially reduce the burden on the state to provide welfare for welfare program so when you're looking at the services that these clinics are providing at no cost and no cost to the donor to their clients your I mean you're looking at formula and you're looking at alter sounds and all this mad the medical side of thing as well as the material side of things is stuff that is. It's not costing the state anything so this bill would increase the ability and the capacity of these clinics to fulfill that duty which. To my best logic would reduce the burden on the state as well so thank you and I just want to mention one other thing I believe also with the increase in the standard deduction for contributions a lot of people probably don't even meet that standard deduction amount and those who do this would just be a little more incentive yes ma'am we actually change the bill a little bit to where the. We lowered it to where the met the minimum donation amount we drop that from one hundred dollars down to fifty dollars because we're trying to bring as many people into the pro life community and. This arena as possible so thank you thank you Mr Renfro thank you representative could refer bring in this. There any other questions from committee. hearing none I know we've got folks signed up to speak for against the bill first on the list. for the bill is it Monica. Yeah Maria I'm sorry Maria is it spying. Speer I'm sorry Maria. Who somebody wrote your name down I know I know the. Just. You're recognized introduce yourself and and you may speak for the bill. What about thank you I am my name is Maria spear I am the executive director of life choices pregnancy center in Conway and where I've been the director for eighteen years and I am also currently serving as the president of the Arkansas pregnancy network and and here's mentioned that when he was speaking that that is the association of pregnancy centers that spans across the state and I just want to say that it sounds like most of you really familiar with what we do so I won't go through that laundry list of all the things that we provide but I will say you know when you add up all the women and families served or pregnancy centers you're talking thousands of women and babies and children that were helping every year and. We are so grateful right that roll fell and that Arkansas was in a position because of you all and your predecessors we had legislation ready to make abortion illegal in the state but what that did was then it opens up the door for us to really be pro life and pro love right and meet those needs and so this tax credit bill would allow our donors to really increase their giving as well as and. You know feel great about the fact that we are the number one pro life state and they're contributing to that and I just would love to see them because I really think this is a piece of legislation that every pregnancy center could get in on and because they're already receiving donations rights which is gonna be a matter of telling their donors about this and hopefully maybe garnishing a few new donors and so I do think you know if we set this up correctly every center will benefit from this and and then the women and babies we serve will benefit from it and I will say something that I have noticed at our center and I've heard from other centers since roe fell in this summer. I'm it seems as if we're seeing more desperate situations. Okay so makes me think that perhaps this woman would have chosen abortion prior to roe falling but is keeping her baby now praise the lord and so now she needs even more assistance than perhaps and she would have before I mean I have paid more electric bills and I have done and you know some house payments and and some utility other utility payments a car payment or to and so this funding with that having no restrictions were able to use it where the needs present themselves ladies and gentleman and I'm telling you the needs are great and so I would just ask for your support as we move forward with this bill and and I don't know if you have any questions for me if I can do that but I can speak to anything that you would like to ask. Members any questions. Okay saying thank you for your testimony. The next we have someone signed up to speak against the bill Mister Jerry ****. G. just introduce yourself for the record you are free to testify. Thank you Mr chair members of the committee on Jerry **** director of family council and if there is a category I could sign up for that would not be against I would certainly signed up for it would be to speak on the bill and that really is my purpose but thank you having to have a choice to make the choice then I made the difficult choice. So nobody here wants to vote against a bill to give a credit to a pregnancy center I sure wouldn't. And what might you have been out here for thirty four years I've been out here on every pro life bill that's ever been done every credit bill that's ever been done on and on I could I could right to a little book on all of that. We have talked with the backers of the bill and the sponsor and others about making some amendments that would align this more with how we do credits otherwise it with other other types of things this one the way it's put together falls outside the norm of how you do tax credits. And let me explain to you why this this was patterned after a Missouri law. And the Missouri law was one that they I'm sure had to hammer out with liberals and conservatives and all stripes and flavors of people and they ended up with the law looking the way it did. But it looks odd when you look at it in light of what we are here in Arkansas which is a very pro life state and let me give you specific examples. In one place it says that the Department of Human Services will determine what a pregnancy center he is. We don't do that for other charities where some government agency determines what a. Churches or what a homeless shelter is or what other entities are. So that that to assist seems rather odd and it seems rather bureaucratic. And so it begs the question if they already have a five oh one see three from the federal government and they are tax deductible why would the Department of Human Services need to pass any kind of ruling on whether they are a pregnancy center or not or should be eligible or not all of those things. If I give something to the good will not put it on my taxes it's on me to prove that that was a legitimate deduction or if I give to the good will or pregnancy Centerton I will go on record as saying there's several pregnancy centers some of the ones here today probably my wife and I support financially so please do not miss characterize my concern about this bill is being. Lack of support for a pregnancy center or not he or somehow that I don't want them to be able to get help. I've been out here on this all along. The other part of it is the center then if they want to do the credit. They have to turn the names of the donors over to the department of finance administration. And that to us again it's just odd. Why are we having to turn the names of the donors that want to credit over to the FNA. And there are better ways to do this and this is what I have pleaded and pleaded I spent an hour talking to the backers of the bill this afternoon saying please work with us on some amendments that will stream like the line this and make it work right. And I had thought that we were going to be able to do that in fact I have the amendments in my email already and then the Bill ran today so Mister chair Rick you know it pains me to sit here and say something bad about it a good idea really really pains me to do that so Mister chair I'm sorry for taking so long but I will I will be quiet for a minute but the bill needs to be amended that's the that's the short of it it really needs to be amended and I believe it can be and I believe it can work. By Mister would you take a couple of questions yes Sir I will do my best president right you're recognized. Thank you. I'm sorry about that Mister chairman. But the jury. Be honest with you I hold the queue and cook representative cover can get together yes Sir we're getting close to running out of time yes that sounds like a very important bill it is you've got to work together and get that thing worked out let's go well and I have some amendments like I said we spent an hour idea this afternoon talking with one of the backers of the bill right out here in the hallway and I was hopeful that we were going to reach a point where the bill would would would operate the way it really should rather than just the strange way that it's put together I know it's copying another state is really what it is. This chair I thank you for the time and one more question is which is trying to make sure the representative why was done you never really know. A ray you're recognized. thank you Mr chairman Mr **** you when you mentioned the names of the donors going to DFA that sort of made me curious would day they would just be required to provide the names of the donors that. Indicated they would be we wanted to take the tax credit I believe that the names of all donors right yes that that's how I read the bill if you want to tax credit you've got to have your names submitted to the FNA. Thank you I think there might be some people that would say I don't know if I like all that and so I don't know if that will have a chilling effect on people exercising this option or not but my read of it is exactly that representative ray is that it would be the ones that wanted. Okay all right thank you yes thank you representative members any questions of Mr ****. Ninety nine thank you discuss for coming down thank you Mr chair let me say just to I'm not a against the bill what is trying to do I just think it needs to be worked on no I appreciate your testimony Beck we have another person signed up to speak for the bill. I'm not even gonna try to attempt that. Start with you. Yes Sir it starts with the V. sorry about that is definitely not of the maybe I should be a doctor also is it Vicky yes okay I was going to be totally off base that's okay all right you're recognized the thing to the president as a chair I think you Parker and I'm with options pregnancy center and B. B. Cabot and Jacksonville I've had a center for twenty three years I sat on the board of Arkansas pregnancy network in the years that we have been it been in operation we have dependent totally upon donations from our donors that we are so thankful and and grateful for across the state this is how pregnancy centers work you know when you think about pregnancy centers and you want to definition of one I think the easiest way to look at it is there's two people bit two groups of people that meet that girl at her time of crisis at her time of need one is going to be the abortion clinic one is going to be in there the other side and then the other is going to be us the pregnancy centers and that makes us very defined in very easy it is easy to define we don't do adoption and we don't do maternity homes those are specific within their sales so that's kind of the definition but for us we have in these seats row has been overturned has been inundated the battle is still on unfortunately because we're still battling the abortion pill being sent into the State ladies going out of state so we still deal with that our state is still dealing with it but we have more women come into us now looking for a solution because some of them literally because it that wonderful thing that happened they come and go like well I can't have an abortion in course we're not going to tell them the any different but they think because it was a it that it's against the law in the state of Arkansas they don't know about going outside of the state and we're thankful for that so we're. Able to meet them at their point of need with all the things that you've already heard at so what happens is with our donors they have supported us bright fully for years and continue to support us but what happens with them is they do it whether they get credit or not. But when it be a beautiful wonderful thing for them to know that the things that we need that we go without the extra nurses the extra the staff that extra supplies within the center to be able to reach out to our clients and help them with that things that they do need that they're they're they're facing now to be able to do that in a much more powerful way because just like many have said to me already my goodness that would mean I could double my not not at donations and that would be wonderful because you're gonna get twice as much then and it so you ought to be able to do twice as much work with the moms and the babies and that's essentially true so I do think that and I realize that every state our tax laws are different but I think it's workable if Missouri's made it work for all these years Mississippi and Tennessee is is is looking at doing something like that very much like it the same that's usually what we do is it right as as a state we look at other states and go like well how did they make that work and then we can within our own stating we look at the tax laws or whatever this issue is and we try to make it work here right so at that's what I'm asking you guys to do is look and see what you can do with this because for hate pregnancy centers are a different just a different entity we're not like anybody else that things that we do our very very different in so many ways and we meet those girls at that crisis so I just want to thank you guys for hearing a hearing from us today and just know that we appreciate it if you would if you would have for donors Arkansas your constituents across the state it really would make a difference and all thank you thank you Miss permit members any questions. Start seeing none thank you thank you no one else signed up to speak for or against the bill but anyone in the audience like to speak for or against the bill. Seeing none representative Cooper would you like to close for your bill. Yes Mister chair K. come out witness join me okay thank you I understand there's there's concerns on some parts of this bill you know one thing that we that we always talk about when we've heard it a hundred times this session is what's taxes do what's Oklahoma do with our surrounding states do on on various things and you know Missouri's had a bill like this a law like this in place for many years and and this bill is modeled after that. Hasn't been any issues in Missouri that we know of you know I'm I'm concerned about privacy to but you know DFA has my social security number they've got yours and got our addresses in or we work I can audit us and know what all of our donations are and I'm not saying that's a good thing I mean we we probably need to work on some extra privacy issues and we have the FAA in here looking at me as I'm saying that. But I understand there's there's privacy concerns on this and I I guess I'll just turn it over to Pierce V. as the closing closing comments and we'll just go from there thank you representative Cooper I'd like to start my closing it with the statement from Missouri right to life Missourians worked very hard to make sure that we are offering women what they need and this tax credit program is a great program that is helping women through difficult circumstances this program has been a huge benefit to women and in crisis in Missouri and we encourage Arkansas to look at it. So I'd also like to address a couple of the points that Mister Jerry brought up so. Privacy is a big factor in this bill you were looking at. Religious nonprofit organizations and we're looking at donors who are supporting these organizations and so well yes it is important to. Respect the privacy of those individuals we also have to look at the best way to get the proper funding to the centers so the best solution that we've been able to come up with and that was there is actually implemented as of right now. Is to completely remove the cap on this piece on this piece of legislation submitting that there wouldn't have to the state would have to track how much money has been allocated has been distributed to donors it would just be there much like donating the car to good will. The issue with that is it would be a blank check and in consulting with our sponsors and. People involved in this process we were not confident that that legislation would even be feasible it took Missouri fifteen years to build up to that point and so we felt it was more fiscally responsible to look at. Ways to do it in steps if that is even possible in the future so. We want to look and see yes this is legislation that we pulled from Missouri but it's also legislation that Americans United for life has built has based their template legislation off of so if you go and look at Americans United for life they have a pregnancy options tax credit bill that's in there that. Our bill Hadley Meares so. We're looking at ways we ought to look at ways to get the proper funding to these clinics without. Wasting money by allocating funds that don't get used to also. Working up to a point and understanding how and where the money is needed and where it's being used there's data out of Missouri because their state was tracking. Which I would love to share with anyone that requests that they eat because the state is able to track where and how much money is being spent reports can be generated based on here's where that money's going here's where more funds are needed. And so. Yes donor privacy is a huge factor but also. This they are alike representative Cooper already said the state has access to that information already with. We want to respect that privacy while also doing this the right way and doing this the responsible way. Also this is a voluntary program if a donor is concerned about. Turning in their financial information to the state they don't have to the clinic doesn't have to apply for the program. There's multiple levels of voluntary action that must be taken to. Even get to the privacy concerns the fact that represent representatives from family council have addressed. It's much like signing up for a social media site you're signing up for that site and you know you know when you click that I agree to the terms and services button. You're agreeing to that and the things that come along with that. In order to get more funding to the clinics. Right now at this is we're looking at pretty much a pilot program we want to see it where the funds need to go and we'll see where funds need to go or more funding needs to go and where we can cut funds back so that we're not wasting money or also. Providing enough for these clinics to function. So. I'll go back to in order to respect that privacy. The best way to do it is to remove the cap which I hope that you all look at many years down the road after we have a full understanding of the implications. The the positive implications of this bill across our state for the culture of life the Arkansas is known across America for. I'll take any more questions if you've got a. Not I appreciate that representative Cooper did you have anything you want to add your closing members I know that were moving toward the end of session and there's a little if any money that's going to be available for tax credits I think there's of maybe a couple dozen tax credit bills have been filed that are on the deferred list of this committee but if if there is any money available for tax credits and we hope that you will take this this bill this idea seriously and possibly move it forward if if at all possible so I'm closing I appreciate y'all thank you all right. Members opposite were not taken of a vote on this bill at this time represent brown did you have another question. It's a little bit out of order but you're welcome to ask the question if you like to thank you can somebody just tell me how exactly of. A person we get the credit I mean I. So it the donor the steps go at the clinic applies for the program the state verifies that the clinic as. Per the first page the bottom the first page and the top of the second page of the clinic is meeting the criteria that we worked with a paean to develop and that have been tested in Missouri for fifteen years. And that is including things such as you have to be a five one C. three nonprofit no no that that's fine with me I'm just wondering as a donor what do I have to do to receive the credit do I just turn in my receipt that I donated the clinic for the year yes do I turn it in quarterly I mean I'm just trying to I want the FNA is this going to be an inordinate amount of paperwork that they're gonna have to process and just kind of curious about that so the Bill outlines that donations are con sees me credits are received in the order in which the clinic reports the contribution so the clinic reports that a contribution was made after a donor informs the clinic that they would like to get the set cleaning send a report to the FNA yes ma'am and then the FNA just keeps that information and then when the taxpayer files or taxes eight apply that credit I'm not an expert on the inner workings of DFA. I just wait reference you back to. I believe the third page. I I would assume this is an educated answer. That it would be kept on record and then the order in which that person made that donation they would be the first they be closer to the front of the line and someone that made a donation after them. Okay thank you I would venture to say DFA would would create rules that would. That would regulate that. They're not really if they don't have many problems creating rule to different. Okay all right and VOL smiling so I guess this is okay. Well you yeah it sounds be a bit but not voting on it yet so we I think we saw sometime it will dig into its more thank you thank you. All right thank you for the presentation peers I just wanted to say that you and your whole group we certainly appreciate you and and your professionalism and advocacy is much appreciated so I hope you continue on doing what you're doing absolutely thank you Sir thank you guys thanks. Members of Texas the house bill fourteen ninety two. representative Lundstrum. Okay looks live a we have a new bill sponsor representative Berks is going to present the bill. Thank you Mr chairman hi a representative Lundstrum is running a bill in another committee so I will present House Bill fourteen ninety two. May proceed. Thank you all right it okay House Bill fourteen ninety two deals with a tax credit that is given to businesses who engage in apprenticeships so right now the state of Arkansas rewards companies that employ apprentices by offering employer tax credits companies with a US DO well registered apprenticeship program is currently eligible for a tax credit of up to two thousand dollars per apprentice up to a maximum of ten thousand per year or ten percent of the wages earned in the taxable year this bill simply changes that from two thousand to thirty five hundred dollars or fifteen percent instead of the ten percent also the maximum is fifteen thousand dollars per year instead of the ten thousand it obviously costs a lot of money for a business to engage an apprentice like an electricians or a plumber and the purpose of this tax credit has always been to help those businesses recoup those costs of that investment in those premises I'm happy to answer any questions of I can't members any questions. Hi Cena NO one service signed up to speak for against anyone the audience wanna speak for against. All this this if I'm reading the the impact right it's really get twenty thousand dollars impact over what it has been in the past is that correct. Because this this is already in play. Thirty one come to the table top about it for a second or. So the the fiscal impacts on fifty nine three thirty nine but the but the program is in place so raising it up it's going to increase the the total impact by by twenty thousand dollars total. Just wanna make sure we're. Okay thank you all right members any other questions or representative Burke's represent right you're recognized. I don't know if you'll know this or not because it's representative once first bill but do you know you have an idea of which occupations or professions typically avail themselves of this apprenticeship. I credit I do know she she informing electricians and plumbers are typically under this it is a the US department of labor registered apprenticeship. So it would be whatever qualifies under under that apprenticeship program. Okay thank you thank you representative remembers any other questions. Right seeing none representative Burch we like to close for your bill I am class. Members you heard that the testimony on the bill what is the will of the committee. Motion to pass by representative Cavenaugh. Any discussion. All those in favor signify by saying aye. Those guys that we congratulations. Got you noted. All right representative Beatty house bill sixteen twenty four. We have a handout for house bill sixteen twenty four staff will be passing out at this time. Thank you. Representative Beatty you're recognized whenever you are ready. Representative power baby District ninety five here to present house bill sixteen twenty four to me in the water resource conservation development incentives that primarily for to include projects and she co County I would I would say that last session we work to enhance water conservation and development tax credit program to help landowners make investments in water use and conservation there many improvements made expanding the land area eligible for these tax credits we work with law for provide larger tax credits for ground critical groundwater areas to include counties contiguous to those that were designated as critical groundwater areas this was great work and unfortunately. We left out one area and I thought that handout could could really give you a visual of that ashiq council with redistricting I now represent she go County so this bill is simply asking that we amend the act to include C. co county in in these designations and it has a revenue neutral impact so with that I'll entertain any questions from committee. The baby how did we end up leaving out that one county just all there down there the bottom by itself I'm just gonna blame representative McElroy says he's not he's not around you know turns out that makes sense I'm a. In fairness I don't know I think it might just be an oversight I'm not certain that it was anything intentional or that it was I die just like it was an oversight but that may that makes it very clear when you see the areas included and and that one little area left out down there in the southeast corner of the state and that she go County the very important areas very important to me all right thank you members any questions. Seeing none no one signed up to speak for against anyone in the audience want to speak for or against. The all right would you like to close for your bill I'm closed and would offer a motion do pass and most do pass by representative Beatty any discussion I'm not saying none all those in favor signify by saying aye I am proposing K. congratulations guys have it your bill is passed thank you. Remembers this Texas to House Bill sixteen fifty four representative Pilkington. And we do have an amendment that will need to adopt before he begins his presentation. what I minutes getting passed out do you want me to explain it chair yet let's hang on just a second okay get the amendments and they can take a look out on the fun. Okay. With one. Yes thank you appreciate it as I say looking up on my phone. Our representative building do you want to just explain the amendment initially yes so what we're doing here is we're simply adding this language parts the that says has received a positive cost benefit analysis from the Arkansas Economic Development Commission I texted earlier with Paul about it asking if this would make the proposal revenue neutral he said it would and it satisfied them so obviously it's vitally important that this amendment gets put in the bill so that it will be revenue neutral and so we can that we not not affect the budget thing like that remember you heard the description of the amendment. With with a motion to adopt the amendment all right all those in favor signify by saying aye. Pose okay you're members adopted now you can explain your bill thank you as you'll recall last week I had me and Stephen Hauser men down here talking about a data center bill this is a very similar bill to that and we we chose go this one is that because there's a few differences the one the main ones is this actually increases the amount that would need to be invested in this state to be eligible so it's five hundred million which is a significant investment in this state but I just want to remind everyone That these data centers you know when they first get built the crate about one thousand two hundred construction jobs and put about five hundred million dollars to the local economy during construction and then once built each state generates around over a hundred direct employees and supports three hundred digital jobs and security maintenance for a total of almost two hundred million dollars in the local economy once operations begin I think these are really important programs if you look all our surrounding states have incentives for data centers we are the one state that doesn't and they're getting built literally across the border in Missouri and Oklahoma and we're missing out on opportunity so I just think this is a good a good bill I appreciate Senator Dismang being on this bill with me as well I think we just wanna make sure that Arkansas is competitive and building these data centers and with that I ask for a good vote on this new revenue neutral bill. All right members any questions regenerate you're recognized. thank you Mr chair representative Pilkington on the cost benefit analysis can you speak to what all goes into that. I if if there's a represent from ABC I would appreciate them to come so I don't see anything that's an accurate is all you guys and if they could come up and help answer some of these questions. Or would you rather have Charlie do it. The rather have Paul. I believe Mister Collins can probably help answer some of the cost benefit analysis questions. Thank you. Thank you Mr chair Paul Gary with GFA and we do have a a number of incentives in Arkansas that are dependent upon a analysis by the agency as well as confirmation by our economic analysis and tax research section within DFA those typically are tax credits that we are issued for The wood products incentive that we just had a bill on earlier as well as the steel recycling mills so typically we don't have any any of an incentive in the form of the purchases of equipment or electricity as a part of a sales tax exemption but certainly the requirement to do the cost benefit analysis of I do not know all the ins and outs of how eighty C. eighty C. does that but certainly they do a fantastic job of taking all of the information and in making sure that there is a positive benefits the state also as many of your where all the incentives that we provide under Arkansas law they are routinely audited by a legislative audit and routine reports provided to the General Assembly to see what the impact of those in incentives are and which ones are working and which ones are maybe need to be reviewed further for that to make sure that they have a better impact for the state. I hate to keep asking questions because I know it's late notice noise right but how does someone go about getting a cost benefit analysis to they just go to ADC and say Hey I'm I want to apply for this tax exemption can you perform a analysis for me or how does that work so and I I would I wish that the ETC was here because they we have bad but you're much better is an answer for myself but then myself but certainly the In the law that provides for incentive it set forth the application process in the law and I know that there is also see considerable information that's available on the ETC's website on all of the available incentives information about how the at taxpayer or business can apply for this particular incentives but I just I'm sorry still not as familiar with the application process as EDC would be are you confident that with the amendment that this bill would be revenue neutral. Yes and the requirement of the positive cost benefit analysis by ADC making the bill revenue neutral of course some some incentives are more have more of a positive economic benefit but the work that I've seen ADC due on evaluating incentives I think they do a fantastic job last question do you think your colleague Mister Collins would consider this bill with this bill help make Arkansas good jobs magnet. I would let Mr calling speak for Mister Collins. Never calling did you like to come lately and joke. The the only thing I want to talk about with regard to the project is when a EDC does projects it's normally project by project so the difference between that and a normal credit for anyone that qualifies gets it is there's a specific agreement it's a written agreement with with a call back feature so it wouldn't just be anybody that meets a five hundred million it would be agreement by agreement thank you very much represented by appreciate that not. You're welcome. Members any other questions. Pressing on anyone in the office like to speak for against the bill. Ninety nine representative Pilkington would you like to close for your bill I'm closing my bill and appreciate a good vote thank you committee for the time members you heard the testimony what is the will of the committee The motion do pass by representative Cavenaugh any discussion. Seeing none. All the favor signify by saying aye. Opposed. I haven't congratulations pastor bill. We. A do pass as amended. Let's try that again we have a motion do pass as amended. One of the vote for all right we we got it back I apologize my vote on the motion to expunge about what what you pass The motion to expunge the vote all's member say aye. Posed as have a representative Cavenaugh you're recognized for motion. Motion do pass as amended any discussion all those in favor say aye. Pose the ayes have it all right now it's past. The next on the agenda is we're skipping house bill seventeen seventeen going house bill seventeen nineteen. Is that right seventeen seventeen were running or. I've got it written down backwards in. University. Mr chairman I apologize. I apologize you are correct I had it wrong. I actually knew what was right but I was going to argue with thank you. Represented Leinster live in texting and I was trying to catch up. Yeah okay so house bill seventeen nineteen you're recognized to present the bill thank you Mr chairman Rebecca Burke's I represent district eleven house bill seventeen nineteen is up a bill sponsored by representative Lundstrum to provide a sales and use tax exemption for products and services related to electronic prescribing into exempt electronic prescription systems and services from sales and use tax I have with me a witness who will be able to provide the additional explanation. Amended this would introduce yourself for the record you can begin thank you Mr chairman my name is Bernie Sanders I am with the Arkansas pharmacists association I serve as the vice president of the association and. Prescription drugs are not tax there's not sales and use tax and tax on prescription drugs and traditionally traditional prescriptions are not taxable if someone brings in a paper prescription or faxes sent to the pharmacy there's not a tax collected on that but with new technology E. prescriptions you prescribing their. Most pharmacies are not currently paying tax on those transmissions either there was a one pharmacy software company purchased another pharmacy software company and in doing so begin charging sales tax on the electronic purse prescribing methods and this was just to provide clarification as to whether that were not this is taxable the pharmacy in question who provided the data there right now currently chart being charged proximately twelve dollars per month in sales and use tax. So it's not a huge revenue driver it is just a clarification point to see whether this new it's not new at this point but newer mode of technology should be taxed or should we treated as we do every other prescription that comes in on paper or via fax. Prime members any questions at this point. President right you're recognized. represent Burch I noticed there's not a on the website there's not a fiscal impact statement is that because it's minimal or because the bill is filed three days ago no my understanding is is because it's minimal. Ma'am I have but the FAA to the table here to explain that here just second and any other questions members. All right seeing none does no one signed up to speak for against Paul would you mind coming and talking about the fiscal impact. Ma'am could you tell me your name again I'm sure my name is Bernie Sanders Britney Sanders thank you Sir. Thank you Mr chair Paul gearing with TFA and I apologize the committee we are working on the fiscal impact statement for house bill seventeen nineteen we will get it released I have had conversations with represent Lundstrum to let her know that this bill does not have a revenue impact because we do not believe that the the transaction as described in the bill is currently subject to sales tax in the state of Arkansas what What we did want to clarify was is that this does not apply to the then the electronic equipment whether it's the computers the telephones those things that are already subject to tax it's just that the service of providing the electronic prescription from the physician's office to be filled at the pharmacy if I misspeak I'm happy to be corrected. President raise that get you some comfort. Do you have a dollar amount in mind. Zero read zero because currently this would not be subject to be a a taxable service in Arkansas that would be a clarification of of of the existing law. Thank you for that members any questions of Paul and if in a. Not seen and thank you property coming down thank you any other questions of the guest at this time all right seeing none reject grocery bill yes I am close and then I would move to pass motion do pass the representative Burke's any discussion. All right saying none all those in favor say aye. Those opposed all right the ayes have it. Thank you Mr. That is all we have on the agenda now I have I have no idea what's come in from the Senate at this point if anything I have a feeling there are some bill that will be similar to what we just ran on the data centers where they have to have a cost