Revenue & Taxation- House

Or it and the sponsors that have bills that have graciously agreed to let us do that so representative Duffield if you would come to the table you're recognized run house bill fifteen ninety four. Thank you Mr chair Matt Duffield DISTRIBUTEE three Russellville. Senator Scott Flippo district twenty three. You're recognized. Thank you Mr chair committee we bring you today house bill fifteen ninety four and this bill is for the disabled American veterans organization it's important know that this is a sales tax exemption for the organization and not individuals. And give you a little history on this bill back in two thousand seventeen Senator Rapert was going to run the bill but decided not to that time because the veterans coalition oppose the bill we're proud to say the veterans coalition no longer opposes this bill and we have no known opposition to it and Senator Flippo is here with me at this time. Senator did you want to add anything to that of substance. I'll do my best to take that as a slight Mr chairman nothing of substance at this time Sir all right. President of the what was the opposition last coming what changed on this bill that got really upset yes Sir the veterans coalition that time they had the stance that they wanted and and typically their stance is that any benefits for veterans organization veterans they wanted to be for all veterans and as much as we'd love for that to be the case we understand that we're on a budget and we've got a state budget state within the confines of and they had a they just change their mind about that saw the benefit for the DA the organization and saw that this could benefit them and save them some money four times a year when they have their meetings at their hotels there food they have catered for the for their vents and everything so like I said this is a very nominal impact on state budget and will greatly help our veterans organizations and members any questions. Representative Fortner all right members any questions of either senator or representative. All right sing no we do have one person signed up to speak for the bill of Mister Harry and I'm going to get this on the com prude. I got it if you would push that button there. Hi that's correct Sir all right you're recognized to go ahead and speak for the bill hi hi my name Terry covered under state commander for the disabled American veterans one of the things that on this bill the reason we are ran a loan on it is because of the fact that our our commitment to the veterans from as a DAB unit we work with a lot of veterans throughout the year constantly helping them with food rent money and different things like that so there's a lot of little things that come up that wouldn't affect the the overall cost here but it will affect us because all the money that we raise as of the disabled American veterans is all money that we raise either through donations Raffles of the big one that we do is a fishing tournament stuff so we're out there raising money so if we can save ten dollars when we buy something or that it's a big deal to us now represented Duffield mention our convention that's one of the big ones and the other big one Would be it every chapter that has a van the D. A. V. van that you see on the road carrying veterans to and from the hospitals and stuff like that is purchased by the chapters now for chapter is somewhat low on funds they can request money from the national the national will never pay more than half on that day and so the chapter now Russellville our chapter out there we pay the full cost in the van when we purchased two years ago is about thirty seven thousand and I'm told that with the economy the way it is that those prices have gone up now quite a bit so that would be the two big savings that the the D. AV of chapters or the Department was save on is the purchase of vans to carry our veterans back and forth in our contention. But I'll be glad to answer any ask any answer any questions that you might have members any questions. I'm not saying no question thank you for your testimony thank you Sir no one else signed up to speak for or against the bill representative go Phil would you like to close for your bill. Yes Sir thank you Mister chair thank you committee for your time much appreciate your support of this bill all right members who are over a presentation of the bill representative Fortner recognized for motion. Reformas motion do pass any discussion saying none all in favor signify by saying aye. Those graduation you pass your bill. Thank you Mr chair thank you Committee. I members at Texas back up a little bit to House Bill. Fourteen seventy six representative Pilkington. And this is this a bill I believe has an amendment that staff will be passing out shortly so we'll give you minutes take a look at that. Yes thank you. I'm ready when you are chair. All right you're recognized to explain your amendment yes Sir that the chair of the committee today after having a meeting with ATC they had asked that we make a few small changes to our bill One of them was to to lead the at nacs codes which is for state that kind of helped Help them feel that it wasn't so broad which we were finally doing that and the other thing was to change the effective date of the emergency clause from what I believe is July into January one twenty twenty four the those those changes they requested and we were amenable to and so we we made those changes but that I ask for a good vote on the amendment by members any questions on the amendment. Our communities no document a written rise motion adopt the amendment all those in favor signify by saying aye. Opposed congratulations your amendment is adopted you are recognized to explain your bill I thank you chairman thank you committee for being here today I have a guest with me as well this is Stephen Hauser men who is the economic development director for the city of Clarksville and I know he's got the prepared remarks before it goes into your into his entities of all just quickly explain what this bill as house bill fourteen seventy four is a two created sales tax use exemption for electricity sold to data centers What we found is large data centers are being built all over the south begat Arkansas remains an uncompetitive state Google recently built over a billion dollar investment in Oklahoma Walmart which is an Arkansas based company built a large data center in Missouri one mile from the Arkansas border instead of building here in Arkansas a couple months ago nice comments about a year ago we ran into some developers who are looking to build data centers in Arkansas and we do have a very pro business client our climate we have a mutable communities and we have a work force ready to go but we're just trying to get that final piece which is making us a little more competitive but with that I'm going to turn it over to Stephen Hauser men for his remarks and go from there. I thank you chairman thank you committee my name is Steve Hauser and I am not an economic developer of the river valley I just get right into it with H. B. fourteen seventy six but it is a huge impact would have our work force and the development of an untapped market in our state currently data centers are the backbone of our digital economy every website app cloud service and other digital transactions ranging from financial to service related data is stored and managed on servers located at our center type facility everything on your cell phone that's upload to a cloud is more than likely stored in a data set in a data center with the proliferation of digital technologies and the increasing amount of data being generated daily by individuals and organizations data centers have become critical components of a modern information technology infrastructure. That's why it's essential that we create environment that is economically viable for data center development we have already made early investments into technology based workforce from learn to code it initiative to focus on career ready pathways to the recently passed learns Act we are preparing our workforce for tomorrow the question now becomes where do they find employment here in the state of Arkansas and twenty twenty one I did a quick survey. of Arkansas universities and colleges and we discovered that approximately seven hundred and seventy students graduated from the schools with a background in IT then those jobs would be very applicable to data center functions. one concern I have is that those talents are exported to other areas of the country like Silicon Valley or the east coast that already have that establishment of clustered information technology business. How does this bill us all that problem. H. B. fourteen seventy six will strongly assist Arkansas and being an attractive destination for new data center development this bill targets their unique needs by creating a competitive environment that drives investment job creation or state the bill establishes a sales tax exemption on energy consumption by new data centers who are significant energy consumers according to the US department of energy data centers are account for approximately two percent of all the Tricity consumption the United States in the same fashion that materials and equipment costs are essential to the manufacturing process energy costs are of equal value to data centers. And Finally let me emphasize that this bill would not only benefit these companies but also the communities in which they're located real communities especially creating high paying jobs data centers would contribute to local economic growth and it would lead to secondary and tertiary business development in the area to support that done at that data center cluster moreover data centers often partner with local schools and universities to promote stem education providing valuable resources for our educational institutions for example Google has invested two point five billion dollars in may's county Oklahoma that project created a hundred fifteen new high paying full time positions one hundred fifty part time positions and a sustained over two hundred and twenty full time contracting positions from security to grounds keeping. They've also contribute over one and a half million dollars in the last couple of years to the county for stem educational loan the impact a data centre half that size would have been in any Arkansas community would be transformative. We know that this doesn't affect existing state revenue and it would only apply to new development from the selected Nicks codes in the bill that meet capital investment of over one hundred million dollars in at least a minimum job creation of fifty full time high paying jobs. we've discussed this at length with the ADC Act I believe representative bill ten is also spoke with the chamber and both are neutral on the bill currently with the changes they recommended in conclusion I believe this is a win win for our state it would open the door for a new type of private sector investment that currently does not exist in it would create high paying jobs and promote education innovation for Arkansas I ask if you would support this bill and help position Arkansas as a destination for the data center industry thank you. Yeah and going off represent our our house our men's Mr house and I was gonna represent Houseman going up his point I just want to re emphasize you know this is for data centers they're making a capital investment over eight hundred million dollars into the state it's fills the facility that cannot be used for crypto currency which I always hear is concerned you have data centers that are cryptocurrency operations that are potentially data centers this specifically says they cannot go towards that and then of course as a mention as well creates fifty new full time positions that have an hourly wage of at least a hundred fifty percent of the hourly wage or lesser of the county average so what we're trying to do is you know basically say we're gonna give you this exemption but this has to be a a large economic investment into the State of Arkansas that is going to bring as high paying tech jobs and that it that it's it's going to be used for what it says it's going to be use and with that be happy take any questions at this time. Members of the first on the list to see the ask questions is representative McAlinden. Thank you chairman quick question for you so you said there for data centers that you think will be moving in is that what you're. Financial impact is based on. Say that again how many datacenters are you expecting to move in. Do you have a I don't exact number of how many expect to move and I know there's been one built around as we have talked to I know locally and in Clarksville there is a project that is moving in that direction there's one there I know from talking to some representatives from the runway group there's talk about data integration Northwest Arkansas as well as I know of at least two projects in that direction I see Moore V. on the way I know the project in Clarksville's only phase one of what they hope to be a three phase project which to other phases going in other locations around the state so I guess you could technically say that I know for potential sites where people are currently discussing that Senator okay in your production is based off of one site. The project the this is not. Fourteen seventy six. I just got a good time at the fiscal impact statement yet I just got this this morning I haven't had a full time to totally Review and my understanding is this is an informational meeting about the bill so we we weren't actually got to go vote on it today correct but by my understanding is this is on a one side once okay and one more question how long are you allowing the exemption of the gross receipts. it in perpetuity two thank you. I think your representative representative Wooten you're recognized. Thank you Mr chairman of representatives of. Thank you On the. Create at least fifty new jobs I don't have a problem with the I'm just curious we're going to mandate what to have to pay their employees. What we're saying of of what what are we doing that **** thank you John answer yeah so with economic development obviously want to have an R. O. Y. whether it's for the state county or city having that minimum job creation is the threshold that helps Attained the our ally you know that I know what the ETC many of their incentives are based on fifty full time high paying jobs the the dollar figure for their pay for their salary would be based on a hundred and fifty percent of the county or the state average wage whichever is lesser. So it so it's a way for us to guarantee that the we're not getting you know a project that's going to provide you know minimum wage to every employee this This Is high paying jobs which is what makes a little more attractive for us as a state representative going up that point it's only for if they want to receive the exemption so let's say that they only pay forty employees over a hundred fifty percent and they they don't threshold and they're not able to collect the exemptions are not telling them you have to pay them certain weights were saying though if you want to be eligible for this exemption you wouldn't this is part of the criteria that we're asking you to meet so it's it's not something we have to do this is just if you do it you get the exemption. Am I clear okay of. Also. Will you tell me the difference. Between thirteen seventeen and fourteen seventy six I mean I understand are you just talking about electricity. And the this other one covers cold. Of electricity and natural gas is that. So the difference when I'm not running the other one today representive Wooten that was brought to me by a different group that is looking to data centers but I'm focused on this one I think it's a better piece of legislation and so I I'm I'm not prepared to talk about. That thirteen hundred one. Well. Thank you thank you Mr president of a group. Thank you chairman. Represent that content and as see in the bill for your exempting cryptocurrency I have a cryptocurrency mining operation going into my district and they come and they are going to have a I thank everyone very happy individual and that very little employment but my concern their commercial so cryptocurrency mining slash that a dead processing center that they may have something there for that process and how we can determine. What what. You can yes Sir so that that job creation threshold in the bills kind of weeds out out and it's why we put you know cryptocurrency excluded from this from receiving this inside of they traditionally don't create many jobs they consume a lot of energy you know that it's it's essentially than just are running out rhythms on a bunch of servers to make money off of it and if it's not economically viable long term with. Thank you and then go not that would represent a group if there was let's let's say they have the world's largest cryptocurrency mining operation in and they which would be fifty jobs they could have a separate business which would be their data server which should be their data farm but they can't use the actual crypto mining parts they could separate either because I think what you're saying is what they have. Servers in a data center but they also a crypto miner operators which are two different things that you're saying they would essentially have to split those things off but I mean I I've never seen a data center all right nicer with crypto mining operation with more than two employees I I think it be far fetched that they would be able to to use this but let's just say hypothetically they could they would really have to separate those two businesses one for the data center one for the crypto if the if they ever wanted to take advantage of this but we've never seen something that large ever so thank you thank you. That representative car you're recognized thank you Mr chair representative Pilkington Mr house amendment just have a question about total cost of operation I know electricity is a portion of it which happen though the percentage of electricity in the cost of operation of a data center. I would I would say comfortably it's well over thirty percent of their operational cost and I think that's why this bill is important Do you know we we have similar incentives for manufacturers in fact manufacturers can receive a sales tax reduction or exemption one or the other for utility we also do it for machinery and equipment data centers are different they're not producing you know a good they're providing a service in the same fashion that materials equipment cost manufacturers energy costs these data centers so to grow that IT sector we're trying to be at take a unique approach by the by reducing the overall energy costs making it feasible for and operate in Arkansas okay thank you very much yeah. We'll go back to what you just said you're saying it from a manufacturing companies get a reduced sales and use tax. To produce a product that they produce. But datacenters. I guess are producing a physical product but manufactures require electricity to refer to produce the products they produce what why would this not be treated the same way yes Sir so it of exempting it entirely doing the reduced rate that manufactures and others enjoy yes Sir we plan so with this bill we're trying to take a a tailored approach to data centers because we know this is an extreme need of theirs you know while we have conversations with utilities and these data center partners were realizing that cost of energy is around seven cents a kilowatt it's just it's unfeasible to operate at that cost regularly they would like to be down below five cents a kilowatt you know in in if they're looking at Arkansas is an untested market you have to provide a very compelling argument for them to locate and and invest over a billion dollar facility if if if those energy prices you know aren't. What makes the seven cents under on feasible for them. Well for one it's an untested markets a huge risk on there and and two eight that there are other states that provide incentives that are targeted exclusively to I. ten data centers currently Arkansas as far as I'm aware doesn't have any targeted incentives that that approach that secretary of industry president back okay nothing made a comment that Walmart has established a data center just over the border Missouri how they treated. What what you're saying like what kind of rate yes or is it reduced or is it just completely exam the help I can get that back I can get that information I don't know if it's any it's full exemption are adoption other other industries in the state that pay no sales tax on electricity. That may be a better question for. Paul looking at me would maybe not Paul but someone needs to figure that out. Yeah then you could come to the table Paul your care Paul join you that right you want to take the right there. Thank you Mr chairman was the committee Paul hearing with the FAA it's too to your question Mister chair I went of course go back and just double check but I would assume that the only types of organizations that would be purchasing electricity or power and exempt from sales or use tax would they would have to have an entity based exemption in the law and that would be just just the first bill that we passed out they are granted that entity is it receives a sales tax exemption and use tax exemption on all of their purchases those would be the type of I'd specifically identified entities in the Arkansas code that would be able to purchase all of their electricity exempt from sales tax I'm not aware of any of that industry based exemption for energy or electricity that we have we do we have to discuss that there is a reduced sales tax rate on for manufacturers that which results in just a constitutional let these for sales tax and the locals that are are to you but what about the steel companies that we know we've incentivized to move to Arkansas do they pay a reduced rate or are they exempt from sales tax on the energy they use and I would be happy to go back and confirm but I believe that they would fall under the exemption for manufacturers an exemption I'm sorry that the reduced rate for new settlers yes and I fully understand that this is an newish industry and it's hard to relate what they do to a still I'm just trying to follow the logic on this no no not can I just check real quick chair that's okay I think one thing to think about is and I think housing kind of touch on this but didn't get really into it is we think about it the service of the data center provides so much of it is that energy to move data out of the data center and to where we need it and so that's why energy is such a large portion of the cost of the total thing so if you're thinking you know you're like I still. I'm a fracture gave the Anticosti also at the the cost of the raw materials things like that the raw material for a data center is centrally is the energy and so that's that's why we we wanted The exemptions set of the reduction yeah that makes an announcmenet I get that representative may very you have a question for DFA. I thank you Mr chair I see that the revenue impact had just under two hundred thousand dollars but more alarming to me though is that it requires five additional audit staff members at three hundred twenty four thousand five hundred and seventy can you help explain why it requires that many additional staff members. Thank you represent maybe a Wilson have a another member of our DFA team that's come to the table a jury Smith with the department of finance so the impact with court regarding the number of staff that we need to because I believe in this bill it requires that DFAT some certification process is and then that would be or an annual process where we have to actually review the entities information and whether or not they qualifies someone that would be exempt for this purpose so as not to mention the future audit aspect we would have to be reviewing those records they were ever audit as well so that's why you see the tax auditor or. Okay adding lots of personnel for it I eight it makes it more and makes it more difficult for me I'm not for against his one of the answers thank you that. Are you saying you need for auditors to audit one company's electric bill but no that that that that's assuming and and I think we just also mention that it could be more than one company but that would be an on going forward if if this that could you hire one if we get one company and then maybe down the road hire another one if you get another one and that's probably more of a question for for Paul and myself but will certainly we we would have to evaluate our staffing needs based upon what what companies actually started to apply for the certification process okay and but the the on going would be something that would be retrospectively that we'd be able to fine tune that number W. what our needs were. Senate Wooten you're recognized. Thank you Mr chairman Mr gearing. The the use electricity or the don't use electricity. I mean. What one four staff members. They stand. Well you have to hire more people if if they if they're use electricity and they're going to get an exemption. So what what what what he has to have four staff members to one of the bill all the well the girl okay. And there certainly representative they're certainly going to be the the requirement under the law that this electricity that's being purchased by the data center be used consistently with the requirements of the exemption. For purposes of complying ongoing compliance with the good of the bill the use of electricity. And I I Sir I certainly agree I mean there is a requirement that there is I need to have the. Electricity separately metered for the data center but. If there was going to be a need for additional personnel we would certainly evaluated based upon the actual needs given the the demand for companies that would want to be claiming the benefit of the exemption of the let me ask you is this hundred ninety three thousand four one datacenter or two or three or. it could be viewed as if it was one data center or if the kilowatts per hour usage well. How did you come up with that number that that was actually based off of one data center but to go to the to the do what now that we were using this option that it was going to be one data center as well as I think was mentioned one yes Sir. if there was a hundred million dollar investment in. Yes yes it would be it would be a hundred million dollar investment minimum to qualify for you know. Two hundred ninety three thousand dollars wouldn't keep me from spending a hundred million dollars. If if if I felt it was a you know a well the one one other question how how many data centers do we have in the state now. It does this extend to them or is it just for new ones that come in this is that questions for us or I don't care who enters okay from my knowledge there are a few small scale data centers I know Little Rock has a couple there maybe one up one or two up in northwest Arkansas this bills pertaining to hyper scale data centers which are usually over you know five hundred to a billion dollar investment plus yeah so it's not going to be extended to those that are currently in the study if they if they don't meet the next code or the in capital investment or job threshold they they wouldn't be open to the inside will listen for example the Dillard's has a data center can they put it they can't put a separate major in under this bill to give a credit the school may extended to others who come in and they've been here for sixty years longer than that so they they could if it's a new data center for them so they have an existing data center and that doesn't meet this requirement it up for the bill for the extension they wouldn't get it but if they were to build a new data center or upgrade their current data center to where it was over a hundred million dollar investment and it meant the six codes and employed over fifty new full time employees and that then they would be able to get the exemption those existing companies what yes will you see can you see my point no I I I do representative would I I get the point you're saying because you're saying it's not fair to the current people who have small scale data centers but we're giving This exemption to new people coming in my argument would be that we are doing it to the hyperscale centers that are over a hundred million dollar investment the small scale data centers are or no where close to that but any current company in Arkansas that wanted to build a hyper scale data center would be able to take advantage of this program so we're going to spend a hundred million dollars to get a hundred dollar three thousand dollar exemption. No no Sir that what you said the bill says the following file you have to spend a hundred and ten a hundred million dollars. So that's a qualifier for the exemption I believe the hundred ninety three thousand dollars is the impact to to state sales and use tax laws will not talking about me so you're saying there's not going to pay the bill is going to cost us one hundred ninety three thousand dollars. Accent it'll cost is a hundred ninety thousand dollars but we are getting investment into the State of over a hundred million dollars minimum can I provide some context that is well represented written so in an economic development world we have something that's called the multiplier effect and it's essentially you know all of the downstream economic activity that's generated off of a single project that's the job creation that's the secondary tertiary businesses that may pop up to support project one it's the you know the sales tax that's collected from those new employee spending money at their local convenience stores all of that kind of falls and I think the this revenue impact doesn't explain that a adequately but there are downstream economic benefits to this is well it's not simply the loss of revenue through the sales tax. Thank you Mr. Thank you representative ray you're recognized. My questions were answered asked about representatives wouldn't Mayberry okay thank you represent a group. I think mine were also only point that I had is that I know the crypto of the mining operation in my area the goshi date a press of of fourteen to give a modifier so my question was it what kilowatt hour did you base this. The DFA faces on sure we've we've discussed with multiple utilities in the area of that would affect the project I actually have a an example bill here that was produced by one of the business development managers of one of those utilities for two hundred and fifty megawatt load I'm not sure what your crypto folks are consuming but two hundred fifty megawatts is more than most metropolitan areas in Arkansas currently consuming their bill would be about a hundred and forty five million dollars annually and they be paying over twelve and a half million and in that sales tax which is again the problem comes down to about seven cents kilowatt and that's to close with yet on top of that there's something called a winter weather event that's tied to that it's an additional six percent they'd be paying which equates to another eight a half million dollars and that's that's something that has to be passed through the dress in this building I want to clear out that it is it it's it's an additional cost to that that's tied to that so Ron seven cents kill wise what we're finding. Thank representative Lynch. yes so. Does this create a competitive advantage for the people are getting this exemption versus the people that are currently servicing that that market in Arkansas the smaller people that that that are not going to be getting this exemption. I believe if anything it would improve because there's interconnected body that would occur you would see a massive investment and probably broadband to help supply that data incoming and outgoing from the data center and outside of the state one of the things that makes Arkansas tractors are kind of the middle we have taxes there's Lana Georgia those are all internet hubs that transmission formation we're kind of in a sweet spot and with that being said a lot of the small scale data centers that currently exist are proprietary for spot for businesses like Walmart or you know it's for their own personal data needs I per scale data centers you know they essentially provide room for these larger companies to occupy space on their servers to store the data so I don't think there would be competition is much that would be an improvement of infrastructure across the state. Representative Cavenaugh recognized. Thank you Mr chair and I'm sorry if I came in late if I ask questions that has already been answered totally fine so with this how many data centers do you saying you know are actually going to be love come and locate in Arkansas which this incentive so right now I know that there's there's one project looking to locate in into the river valley I know that that project also is hoping if phase one goes well to do a phase two and three which would be located in other parts of the state and I know there's a group in Northwest Arkansas that's also contacted me about their interests and and looking at data center so that's a total of four four potential sites in Arkansas one that is I would say near the finish line and but you know obviously in in them doing that this is what's yeah we found out is how we're not really competitive there state so my hope is over time we continue to grow and grow there's more all over the place because the reality is is data is growing constantly we need more data centers and when they've traditionally been built in places like California it's become economically unfeasible to continue to build up their labors high cost as high property values high cost utilities is high so they're looking to locate in the states like Oklahoma Texas Tennessee and Arkansas and I just I want us not to be left behind and I want to be part of that makes sense. And just so when a product put down my name so this doesn't cover any crypto mining this is just referred for data centers only yeah this is like true data centers like you've got a. Google the Motorola eighteen T. those those kind of places okay thank you yes ma'am thank you senator Michael and then you're recognized. Thank you chairman and just bouncing off represented lunches and wouldn't question can you help me understand why a hundred million dollars need to be the investment one not fifty million dollars fine not ten million dollars I mean it seems like even a smaller company could if you think it's beneficial to have them here then why why why would that not be included. To answer that are you sure I know traditionally with a lot of economic development incentives that's kind of how they've been structured I think we picked that hundred million because it raises the threshold and it's also a better look for the state in terms of revenue You know you're talking about a much larger project that's going to create more jobs would be fine with lowering I don't see any issue lowering it to ten million say but one hundred million seem to be a good starting point for hyper scale data centers is that what we were trying to target yes I you know I know like the project we talked about for the rebel is a billion dollars I mean they and said why don't make it that high but we we just at a hundred million because we thought about that but we want to be a significant investment into the state to make it worth their while if we're giving This exemption you I think it's the state we have to always they always think about the return on investment and I want to think is if okay so Arkansas is giving up this to do this for them I want to make sure that we're bringing enough through our property tax collection or income tax collection sales tax exemption that it's going to be we get a good bang for Buck and some have that hundred thousand working a really good bang for our Buck thank you. Members any other questions. The hundred million dollar question that you just asked I don't a hundred million is not what it used to be right. So you know the way I look at bills like this in my my focus on this committee is to try to Advance bills that have a positive economic impact for years to come just they're not just in an L.. Pull in some independent random group out of some tax cut I mean we need to be focused my opinion on bills similar this that have a of a chance of bringing in economic activity through the state so I mean you know the one you're talking about moving to their potentially river valley is it well over a hundred million investment it is around a billion dollar investment so in those terms Hendren means pretty small number represented right you have a question all right you're recognized. Thank you Mr chairman want to go back just a little bit too aware of representative Mayberry was that you know speaking about the auditors do you how is that going to happen you guys is that going to happen with one in the beginning work its way up to five or how is it going to occur. Representative rice or certainly when we do have a a new exemption a new exemption and certification process you know we we of try to evaluate and plan force that were ready when if if the law is the enacted and then we can gauge the demand for employment on going but it's certainly we try to of course you know utilize existing staff is as much as possible but when there are new new duties and new things that if they will be required to do you know we want to make sure that we're planning ready to meet the needs of the business that wants to go through the certification process as well as to have the auditors in place to do there on going work that's going to be necessary. Follows. You'll have to ask one go ahead okay home in a situation like this let's just say that one of the companies really does grow is that the owners County spur the need on a little bit more as far as they auditors are concerned it certainly is you have to gauge the impact in real time to your personnel needs within the tax section that's tasked with responsibility for the administering the exemption but certainly we we evaluate our needs on an ongoing basis and we would just of course want to be prepared When the work starts to come in that we have the right people in place to handle the needs of the business. Thank you Sir thank you Mr chairman. Members any other questions. I seen and anyone in the audience want to speak for or against the bill. Represent junior okay. Hi Paul thank you have come to the table thank you. L. A. culture going to second I was the voter not taking a vote yet on this bill public will be able to start doing a lot more that after spring the spring break but you know for me. To give up two hundred thousand dollars or under two hundred thousand dollars in sales tax revenue for a hundred million dollar investment seems out of. Pretty good return on your your vote so representative you want to close for your bill I think you just close for my bill for me so thank you thank you will get back with you and later we could sell instruct our. Of voting on some of these bills but thanks for the information thank you all thank you committee added that the discussion was wonderful thank you appreciate. Hi members takes us back to the very top house bill eleven forty three either you're going to be representative fighter representative Cavenaugh or both. Identified you're recognized to present your bill thank you so much committee you have heard this bill previously what we have now is the Senate made an amendment to it that in my opinion makes it even better and what they ask us to do was up on the original bill they wanted clarification about the acreage that the disabled veterans could have and they put these lines in up to forty acres of real property contiguous to the dwelling under subdivision a to a one of this section if the contiguous property is not being used for a commercial purpose or valued as agricultural land pasture land or timber land and then the second amendment made it even more clear by saying that contiguous property is not being used for a commercial purpose. And that's what the amendments are so I would ask for a good vote to concur in the Senate amendment. All right members any questions on the these amendments. Maxing none was with the committee. We will. Yeah why we have a motion to concur in Senate Amendment number one any discussion. All those waiver signify by saying aye. Posed all right the ayes have it on amendment one. I would concurrence in Amendment number two all in favor signify by saying aye. Opposed congratulations you passed your bill thank you Mr chairman thank you committee members members that is all we have on the agenda today thank you for your time and we are adjourned.