Said in CommitteeBeta

Exactly as spoken.

City, County & Local Affairs Committee - Senate

January 24, 2023 ·10:00 AM ·Room 272 ·50:24
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Bills discussed (5)

Bill Title Sponsor Status
HB1024 Act 34 · 2 mentions in agenda, chapter
Matched: “…E OFFICES OF SHERIFF AND TAX COLLECTOR IN HEMPSTEAD COUNTY. HB1024 Ray TO AMEND THE LAW GOVERNING THE CREATION OF DESIGNATED E…”
TO AMEND THE LAW GOVERNING THE CREATION OF DESIGNATED ENTERTAINMENT DISTRICTS. Ray Notification that HB1024 is now Act 34
HB1090 Act 12 · 2 mentions in chapter, agenda
Matched: “HB1090 Watson TO SEPARATE THE OFFICES OF SHERIFF AND TAX COLLECTOR…”
TO SEPARATE THE OFFICES OF SHERIFF AND TAX COLLECTOR IN HEMPSTEAD COUNTY. Watson Notification that HB1090 is now Act 12
HB1100 Act 13 · 2 mentions in chapter, agenda
Matched: “HB1100 A. Collins TO AMEND THE PURPOSES OF URBAN SERVICE DISTRICTS…”
TO AMEND THE PURPOSES OF URBAN SERVICE DISTRICTS; AND TO ADD CERTAIN MUNICIPAL SERVICES AS … A. Collins Notification that HB1100 is now Act 13
HB1018 Act 166 · 1 mention in agenda
Matched: “…RTAINMENT DISTRICTS. DEFERRED BILLS Number Sponsor Subtitle HB1018 S. Meeks TO ALLOW MEMBERS OF A MUNICIPAL FIRE DEPARTMENT BO…”
TO ALLOW MEMBERS OF A MUNICIPAL FIRE DEPARTMENT BOMB SQUAD TO LAWFULLY CARRY A WEAPON … S. Meeks Notification that HB1018 is now Act 166
SB72 Act 133 · 1 mention in agenda
Matched: “…r Sen. Joshua Bryant REGULAR AGENDA Number Sponsor Subtitle SB72 Hickey TO AMEND THE LAW CONCERNING REIMBURSEMENT OF COUNTY…”
TO AMEND THE LAW CONCERNING REIMBURSEMENT OF COUNTY COSTS FOR HOLDING STATE INMATES, PROBATIONERS, AND … Hickey Notification that SB72 is now Act 133

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All roll call is good. About out to the city county local committee one of the things that arise for step in for me last week ensuring due to the phenomenal job senator and I appreciate that and with that we've got a few bills on the agenda today and representive Tucker. I think we've got you up. Members that is house bill eleven hundred. All right. Representar Senator Tucker you're recognized proceed with bill. Thank you Mr chair members Senator Flippo made me promise before the session that I would only bring non controversial bills to this committee and I'm I'm keeping that promise This is a bill. It deals with urban service districts and and so just to set the context. An urban servant you can create a district for a variety of things in the state I'm sure you all the familiar in cases where the water improvement district or a a levee improvement district or it's a dealing with a specific issue as to that area that that's contained within the district and urban service district it really functions as a municipality they can provide all the functions that a city or municipality can otherwise provided the people who live in that area there's been only one urban service district created in the history of the state since this law was passed its Cammack Village. Which is contained really within the city of little rock it's in my district which is why I'm I'm presenting this bill and so that's that's basically the context that had several conversations this morning was senator Peyton senator Bryan and and with a few others and I want to kind of address some of the questions that have been presented to me and of Mr Walker said John Wilkerson from a municipally we had a conversation with senator Payton this morning. I guess first I just basically present what's in the bill on all kind of address some of the concerns that. That senator Payton and others have raised with me with the the reason for the bill is because there's a of a piece of the code that enumerates the types of services that an urban service district can provide and it's it's what you would expect Mike from a city like emergency services including ambulance and police solid waste services parking recreation neighborhood improvement services and that sort of thing and this the Cammack Village wants to add two new services to the code. Not everyone is drainage system maintenance which makes sense that a municipality would want to be able able to provide for its citizens and then also sidewalk maintenance and and redeveloping including lighting cleaning and everything that goes with sidewalks the way these functions and and the reason that an urban service district exists is because it has no revenue base other than fees typically municipalities have sales taxes or other revenue basis for their cities and urban service to ask Cammack Village has no business is in its area and only has residential property and so the only way for to have any revenue is for to charge a fee for some of the services it provides like water garbage sewer those are the types of services they can charge a fee for when they get that revenue they can spend it on the services that are enumerated in this section of code. that came and religious actually already providing the drainage and sidewalk services to the people of Canada religion but they can't spend their revenue that they get from their fees on it because. The services are not enumerated in a code with these other services so they have to come up with some other former revenue to provide the services so that's really what the bill does it's just to help the and there is a a mayor there's a city council and can make religion it's it's to help the the people Cammack Village in. There city government provide better service to their to their people that's it that's the and that's the entire bill as I said it's the only urban service district that's been created in in the history of Arkansas. there's another district that's in center Payton senate district. the that is structured entirely different than this one they're trying to basically wine my understanding from my conversation with Senator pain this morning is there trying to wind that down and they're having a hard time doing it the key distinction between what's happening in his Senate district and Cammack village's incoming religion any urban service district that exists under this code. it can only last for ten years that the people in the area that live in the district they have to re authorize the urban service district once every ten years otherwise it automatically once down on its own that's why this is one of the conversations I was just having with senator Bryan when the when the committee came to order. they can that they can't find anything out for more than ten years for that reason because. The urban services should only last for ten years unless the people approve it and the people in Cammack Village strongly want to remain their own entity You know they they get a more than fifty percent of the electric participates in the petition once every ten years in order to re up Cammack village of the people there supporting the government wants to be able to provide the services to citizens that's that's really it on the bill at the end of our conversation. My conversation with senator Payne this morning I said what cannot report back to the Committee about your position on the bill and he basically said he has he has concerns with just the existence of urban service district generally he doesn't have a any an aversion. Two adding to the services in this bill and Senator Flippo actually I think put it the best right before committee started he may not be for a buddy and again it. So you know he's he he hasn't committed to voting for the bill on the floor to if the committee sees fit to pass it out today but he's not opposed to it because again it's really a simple bill all we're doing is adding to the services that Cammack Village can provide to its citizens with the fees that it generates through its only revenue source that said one with that I'd be I'd be happy to take any questions and I know John Wilson from the municipally is here with us and and he would be happy to help answer questions but all right are there any questions for the rich the committee but Senator Stubblefield. You're recognized thanks. After Mr Senator there's no financial impact no Sir okay. Senator Rapert recognized for a question. So does this came out bills participate in and the government of Little Rock it sits inside the boundaries a little rock but is it is it is it and affect its own city. Functionally that's what it is if the residents of Cammack Village cannot vote in the little rock mayor's race or a little rock city director race it's really a separate entity and Little Rock really grew around Cammack Village but yes it's at this point Cammack Village is entirely contained within the city of little rock but it's it's a separate entity and it functions entirely separately so it is any of their property taxes or taxes they pay within their boundaries and go into the little rock general revenues as they within their their fund. So while the I think the property taxes by March just go to the state Mr Wilkerson may be able to add information of that but I think I'm not sure they generate any revenue from any property tax it's really just a fee based services that they provide for water sewer garbage that sort of thing so that it cannot decide to become their own city or a and you know town. I don't know the answer that I mean they yeah they they might be able to do but they don't need to give the existence of this law American they're happy with the way things are except for the fact that they want to do drainage and sidewalk improvements all right Sir to go and have you know Mr Watson join you in John will know your people and introduce yourself in here with the record to be recognized proceed to address Senator price question John Wilkerson general counsel the municipally so came back is a city because like Senator Tucker said they have no tax base they have to have some method to have money to do what they want to do so again This Is came back as a autonomous city because the Vatican in Rome I guess president surrounded by little rock and so they they just have to create revenue to do the services that they're that they're city residents one sermon service districts are lays on top of the entire city so it is a city but functionally revenue is for urban service district. Thank you so so if in ten years the majority of the electors says we're tired of paying these extra fees for this service service district with the city is still function it just would have to zero revenue to be able to do it said is that correct no no no recognition. The German Senator Hammer you're recognized for Chrissy with questions. Thank you Mr chairman to the So the so the services are currently being provided this creates a pathway for you to be able to X. to spend the money that you're collecting in a manner which you can also call provider services correct correct. Why would there need to be a fee increase if the cost of doing it is already being covered. I'm not sure that they're instrument need to be a fee increase I think the concern is that the bill the law is written has it but not limited to language we're talking Senator Payton and makes us as lawyers are comfortable to start providing services when it's not specifically enumerated in the law so because they're already doing it this is are you doing it we want to make this clear that they have the legal authority to do that and as senator Payne said they can't really go to a bank and say Hey. Can we borrow money to provide the service occurs gonna say can you can you do this some of the law we say aye maybe and this makes it clear you know as a law I'm not the city attorney for Cammack Village but if I were I would I would say I would be very careful in providing services when they're not enumerated under the law. Because there's a rule of statutory construction which I'm sure you're familiar with and that were taught in law school which is that if if there's a list and a statute and what you want to do is not on the list then you're in really in murky territory so to so actually do is open up the possibility for them to be able to maybe go secure bonds if they need to a bonding program for improvements or anything like that it creates that pathway forty given that latitude correct that's right for these specific services that we're adding this bill yes Sir in an illustration is is anything away fee increases that this will create the opportunity for you know for city government Cammack Village to be able to do that is through the normal processes of the people have a chance to vote on that or the city I mean just your normal channels at any other city would have property well you just to be clear this armed services service fees are established by petition of the electorate not just so twenty five percent electric has to sign the petition came back as a stork we've gotten fifty percent that's their internal presto and then the city council would say okay with this what we can do we're this we're going to do with that authority okay thank you. Thank you Sir all right members of any more questions the Committee. All right see none we do have somebody speak up for the bill Mister James okay good is there anybody St speak against it I don't see anybody. All right with that Senator you're recognized close your bill I'm close for the bill appreciate a good vote. Members of lotion a motion and a second senator Bryant all in favor signify by saying aye. Opposed. Resolution center the Bill pass for the Bill pass as thank you Mr thank you members. All right. Senator Ricky. The correct this is your first bill. But you could the ninety fourth yeah I don't take my speech okay okay twelve or set the bar high for him at yes I want I want to thank the committee for allowing me this this opportunity is my first bill and as members of the committee can attest only pick the most controversial bills to start with that's usually not your intention but I like to jump in and get my feet wet right off the bat. So this bill is a bill to do away with the requirement for cities and municipalities to have an a and P. tax one second Senate members that is house bill ten twenty four I'm sorry. Go ahead to do away with the requirement that those localities require name P. tax in order to form those entertainment districts. So I went back and tried to read and I know that there's lots of controversy when it started this wasn't intended to change entertainment districts at all it doesn't change how they operate or anything of this bill was intended to restore a little bit a local autonomy and local control let those local communities decide what's best for them and We're going to hear that it's going to expand public drinking I don't think that that will be the case. when that concern was brought up to me I did go reach out to law enforcement agencies within the state that have improvement or entertainment districts and they had told me that they did not see an increase in public intoxication or any other problems when these entertainment districts were introduced so any questions. All right members thirty questions from the committee Senator Bryant and Senator Hammer Senator Rapert you're recognized proceed. Mister chairman I've got questions but is probably for Mr Wilkerson if he is if he can come to the table ready away cities comments. To the concerned center. President. So I got questions but if they're probably to be addressed to Mister Wilkerson okay yeah Mitchell was able to come to the table right to introduce yourself again here within center by either House person. John Wilkerson general counsel the Arkansas Municipal League. Can you can you give us or give me a the General. Review of how we got to where we got what counties would dry areas tri counties with what areas all with all dry counties in their jurisdiction over what happens within their county yes so in nineteen entertainment district bill pass and I we talk about this in the House Committee I'm not sure why there's a connection AMP commissions we kind of resume in this chamber at A. B. C. kind of have the same at the offices which is. Maybe AV distribu Commission cities are just more interested at the time but it's only recently was NP district cities get to have a in what counties have an impact entertainment is to consider Davis passing twenty one the bill that allowed entertainment districts in dry counties and the now representive rating mentions us a few months ago that he would like to get rid of that entanglement between a and P. commission that may be taxes entertainment districts and to which you know we of course support it makes sense to untangle those two things because cities and towns shouldn't have we don't think have to have any of the commission to have entertainment districts one kind of those of the other sometimes if the city chooses to but it the tax does not have to be entangled with entertainment district as far as how they work. if you a city passes regulation reason regulations to deal with this sort of thing we you know you're not talk about cuts I double checked that with the with the folks back in my office and I think it's a big city how exactly works but typically it's you know it's a restaurant will give you the the blue color and a blue coat and then be you know you can go from restaurant to restaurant the outdoor portion of a restaurant restaurant two and half hours you have your alcoholic beverage in that Cup you can just sort of traverse entertainment district which a lot of we see a lot of success with these with revitalizing downtowns and so hopefully it answers your question trying to use it brought of answers I can. Yes we find we have more but I'll yield to senator Hammer okay. Senator Hammer. Which which is what you mean the layman's interpretation of what this is doing just really the condensed version are you trying to and and let me ask are you trying to take the AMP tax for the taxes associated through the AP away from the entertainment district or would you just give me a high level quick summary just saying if your city and you don't want to have to impose a tax and anti tax your citizens to have entertainment districts you can do it. Senator Hammer right now we're requiring them to have a tax on this bill just says that we don't have they don't have to have a tax in order to have the District. All right so if you had entertainment district within your city and if that occurs and there are there's. And I will say liquor whatever doesn't matter against does it what's being food what's being sold within that for that event that's occurring within that district they're going to be no taxes charged on it is that what you're after you know and you know Hammer tactical and attacks anti commissions by cities can be set up and pass a tax that a assess a it's up to three percent I believe the number of tax on food and hotels food and drink at hotels and so it entertainment district G. if this bill passes the city does not have to pass that extra tax on the food and liquor inside that entertainment is or really in the city at all so there's no extra taxes city can say we don't want to have an extra tax on this and so we're not going to have an extra tax on food and food water food and beer liquor okay so C. an entertainment district you got you got a hamburger joint just one side of the street that's not in the entertainment district get a hamburger joint that's on the inside of the entertainment district is the hamburger joint on the outside going to have to collect it wears a hamburger joint on the inside is not going to have to collector how's that no no there's no there's no different differentiation between the business where the businesses are it's just what's a tackler or are we work argent as entertainment district and the Moroccan of what has any of the tax so the AMP taxes levied inside entertainment district is the same as those living outside entertainment district what this bill says is if North Little Rock did not want to have any pay commission AMP Commission all the not one have any of the tax before I could still have entertainment districts in Argenta. Thank you. Cerebri you're recognized question is it is it is upon on the is it possible for city. After this pass in two thousand nineteen until we're trying to amended they could have formed a and P. commission and just chose not to tax and still meet about the law at. I believe you have stuff Thark. Yeah I know it has to this is tax specific safety commission with the tax. All right. Members or any other questions from the committee. All right no more questions if we do have a few people have signed up to speak against this got Larry page there. All right Larry full come down introduce yourself tell us here with the be recognized proceed. I'm already paid to the Arkansas face an ethics counsel appreciate this time to to address this issue review of I want to concede as I have all along with that I don't think the intent of this bill is due increased public drinking but that will be the inevitable result and no one can deny that because it will dramatically increase the numbers of entertainment districts in the state many will be in dry counties committee will be in small towns and they simply won't be regulated and forced the way they should be this bill is cast as a fairness in tax issue and it does have that element but it's not as simple as that it's much much bigger than that I'd like to develop that we have as well as I can as briefly as I can and honor your time. I do want to correct a couple things that they'll send this it was said that this would only affect entertainment is it can only be placed in winter is not true determinations can be placed in any dry County that's going to drinking establishment in the US so that clearly was was was around yes it's also been said that if this bill passes the result will be that there won't be more places where people can drink my goodness it will they'll be able to drink in public and that right now is is not doing except in a very limited number of areas that do in fact have entertainment districts we've always been concerned about public drinking we make no apologies for that but you know what we're in pretty good company I mean it's been over a half a century but I think that Arkansas has had a law against public drinking words been the hue and cry over those years to your predecessors. Give us a law that allows public drinking water the railings on the State Capitol stills or in the rotunda my point is this is a pretty fair inference to draw that most or cans are happy with not having drinking in public. But many don't want to see their children witness that and so what we're really in good company also ask any law enforcement officer in Arkansas what they think about public drinking I think you know what the response will be as a former prosecutor and then someone's had family members and law enforcement I guarantee of public drinking is not a popular prospect they've got enough to do without having to police that. Now we've we've gone without public drinking in Arkansas until twenty nineteen when the first entertainment this district bill was passed but my point to you is this it was a very narrowly drawn bill it wasn't just open the flood gates and I think I'll just ask you to consider why it was narrowly drawn up before you make a decision about this in a previous hearing three of the individuals who spoke in favor this bill was asked why I was in a and P. tax imposed in the first place none of them could could answer that well I will answer that for you I think it's pretty obvious if you recall the testimony back in twenty nineteen all and so many other things that were said and done. The sponsors of that bill I had a better idea and it was this that a and by the way that the role of the MP Tax apartment and just really mailing or was there Ravan reason to what they did I think that was running reason I think that that was a good reason and here's what it is they knew that a senior talent impose AMP tax is probably got some concerns about the overall quality of that city about its tourism draws about the things we could do to bring people in if they just wanted a public drinking district they wouldn't including a and P. tax there's going to be a reason for that and I really think that you should consider that of significantly here I think they knew that that kind of **** is going to have better traction to be more concerned about the the quality of life in the city let me to share briefly some of the uses that an MP taxes put to all right. Advertising or promotions city construction improvement maintenance and operation of the convention center operation of tourist promotion facilities in the city or county funding for the arts. Operation of true story to disabilities including but not limited to theme parks and other family entertainment facilities obviously it had a great deal to do with terrorism and the overall attractiveness and appeal of cities that want to bring people in and and increase the economic vibrancy of their city or town. Yeah they're basically took out to cities that want an entertainment district. One major school public drinking for the sake of that alone another once again to enhance its overall appearance and it's so attractiveness to people who they might want to bring in the other the other CD the other what those two cities is one that wants to do what is doing with the and pay tax now I would ask you which of those two cities is going to best help good police presence going to have a good code enforcement going to regulate the the the area as they should I think it's clear it's that second city or town that imposes the AMP tax they want more than just a public drinking district they want to do something that overall increases the quality of their all of their community That's what required AMP taxes of the eminently sensible and logical thing to do otherwise you open the floodgates of without a public drinking that will be really pretty significant and time so yes this bill will increase public drinking well I don't think so made some of that wind will and some of the communities that will establish an entertainment district without a million pretax already inspect we ask you to reject this bill leave the status quo which really is we've only had four years of experience with this list don't make wholesale changes every two years let's see how it operates how it's done encourager cities to do the right thing thank you I'll be glad to take any questions Senator Hammer you're recognized for a question thank you. So. Is this about opening up the channels for people. To have the opportunity to drink in an entertainment district courses about just removing the tax of those that are already. Already have an entertainment district and taking the tax off of it because of a salute you test my just trying to distinguish the difference based on your testimony well I think that I don't the MP Tax can be. Posed with or without bringing an entertainment district it can be retained that's not the purpose of what we see the purpose of the building and and I took the sponsors or to work more this is about fairness we checked but we have to look at the unintended consequences I mean there are a whole great number of all the above counties that are dry that health one or more of the private clubs. Those. The folks in most counties that voted voted literally voted to be dry and just hold on those and then let and payment and tolerate the private clubs if this law passes they will see people walking around in that town and city in their drive County drinking alcohol I just submit to that's a bridge too far okay let me ask you though because of I'm trying to do it no that's right I'm just I'm trying to differentiate and understand I'm interpreting this that it just deals with whether you're going to collect the tax on or not versus what you're going to open up to more drinking or more permission to be issued or more tender entertainment districts are going to be established because what I read this lesson wrong this one asking of his my trips page correct we're just talking about the tax we're not talking about all this other stuff we're just talking about what you collect the tax or not. It does remove the requirement for name P. tax okay our point is that with that requirement some cities and towns are probably aren't going to be good sites for entertainment district will bring those in and that's what we think the public drinking in time will increase dramatically but if those are brought in it's going to be at the vote of the people is going to be a vote of the city council is going to be through a vote that those districts actually get put in place is not going to be because I think I understand your philosophy is you take the tax off it's going to make it easier to get entertainment districts in places because they will be collecting taxes but yes same time for entertainment district to actually come into existence that's going to have to be run through the channels of of the vote of the people are the vote of city clearly an ordinance will have to be passed to establish no no question about that okay thank you senator. Our members are they were questions from each page. Senator Rapert you're recognized for a question Sir. This is really directed search you at all I'll ask you and maybe this can weigh in. Entertainment districts still do not permit people to be dropped in public is that correct. Like if I if I carry which we still have a law against public intoxication public intoxication and that doesn't change so five inner if I'm walking around with the open container and I'm not drunk. That is that currently is a law outside of entertainment districts he a public intoxication his low number two that entertainment district there's nothing to me as a twenty one year old going into Bob's bar buying a great bring it out to my ninety two year to date and going in another bowl combine mine I mean that it would be possible clearly because of the lack of enforcement right now all if that nineteen year old date of mine goes into the bar to buy a drink that bartender feces headquarters weight Lasker for ID but within a district shall be free to drink outside because I've given of the drinking nobody's probably going to check with. So there are a my point is is that there are problems with the entertainment district that's where they should be limited I think requiring an employee tax is a good way to limited to speak. Other what other than just opening up **** nilly Mr page and our server are you finished. What is thought to any local officials any measure city councils in the state that have G. forever the entertainment district you know we should with a mentor and a anti tax okay I'm sorry I'm not here you said that you know when you've been stressing this point. You mistrusting this point Sir that. It's likely that other cities are going to you know you know they're going to implement entertainment districts we deal with the same P. tax I just wondered have you had a conversation with any bears any city council that told you specifically if we do this that that this is what they're going to be a no I have not okay thanks All right members of the United. Senator Hammer. Propria rest you're recognized the sponsor for questions okay. Sir Michael my question Michelle testimony we just heard is this. By doing this is it going to create any kind of disadvantage that the hamburger tax would continue to be collected on others. Unless they're inside the entertainment district is it going to create a disparity that some will still have to have so AMP tax collected while those within the entertainment district would not have the tax collected so. An AP tax is a municipal tax you. That is collected throughout the city. Not just in the entertainment district. So then the taxes paid by the entire city and collected in the entire city the being inside the entertainment district does not exempt you from that what this bill does is say that currently you are required to implement and MP Tax in order to have an entertainment district this bill eliminates that requirement and says that you can have an entertainment district without a name P. tax it does not really affect existing entertainment districts and and P. taxes. Okay thank you. Thank you senator. All right we've got see here Theresa balloon I believe the signed up to speak against this. And members are going to be handled here the staff of the passing out from allow for a few seconds for them to get that out. This against what has people against the side of signed up. All right miss believe if you introduce yourself and tell us who you're with the be recognized procedure comments. Good morning my name is Theresa believe thank you for the opportunity to speak with you today about the house bill ten twenty four I am the chairman of the board for speak about drugs former executive director of mothers against drunk driving former Chief of injury balance prevention for the state of Arkansas and a graduate of the John Hopkins Institute on injury ballots prevention I am also a seventy five year old great grandmother and was around when the original concept of entertainment district Bills entertainment district was brought to the legislature and I can tell you that at that time one of the assurances that we were given was that the protective factors of an a and P. Commission and the tax would be collected in order to help defray the cost to cities and was was one of the assurances that we were given originally I do understand that things change but there was a good reason for that you see it with their entertainment districts the the bars and clubs restaurants and are responsible for their internal security and police but when there's an entertainment issue in the city the city when that goes out into the streets and the public needs to be the one who police and also provide sanitation for that as well as provide the oversight for people who may be intoxicated in public I would like to and refer you to the thank you for allowing these handouts I thought that you might want to see this is the most current information that I was able to find this is from the ABC and and this this is the list of dry and wet counties in Arkansas I like to say that there. Our dry wit and dance counties in Arkansas and and I thought that you might want to take a look at this and then the second list that you were handed does show the drive ended in Arkansas counties. As you can see first of all please note this in which counties in a city town or municipality can have an entertainment district if it is approved by the city board or foreign port that speaks to what you were asking about a senator Hammer and but it also allows for or or shows that the cities where there is a two percent AMP tax being collected the neighboring city will not have to be collecting that therefore there will be a disparity in the prices that will be charged for people who choose to go from one entertainment district to another as you can see from this dry and damp list that I provided to you there are forty two with counties there are twenty three damp counties which means private clubs only and ten that are considered to have and currently with the best information that I found and that's based on the Arkansas business leads to private clubs in Arkansas there are a hundred total private club permits in those dry counties so and that could potentially increase the number of an entertainment districts by a pretty substantial number I'd also and just the last thing that I would like to talk to you about as it turns out yesterday the what the Walton college of business released a report called they titled a tale of two businesses Arkansas's bars and liquor stores during Kobe nineteen it's quite an interesting article and and one of the things that they talk about is the difference between how liquor stores have paired verses restaurant slash bars during COVID and where they are now they reported that liquor store sales have experienced phenomenal growth and we do know that there's been a huge increase in. Alcohol sales overall in Arkansas liquor store sales have seen phenomenal growth and bars restaurants on the other hand it struggled as their sales have declined drastically sales tax revenue from liquor stores grew by twenty seven percent. Bars in the same areas saw a steep decline at thirty three percent in sales tax revenues liquor store saw their revenue grow thirty five percent in during the most recent data through November and bars experienced decline in sales. Tax revenue of twenty nine percent so and we can already see that are restaurants and bars that exist are having a problem and struggling to get back to where they need to be and while to school of business in the in this section which is the road forward recommends that even though the state has already provided code funds and grants to help small businesses day stating that additional direct grants for bars will be needed and it is essential for these small businesses to continue to deal with their declining revenue. So it's an interesting read and certainly something for policy makers to take into consideration because this change in the tax will make a difference between just the cost of goods sold between the pre. The tween the cities that have an AP tax in the city sit down. So in closing what I'd like you to do is if you don't mind is to look at the list of counties that I handed out to you and I want you if you would think that your constituents and all of the city boards and the quorum court's that are in your districts making the path shorter which is what this does to the creation of entertainment districts removes important protective factors that help keep you your friends and neighbors say for in the communities where they live work and play and because of that I would ask that you vote no on house bill ten twenty four thank you miss blue members or any questions. Principal in. Thank you very much for your testimony ma'am. All right and we've got one Morris signed up to speak against this and this is going to be looking appoint from family council. Look at your leisure softgels here with you be recognized receive your testimony thank you chairman let me close with family counsel appreciate your time today. As amendments an open house rules and speak against this bill I first want to concede that my friend that make you a phone for us counting the years back since about two thousand seven or so and we were parts of the the young Republicans on we're almost out of that age range or middle age now but anyways nonetheless. Eight Senator McKee honoree wholeheartedly with Mr Pitsch and Mrs blue we are opposed to this bill for all the similar reasons as well I do want to mention a couple of new things that maybe I don't think have been mentioned or I want to put a twist on the list as I think both Larry and Theresa started to lead to consider your counties. that are wet consider those that are try with private clubs to cities that do not live in a and P. tax some you all live in districts or districts were there's quite a few number of cities with very small populations and so on that would have an entertainment district. Also heard it mentioned earlier that it makes sense to untangle these two well I think it it doesn't make sense to do that at the expense of expanding alcohol in public drinking anyways family councils oppose this bill we would encourage you to support thank you. All right members are there any questions for mission court. There must be twenty. All right I don't have anybody else to the signed up to speak for against this bill so with that Senator McKee you'll be recognized to close for your bill. Thank you Mr chairman do you have an yeah I think Senator variety of a. Your body yeah I generates more questions before we close is going to make sure that this be appropriate time Senator Rapert you're recognized I just I want to I want to get a couple questions just go back for entertainment districts as a whole just to make sure I'm understanding. With an entertainment district. I I have the the ability to purchase a Cup purchase wristband gives me permission to stay within the boundaries of the district do I have permission to be drunk in public in that district never okay and then can entertainment district encompass a whole city. Thank you for. I'm if I'm in a dry county and I'm in a. A large town and I just wanted to be able to sell when I want to sell convey my understanding that. It is a limited area surrounding a certain number of restaurants art galleries bars things like that close things like that okay thank you thank you Sir but if you're recognized for a question. My apologies for being late here I got tied up in another meeting so for me just to just to clarify this is an amendment to the existing entertainment laws correct that's that's what this is and this is not changing any of the local control in establishing these and and it eliminates the requirement that they impose an anti tax so they're not forcing you in order to have an impact entertainment district it forces you currently to impose those attacks this does not which is which would be city wide but the local control does remain in effect we're giving them more local control. All right members or any more questions from members of the committee. Hi Sir Mickey you're now recognized to close your bill members of the committee I really appreciate you listening so diligently and the bottom line with this is it is about returning control to local level eliminating the requirement that the state puts on these communities to impose another tax in order to promote tourism and the wonderful things that they have in their communities so that is the bottom line I appreciate your time and I appreciate a good vote. All right that I hear you say you got a motion to pass to the committee I heard that okay so you have a motion we have a second kind of second centers all in all in favor signify puts signify by saying aye aye aye opposed. What caught ayes have it. Roll roll call. All right. Senator Stubblefield. Senator Stubblefield votes no Senator Hammer. Senator hammer votes no Senator Solomon. Senator Solomon votes yes Senate Senator. Excuse me senator Patty. Senator Patty votes no senator Bryan. Senator Breanne votes yes. Yes. Senator Rice. Senator Rice folks know Senator Flippo chair vote yes Senator Flippo votes yes. All right. We go circuit. Yeah yeah. Senator McKee senator Vicki votes yes. All right center with a vote for for your bill fails. Yes you can. Share this because the and he may know already but just for the benefits of those do not would you would you state the possibility for him to bring the bill is a possibility yes Sir Mr Senator Ricky you have the absolute right ability to bring this bill back at any given time if you wanna sit down and work with members or others it with the best intentions to this bill and come back and be more than welcome to do so thank you. All right see here. We have got. I'll see senator Colin here. Okay so Mr. I may give about cancel Senator Kroll he asked if he had some other things to run. Can we everyone of us run his bill for him course of course surviving you saying that you'd like to read the bill yes I level thanks to the table Senator. Let's get it out. And that is members that is house bill ten ninety. By Senator you're recognized a rebuild yes thank you Mr chair this this bill on behalf of senator Crowe is just to to break apart the this elected sheriff who also has the role of elected tax collector so the with the counties on the to do this is separate those two duties and actually elect its own tax collector like the majority of our counties in the state do that with the shares roles not confuse with the the role the tax collector. All right members or any questions from the committee. By Senator Sullivan you're recognized for a question Sir. Third I'm not familiar with the law there so why do the citizens of that district or county are they supporting this work and then I did at the county level Hey it's it's a constitutional role and so they are you know the seven constitutional officers the counties have a combined offices or not so by statute we got changes to allow him said county to be able to break apart that role okay this is open for that county or favorable to the yes then it'll it'll go to the vote of the people it's ours The New tax collector okay thank you. Senator Stubblefield you're recognized for a question. Twenty eight told chairs in here make sure. I agree so we we have passed so we have passed to the use in the last two sessions for brake parts tax collection share and the. When when I passed last fall after for your county governor Hutchinson. Can the minister twenty one separate and so if we send them and discussed it and he was he was fine with it so we this is been done before okay that would. Last two sessions so. Thank you thank you senator. All right I don't have anybody is there anybody here the sign to speak for or against the bill. All right we'll see anybody all right C.. You senator you're recognized close your bill thank you Mr I'm close for the bill on a motion to pass a motion and a second Committee second by Senator McKee all in favor signify signify by saying aye. Opposed regulation Senator. All right members seen over items on the agenda. We are your.
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Agenda

CALL TO ORDER

0:08

REGULAR AGENDA

0:18

HB1100 A. Collins TO AMEND THE PURPOSES OF URBAN SERVICE DISTRICTS; AND TO ADD CERTAIN MUNICIPAL SERVICES AS PURPOSES FOR WHICH AN URBAN SERVICE DISTRICT MAY BE FORMED.

0:31

HB1024 Ray TO AMEND THE LAW GOVERNING THE CREATION OF DESIGNATED ENTERTAINMENT DISTRICTS.

13:18

HB1090 Watson TO SEPARATE THE OFFICES OF SHERIFF AND TAX COLLECTOR IN HEMPSTEAD COUNTY.

47:33

ADJOURN

50:03

Speakers