House Rules

President house bill ten twenty four please state your name for the record and then you may begin. Okay thank you madam chair and yeah good morning care or I guess good afternoon now committee members appreciate the opportunity to present house bill ten twenty four. This bill essentially would untangle the requirement that entertainment district or that local governments have to have an advertising promotion tax in order to have an entertainment district so by way of background in twenty nineteen the law was passed to allow for entertainment districts where where a city or county could could set up an entertainment district sorry city or municipality could set up an entertainment district there were several requirements in that bill you know has to be zoned for commercial use there have to be number of restaurants tap rooms that sort of thing president to set one up and then there's a requirement that the city has to levy and advertising and promotion tax this is sometimes I don't sure most people are familiar with that but in any case or or some who are you know this is sometimes referred to as the hamburger tax it's a tax it's levy to add Laura fashion on prepared food so you pay it when you buy a meal at a restaurant or you pay on lodging or hotel rooms. It in my opinion it simply doesn't make sense for a local government to have to levy any sort of tax let alone an advertising and promotion tax in order to set up an entertainment district I'm a I'm familiar with at least one instance here in central Arkansas where an advertising and promotion tax was passed in one of the big arguments in favor of trying to pass the tax was well we need to go and pass this tax because someday we may want to set up an entertainment district the argument wasn't that they wanted or needed in advertising and promotion tax it was that they may want to set up an entertainment district at some point so overtime my hope is that by untangling these two things it would lead to fewer cities wanting to pass AMP taxes You know I've spoken with the Municipal League about this bill and they don't seem to they don't have any opposition to it which I think is a personal first for me But I do want to mention one last thing on this and I'll be happy to try to answer any questions some of you may have gotten an email saying that this bill was for the purpose of expanding public drinking that's simply not the case this bill doesn't change who can drink alcohol it doesn't change when people can drink alcohol it doesn't change where people can drink alcohol it is agnostic on the subject of alcohol I've used this as a bill that simply gets rid of unnecessary taxing requirement and that's why I've brought this bill here to you today with that I'd be happy to answer any questions. Thank you representative prior there any questions. Representative Jane you're recognized. Amount. Yourself now are you doing this for any entity are you doing this because you. Yes or no Sir home one night and you want to do this. Well I don't remember if it was day or night but. No no representative Jean I'm I'm not doing this bill at the behest of any entity I was notified by at I wasn't aware of this requirement until a friend of mine who lives in a city where they were trying to pass an anti tax notified me about it and we talked about at length and decided that you never the requirement really didn't make sense and it was just gonna lead to more unnecessary taxes and as you know that's something that I've always felt pretty strongly about and that's why I brought the bill okay thank you. Representative for law you're recognized for a question. Thank you madam chair. I remember this bill coming through this committee of in twenty nineteen and I'm not. Jog my memory here and I don't remember why that requirement was put there can you remind us why they actually had the requirements are. Does A. B. C. know why that requirement was there in the first place and I just like to understand history and why the tax was there in the first place sure I I'm not aware of the reason that was included initially I asked Mr Wilkerson from the Municipal League if he was aware and he told me that he wasn't sure why it was ever included in the first place. Can. Can we hear from Dorylaeum not please yes can you please come is able identify yourself for the record and then you. My answer representative Wardlaw question. Doorly Chandler director of alcoholic beverage control I don't have an exact answer for you represent Wardlaw I do remember when I was here in twenty nineteen and that bill is being paged through it was being pushed through to promote entertainment and so I can only surmise you know that that's why they included the advertising promotion taxes to promote that entertainment aspect of it but it as senator garner and I did not have a specific discussions regarding why he included that the Bill. Well recognized so this was senator Gardner's bill that required tax. This I'm jogging my memory I just like member center Garner was that Senate sponsor of this bill when it ran in twenty nineteen thank you thank you madam chair. Are there any other questions. Thank you for your coming to the table we have Mister Larry page signed up to speak against the bill you're recognized just introduce yourself for the record and then you may begin. Madam chair members of the committee on Larry page director of the Arkansas faith and ethics council I believe I can answer your question one of the a and P. taxes included and I hope to develop federal trying not to take too much time I would say one thing it the bill if it passes will change where people can consume alcohol clearly they will be in many many cities and towns allowed to walk around in the public with open beer in with mixed drink so you know it does really thanks have a fundamentally change where people can consume alcohol first of All I Want to concede I don't believe the purpose. In this bill is to increase public drinking I take represent rate as word I believe he's really looking at a tax but regardless of what the intent may or may not be the unintentional consequences will be in time a dramatic increase in public drinking and I think that's problematic I think of the. Where one is amended I've heard it said that entertainment districts would only be for up with areas that's not true of in twenty twenty one the bill of this past active should be for which actually authorized the entertainment district in dry counties any was on Fallon we help that issue could could be approved when people in those counties voted to be drought I understand private clubs there in that direction as I get that but allowing people in a dry county to walk around with drinks it flies in the face of the Senate one of those people in those communities that voted to be tried I just it was inexplicable sorry you're not speaking on the bill can you please hi can you please speak to this bill. The bill please I'm sorry could you please speak to this bill because you're speaking about a bill that's passed it's not actually touching his bill if you wish I can get the care of. It's also been stated in the National League does oppose this bill well that's hardly a ringing endorsement of they were all over the bills in twenty nineteen to twenty twenty one of supporting the US select fund account only that they've chosen to be neutral on this bill when action a clearly about entertainment districts which they had championed in the past well listen we've always been concerned about public drinking I make no apologies for that are going to about the but you know something we're in pretty good company it's been over half a century I think since we had a laws in this state is Beaudry. Do you know of any time the public is is raised a hue and cry your predecessors to legalize public drinking we got to have that no they haven't they haven't done it I think because of that the vast majority of our cancer okay with prohibiting public record of in the I think the record reflects that. And ask any law enforcement officer in Arkansas what they think about public drinking I think you can guess what their answers would be on that issue now along comes twenty nineteen and we get the bill of from senator garner that authorizes entertainment districts and among the criteria yes in fact that the anti tax be up be assessed on their. You have to ask yourself one of the sponsors were more than senator garner one of the sponsors of that bill one of employee to action it's sort of it on the on the service doesn't make a whole lot of sense does it well I think I know why they did up there thank you required as a prerequisite in did they do it in some **** nilly fashion or they just threw that in or was there rhyme and reason what they were doing I believe there was good rhyme and reason to why they did that at all trying to develop the. I think the sponsors knew the shooting that imposes a man P. tax is going to be pretty concerned about the quality of that city about a tract Mr Bennett's appeals about how that city can upgrade and add to its amenities because that's what the hearing protection after all is intended to let me just read a partial list of the things the MP tax law is looking for one. Advertising and promotion city construction improvement maintenance and operation of a convention center operation of tourist promotion facilities in the city or county of where the city is located funding of the arts. Operation of tourist oriented facilities including but not limited to theme parks and other family entertainment facilities I think that they're basically two kinds of cities and towns that want an entertainment district those public drinking for the sake of the alone in those that want to add to the attractions and the appeals that shooting that it's city makes ordered to draw people there to bring interest to bring people in who will join the city who will actually expand funds for recreation and for up for dining Now. The the the diversity was supposed during the second sheet in which an entertainment district to enhance our tractors know which of those two cities is going to provide the best in law enforcement. which of those two cities is going to provide the best code enforcement in which of those two is likely to impose the MP to cast the second city that really wants an entire package to improve its the vibrancy it's economic health in the and all that the second city wants more than just a public drinking district it wants in retirement district to make it city better I move closer folks with the you molest Love comments left in awe of finish university is content to just help people be able to walk around it. The other city really wants to improve itself into number one of the a and P. tax as a pre requisite for maritime district I thank makes a lot of sense and I think that's what it was included in the twenty nineteen bill of no within this context of house bill ten twenty four of them to tax is not detrimental in fact the design and yes I can be and should be well I'm asset to much to ask user to much of roles burden to ask city or town to impose an entertainment district in order to health or Scandinavian AMP tax in order to have their districts I don't think so I think it's a benefit and so I would encourage you to consider this drastic change being made on this bill and understand that there is a logical sequence in connection to an MP tax retirement district thank you so much I'll be glad to entertain any questions thank you Sir representative Eubanks. My questions for representative or a representative raises your bill prevent a city from instituting the stacks. No service yes it doesn't require them to have one that's right if the city wants to pursue at an eight and A. M. A. M. D. tax they're certainly free to do that if they want to pursue an entertainment district they can have that debate either the simply on tangles the two thank you. So represent for a I have a question since you've looked into this doesn't a city have to pass on some ordinance saying that they want to have an entertainment district they're just not going to pop up everywhere all over the state right they have to like to initiate something within their city councils is this correct yes that's correct that's in the that's on page two line believe line thirty of the original legislation thank you are there any other questions. Thank you Mister page you're welcome thank you for being here a wrecker Mister John Wilkerson Senate right. Yes you're recognized please state your name for the. For the record and then you may proceed. John Wilkerson accounts of the Arkansas Municipal League a clear we're confusion I would represent a raster about the bill I have to say you know we don't have a position formally we now have a position we are for this bill and we've had a lot of six I mean we send across the state a lot of success with these entertainment districts especially with cities and towns or cities are trying to read about revitalize their downtown areas we seen across the state and your point actually. Russellville I think tonight is going to hurt here the ordinance to determine whether they are going to have entertainment districts so you're right it's not just a a just it just it just as a pop out of nowhere we like this untangling it makes a lot of sense to us the MP Tax I think ms chambers probably right it just made sense at the time I don't remember any thought going into why we did that specifically but makes a ton of sense to us to like representive race eight untangle this and allow another tool in the chest for cities to revitalize their downtowns. We take any questions of course does anyone have any questions. Thank you Mr president next we have Mister looked McElroy please state your name and who you're with for the record. Thank you change me live in Korea family council. First of all want to say that The council to trust for the race a purpose of the bill no one should be surprised he's trying to get rid of attacks or some other burden and I appreciate represent ray we've been colleagues friends for prime more than a decade now serve on the sofa unique situation but nonetheless I'll we shared a few brief things so be very quick some of the soul stated earlier Mr page others but if H. B. two twenty fourths passed would make it possible she were possible to create entertainment district in cities and towns to do not levy advertising Fosun Texan if H. B. ten twenty four is passed it does nothing to prevent a city as previously mentioned from instituting a passenger leading an A. P. tax H. B. ten twenty fourth past doesn't move any real incentive or create any barrier to creating an advertising promotion tax which I believe is reserve raised a purposes these stated so none the less I think it's not easy to say that the passage of this bill is not going to expand our whole in any way we would encourage you to support this bill that concludes my comments. Are there any questions. Saying the questions thank you thanks is there anybody else here in the audience that would like to speak for the bill. Against the bill. Saying no more would you like to close for your bill sure and I thank you madam chair I appreciate everybody's patience on this I would just you know close by saying the the folks I have in mind when I put this bill together are you know families who go out to a restaurant to enjoy a meal together once a week you know we've seen a lot of inflation in the last year we have the the third highest combined state local sales tax in the country already if the city's going to pursue an entertainment district they're going to pursue an entertainment district I just don't think it makes sense that they ought to have to have an extra tax on people on top of the taxes that everybody already pays in order to have that and so with that would be well leave it to the will of committee. Was the will of the committee. I have a mac a do pass and a second all in favor say aye. Opposed no. Your bill is passed congratulations thank you madam chair and committee next we have a house bill one thousand and twenty eight by missed representative Charlene Fite. You're welcome to present your bill state your name for the record and then make. Thank you madam chair. I'm Charlene Fite to represent district twenty four parts of Washington and Crawford County I've been in the house for ten years and this is the first time I've been to rules committee so. Your experience. According to the national center for missing and exploited children in twenty twenty one alone there were more than twenty nine million reports of suspected child sexual exploitation reported by online platforms several months ago I was invited to a meeting with the Morgan Nick foundation which is headquartered in alma and a local attorney regarding changing Arkansas Code to match what's used by national groups that work to eradicate child sexual abuse. Currently we use the term child ****. It is much more accurate to call it what it is child sexual abuse material it is evidence of a crime sexual abuse of a minor a child cannot consent therefore the French our online depiction is evidence of a crime against that child. Sexual abuse materials R. C. Sam is the term used by the national center for missing and exploited children started by Adam Walsh Adam Walsh is family it's used by rain and by other national groups states are now moving to use the same words this broadens the term to be more active up applicables to criminal activities I have presented this bill as an interim study and it went before the Judiciary Committee and passed easily there I pre filed it there has been no known opposition I gave you a letter from my local prosecuting attorney other prosecuting attorneys have spoken with me of their support and feel that this will help in prosecuting the horrible people who commit these crimes against our children and with that I would appreciate a good vote are there any questions. No questions nobody has signed up to speak for against the bill is there anybody that would like to speak for the bill. Against the bill. Seeing none would you like to close for your bill I am closed thank you what's the will of the committee motion do pass and second all in favor say aye. Jose NO congratulations your bill has passed thank you madam chair. The business this committee is now adjourned.