House Convenes

I'm by the member staff press and guests in the gallery so standing be led in prayer by the house chaplain Dr rex mourn retired pastor Emmanuel Baptist church in Little Rock and remain standing for the pledge of allegiance to be led by representative Lane Jean. Let's pray please. Father we thank you for the beauty of this day. We thank you for the good woman good men who've Phil this House. We pray that you'll bless them today father we thank you that you've made a similar in many ways and different many ways. We thank you that in public service that these who come at the ability to talk the dialogue to seek to find a better way we pray that you'll bless them. And yet lord we recognize as well as a part of our human experience that there's also fear that comes even in public service fear that comes in our private lives and we're thankful that you're faithful to meet those needs of thank you today for the words of Isaiah who said for you the fear not I'm with you. Be not dismayed for I am your god. I will strengthen you I will help you. I will uphold you. Great is your faithfulness and we're so thankful in Jesus name amen. Members please indicate your presence by pushing your yellow present button prepared machine Mr Clerk. Cast about Mr Clark. With one hundred members present the chair sees a quorum. Representative Fredrick Love moves we dispense the reading of the previous day's Journal. Without objection so ordered. Are there Reports from select committees. Are there Reports from standing committees read reports Mister Clark Mister Speaker the we are committee on Revenue taxation to whom was referred house bill ten of six the house bill ten of seven beg leave to report we read the same under consideration here with the terms saying the regulation do pass respectfully submitted Jack Fortner vice chair Mister Speaker we are committee on Revenue taxation to whom was referred house bill one thousand one beg leave to report we've had the same under consideration here with her the same the recognition do pass respectfully submitted Joe Jett chair. There it any unfinished business are there any executive communications. Members we have a few guests with this today we have with this the sure would young ambassadors from sylvan hills high school there the gas of representative wing represent Brown and representive rate. They are in the west gallery. We also have with this from the great state of Oklahoma state representative dean Davis from broken arrow Oklahoma. West gallery. Mr Clark reed House resolution one zero zero five. House resolution one thousand five a representative Shepherd to congratulate Eldoret a high school lady Wildcats golf team on winning that twenty twenty one class five A. state championship. Speaker Shepherd you're recognized president the resolution Mister chair I'd like for represent Barker joined me in the well. As. This American. Members it's my honor today to present to resolutions for your consideration. The first is House resolution one thousand five it's congratulating. The elder at a high school Wildcats girls golf team they are the back to back state champions they are coached by coach. Christie's al they've had an outstanding run the last couple years and so I wanted to make sure that we honor them and I get the honor president another resolution here just a minute but you know I think it's a great opportunity for us to have these school groups and athletic teams here in the House to expose them to the house of representatives I know that like so many of you that the lessons learned on the athletic field and otherwise have served me well here in the House and throughout life and so today I ask that you join me in a favorable vote graduating our girls golf team there in the north gallery here and as I said back to back state champions. I can't really out a whole lot to that except what I went upstairs to tell the ladies as someone who's been playing golf longer than I want to tell you because that would reveal my age congratulations and I hope you enjoy the game of golf for many many years. Question before the House is the adoption of house resolution one zero zero five all in favor say aye. Opposed nay resolutions adopted. Mr Clark read house for resolution one zero zero six. House resolution one thousand six R. represented Shepherd to congratulate the Eldorado high school Wildcats football team on winning the twenty twenty one class six A. state championship Shepherd you're recognized president resolution thank you Mr chair again it's my honor to be here presenting a resolution on behalf. Of the old rate allowed cats and state champion in six a one of the things that that I would say I do enjoy having all the school school groups here but I did share with them ahead of time that you got a little old always having to let my good friend representative Johnson president the Greenwood Bulldogs every year here at the capitol and so I'm glad to have billed rated back here but another thing that's great about athletics is the friendships that you make on and off the field and I know that from my time many years many many years ago there are many friends that that I've made throughout that X. across the state of Arkansas let me tell you a little bit about this team they finish the year let's see I think was in nine straight wins in a row it's my recollection the one three straight games in the playoffs obviously and then concluded with the state championship this past Saturday a number of tremendous individual performances but I know that that the team is what's most important and you know let me say this to one of the things and one of the reasons why anybody that knows me knows that I'm a big supporter of Eldoret athletics but when you look up there that's the face of elder rated both here in the north gallery it's one of the greatest things about our community that brings us together and that's why I love to support the Wildcats we've got a great coaching staff coach Stephen Jones here just in his third year in elder radio this is only he's had previous tenant Junction City in the past five years he's played in the state championship game three times and wants to state championships but none of you other school districts get any ideas. I would also mention that he was just honored this past week by the American football coaches association which if anybody's familiar with that that's a huge nationwide organization he was named one of the third top thirty five under thirty five which was one of only two high school coaches in that group so that was a tremendous honor I'd also mention coach bill plans to our athletic director a coach Lansdale is has done a great job with our with our program and appreciate his work and I know we've got superintendent jim Tucker is somewhere up there okay and and Mr Tucker obviously provides great leadership to our school district not only when it comes to athletics but more importantly when it comes to academics and so with that I certainly would appreciate a very good vote. Speaker Shepherd as presented to resolution question before the House is the adoption of house resolution one zero zero six all in favor say aye. Those may adopt resolution is adopted. Morning hour is ended. Mr Clark read house bill one zero zero three. Also one thousand three by representative slate concerning security personnel employed by the General Assembly and to declare an emergency. Represents like you're recognized present the bill. Thank you Mr Speaker not like to thank representative Gonzales for pulling my select a yesterday for me when I was unable to make a committee meeting and I thought willow just in one and then I thought home no older just in one so but this this bill isn't concerns are a. Serjeant at arms a in the given him authority to be able to. Have make arrest powers and what have you force in this it's a up for his security in the and for his have an qualified immunity under this we've got some issues senator won't clean up that we can do in an exhibition but what we need right now is because of his exposure to liability being the. Security officer for us in this also allow him to go around state with this and be able to to coordinate with local agencies to be able to take care of anything any issues we may have problems within our security we're anyhow with that we'll take any questions. President Kennedy for what purpose question you're recognized for a question thank you Mr Speaker could you because this language is very broad so could you elaborate on what kind of changes we're looking at making when we come back and also we'll just do that okay we'll thank you appreciate it represent can see because of one is a certified officer to clarify it's not somebody just yanked off the streets that they have to meet all the standards at a regular police officer does you know it's a unfortunately it be easier to hire and pay the if we could just check mall street given given budget go but no we've got to make sure that they are certified and going through the process. Following you're recognized so these are pretty broad powers here as well so and looking to make any changes in these broad powers and personnel is it just can be one person or if it's just opening the door or perhaps a broader. staff okay it's going to be it's the yes it's going to be one person. And as broad powers only when he is in service to the house we'll have to carry the forty. With that us for a good vote. Representative Slape has presented to bill would anyone like to speak against the bill. For the bill. Representative Slape is close for the bill question before the House is the passage of house bill one zero zero three the machine Mr Clerk. You're voting on the bill and the emergency clause. Has everyone voted. Cast about Mister Mister Clark. Ninety six eight one nine zero present the bill and the emergency clause is passed. Mr Clark read house bill one zero zero four. House bill one thousand four by representative Dalby to clarify the applicability of the uniform limited liability company act to confirm retain the limited liability status and limited liability protection of certain limited liability companies to declare an emergency represent I'll be recognized to present the bill. Thank you Mr Speaker colleagues all this bill is doing is correcting a drafting error from the original bill that came through the session what happened the original bill the current then current law expired at the end of July but the new law didn't take place until September first so this is fixing that gap and ensuring that people who operated limited liability corporations during that period that they are recognized I'll be happy to take any questions. If not I would appreciate a good vote the adoption of the emergency clause. Represent Dalby is present the bill would anyone like to speak against the bill. For the bill. Represent dobby is close for the bill the question before the House is the passage of house bill one zero zero four per the machine Mr Clerk. You voting on the bill and the emergency clause. As everyone voted. Pass up the ballot Mr Clark. Ninety nine yeas or nays zero present the bill an emergency clauses passed. Mr Clark read house bill one zero zero five. House bill one thousand five R. representive Payton to repeal the law concerning pharmaceutical discounts for insulin to declare an emergency represent Payton you're recognized explained the bill. Thank you Mr Speaker colleagues merry Christmas but the. I tell you I really want to thank each and everyone of you all for the support enthusiastic support that pass this bill back during the regular session to try to bring some transparency and fair market value to the insulin products we did not have it did not have the effect that we hoped it would have I think maybe. There are a couple other options out there if you remember back during the regular session we had we had passed a bill out of the health committee that are I ask you to refer back because the logistics of that bill seem to be overwhelming I hope that in the future as we find another solution to this problem you will enthusiastically support that there is a problem with the. Wholesale market on insulin and the retail prices been artificially inflated advise any of you that are interested to go on the internet look up the Grassley insulin report the US Senate on a two year study and it's a ninety page report but you can read the last two pages which are the conclusion and it spells out very clearly what the problem is the solution. seems to be a little elusive at the moment and I I promise you I will continue to work on it I know a few others that are helping in that if if anybody wants to be involved in trying to find the solution I would welcome that participation but this bill has proven not to be the solution so we definitely need to repeal it before it goes into effect it was set to go into effect seven so it has an emergency clause and I appreciate your good vote thank you. Represent Payton as president bill would anyone like to speak against the bill. For the bill representative Boyd you're recognized to speak for the bill. Thank you Mr Speaker colleagues I rise today not because I want to belabor what Mister Payton said but because I I serve you several of you personally to co sponsor this bill and I feel like I owe an explanation in the quickest most efficient way I can explain it is for me to be here in the well and and and do that so just bear with me quickly and I'll make my point So let me explain we knew based on market information a certain long acting insulin because the pharmacy approximately two hundred fifty dollars there was a legal substitute that was available for basically a hundred dollars so that left a hundred fifty dollar difference so there's a hundred fifty dollars that seem to be going in rebates so that hundred fifty dollars is even greater than the the hundred dollars that the the substitute insulin would cost so PBMs pharmacy benefit managers collect that money that hundred fifty dollars and they re distributed we really don't know how they were distributed so what we were trying to do our goal was to not collect the one hundred fifty dollars and allow more transparency in the system and unfortunately we didn't quite get the language right so there's a real world example of what's going on so we we received information from Arkansas BlueCross BlueShield that this bill was going to cost Arkansas Blue Cross blue shield twenty four million dollars so let me rephrase that another way that means that insulin requiring diabetics are subsidizing Arkansas Blue Cross blue shield twenty four million dollars and there are other examples out there so I'm not trying to pick on one entity that's just the one where the the information is there it's it's was share with us all and the easiest explained so again our goal was to not collect the money in the first place create transparency and ultimately competition our language didn't accomplish that so again please join me today in voting yes but be ready to help our diabetics in the future with clarified language thank you. President flowers for purpose question you're recognized for a question and I'm just I'm I suspect that it might take some time but I'm wondering is fair correct language that could address this that might come back during the next session. So I mean I'm speaking on the bill at hand it's just we've looked at it the language is elusive but we're going to continue to look at it and I hope that committee members will join us in trying to figure out how we could have thank you thank you. Representative voice spoke for the bill would anyone like to speak against the bill. For the bill. Represent Payton you're recognized to close your bill. Thank you and I just I just thought I'd clarify a little bit representative flowers yes we had two other ideas that we thought about pursuing during the regular session before we came settled on this idea and hopefully there are even more solutions out there but right now for me the most prominent one would be to force those rebates through to the end pair so if we get this repealed where we work on that solution I think we have other other solutions and and possibly will discover something new but I appreciate a good vote thank you. Represent Payton is close for the bill the question before the House is the passage of house bill one zero zero five the machine Mr Clerk. Voting on the bill an emergency clause. As everyone voted. Gas about Mr Clark. Ninety ninety eight zero nine zero presents a bill in the emergency clauses pass. Mr Clark read house bill one zero zero six. House bill one thousand six R. represented Jett to amend the law concerning the initial appointments to the tax appeals commission and to declare emergency representative Jett you're recognized explained bill. I miss Baker college this bill if you guys remember back during the last session we did a tax fairness appeal commission bill it was two Bills read below bills rather lengthy I think both bills like thirty forty pages long so what this bill does is really kind of cleans up some language that we found some language aside the two bills clarify the language basically when the tax bills commission is set up there there are not that the commission will be on a nine year term if you will but we did not want offer commissions rolling off at the same time so that the in a very first cycle of terms one commissioner will serve three years one will serve six years long term nine years so that way when I Sokoloff we're not we're not losing all three commissioners at the same time between both bills that we passed the bills out of this body what we found was that my there was little language in there that was kind of unclear how that the first round commissions coming off matches up to the second round of commissioners coming on so basically all this bill does is clarify that language inside the bill without appreciated a good vote. Representative Jett is explained bill would anyone like to speak against the bill. For the bill. Representative Jett close for the bill question before the House is the passage of house bill one zero zero six prepared machine Mr Clerk. Voting on the bill and the emergency clause. As everyone voted. Gassed up the ballot Mr Clark. Ninety ninety eight zero nine zero present the bill an emergency clause. A past. Mr Clark read house bill one zero zero seven. House bill one thousand seven by representative Jett to amend the income tax credit for waste reduction reuse or recycling equipment. Representative Jett you're recognized explained bill. Thank you Mr Speaker Collins this has to do with recycling tax credit I think I've talked to just about everyone of you here about this last day or so but basically back in the ninety General Assembly twenty seventeen this body passed a recycling manufacturer sake tax credit for the steel mill so what this is this is this is it's kind of crazy because I was told not to talk about the project is going to come in but yesterday the Senate the and they're they're good fashion this one had spilled the beans for everybody I think that was was supposed to that but you know centers are so so I'm not going to really address the the company coming in from the well but what this does is this bill opens up another Avenue the kind of piggy backs on the existing bill that we have and so we're amending the existing built to lead a new new super project coming into the state of Arkansas if you will. And it has I monetize tax credits is going to have eleven million dollars with a monetized tax credits which is taken by those back for eighty percent which is which means the state will be on the hook for eight point eight but the cost House benefit along with the tax credits and the other portion of it is coming out of that still showing chairman jeans founder come out a budget everything's has a positive cast the cost analysis so the price is going to bring in seven hundred jobs at a hundred twenty thousand apiece this map two hundred jobs at sixty thousand four nine hundred jobs average of a hundred nine thousand dollars though the club will be clawbacks put into the in place with the county Thomas coming I'm told that if we pass this today the company The company is they're ready to announce within a week I thank is waiting on a CEO signature one understand this is showing up manufacture all keep hearing about the state of Arkansas is losing manufacturing in the state this section shores up manufacturing in northeast Arkansas which is desperately needed brings good jobs up there. So I think somebody acts as to try to answer all the questions somebody has making member who was somebody asked about the the carry forward so on the monetize tax credits. So we talked about the bill the original bill coming effect I think is a representative calls might ask this question yesterday but the other question was saying carry these tax credits for fourteen years does it start back in twenty seventeen it is a start now going for so the answer the question I read as my question it starts if we pass this it starts now encourage for for the next fourteen years and that will be a cost of a hundred fifty four million dollars over fourteen year period. So with that thank appropriate covered everything and I appreciate a good vote. Representative Jett is explained bill would anyone like to speak against the bill. For the bill. Representative Jett is close for the bill question before the House is the passage of house bill one zero zero seven prepare the machine Mr Clerk. Is everyone voted. Okay I said ballot Mr Clark. Ninety four Yeas four Nays zero present the bill is passed. Mr Clark read house bill one zero zero one. House bill one thousand one by representative Maddox to amend the state income tax change in name and funding of long term. Reserve fund into declared emergency. Representative Matix you're recognized explained the bill. Thank you thank you Mr Speaker colleagues so it's an honor to be here before you guys today just want to talk about this tax cut bill of the things that do want to discuss that I think we should all be excited about is this is the largest tax cut bill in the history of the state of Arkansas so I think when we go home for Christmas I think you'll love in your constituents really like to hear that if you work and if you pay taxes your taxes are going to get cut under this bill and that's going to start next year so I think that's exciting I think this is not only the largest tax cut in Arkansas it's also the most of the added tax cut bill there's ever been you've all had this bill for weeks there's over seventy co sponsors so I'm not gonna go into great detail about it but I am going to hit the highlights because it's frankly kind of exciting so I want to just talk about that exciting to me anyway so one thing it does is very important changes the name of the long term reserve fund to the catastrophic reserve fund that that's done in the the initial part of the act in their provisions in this bill to make certain that we keep twenty percent of net general revenues stand in that catastrophic reserve fund as you know now I think our net G. R. spend is around six billion dollars so we're gonna spend twenty we're gonna save twenty percent of that six billion in case of an economic downturn so I think that is very fiscally prudent and very responsible this is not you know slash and burn Tax policy this is fiscally responsible tax policy Also if there's a downturn will have that to tap this bill also the simplification of the tax code I think a lot of you know we have three tax tables in Arkansas we have the most complex. Tax system in the entire nation this goes from three tax tables to to and that's a good thing that's going to help us Sunday hopefully get it all into one tax table so this is the simplification bill also you know some of the came up yesterday in the committee was was competition and some people don't think of that people and companies look at tax rates and when they decide to locate and state and I completely disagree I think if you talk to ADC they will tell you that tax policy is always one of the questions that ask when businesses are deciding whether to relocate to the state of Arkansas it just is the CEOs the CFO's they're going to even look at the income tax policy and for it for them and for their employees it's just something that that so anyway I think that is important One of the other exciting things is the income tax rate reduction so the top rate in January twenty two is going to go for five point nine to five point five January twenty three from five point five to five point three and then there are additional cuts in twenty four and twenty five to five point one and four point nine respectively now those cuts are contingent cuts those cuts are contingent upon no transfers being made out of the catastrophic reserve fund so if we can't find RSA and we have to make a transfer of the catastrophic reserve fund to fund all of our central government services those later cuts do not happen I think that's important to know it's not that those cuts are delayed those cuts just don't exist they don't happen so what we're betting on what I say is we're betting on Arkansas we're betting on growth we're betting on the continued inbound migration that we've all seen the last thing I saw were number ten in the country and people choosing to move here I'm I think that's awesome I don't think enough people talk about that about all the good things that we have going on and we're betting on growth frankly this is a program the Bill. what else is the other highlights this bill pass through tax entities those tax rates are gonna be dropped it to correspond with the personal rate your pastor tax entities or of course your sub escorts your LLC's I would argue that those those companies the vast majority the businesses in the state by far so this is gonna be a also a small business tax cut you can talk about that and there is and I had to push back on this part well that's a push back on all this frankly but anyway The the corporate income tax rate is reduced from five point nine to five point seven in January of twenty three and they're also additional corporate rate tax cuts done but those are also based on what you call the trigger of nothing being transferred out of the catastrophic reserve fund so there is a corporate income tax rate I'll be the first to say corporations are not evil corporations create jobs corporations pay taxes corporations decide where they want to locate and Tax Policy something they look at so I've had a lot of respect on that. there is confusion I do want to talk about. There is a non refundable tax credit provision in this bill it's not refundable it's non refundable so if you do not work or she's mean you do not pay tax you do not get money back in it's a non refundable tax credit so the been a little distinction there Little Miss information there I did want to address that. As I said earlier this bill cuts. The taxes for every or Kansan who works and pays taxes and I think that's exciting I mean I truly do think that when we try to set arbitrary lines of people who make an ex get a tax cut but people make just a little more don't get a tax cut there's really no equitable way to do that you know you that's fine if it and punish you just punish the other guy and I think for too many decades in state or federal policy we've done that this bill cuts taxes for everyone One thing you're probably gonna hear go ahead address it now is that. This bill only tax cuts taxes for the wealthy this bill that's to cut taxes for everyone but what I would say is we do have some wealthy people in our state and they paid ten some of them paid tens of thousands some pay hundreds of thousands a year in taxes so of course when there's a tax cut they're going to get more of a benefit than someone who's paying just a couple hundred dollars or a few hundred dollars each year that's just how it is I'm so when you hear that do keep that in mind we have to have some some equity there. you know we were very responsible in this I think in that not only were relying on the FNA I don't relying on BLR we also hired moody's analytics to come in and just say can we afford this and if you didn't watch if you're not on revenue tax you didn't watch their presentation it's very good and they unequivocally state we can afford this so I think we're being very fiscally sound very fiscally prudent I think this is great legislation and with that I have other things with that I would stop and be glad to take any questions. Represent got free for what purpose question you're recognized for a question thank you Mr Speaker representative Max can you talk a little bit of about that low income tax credit the sixty dollar credit I know that you need to speak to some of us and in our caucus about taking care of all Arkansans And indefinitely including the low income earners can you tell me how much that sixty dollars a year is per day. Per day knocking on the follow up. You're recognized and it It sixteen cents a day and so I'm just wondering if you think sixteen cents additionally a day is meaningful relief for Arkansas that that and lower income and and earnings and. So area or if you think they're at their best as we can make that a more meaningful. So good question I didn't know that was what it is provided that the you know one of the goals of the credit at this without the tax cliffs in the not punish those around the twenty three thousand six hundred range that's what that is but I do have some Percentages in actual numbers for people who I I hate to. Characterize P. or categorize people as lower middle income but just some numbers the largest percentage tax decrease that everyone's going to feel in this from a percentage basis is certainly the lowest to the middle income the lowest taxpayer is going to receive a sixty four percent. Decrease in their taxes the next and let's just jump down to let's say you know what let's just get technical on someone taxpaying family they're at the fifty thousand dollar range is committed an extra two hundred sixty dollars a year for them so two hundred sixty dollars a year you know maybe some people in here scoff at that I don't know I don't I think if you talk to some folks in your district they might feel that that that's a real amount that they would like so certainly. Obviously the more you make and the more you pay you know you will get a little more of the benefits. Okay. Thank you. Representative Maddox is explained bill would anyone like to speak against the bill. For the for the bill. Represent governor against your you're recognized to speak against the bill. Thank you Mr Speaker. I hate being up here and I'm I. I thank you for indulging me We are what our experience make as. And I appreciate you just listing for a minute about where I'm coming from. For forty five years I've loved living in Arkansas I graduated from here buried in Arkansas boy and raised my two boys to love this state as much as I do. I've advocated for the health the education the welfare for all our Kansans. I'm sorry. Three. My work as a nurse practitioner. And. There My support of a variety of nonprofits throughout the years. I've done it striving for excellence. It wasn't until I got to the legislature where. We started talking about adequacy and the programs that we're dealing with. Granted Arkansas is not a wealthy state but we can still be extraordinary. All our Kansans can thrive. But not with this tax plan. Lower and middle income our Kansans will see very little benefit. In this plan twenty percent of Arkansas earners will receive seventy three percent of the income tax cuts. Those lucky enough to be in Arkansas's from one percent those making five hundred thousand dollars or more. We'll see their taxes decrease in average by more than ten thousand dollars. But most are Kansans. We'll only see the decrease of forty to sixty dollars or the equivalent of a family dinner at a fast food restaurant. Concentrating tax cuts to serve the wealthy will benefit far fewer our Kansans them would using those dollars to find popular programs that serve families and help grow our economies. What if we use that six hundred million dollars to strive for excellence instead of adequacy which in my opinion we've yet to achieve in our budget programs. Should we prioritize the support of families with infants and toddlers during early childhood when children's brains are developed eighty five percent. Or after school and summer programs for those children needing extra help or a safe place to stay. Higher education budget has been relatively flat now for fifteen years. We could pay for two years of community college or technical education for every Arkansas students. More than three thousand disabled our Kansans are still on the waiting list for the Medicaid duty waivers and it takes at least ten years after you get on that list to receive services. Should we prioritize those in dire need of these services. Twenty five thousand our Kansans are homeless another forty thousand have fallen behind in their rent. Rural Southeast Arkansas and even our third largest city have raw sewage in their streets. Maybe we should prioritize housing and infrastructure. Postpartum depression is that. Thirteen thousand children are in need of Arkansas social services. Every K. three twelve teacher I've visited in the past in the past four years says behavior and mental health issues are the biggest problems in their classrooms. From two thousand to two two this year two thousand twenty one. Arkansas suicide rate has increased forty one percent. We have teams veterans law enforcement officers and senior citizens suicides have all increased. Should we prioritize mental health issues. This tax cut isn't large enough to make a difference to low and middle income families and my guess is that most of those one percent. We'll hardly notice. But the six hundred million dollars could go a long way in developing programs that make certain Arkansas's lives warrant served much more than adequate. I'm voting no on this bill because our Arkansas families deserve excellence not adequacy thank you for listening. Representative garner is spoke against the bill would anyone like to speak for the bill. Representative Jett you're recognized speak for the bill. Thank you Mr chairman really really think about coming down here today to do this on others published makes the my colleagues across the aisle on this I do want to share with you guys that we've been working on this thing for like three months this is been the largest they added package or trying to make it fair across the board of any bill that I've been part of my ten years here in revenue tax I know that probably don't please answer some of the questions but part of the problem here is we keep our numbers as control now there are not accurate I'm not will get in here and start phone numbers back to you guys because it makes me sound like I'm I'm trying to point out so my call is being misinformed on the numbers. But I think it's also important to stand back and for the C. eight years ago I think one of the government coming in we did a low income tax cut for middle income tax cut I'm sorry two years later we did a low income tax cuts then we come back and we did the upper income tax cut in our goal was on this package was to do a tax cut for all Arkansans not pick and choose within up courage a cherry pick if you will inside the tax code for people. And so we started on this project three months ago and we ask for this up to three times because what we found was there's a lot of instances that we were not being fair to certain certain people a certain task does most of the time those are the folks that were that we're paying in the bottom table or the bottom the bottom of the middle to. So we started over again to make this as far as possible but I like to point out that at the end of the day on the there there's over a hundred and four thousand folks that will no longer pay taxes and that's never been brought out for lap having first and that's to me that's a significant we're we're helpless naked population in the bottom table hundred four thousand folks no longer pay income taxes I thought this body is what was I supposed to do is do away with taxes not cherry pick is paying taxes who's going to pay taxes NO Sarah take care of the people on low incomes that will help hundred four thousand hundred four thousand folks so I just tell you all that in my ten years here I have never worked harder Senator Dismang with myself would never work harder trying to make this the fairest tax package that we could from the top to bottom if you look through the the the the package for example you know the the bottom and I'm I'm I'm trying to stay with the numbers but the misinformation number's been flown around the phone around here at the top bracket in the bottom table I think that I think that tax liability I'm members certain routes around four hundred dollars so it's simple math just about four hundred dollars bathroom sixty five dollars a day you say this not. Any sheer is it are those folks paying as much as somebody's Macon five hundred thousand dollars in taxes absolutely not but the but the numbers are here on the top side on thank you for the repeat on top side someone making above five hundred thousand dollars at the end of the day they're they're not getting a ten thousand dollar tax cut that we keep hearing about what they're doing they're going to get a forty nine hundred dollar task so when you do the math from top to bottom everybody's going to come flow in anywhere from eight to probably fourteen percent of those numbers not exact because when my notes from me because I was not going to come down to this day but my point is this the percentage based on what people pay in what people paid in is pretty constant throughout the whole spectrum we we make it even there's no way in the task without making the tax code more complicated what we have now this is the I'm telling you all this is. After we after we will this thing around for three months I understand some folks in this room this chamber today don't taxes low and I get that I understand that I respect that so I just want everybody to understand that some of the numbers that we hear on both sides of it is there's some of the numbers not correct in that we tried we diligent try to do our best try to make this even across from the bottom bracket the bottom table to the top bracket in the upper table so that I would appreciate your vote. Representative Janice vote for the bill would anyone like to speak against the bill representative Murdock you're recognized speak against the bill. Thank you a German good morning so what I want to talk about very briefly is not a representative Jett what the bill does I won't talk about what it does not do. Who does not address because really there is enough they can be done for both sides so what I want to talk about is a balancing act is absent from this you are doing something which is not doing the things that can be impactful that's my issue with this. There are things that we can do with this these dollars have flowed into the state the pandemic was tragic but as many times with my god does he turn the tragedy into something that we can use as a blessing. He gave us an opportunity to do some things as it relates to those that are under served in need help the most the developmental disability group that we talk about so much for many years from this podium that we have not addressed with the stroke of a pen with a very minor minor percentage. Of these dollars you can go away what. We should care about the people more than we do I mean even the higher wage earners they are going to benefit because they pay more taxes that's the math. We're not against. But what about those that suffer the most if you talk about that lower income group is getting a very minor. breaking this they need services some of them are in that developmental disability group that I'm talking about and they got to go and take care of themselves and their children their loved ones. It makes no sense we have these many dollars and we still walk away from here with people having these needs relatively speaking there are minimal to the dollars. It's all right. If you get lucky. And through some. happenstance your family or you come on some money auditor please say yes did you want the of. She manages to what what what something across the state we when you can win a bona dollars I forget what it's called you know what I'm talking about but my point is you get in flux. And you have a a a leak in your room a leak in your home and you weren't able to fix that leak. Would you become blessed with some dollars and then all of a sudden you can address the only. What I'm saying to you all everybody is this why don't we address those things again I'm not saying don't help the does it deserve tax breaks I did say that but what are you eliminating and ignore it and just don't want to these now I know we want my my my good friend president Jett said he will talk about numbers but we gotta Q. one hundred numbers as a part of what we do with this do the math. So S. been present it of course obviously me and my colleagues a lot of us one in some of those meetings so we don't know exactly probably all of the numbers what we have been allowed to know is that the numbers for the smallest. Group is forty to sixty dollars that's a minuscule benefit and I was told on a call. And I will reveal that that was something that. Really have to be fault to even give to the lower wage earners to give them that sixty dollars Hodges. You remember that call they said that we had a fight that was almost a deal breaker nobody want to give them anything. What. What is. About the visuals. Be careful be careful be careful because we can be. Now from income standpoint but there's ways we can into the situation and we need the grace of god the merciful man and someone to look upon us care about us in a desperate situation and all the time we don't because it for self some time we had a situation somebody else did it and we need help it's okay to do it responsibly. We would not we but this is what I'm charged to do if the people I represent. They need help. And I'm going to be as long as I come down here I'm going to plead and beg for you to help the people that I represent. Is that even that you represent I've heard many of you come to the podium to talk about those in the US and I'm focused on those developmental disability I'm focusing on that I'm also can about true educational adequacy please don't start telling me and I've been his login again it most all but three of you all in this room. You can tell me about educational adequacy is not happening in this state we have not done that. We talk about so we can we can we can dedicate more dollars to this. We could have done better this plan does not do that. All I'm saying is we could have done better we should have done better I could not with the conscious of the people I represent vote for this. Knowing that we didn't know what to so much that could happen. At the end of the day my good friend my leader set silence becomes consent. I'm not conceding. I won't be silent. I will respect you. I will treat you with respect but I will demand that you hear and do right by all people in Arkansas not just a high not just a low all those garbage representative Payton what purpose representative Miller has a question I was standing for him please represent Miller you're recognized for a question. Remember doc I appreciate some of the things number one I appreciate you represent your district that's that's admirable I do have a question when you bring up the the developmental disability Population that we I know you and I have worked together on some stuff but Would you say that it's would you would you confirm. At this body. As passed out multiple times earlier this spring for this year back in spring being the last one passed out of Medicaid expansion program that creates a two class system that all of those folks on the all those folks on the on the all of the traditional Medicaid are being treated differently. And we're not hearing the outcry when that is being debated now we're hearing now over something that really really is not germane so that's one part of the question the next part is. Is it true that general revenue has gone up two billion dollars in our time here. And yet we've we've done nothing as a body but we're gonna cry about it now we want to cut taxes could you elaborate on that a little bit for me I can't elaborate on what you said because the premise of what you're saying special initially I don't agree with so it be hard for me to elaborate on a concept or a thought that I disagree with fundamentally so I could elaborate on that first part is you talk about the two billion dollars so yes it continues to grow and we as a body should be responsible and accountable for what we do with those dollars and in many cases those dollars have not as I talk about educational in adequacy and as I talk now about specifically this population that we're talking about that has not been addressed so. That's what we're here for to address those things. Thank you. Thank you summer I can spoken against building would like to speak for the bill represent rate you're recognized speak for the bill. Thank you Mr Speaker thank you colleagues I I want to thank Representa Maddox for doing the hard work of carrying this bill and I want to thank. Representative Jett and Senator Dismang for their many months of work on this bill and everything that went into it. I'm excited to support this bill because it cuts taxes for every single Arkansas taxpayer that pays income tax. This bill is about growing paychecks by letting workers keep more of what they earn. In case you haven't noticed inflation in the past year has outpaced wage growth and that is according to the federal government's own numbers so what that means is if you make the same amount this year that you made last year you actually have less money this year in terms of purchasing power this bill let's workers keep more of what they earn and it doesn't just help workers you have to remember most of our small business entities pay the personal income tax. That in that bracket and after eighteen months of what the virus in the government's response to the virus has done to our small businesses I believe that they deserve tax relief I hope you do as well it's been mentioned that this bill simplifies our tax code which is true we go from three brackets down to two and that move primarily benefits folks in the middle and low income brackets. Importantly this bill improves our competitiveness we are in a constant competition with other states and yes other countries for jobs for new movers for capital for investment we want all those things to come here to Arkansas not go somewhere else. And I know it was brought out in committee yesterday the point was made several times that competitiveness is more than than taxes and that's true nobody disputes that competitiveness includes all sorts of things from work forced education to infrastructure to regulatory burden all of those things nobody would dispute that but number one this is a tax bill. And taxes are a big piece of the competitiveness Postle. And secondly we have invested in other areas we spent invested hundreds of millions of dollars in broadband hundreds of millions of dollars in our roads and bridges we raise teacher pay in multiple sessions consecutively and I suspect we will probably continue to are there issues that still need to be addressed yes absolutely but we can walk and chew gum at the same time. And this is important because in the world of competitiveness you were always either moving forward or falling behind there is no standing still and that's because other states are always improving other states are always making changes to get better. Just this year and twenty twenty one twelve different states around the country have decreased their personal income tax rates and six additional states have decreased their corporate tax rates and three states Ohio Wisconsin and Arizona I believe. Asked the largest tax cuts in the history of their state this year. Today we have a chance to join that list and a chance to take a big step forward in terms of competitiveness now the point has been brought up over and over that of the the the criticism that the idea that this tax relief bill only benefits the wealthy. That's not true this tax bill benefits every single Arkansas taxpayer that pays income taxes every single one. And the folks who make this point. They hope that you have a really short memory. I hope that you forget that earlier this session we wiped out and completely eliminated the income tax on two years worth of unemployment benefits. And perhaps the most historic year for unemployment claims know who was that aimed at helping it was aimed at helping people who are out of work and suffering because of the pandemic. They would want you to forget that earlier in the session we passed the an increase in the sales tax exemption for the used car sales tax who was that aimed at helping that was primarily and specifically aimed at helping lower income or cans and so that they can afford reliable transportation to get to and from work. Never in the history of our country have we lived in a time where the government has more actively and aggressively provided public benefits to people struggling economically never before in our history. In the past year and a half just think about it there's been not one not two but three rounds of direct checks sent to Americans there's been six hundred dollar a week and three hundred dollar weak unemployment bonuses there's been a thirty percent bonus in food stamps there's been a suspension of the work requirement an extra child tax credit. Assistance the list goes on and on and on. We live in a generous state and a generous country okay there's no doubt about that but we have to be a state that also rewards work the rewards productivity the rewards labor. If we don't our safety net will become a hammock. And there's also sort of a with a with a of hypocrisy around this idea the the opponent saying that this only benefits the wealthy because just a couple weeks ago the buddies in Congress increased the SALT deduction from ten thousand dollars a year to eighty thousand dollars a year. No salt stands for state and local taxes I don't know about you but I've never paid eighty thousand dollars in state and local taxes in a year I suspect most our Kansans haven't either. So who does that benefit I'll tell you who it benefits it benefits ultra wealthy people in high tax states it was essentially a give away to a lot of their donors in places like New York City in Silicon Valley. But did we hear anybody speak out against that. I didn't hear much here. This tax cut plan will benefit hard working our Kansans. And these numbers they represent real people. We're talking about the truck driver who persevere during the pandemic who despite all of the labor shortages spent long hours on the road to try and make sure that your shelves were stocked we're talking about the nurse who kept going to the hospital day after day as the COVID units build up who faced the virus who did her job this bill cuts her taxes you can't tell me that those are Kansans don't deserve tax relief and that's what this bill delivers. So I'm excited to vote for this bill it's going to move our state forward and ask you to join me represent race spoken before the bill would anyone like to speak against the bill. President Godfrey recognized speak against the bill. Thank you Mr Speaker colleagues I just want to quickly share you know you've heard from some of the colleagues find and my side of the island it's no surprise to all of us in this room and that we do have just kind of a fundamental philosophical difference and disagreement about those tax cuts for the wealthy that that part of the bill is problematic but I do also want to speak to and that those lowest income earners and that sixty dollar tax rate this proposed I mean is present in a way as to you know provide this kind of fair and equitable read relief to all taxpayers I just wanna push back on that a little bit and and I appreciate the consideration in the intent of our constituents who are really struggling who are and really and struggling to make ends meet and and that we want to and look at our policy options and and find out ways to best support and and I just want to say that when we have the surplus when we have hundreds of millions of dollars of policy options. Sixteen cents a day is just not the most meaningful way to provide support of an empowering and relief to these working families to these families who are struggling to make ends meet it's and it's not something that I am excited about is not something I'm grateful for I think there are so many other options that we have policy wise other investments we can make that will more meaningfully every day support and empower these working and struggling families and so for that reason and others I'll be voting no. Representative. Godfrey spoken against building would like to speak for the bill. Represent Mayberry you're recognized before the bill. Thank you Mr Speaker I didn't intend to come up here today but it was mentioned many many times in committee and then here on the floor and I just felt like I really needed to address this I am voting for this tax cut today because I think it helps everybody we all need help. But one of the things that keeps getting brought up is that we have this developmental disabilities waiting list and many of you know when I came in twenty fifteen that's what I talked about most and it's still what I talk about all the time. When I came in we had three thousand people on the list. We still have three thousand plus on the list and we've even past two things to help move people off that list in twenty seventeen my husband actually had the bill to move tobacco settlement money and we moved five hundred people off of that list. Pilkington representative Pilkington also had a bill that created the pass premium which the new seven hundred people off of that list. Those are all good things we have actually made some steps but what happens is that list continues to grow because many people around the state don't even put themselves on that list because they know they're waiting ten years and it's a lot of paper work so they don't even bother but once the list started to move people started getting services the list group because they were saying all I better get on that list now we've got a real issue we're going to move that list and it's going to grow even more. I believe that we need to look for some solutions we have a fiscal session coming up I've asked bill war they've been putting together a lot of information for me the past few months on the history of this some of you may not know that that list actually was completely eliminated during the Huckabee administration we had no one on that list but it was because of a court order. That did it legislators had to drop everything and fix it so I know it's possible if we decide that we want to either use general revenue money that I believe still exists even with this tax cut. Or we look at some other sources like that Medicaid trust fund. I believe that there are other things out there and this needs to be a priority and why because we're a pro life state. And this is a pro life initiative this is supporting people after they are born. In the most fragile situations in their lifetime. And I hope that we can come together because this is a big topic. And we can find a solution in this fiscal session to address some of it and maybe even in the next session to continue with it. It is more complicated from what I understand talking to DHS than just money we have some other issues as far as getting people to actually service those families. I will continue working on this presentation and I will let all of you know when BLR has this presentation together so we can look at it collectively and come up with some ideas I will be voting for this because I think that for the overall good of the whole state this tax cut is needed we need relief thank you represent Mayberry spoken for. Representive off what purpose. Okay representive Mayberry still on the well so often LOL thirty percent Mayberry has spoken for the bill represent Vaught for what purpose motion let's hear motion motion for immediate consideration. That's proper motion. Not debatable all in favor say aye. Any opposed. The ayes have it. The question before the House is the passage of house bill one thousand one. Per machine Mr Clerk. As everyone voted. Voting on the bill and the emergency clause. As everyone voted. Cast about Mr Clark. By a vote of eighty two yeas sixteen days and zero present the bill emergency clause have passed. Members are moving to the yellow budget calendar Mr Clark please read house bill one thousand two. President Jean you're recognized. Thank you Mr Speaker. Calling we have one item on the budget calendar today this is house bill ten oh two. This is come from Speaker Shepherd and there be a companion bill that's the very same thing tomorrow on the floor that the bill comes comes out of the Senate. What this does is transfer fifty million dollars and this is also when the project that we just passed on the ten oh seven the relative yet this is a special project over Mississippi County. Of the steel mill. A fifty million in the long term reserve will remove it over to the general reserve a lot in the county. And at that point the chief fiscal officer Larry Walters will have up until. March thirty first to move this over to the quick action closing fund for economic development for this project and will this money be spent on the BOP spent on infrastructure water gas electric roads and drainage for the project in Mississippi County. Of if it is not used. If the economics falls through this money will stay in the general argument. And it'll take a action of this body the state legislature to move it back into long term reserve or whatever we see fit. to put it at. Of this is a project up in Mississippi County. And I support projects whether in Mississippi County weather and Benton county Chicot County Miller County or police can economic development for one part of the state is good for all of the state. Any questions on this. I'll have the Clerk respect other Clerk read the bill for the third time. Read the bill Mr Clark house bill one thousand two. Representing is explain the building would like to speak against the bill. Would anyone like to speak for the bill. Represent Jean is closed for the bill the question before the House is passage of house bill one thousand two per machine Mr Clerk. You're voting on the bill and the emergency clause. Is everyone voted. Is everyone voted cast about Mr Clark. By a vote of ninety three ace three nays and zero present the bill emergency clause or pass. Mr Clark read the bills. House bill ten ten. Improperly introduced. House resolution one thousand seven that objection read resolution second time House resolution one thousand seven. House resolution one thousand eight dot objection read resolution second time House resolution one thousand eight calendar Senate bill one objection read the bill a second time Senate bill one revenue tax Senate bill two objection read the bill a second time Senate bill two Revenue and Tax Senate bill three objection bill second time Senate bill three. Calendar. Senate bill four objection read the bill a second time Senate bill for insurance and commerce Senate bill five objection read the bill a second time Senate bill five calendar Senate bill seven the objection read the bill a second time Senate bill seven public health Senate bill ten objection read the bill a second time Senate bill ten Revenue and Tax. President makes for what purpose. Motion place let's hear your motion after the announcmenet trading or the bills transferring the bill's place in the calendars on the desk members amending their own bills with their own amendments finalizing resolutions reading communications and any remaining committee reports I move we adjourn until ten o'clock tomorrow morning. It's proper motion is not debatable all in favor say aye. Any opposed. Motion is adopted are there any announcements represent Lowery for what purpose announcmenet you're recognized. Insurance and Commerce will be meeting at one thirty today to take a one bill and that will be in conference room C.. Representive Ladyman for what purpose announcmenet you're recognized public health will meet at two thirty this afternoon in room one thirty. Represent Fortner for purpose I spent you're recognized revenue tax to meet at three o'clock room one fifty one. If Tosh for purpose announcmenet you're recognized I know it's only agenda that state agencies is meeting but we will not made today there is no meeting and state agencies today. Any other announcements a representative brown for purpose announcmenet recognized colleagues in your mailbox it was just put in there after we went into session today is a form it's a broadband form it's a broadband survey form all of us are in favor of improving broadband across the state for all of our constituents if you would please take the survey you can actually see again the Q. R. code and do this online and please then share the link with everybody that you know asked him to please spell it out we're trying to get actual household responses on the the type of service they have or if they don't have that we're trying to get that done for the study that's being done on our broadband study. Thank you. Any other announcements. The desk remain open for as needed for the reading of the bills upon completion The Addams named in the joint resolution house to be adjourned until ten AM tomorrow.