Revenue & Taxation- House

Vote on I think I can rewards cord that but it was in the top six so does everybody everybody understand what we're doing today about a cigarette yes no okay all right Sir just recognize yourself going to see. David Tollett state representative district twelve appreciated everybody being here house bill eleven fifty seven is very simple it doubles the teacher tax exemption or deduction for for teachers for and it takes it from two hundred fifty dollars per teacher to five hundred dollars per teacher and from five hundred to a thousand per household this money can be spent on books school supplies computer equipment software as political appointment Food for the teacher's students and clothing for the teacher's students are teachers take care of these babies they're going to take care of on that's just in the nature of a teacher and we appreciate all the things that they do for our kids regardless of whether they get a tax deduction for it or not and I think this is a great bill it only has a two hundred thirty seven thousand dollar impact to general revenue but it's also a tax deduction that not only benefits the teacher but also the benefits all of the students that that teacher teaches on a daily basis and the needs that those students have on a daily basis and it takes care of those needs and so with that I'll be glad to take any questions you may have any questions. Yes ma'am regarding recognized I just have a quick question and I'm so thankful you're bringing this bill I'm from a family full of teachers but I just have a question I know that the last administration Took away any tax deductions federal for federal income tax do you know if that's a fact of federal tax eggs there is some federal tax deductions I know for covid related expenses and this go around I'm not like what I'm doing here correct that's what I thought okay thank you very much that not that I'm aware of anyway thank you. Thank you ma'am members questions. Anybody I speak against the bill. For the bill. Tell you anything you want and we all know will impact all us to. Now take a shot represent will is not in the room what right now but he's going to the house of time to do so okay. All right representative McElroy emotions are. The most do pass members any debate. All in favor say aye. Opposed resolution pastor bill thank you committee works are members that education we got to we got a special guest room senate bill sample no he's from problem get out of your committee that rejection. Thirty one to your bill. I've been told you really not all the special so. But these guys are telling me. Thank you Mr. I'm here to present Senate bill five twenty eight what Senate bill five twenty eight does is the. The cities and counties have been having a problem with with the rebates of the sales and use taxes to taxpayers and companies and this bill takes and. And. Fixes that problem it. The the FNA actually D. F. and I wrote this bill. And they will prepare more of a report every month with the credits and rebates and that will be given to the cities and counties it will be done electronically. There is a safety measure in it That to get this they have to take and register for an account with the Arkansas taxpayers a access point. And This is if you violate this is Sam a criminal. Some criminal prosecute it you could have so I'll take questions thank you reasonable parking goes into force please. to spending problem a question for you to. Thank you Mr chair members of the committee Paul guarantee if I think Paul Paul is in is. Is there anyway like a competitor get another competitors and private information through this. There are there to mechanisms in this bill to prevent the re disclosure of that information once the the report is delivered electronically to the member of the city or the county of that a county government electronically they do not have the ability they have to maintain the confidentiality of the information and also Ford our DFA personnel if that report is generated to the local government and that a county government or city government has direct questions they want further information it's beyond the scope of the report we are unable under this bill are employees cannot discuss anything outside the scope of the report of course is a Senator sample mention that the violation of the tax procedure acts confidentiality provisions is a Class C. misdemeanor within the state of Arkansas for our DFA employees it is also if they are convicted they are subject to termination from the department so there are there are safeguards in here to make sure that the this confidential financial information is not shared outside of the the local government that receives it the so just make sure everybody understands there's no way somebody did some data mining to get to the first type information use against a competitor it continues to maintain its confidential nature once it becomes in the hands of the local government thank you Paul members any questions. The service member. Hearing the question once the county or city registers for the online access to the report what what information would be available to them would it be would there be information outside just a rebate credit on the size once they have access to the system to request report this bill would representative they would only allow the information regarding those those credits so you're not going to get the taxes paid by that by that taxpayer it's only going to be the amount of the rebate that was awarded or granted to that taxpayer. Okay thank you thank you Sir general questions. Anybody not speak against the bill for the bill German shepherd NO close rebuilder. I'll close thanks got a motion from representative of Fortner for do pass that correct. The motion do pass Christian Fortner any debate all in favor say aye. Post a list so you pass the bill thank you members combat Darcis gin. All right members will go back up the schedule agenda is represent beckon room. Yeah reserve bank Norman bill. Members will take a look at house bill ten fifty four. Thank. Thank you Mr chair members I bring the house bill ten fifty four. This has to do with us Senate changing a statue this is actually the was recommended issued by the department of finance and administration. In Arkansas you're allowed to have what's called an isolated sale and what that is is if I'd I'll tell ya I restore all vehicles whenever you store them because you had up with a lot of parts sitting around and if you can in my house and wanted to buy one of those parts I could see that part how would not have to charge any sales tax because that's considered an isolated sale. What this bill does is. Presently. You cannot have an isolated sale and at a special event. An example is Page amount every year has a large event car swap meet if I go up there the very part of like a soldier yesterday or the day after this is that at no sales tax I would have to charge you sales tax at that event what this will do is it will just take that out of there so you can have an isolated sale now some people ask me what is actually an isolated sale it's very well defined to death and that is very well defined that it's basically a sale that's not one from. At of inventory I didn't purchase it with the intent of selling and all that so that that's all very well defined now the reason that we need this in Arkansas's this a lot of our surrounding states have a load a little bit different rules that allow like a certain amount of the house ways sales so they can have a dance and they can go there in the sales can be tax exempt but in our state that that's not the case I've always used one more example might county judge like to talk about chrome sometime in in real late we definitely is is is looking for the some of the crimes here you know there's not a lot of sales here I think the whole of back on this is presented every two dollars not not try to be I'm not too sure how to rush around you shouldn't talk as long as you want to help this committee thanks prepared to vote for your bill all right and I appreciate do pass on. So we will mean we we've heard it before and we appreciate you and all that so I'm just gonna save you the time and effort energy so I'm not trying to talk to to get all all right anybody not email me any questions. President Mayberry. Actually it thank you I think it's more of a question that this one did not make that top six this is correct and so I'm just questioning the order not saying that I'm against this idea but I'm just questioning we will explain maybe have missed something well it's a hundred eighty thousand dollars hit to the budget and we talked about the smaller stuff and and in the committee room the other day I'm all for use in there or not but we talk about and everybody was in agreement with some smaller stuff out that's not a big impact to the budget this is one of the smaller things that we had talked about that several days ago normal for use in the room or not but. Personal interest. Yeah general questions anybody ask against bill for the bill personally to make the motion. I have a motion to do pass any debate all in favor say aye. Posed good luck sorry pastor bill. All right reserved Brown University. Then represent labrys is another one is bills you can you come to me and ask for this bill be let out Mrs we're same senate bill now okay. Thank you Mr chair Wallace to Debbie treasure for treasure million thank you representative Carolyn brown District forty one this bill is a visit. The bill I presented some time ago it is basically bringing Arkansas's up. College that used to be called a college savings plan the five to nine plan education savings it's bringing Arkansas's regulations in line and we at the federal tax code and one of the nice things about her to several nice things about this bill this year is with the change in the tax code people can speak now use their of five to nine funds to pay for existing student loans there's guidelines there's rules about all that but they can also use it to help pay their apprenticeship expenses and this is part of a package of bills that our Republican women's caucus of wanted to support it but we want to change the name of this. Arkansas program but we want to change it to the Arkansas brighter future plan because we want to promote it in and get more people out there investing in student education plans because students that have even as small as five hundred dollars save towards there the post secondary education I tend to be more inclined to get a further their education and to go ahead a graduate. So we think it's we think it's a great plan we wanted to the horror we've got over a billion dollars in our five to nine now and With that I'd like a good vote the man this is conformity with the federal yes Sir that's basically all it does is completed the request is. Personalized do pass at the proper time. Any questions anybody I speak against the bill for the bill. Once you make your email. Do pass motion to passionate but members all in favor say aye. Post resolution manifest bill thank you Committee you're welcome ma'am. All right. We have a more. President Christian universe or. Members will come down eleven ninety six we're still working out some minister eleven ninety six percent Christian just recognize yourself and get situated when stars are. Then also members I would say this is a bill that was in the top six party. Thank you Mr chairman thank you Committee. This is house bill eleven ninety six which is to provide a sales and use tax exemption for water use by a poultry farm. And to require the adoption related rules and that is specifically removing the sales tax for water only used for broiler Turkey grow out houses laying House hatching units it handles all perky farmers arch person. Assessors it does not affect and does not include any processing plants or production items this is strictly for the growing houses for small farmers are struggling and. All the states around us except one do exempt the the sales tax water for poultry producers and we do in this state for beef pork at cetera but we don't for poultry and Committee you heard this bill before I'm open for any questions but I would appreciate a good vote. Motion the proper time. There was any questions. Body else speak against the bill for the bill. I have about three motions so. Regionalism you make a motion. Motion to pass any debate on favor say aye. Those resolution passed bill thank you Committee thank you German welcome Sir. All right do we have the moment worked out for represent humans bill thirteen fourteen quid as set up. Members will pass out to members for house bill thirteen fourteen. We get to members handed out then we will take at thirteen fourteen. We'll get started we get these members out. Paul this one members will affect fiscal impact your take a look at that you guys you know go into the table because I'm I'm sure we will have a scored right Secretary. But you can talk about right please go to the end of the table I represent him and just have a seat there will be a start because its members as one but that's what's happening is represent Hillman is without I'm not speaking for us bill but the member is cutting significant portion out of this. The original bill what we heard previously and this is also one of the bills that was in the property package. Yes. Yeah. It represent how many register under member yes Sir you will take the amendment to the R. W. O. one seven one first instead the co sponsored yes please this is a a proposed amendment to house bill thirteen fourteen it had to Senate co sponsor Senator Ricky Hill members any questions this members Amendment members billing questions the motion for adoption the motion Dobson any debate all in favor say aye. Post graduate so that the doctor knows go to RW NO one six two okay the second amendment the decreases the amount of tax credits that are in the purpose that from the proposed bill instead of being in Dublin and doubling so those we increase them by one third for example the ninety thousand dollar maximum tax credit on the on the service water use what went from ninety eight two hundred twenty thousand we went throughout the bill and that that and if if you all were except this amendment and incidentally this man was made at the suggestion of the Senate in down there I know you I know y'all were really interested in having the full amount here but in order to pay homage to Senator sample and his folks down there I agree to the run this amendment to it and I would appreciate to all of. Been met with that amendment so we can get on to the bill thank you Sir Paul can you talk to the fiscal impact of what twenty two or the The Amendment was or the bill was what the members down to that please yes Sir Mr chair Paul gearing Department finance administration when house bill thirteen fourteen was originally presented to the committee DFA estimate the fiscal impact for FY twenty two to be six hundred and fifty three thousand FY twenty three one point three million in FY twenty four at least one point nine six million we had a meeting with representative Hillman after the bill was originally presented with trying to figure out a way to that the bill could be restructured us to bring down the fiscal impact so what we have that is the the proposed changes that we have discussed in this amendment to the bill if the bill were to be adopted which are the member to be adopted into the bill we will issue a at an official fiscal impact statement based upon the amendment but I can tell you that we have our unofficial numbers that we would anticipate to be in the revenue impact would be. Camilli half for each of those fiscal years that we originally had so for FY twenty one three hundred one thousand FY twenty two six hundred three thousand and four FY twenty three nine hundred five thousand. We'd be happy to answer any questions members any questions. The surgeon would. Again I want to ask you how do you determine how many ponds would be built or what the hell you come up with these numbers and I'll be happy to us circulate a copy of the spreadsheet that our Sturch sharp individuals and individual and corporate income taxes per have prepared to change the outcome of the fiscal impact based upon these the structural changes in the bill but certainly it was but it was repaired by Scott fryer who is our manager of corporate income tax based upon the structural changes to the bill is how they arrived at these particular numbers. I understand that is going to be have withheld you come up with the original number if you could make it have hello hello hello to you all determine how many ponds are going the bills how many reservoirs are going hold water to come up with what. This is just a guess if it is just notice does is just to get yes not a guess that this is eight an existing incentive that we currently have so we have the the credits that are already being claims based upon the law as it currently exists and the law I think it's been in place since the mid nineties if I remember correctly so we do have a a great source of data within our own and credits that have been claimed by for these for these different projects and as this bill makes those structural changes to those credits within the law we already have a a great abundance of information we're within our tax credits in our income tax returns that are filed that claim these credits so when we move the levers of what would be avail available if this bill will become law we have a very good tool as as to coming up with the fiscal impact based upon our own prior information is reported by taxpayers. Based on current bonds as well hold water impoundments based upon existing data that's correct Sir thank you Mr chairman. Welcome Sir reserve the questions. Anybody I speak against the bill for the bill. I'm I'm I'm sorry I'm sorry for. It himself. I have a daughter of a motion for minute to adoption we have made. Anybody. All in favor say aye. Those now thank you all right we have both the members go on both and adopted okay we'll talk to bill okay house bill thirteen fourteen as amended it's a good bill that needs to be done and I've got a fifteen minute speech ready for but without the objection I'm going to close thank you your was man not to do that. All right anybody not speak against the bill for the bill we have a motion and motion representative Matt McElroy do pass use my user microphone please as amended. Do pass as amended thank you any debate members all in favor say aye. Post resolution passed bill. All right we're doing good now members present Eubanks in room. Members house bill fifteen thirteen this is this bill is not in the package but is twenty five thousand dollars thanks what it is is a small amount the person Eubanks will explain it to you. President bush's recognized self service Jon Eubanks state representative district seventy four it is very simple bill the total fiscal impact to the state would be twenty five thousand dollars at its maximum it creates an income tax credit for retired law enforcement officers to work all cases for the state police I can get into the details of the of how the credit works the maximum number of hours individual could work would be a thousand hours it they do work the maximum amount of hours they could receive a thirty five hundred dollar tax credit they could carry it forward two years they didn't do it use it the credits on the the amount that can take is limited by the amount of income tax at their they L. brands here to answer any questions if anybody has any questions but like I said it's maximum amount is twenty five thousand dollars thank you Mr portly got a question. Thank you Mr chairman representative Eubanks the retired officers are they doing this for free. Could we ask you certain combine to come to the table I don't know what their current program entails. So if you don't care service recognize yourself and. Thank you Mr chairman bill right great for the Arkansas state police currently right now we just have one retired trooper who is doing the cold case god we want to do is expanded to total number three we have a thirty plus cold cases and they will review the cases they will be extra help positions that incorporate of twenty five dollars an hour but it's just a great benefit for the state police and and pay attention to all cold cases you know we have certain case of an open for a long time and with the changes in DNA and and and to have this procedure I think it's gonna be great to be able to do this in a benefit for the state and then once we get through the cold cases we have plenty of missing person cases look at to. Thank you thank you mujer questions. Thank you colonel. President will your question Sir. Willman we get to the artists are are a committee Sir anybody out as we speak against the bill for the bill resent Eubanks you closing your bill Sir I'm place from for the bill and ask for good vote thank you Sir resume wouldn't make a motion. Thank you Mr given a motion do pass this is a very beneficial and very good effort on the part of the state police and for the victims families. A surprise well you brought you might not be but you'd be surprised at the number of families that are affected for long term forever but some of these questions recommended do pass. We have a motion to pass him debate all in favor say aye. Post resolution passed bill thank you chair thank you members will Sir. All right we're gonna agenda represent us does one run this bill again today representative of Johnson you in a room. Remembers this bill is not this is a brand new bill we're not heard Yet it's president Johnson gonna explains bill obviously but this is a bill side of of of of what we're doing when the twenty five million dollars a cat so with that president Johnson okay recognized to represent representative Johnson I'm sorry she doesn't understand that we've got a minute coming yes the several passer Amendment. Some representative Lee Johnson district seventy five away to the the minute passed out. Need to sign copies. Your body Chester just read over the member really quick basically just changing them out from. In December eighteen million twenty million in the service bill. If I may present the members this images changes them out on the original bill from eighteen to twenty million. With any questions its members Amendment members bill. Any questions I have a motion for adoption the motion to revision reduction in debate all in favor say aye. Opposed Memon has been adopted to present your bill as adopted for the moment thank you Mister Committee so let me preface this by saying I'm not trying to do anything intentional to try to stand in the way of treating cancer in the state of Arkansas I'm I'm a four and a supporter of the national Cancer Institute designation or seeking I think it's a fine use the marijuana special privileges tax but also think the state of Arkansas is grossly Dominic Is Your graduate medical education funding and I also think that is a appropriate use of this tax funding set so to give you not if you don't know about graduate graduate medical education for physicians to become doctors the first step is to try to medical school once said trying to medical school they have to be trained in a residency program this is like an apprenticeship residency programs are the place where you learn to be a doctor and studies are pretty clear that they're also the place where people tend to settle people tend to settle where they did their last training we've done a lot in the State of Arkansas to expand medical schools we have three medical schools now in the state of Arkansas and that's really great we have two more coming up in northeast Arkansas and we're really excited about that in the time that we spent expanding these medical schools we've not had the opportunity to really grow the residency programs what we need to train these medical students are graduating to give an idea of where we're at and state of Arkansas there was a study that came out in twenty nineteen that look to residency slots in the state in the in the union we're if one forty nine Arkansas to compare that to say Oklahoma this next door with the same number medical schools there at eight hundred eighty Missouri is over two thousand Louisiana's eighteen hundred residency slots Mississippi's of five hundred sixteen a two season over two thousand so all the states around us have markedly more space available to train other physicians to start in the residency program is expensive to start up a president of a program yes have a minimum. Number of residents to start this program the residents are paid so we pay these residents for that training process so you have to pay the residents for the startup costs additionally at that certain faculty to resident ratios so for start up in the residency program you also have to bill to pay the faculty to train these residents these are expensive endeavors the startup costs for these programs anywhere from two to ten million depending on the size of the residency there is not funding presently available any mechanism to cover the start up costs what other states are doing states like Georgia Texas Michigan these are states that are looking at state funding to try to grow and expand their residency programs I know you all may have got some information from you and mass I want you to know and I think everyone at this table knows I work I work I'm a guy that works with people I don't try to **** heads or fight with people and I've had some very good discussions with UMass very productive working together right now it's late in the session this is something that we're trying to work to together but if we're gonna have a working agreement that moves through the process this late in the session I need to go and present this bill today I did you know it's my understanding that this amendment based on conversations I've had within the last couple hours with you a mass is amended they're not opposed to I don't expect them to be here today to testify against this bill or against this amendment or ask for today committee is the chance to pass this out of committee vote on the house floor while we continue to work together I can promise you that you A. messes every much is invested into me as I am they support graduate medical education they're trying to find ways to grow graduate medical education they're good projects proposed currently they're looking at and it's just a matter of trying to side and you know what's the best place to spend this money for the state of Arkansas I'm happy to answer questions in more detail about graduate medical education about as the discussions I've had with you And mass in and also about them. Special privilege marijuana tax and what kind of revenue we thought it would bring in worker in the week we think it's bringing in now happy to have those discussions transfer questions on that as well thank you Richmond Johnson and you and I've talked about this probably at the link below more so probably the average member Resist NO one is merit medicament one we passed out the sunset clause no resent Johnson speak for this would pass out to sunset clause extension but three weeks ago maybe I think it goes to twenty twenty three so would you please address that serving the community yes so you know that the sense that this This tax will sunset twenty twenty three so the amount of money this tax will generate is fine assuming we don't extend the sense that again there's a finite amount of money that this going to be available spot from this tax and certainly NCI's of valid appropriate so that tax I think when we looked at how much money do you have an eight expected this tax to spin off they thought it was paid off about ten to twelve million a year you know it looking at the numbers right now and and DFA's. We're gonna be here to help a test will but but I can tell you that you know looking at fiscal year twenty one it's looking like it's going to bring about thirty one million dollars so that's three times the amount that we thought it would spin off it's going to have another two years to collect that taxes on fiscal twenty two and a fiscal twenty three assuming the tax doesn't go down in collections which as we see medical marijuana expanding in used to dispensaries getting up and running the cultivation uses is getting up and running you know I don't expect that tax revenue to decrease Yume my point is is that these are both ballot expenditures this is a unique opportunity to make some make to make some headway in an area with it's very expensive to make headway in and in the area were very far behind in as an as a state compared to other states around us and really quite frankly other states in the nation so really this is about deciding as a group of people what is a revenue priority there there's a limited amount of money that we can stand is there a way to find a path where we can still move forward instead designation to still have some money available for graduate medical education thank you Sir a resident Jane did you want DFA now. Thank you. Okay reserve member. Thank you Mr chair would you be interested in just putting this into like an interim study proposal so we can have greater. Thought and talk about it and come up with a better plan everybody is you know agreed upon on. You know if if we can't get this done are you asking if I don't want to dinner started present me sir ID I would absolutely do it but I I think it's I think it's important that we make some strides in headway this session you know last session I passed a bill that we all voted on that was the ACT eight fifty four they created the graduate medical find trust fund act so that this created the count in a process by which hospitals medical schools can apply for grant money to start of these residency programs the problem is there's no funding in that account and I'm concerned if we wait another two years to make some sort of strides in this direction it's just putting us further behind in a in a place were already far behind it is not these are programs that you can just flip a switch and start it takes time to recruit the people when you need to to get it going so for me this is a critical issue that I want to press the issue I can this session. The resolution your question now. You just made a very good point it takes time and to get the critical infrastructure and that's what they've been doing with the NCSL process by getting this funding going and getting everything set up and now I'm worried by doing this. We're pulling the rug out from under the NCSL and I'm just wondering have you given some thought to that because I agree we do need the doctors but what we can't do both here I'd I'd have a nice five engage conversations with you a massive having these discussions you know if you're a mess we're here today opposing this bill you know that would be a sign that maybe there's not a way to do both of these things I think there's a way to continue to support the infrastructure of NC I and do some things in the state that will help moved that infrastructure for for Jimmy simultaneously I think the the revenue that were seen from the medical marijuana if the appropriation I could be wrong in the appropriation for you and ask for the NCI's only twenty million and so you know what the expectation at the beginning we're not taking away any of the money that specter to get this is there is more money there than the expectation out of the gate is that doesn't make sense a little bit but I'm I'm a little bit concerned that where we need to let this fun build up we've made some decisions and some commitments that we need to finish and get this off before we do the next thing and I do agree we need to do it I'm just wondering the timing seems off and I just I'm not comfortable with that semester question sorry not sorry thank you would not agree yeah. You represent governor you have a question I do have a question You know how passionate I am about residency programs absolutely my son is in Tennessee and we're trying to get it back and I understand that and I do I do think it's an extremely important part of what we're doing where are we on the federal tax so that we could open some of these programs are so so in in December of twenty twenty there was an expansion of the caps they have been lifted so to to reference what you saying these are complicated things to explain Jimmy finding is not a simple straightforward process I'll be happy to try to make a stab at explaining it it It so most you me finding comes to CMS to Medicare payments so what Medicare does Medicare looks at a hospital that has residences and says two things one it says look there's a cost to teaching respite residents there's an inherent cost to the process of teaching them you have to pay people to give lectures you have to pay people to follow them around to make sure they're doing what they're gonna do that's referred to as the direct GME cost there's a calculation the federal federal government uses much like our matrix to come up with the reimbursement this designed for direct GME reimbursement there's also an indirect cost so there's an indirect costs in the sense that they said look if you have residents you're going to be less efficient less trained doctors or more tested so we know it's going to cost you more to have a residency program you're hospital same thing there's a major that the cap is designed there is a cap passed in the eighties and said you can't add any residency slots you can't start any new residencies the only place you can start new residencies would be at a hospital is never had a residency before and we're not gonna pay any of these Jimmy funds down. Over the cap and so it was only through private funding that you could expand or grow residencies the cap has been expanded and and in twenty twelve and twenty and twenty twenty but it's not been lifted and even with that expansion all that's really doing is saying we're gonna be able to flow you some more money for the services rendered by your residence it doesn't do anything to offset the start up costs that are required to get a residency program started all it's doing is creating an office that if you happen to have a rescue program it doesn't offset it once they're up and running it'll provide some extra finding that until they're up and running. You're operating in the red to you those folks set out. Thank you Mr we will come out represent will your question Sir. Thank you Mr chairman of like my colleagues I applaud what you're trying to do because there is a desperate need for more doctors but I'm also concerned about the commitment that we've made to the national Cancer Institute priority here that you A. M. S. and to the Rockefeller Cancer Institute and. It is there enough but would not be have you looked at any again you about a covered this a little bit but if you looked at any federal funding our efforts to try to you know do this because it's it's a it's a law or rule goal but I'm I'm concerned about our commitment. If the bill is bringing in more money maybe we can get that done quicker and then do this but. Is there any federal money I think I think there's some federal money designated to cover the expansion these residency slots with regard to the finding that I just mentioned we work for GME funding for direct and indirect costs for the rest as well I don't think there's any funding available for start up costs which is the first big obstacle yet there were kind of going to grow residency slots here. Could there be some federal money that I'm aware of to the recipient as possible but I think it's important enough to put some money into this process now again our commitment I will I would ask back in return what was our committee and see I you know when we pass this bill last session my memory was the commitment was going to be ten million appropriations twenty million all of that's there I'm not trying to take away your anything that they need for and see I. Let me know what it is you need but I think there's enough money in this in this marijuana tax to find whatever they need for MCI and still have some money left over for some GME funding and all I'm really asking for is the chance to continue to work with them as this moves through the process to try to find what that right amount is I think if there weren't an opportunity to do that I think you would see other people here today besides me trying to present this bill. Thank thank you Mr chairman thank you senator representing welcome Sir Richmond garner. Yes thank you Mr thank you for being here representative Johnson I can tell you that. As a member of as an alumni of UAMS as a board member for a long time for the Cancer Institute I called the nurse practitioner there ten million dollars is not nearly enough to get in C. I. designation so I can tell you that we may have obligated to million dollars that we adopt I mean I think I do think that our issue was that we would be glad to give them anything we could do to get that NCI designation as quickly as possible because of the funding and the treatment that it brings into our state for for cancer patients but at I'm I would like to know from from them we have a board meeting next week so maybe I can find out that but I would like to know more about that commitment and and what we can do and how quickly we could do it because I know that even the director of the program is there because he likes doing start ups and he's making a whole lot less money than he would be anywhere else and so I do think that What I would like to know is how quickly we can get that done with the twenty million dollars as opposed to the ten million dollars and then bring the the graduate and I like I said I am all for. Medical education and I know that we have to get that done as well but sorry I designation will bring funding back in service date it will bring up options to do some of these other things once we have that is so the answer your question you know I've I've been working with you a mass throughout the day to day throughout last week is that we were working together on this process there's a lot of opportunity presently in the state in NC I but also in GMAT the only way I can continue to work with them. This late in the session is if this bill can move forward and again that's in the also rans I recognize that I appreciate that there are you know we're still working together there's other opportunities for this to pass other places in this process because the light nature the session the only way I can continue to work with you And mass towards answering the question that you asked which is what do they need is it this bill can get out today if it doesn't get out today then I lose that opportunity and and that's fine I'm young on a holy our feelings but but it does take away an opportunity that I think UAMS is interested in with regard to GME funding again I'm they're not here today to speak but I am talking with them and working with them on this process. Mujer questions. Reserve chairman junior questions for the effect. You're recognized her. Mr Kerry what what's the of ministration or or the DFA's position on this bill. Thank you represent Jean Paul Goehring department finance administration we did bring the data request regards to the collections of this the sales tax and the medical marijuana privilege tax we we don't have a position but we do have the data available that we can discuss. What is your update data on what we're bringing and what's the balances yes what we're paying you A. M. S. yes Sir okay so what we have in FY twenty we collected ten point two seven million in the state sales tax and the special privilege tax. For FY twenty one year to date which would go through the collections in March of two thousand twenty one we have collected nineteen point seven seven million in those taxes of course is a part of the General Assembly they also diverted the recoup costs SO we had in twenty nine to FY twenty nineteen we had one point three nine million that we of those collections that went to the state agencies that were responsible for administering in FY twenty twenty we had one point zero six million that was a reimbursed to the state agencies and then in two thousand FY twenty twenty we of the collections nine point one six million went to UAMS out of the collections. What is your balance right now the the year year to date with the nineteen point seven seven million and we're anticipating somewhere in the low twenty million range to go to UAMS in this fiscal year and what we pay in you A. M. S. we would be paying the We pay nine point one six million last fiscal year we are expecting that to be in the low twenty million range for this fiscal year okay I'm kind of fine and where is the room for this other expenditure. There would be this bill as amended would have to twenty million would be the guaranteed amount to UAMS before there would be any distributions so there it's hard to tell because right now we have to around anywhere from two point forty two point one in monthly collections of course we had additional stimulus that as. From the federal government that could impact more collections it's hard to see but we've had over the course of the last. Nine months or so we've been in the low to millions range of collections every month we don't know if that's going to continue to increase or we want to continue to cover it you have around two point four million two point five million every month but our estimate is that we we are looking at in the low twenty million dollars to go to UAMS after the reimbursement to the state agencies so it if if we get to the twenty million mark. And then after that this bill will pick up the rest of it so they'll they'll be no way to build to build a ballot. That that's right that all these monies would be distributed at the conclusion of the fiscal year thank you. President John Jensen that Sir yeah I was just gonna say you know that none of this would be the next twenty million to come in after the act KA me and so on the money that you a mass has now the money they're going to continue to get through the enactment of this bill we continue to flow to you a mass as part of the it's out funding and then the next twenty million which would come in roughly over the first ten months of fiscal twenty two based on current collections would still go to UAMS assuming the question stay where they're at if they don't it we can do it would only be after the current amount which is you know at this point they got ten million in twenty nineteen they're gonna get roughly thirty million based on projections and twenty twenty one possible so that's forty million at UAMS has plus another twenty that I've got built into my bill for a total of sixty million dollars going to a mass frenzy I funding before any money flows into Jimmy. Senate so this not like I'm I'm to be clear I'm not asking to give twenty million TMS Francie I they've already got. Right now they've been given twenty nine million up through March of twenty twenty one. They're gonna get a total of sixty million before I ever get any money distributed into GM me so I I just wanna make sure that's clear and the people understand the flow of that money. Thank you in general questions. All right this Martha hill you'll speak I'm sure we speak against the bill mail. Please recognize your shift in the table. I'm Marty hill I am a board member as is Denise on the advisory board for the Rockefeller Cancer Institute and as many of you know I was at the drafter of the NCI bill for the Republican women's caucus two years ago. I'm speaking against the bill because I believe strongly that we shouldn't change horses. We just shouldn't do that and I have worked with representative Johnson for over a week now on this and I am here to tell you that I did a little googling and found some federal money and The New our bill which is the Biden bill in its coming for graduate medical education that brought the very bills that he's talked about here I brought to his attention and brought to UAMS is attention and I work to help him on ACT eight fifty four or to bring it up to date and to provide for all these new medical schools that are coming and and we have a bill there's a bill and. And then there's amendments to the bill being drafted now I really agree with representative Mayberry I think it's very important for representative Johnson to work with the other medical schools as well as UAMS to really consider overall graduate met medical education and I totally disagree with him that you need to pass this bill out today I'm I believe that you know I mess will continue to work with representative Johnson and we will work with the other institutions in the state to provide the requisite graduate medical education I think that's prudent I think that is the legislature staying on course and I just hate robbing Paul to pay Peter and we do that here in Arkansas I think we've got a plan and we need to stick with it might beer has just joined the Rockefeller Institute he's just getting his pants up plans under way and I would hate to change right now so I'm happy to answer any questions I'm not here on behalf of you M. S. and I'm here in my private capacity I've been working as a volunteer with representatives Johnson in providing legal help with regards to at eight fifty four and provide him information about federal funds that are coming. Thank you we do have one question Richmond buster. Fortner. Thank you Mr chairman thank you Mrs hill for coming just a simple question were those of you on the board was it your belief that all of the marijuana tax would eventually come to you at the correct represented Fortner absolutely the numbers that were quoted ten million twenty million were what we expected to get quite frankly I wrote ten to twenty million dollars because I we wanted a state portion with a private portion and it was a guesstimate because might beer and the in that budget had not been sat and Denise will remember from our board meetings the and you know we within might beer here willing to talk about what is budget looks like and I look forward to encouraging him to come in brief the legislature on the great progress they're making it a you a mess right now I just think it's important to stay the course will work with Lee on GMA thank you president will your question Sir. I have a state the at the appropriate time to his or we'll get to that when we do the date. I'm sure the questions. Thank you Michelle. Members anybody I speak for the for the bill. Less chance against the bill Richard Johnson closed the bill Sir yes thank you Mr chairman and certainly miss hill and are good friends and and will continue to get France after this we just have a disagreement on two things one is how I interpret process interprets the federal dollars and how they're going to be allocated available I certainly think there be federal money to support residencies what once are up and running based on the cap expansion I'm not convinced this can be federal dollars for startup costs their projects that are available in the state ready to happen that did need some funding on multiple fronts and this would be something that would help the entire state of Arkansas this is an important project this is a project for on it again I'm continuing to work with you And mass I think they have interest in this as well and I'm I'm willing to continue to work with them passed this committee there will be plenty of opportunities if if if if this needs to if you're if if if for some reason not working together with you And mass becomes Obstructions kind of deal where their fight were fighting with each other which right now we're not working together to try to do then there's plenty of opportunity to vote this down I won't run this on the House floor I can commit to that Intel I'm sure that I have the support of you I am asking this process if it needs to be amended on the Senate side there's still time to do that but it can only happen if I can get out of committee today respectfully to all those who are interested in it this amendment that I brought today this was the amendment the UAMS call me and ask you bring to the table today. and so this is the amendment that they suggested this is this is still again a process that I'd like to be able to have the opportunity can you work on I understand if it's too late the session to do that But I do think this is important issue to try to address and and for you know for reasons that you all on this committee know whether anybody a lot of these financial issues and up waiting to last in that late in the session so anyway II I think it's a good thing to do I don't think this is something that's going to robin C. I. to the point that they can't get their designation I appreciate your consideration to give a thank you Sir. Members we have a you heard of the debate do we have a motion. No motion sir your fill your bill fails per se but just know your your bill is not dead it's just the committee's going hold a bill thank you Mr chairman committee I appreciate that happy to visit with him or if the if the opportunity thank you Sir president. Written warning. We were going to House Bill sixteen forty one this is not a bill that was in the property but it's a small small amount and represent one want to present the bill to the Committee. Thank you Mr chair. There to YMCAs in Arkansas now one is in hot springs and the other one in Warren there five oh one see three organizations but they do not have a tax exempt status when it comes to purchases. That is all this bill is doing and hot springs this is a huge community facility they have over eight thousand members prior to covid they were averaging between seven hundred nine hundred business day about a month ago they went they were back up to forty five hundred business day and growing. They're getting ready to make a purchase of a de humidifier for the indoor swimming pool roughly two hundred thirty four thousand the savings if they did not have to pay taxes significant to them. The FAA's cost analysis shows revenue loss of pride at forty three hundred and two thousand twenty one and twenty six thousand and two thousand twenty two. This is not something that the YMCA's with prior use on a regular basis but it is a major help when they do have a big purchase so I would appreciate a do pass the member's participation will anybody has questions. But in speaking against the bill for the bill be close for your bill Sir. Closed source I'm sorry yes you make a motion for your bill I would appreciate a do pass we have a motion for do pass. Person wouldn't have questions but. I have a motion and bait all in favor say aye opposed resolution passed bill. Our windows were twelve performed back at the gym to House Bill fifteen fifty five. This is a historical tax credit bill this was on a priority list. Fifty five as. Is everybody has. Mr Miller will be the amendment with this as well. All right we'll pass that out members no give me just a minute to look at it. This will be House Bill fifteen fifty five. All right representative Jett you represent your amendment yes Sir I don't have a copy of it but I think the members going to read that in the bill it was taken thank you the check the. Or taking the historic tax credits up to ten million but with talks with the Senate leadership to a house in the Senate we agreed on eight million dollars so the right now the the. Mr test credit goes up to four so basically this will be doubling the store tax credits from four to eight million in taking strike and ten million dollars out of the the bill two thousand close for the minister. Okay would you like the of Paul come down there and explain the amendment as it relates to the finance will assist PMS finalizes for or this form is gone cost four million dollars was going to. Okay. The. Paul would you go down the representative gene has a question for. Please recognize yourself for the record. Thank you Mr chair Paul guarantee effect. Okay go ahead you're recognized. Representative jim did you have a question. Hearing I don't I guess you had time I look at your fiscal impact of twenty twenty to a million dollars with this amendment how will that change fiscal impact of the state well certainly represent gene will update our fiscal impact statement but just we do not anticipate that would. In in in the short term which injured fiscal impact statement okay thank you. Other any other questions. I would like to clarify of course with with the cap being ten million in the originally filed bill and being reduced to eight obviously there would be two million dollars and credits in the future that would not be able to be claimed unless the General Assembly raised in the future. Okay do I have a motion to adopt a minute. Okay all right. All in favor say aye. All right representative gene are you ready present your bill will not. The call a lot of things to the office I'm sorry the I mean I I did I did let ladies in the room and I'll always tell you name under the call. You guys look so much alike I can't help myself I'm sorry. The representative Jett are you prepared to present your bill. Yeah I don't know what to say after that. members are to bill I mean basically basically historical testers right now is four million dollars were taken up to a million dollars of pastor this I think we're testimony secretary persons in the room here but I think we heard testimony from her last last time we present the bill that for every dollar flows through the system contest credit eight dollars flows back to the comic so this is a big bang for the Buck and I think Beyonce read a lot of phone calls over this bill so with that I'd appreciate and Committee op I would say this is one of the ones that was on our list some does anybody have any questions. Okay. Is there anybody in the audience to speak for or against the bill. Okay I have a motion for a representative Jean. Right. Representative Jean do pass. As amended all in favor Any opposed. Thank you members present. All right Mister negative fifteen ninety six. Senate Amendment or is it just good you know on this members on this bill we actually put amendment on this bill last time I think this is one. Yes we have to put amendment on this bill last time we were here but we did not pass the bill out so the this bill has have amendment amendment adopted to the bill but it's not been engrossed as what you're saying okay all right and I have. Somebody here to help the. The tax the extraordinary Matt Bach. McCollum CPA last time he took offense to that. Sit there and do what you can to save the. Matt Bach tax counsel for the state chamber. You're recognized. So this bill essentially brings printers into line for how Arkansas treats other manufacturers on what they sell they pay collect sales taxes potentially taxable unless resale exemption applies on their business inputs on your manufacturing machinery and equipment that this would make that exam for printers to the printing equipment and then it would also make their paper and ink exempt much in the same way that a manufacturer's materials are exempt under the resale exemption that's what it does. Membership any questions. Is there anybody in the audience to speak for or against the bill. President back forty you have a question about. Okay do pass all right we have a motion to do pass as amended all in favor I've any opposed. Congratulations you got another one yes thank you members present. All right members last but not least his house bill thank you Matt this helped House Bill Sixteen ninety eight this bill is outside of the priority list but is the to County profession County bill I think the fiscal impact on the bill was forty some thousand I think is. Misspelling wanna come help me. Thank you Lindsay French association of Arkansas counties. Okay you're recognized. Thank you Mr chair thank you committee for hearing us again this is our second time here so I won't belabor the point but this bill does two things a Revo involving the income tax set off their DFA in the first section it allows County collectors to use the income tax set off mechanism to collect delinquent property taxes even if they are not allowed to collect the full amount their ages opinions right now that the make that ambiguous so we just want to clarify that in the law and the second part for district and circuit courts in lowers DFA's collection assistance fee from ten percent to five percent just putting those claiming agencies on the same five percent level playing ground as all other a claim agencies in the state. Anyone have any questions. Is there anyone in the audience to speak for or against the bill. I raise close I'm closer. We have a do pass motion back representative Jean all in favor any opposed. Your bill passed thank you thank you members thank you thank you president are we done bill chairman you know I think you've got some pictures be made here is that is that still going on yes we're all going to take a peek here are that what I was supposed to be here at three forty five with the three forty five yeah that's what we originally scheduled five percent lisinopril plenty time to show up. Okay can we we're going to the committee again women of the. Let me step back yes please yeah. Not this out real quick. And I wore my new Matlock's to house ready. Those you youngsters he's an attorney from Atlanta he always wears white jackets is it a clip on time. There is repealed I am tired of the. Are we still on air hello okay I you the members there I'm getting there out here can we set that up again tried Thursday were have not mean Thursday we got to we got to River Road bill coming I think it's only property bill that we had left on on the six bills and I think there might be one or two other striker bills so here's how this will play out members will take care of these two bills and also maybe the government's car tax bill as well we're probably going to run it out of committee as well just so when we have a back up plan for the Senate depend on what goes on down there so we'll do the the rural bill the car tax bill Something else okay I'm I'm apologize but I'll take set out to have it organized by the yeah we'll let you know as soon as we get organized yes in a cemex with the following week I'm hearing the Senate's going to start senate a lot of stuff back to us so next week will take on a lot of the Senate bills I think a lot of the house bill members are probably just about wrapping up on what they want to do so next week we're coming back probably next Tuesday with a lot of the Senate bills what we're was coming back our way we're still working leadership down there for the twenty five million dollar capsule we're still kind of misogynist little bit so if I have any questions questions. All right Mister chairman I appreciate it thank you Richard. All right.