Revenue & Tax - Senate
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Bills discussed (32)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
SB568
Act 1012
· 8 mentions in chapter, agenda, transcript
Matched: “SB568 Crowell TO AMEND THE LAW CONCERNING THE TAXES APPLICABLE TO…”
|
TO AMEND THE LAW CONCERNING THE TAXES APPLICABLE TO LITHIUM EXTRACTION AND DEVELOPMENT; TO PROVIDE … | Crowell | Notification that SB568 is now Act 1012 |
|
HB1589
Act 676
· 7 mentions in transcript, agenda, chapter
Matched: “…and thank you committee. OK, next one that's on the list is House Bill 1589. Anyone here for it right now? Uh,”
|
TO AMEND THE LAW CONCERNING THE FINANCIAL OPERATIONS OF A COUNTY; AND TO AMEND THE … | Schulz | Notification that HB1589 is now Act 676 |
|
HB1851
Act 714
· 7 mentions in agenda, chapter, transcript
Matched: “…TO PROVIDE FOR THE PRIORITY OF UNRECORDED MUNICIPAL LIENS. HB1851 Jean TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGRED…”
|
TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN … | Jean | Notification that HB1851 is now Act 714 |
|
HB1657
Act 709
· 4 mentions in chapter, agenda, transcript
Matched: “HB1657 Beck TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST…”
|
TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT. | Beck | Notification that HB1657 is now Act 709 |
|
HB1695
· 4 mentions in transcript, chapter, agenda
Matched: “…excuse me, until 10:50. Is there anybody here right now in House Bill 1695. To present it. Do we have the amendment back? We're still…”
|
TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A … | J. Richardson | Died in House Committee at Sine Die adjournment. |
|
SB535
Act 781
· 4 mentions in transcript, agenda, chapter
Matched: “…the moment to do SB 568. Senator Hester, do you want to do SB 535? You recognize sender”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR THE ARKANSAS MUSEUM OF FINE ARTS … | Hester | Notification that SB535 is now Act 781 |
|
SB530
Act 701
· 2 mentions in transcript
Matched: “…hair said, this is just a companion bill to, I think it was Senate Bill 530 that passed out this committee has already passed out this…”
|
TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT. | B. Davis | Notification that SB530 is now Act 701 |
|
HB1085
Act 802
· 1 mention in agenda
Matched: “…SE TAX RATE APPLICABLE TO PURCHASES OF USED MOTOR VEHICLES. HB1085 K. Brown TO ADOPT FEDERAL LAW CONCERNING TAX-DEFERRED TUITI…”
|
TO ADOPT FEDERAL LAW CONCERNING TAX-DEFERRED TUITION SAVINGS PROGRAMS; AND TO AMEND THE INCOME TAX … | K. Brown | Notification that HB1085 is now Act 802 |
|
HB1534
· 1 mention in agenda
Matched: “…USED IN RELATION TO A PROJECT FOR A YOUTH FARMING PROGRAM. HB1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. SB377…”
|
TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. | Schulz | Died in Senate Committee at Sine Die adjournment. |
|
SB131
· 1 mention in agenda
Matched: “…X REPORT FROM THE DEPARTMENT OF FINANCE AND ADMINISTRATION. SB131 J. Bryant TO CONFIRM THE LAW RELATED TO THE ASSESSMENT OF A…”
|
TO CONFIRM THE LAW RELATED TO THE ASSESSMENT OF A HOMESTEAD BELONGING TO A PERSON … | J. Bryant | Died in Senate Committee at Sine Die adjournment. |
|
SB204
· 1 mention in agenda
Matched: “…R FUTURE FUND PLAN TO A ROTH INDIVIDUAL RETIREMENT ACCOUNT. SB204 C. Penzo TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER R…”
|
TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER RESULTING FROM THE ACQUISITION OF … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
|
SB233
· 1 mention in agenda
Matched: “…THE RIGHT OF EMINENT DOMAIN OR THE THREAT OF CONDEMNATION. SB233 C. Penzo TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN T…”
|
TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
|
SB256
· 1 mention in agenda
Matched: “…TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX. SB256 J. Dotson TO AMEND THE ARKANSAS CORPORATE FRANCHISE TAX ACT…”
|
TO AMEND THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO REDUCE THE MINIMUM … | J. Dotson | Died in Senate Committee at Sine Die adjournment. |
|
SB268
· 1 mention in agenda
Matched: “…REDUCE THE MINIMUM FRANCHISE TAX FOR CERTAIN CORPORATIONS. SB268 D. Wallace TO TRANSFER GENERAL REVENUE TO THE AGING AND ADU…”
|
TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT SERVICES FUND ACCOUNT TO BE USED … | D. Wallace | Died in Senate Committee at Sine Die adjournment. |
|
SB274
· 1 mention in agenda
Matched: “…RVICES BENEFITING THE ELDERLY; AND TO DECLARE AN EMERGENCY. SB274 D. Wallace TO CREATE A SALES AND USE TAX EXEMPTION FOR CERT…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTAIN ITEMS RELATED TO HUMAN BURIAL; … | D. Wallace | Died in Senate Committee at Sine Die adjournment. |
|
SB289
· 1 mention in agenda
Matched: “…A CASKET, BURIAL VAULT, OR MONUMENT FROM SALES AND USE TAX. SB289 J. Dotson TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH…”
|
TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH PERCENT TO REDUCE THE SURPLUS FUNDS … | J. Dotson | Died in Senate Committee at Sine Die adjournment. |
|
SB310
· 1 mention in agenda
Matched: “…REDUCE THE SURPLUS FUNDS COLLECTED FROM ARKANSAS TAXPAYERS. SB310 B. King TO ENABLE THE COMMISSIONER OF STATE LANDS TO CONDUC…”
|
TO ENABLE THE COMMISSIONER OF STATE LANDS TO CONDUCT CERTAIN BUSINESS ONLINE; AND TO AMEND … | B. King | Died in Senate Committee at Sine Die adjournment. |
|
SB316
· 1 mention in agenda
Matched: “…NER OF STATE LANDS MUST FOLLOW IN SELLING CERTAIN PROPERTY. SB316 B. Johnson TO AMEND THE SALES AND USE TAX LAWS CONCERNING R…”
|
TO AMEND THE SALES AND USE TAX LAWS CONCERNING REBATES; AND TO REQUIRE THAT SALES … | B. Johnson | Died in Senate Committee at Sine Die adjournment. |
|
SB318
· 1 mention in agenda
Matched: “…THAT SALES AND USE TAX REBATES BE ADMINISTERED AS REFUNDS. SB318 F. Love TO CREATE AN INCOME TAX EXEMPTION FOR CERTAIN INDIV…”
|
TO CREATE AN INCOME TAX EXEMPTION FOR CERTAIN INDIVIDUALS BASED ON INCOME AND AGE. | F. Love | Died in Senate Committee at Sine Die adjournment. |
|
SB338
· 1 mention in agenda
Matched: “…EXEMPTION FOR CERTAIN INDIVIDUALS BASED ON INCOME AND AGE. SB338 Hill TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR STUDENT FA…”
|
TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR STUDENT FARMERS; AND TO PROVIDE SALES AND … | Hill | Died in Senate Committee at Sine Die adjournment. |
|
SB377
· 1 mention in agenda
Matched: “…B1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. SB377 Hester TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE L…”
|
TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND … | Hester | Died in Senate Committee at Sine Die adjournment. |
|
SB394
· 1 mention in agenda
Matched: “…A DISABILITY OR A PERSON SIXTY-FIVE YEARS OF AGE OR OLDER. SB394 J. Bryant TO AMEND THE LAW CONCERNING THE ALLOCATION, DISTR…”
|
TO AMEND THE LAW CONCERNING THE ALLOCATION, DISTRIBUTION, AND USE OF REVENUES DERIVED FROM A … | J. Bryant | Died in Senate Committee at Sine Die adjournment. |
|
SB419
· 1 mention in agenda
Matched: “…58; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES. SB419 G. Leding TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTA…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTAIN SALES TO A CULTIVATION FACILITY. | G. Leding | Sine Die adjournment |
|
SB423
· 1 mention in agenda
Matched: “…TAX EXEMPTION FOR CERTAIN SALES TO A CULTIVATION FACILITY. SB423 J. Scott TO EXEMPT FROM THE INDIVIDUAL INCOME TAX EDUCATION…”
|
TO EXEMPT FROM THE INDIVIDUAL INCOME TAX EDUCATION SCHOLARSHIPS, AWARDS, AND GRANTS FROM NONPROFIT VOLUNTEER … | J. Scott | Died in Senate Committee at Sine Die adjournment. |
|
SB465
· 1 mention in agenda
Matched: “…AND GRANTS FROM NONPROFIT VOLUNTEER SERVICE ORGANIZATIONS. SB465 B. Davis TO PROVIDE FOR A SALES AND USE TAX REFUND FOR A SP…”
|
TO PROVIDE FOR A SALES AND USE TAX REFUND FOR A SPECULATIVE DEVELOPMENT PROJECT; AND … | B. Davis | Died in Senate Committee at Sine Die adjournment. |
|
SB502
· 1 mention in agenda
Matched: “…DISPOSABLE VAPOR PRODUCTS FROM A PROHIBITED FOREIGN PARTY. SB502 Crowell TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING ACT OF…”
|
TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING ACT OF 1965; AND TO REQUIRE THE ELECTRONIC … | Crowell | Died in Senate Committee at Sine Die adjournment. |
|
SB526
· 1 mention in agenda
Matched: “…VE AGREEMENTS UNDER THE CONSOLIDATED INCENTIVE ACT OF 2003. SB526 Irvin TO PROHIBIT THE SALE OF DISPOSABLE VAPOR PRODUCTS FRO…”
|
TO PROHIBIT THE SALE OF DISPOSABLE VAPOR PRODUCTS FROM A PROHIBITED FOREIGN PARTY. | Irvin | Died in Senate Committee at Sine Die adjournment. |
|
SB5681
· 1 mention in transcript
Matched: “OK, Senator Crowe, uh, he's going to do Senate Bill 5681. this OK, hold on just a”
|
Pre-2017 bill | ||
|
SB57
· 1 mention in agenda
Matched: “…INE ARTS FOUNDATION. DEFERRED BILLS Number Sponsor Subtitle SB57 C. Tucker TO AMEND THE INCOME TAX CREDIT FOR CERTAIN INDIVI…”
|
TO AMEND THE INCOME TAX CREDIT FOR CERTAIN INDIVIDUAL POLITICAL CONTRIBUTIONS; AND TO AMEND A … | C. Tucker | Died in Senate Committee at Sine Die adjournment. |
|
SB7
· 1 mention in agenda
Matched: “…ILING OF A FORM 1099 IN CERTAIN CIRCUMSTANCES. Page 2 of 3 SB7 C. Penzo TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO REQUES…”
|
TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO REQUEST A SALES AND USE TAX REPORT … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
|
SB73
· 1 mention in agenda
Matched: “…E ARKANSAS CODE THAT RESULTED FROM INITIATED ACT 1 OF 1996. SB73 B. Johnson TO CREATE THE ACCESS TO CREDIT FOR OUR RURAL ECO…”
|
TO CREATE THE ACCESS TO CREDIT FOR OUR RURAL ECONOMY (ACRE) ACT; AND TO PROVIDE … | B. Johnson | Died in Senate Committee at Sine Die adjournment. |
|
SB82
· 1 mention in agenda
Matched: “…IDE AN INCOME TAX DEDUCTION FOR CERTAIN AGRICULTURAL LOANS. SB82 J. Payton TO INCREASE THE SALES AND USE TAX EXEMPTION FOR U…”
|
TO INCREASE THE SALES AND USE TAX EXEMPTION FOR USED MOTOR VEHICLES; AND TO AMEND … | J. Payton | Died in Senate Committee at Sine Die adjournment. |
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Senator Jimmy Hickey, Jr
Unverified
0:07
order that we have, uh, I know there's an amendment being prepared on the top one, which I should have in a few minutes. The next one is House Bill. 1851. Is there anyone here to run it? Representative Beck, I think you're gonna be up next with House Bill 1657. You're running that, right? Members, this is my understanding. This is just a a little companion bill to the one that we ran the other day. So I think we've had uh
Chair (Senator Jimmy Hickey, Jr)
Unverified
0:38
A long discussion on it, so. Representative Beck, if you'd recognize yourself and you can
Representative Rick Beck
Unverified
0:48
present your bill. Um, I'm Representative Brick back from District House District
43, as the chair said, this is just a companion bill to, I think it was Senate Bill 530 that passed out this committee has already passed out this committee. The reason we ran a companion bill was because we were able to have
the officials here that from Green Bay and we just want to make sure that they were here to testify in front of everybody and so with that I shadow.
Senator Jimmy Hickey, Jr
Unverified
1:20
Do members, I think everybody understands companion build, but do any of you all have any additional questions on this? Anyone from the audience gonna speak for it against it. Again, we've already had a very long discussion on this. You closed There's so much. Do we have a motion?
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:41
Senator Boyd makes a motion do pass. Senator Cawell makes a 2nd in discussion on the motion? All in favor say aye. Any oppose that carries in your bills passed. Congratulations. Thank you, Mr. Chair and thank you committee. OK, next one that's on the list is House Bill 1589. Anyone here for it right now? Uh,
Senator Jimmy Hickey, Jr
Unverified
2:03
Senator Crow had to go to education. He's gonna be back here in a little while.
So he's not here at the moment to do SB 568. Senator Hester, do you want to do SB 535? You recognize sender
Senator Bart Hester
Unverified
2:29
history. Members that you see this is just a few sentences bill and what it does, it brings Arkansas Museum of Fine Arts in line with the Crystal Bridges Museum in our area, meaning there aren't paying taxes. This is just part of our, um, maybe not the natural state initiative, but
continuing to uh encourage people to come and spend money in the state of Arkansas and come see all the great things we, we have to offer and, you know, we offer this to one of our free museums in the state of Arkansas. I just want to make sure we offer it to the second, the fiscal impacts roughly $20,000 a year. Uh Uh, but we see what the, uh, the value of these museums are doing for the state of Arkansas, making us a destination. I'm happy to answer any questions, OK, do you have any questions Senator Hester?
Senator Jimmy Hickey, Jr
Unverified
3:16
Anybody from the audience want to speak
for this one. Anyone want to speak against it?
Chair (Senator Jimmy Hickey, Jr)
Unverified
3:24
You close, Senator Hester. I'm close. Do I have a motion I've got Senator Dismay made the motion to pass. Senator Boyd
Senator Jimmy Hickey, Jr
Unverified
3:33
made a 2nd. Any discussion on the motion? All in favor say aye. Any oppose? That'll carry.
Chair (Senator Jimmy Hickey, Jr)
Unverified
3:40
So that bill is passed. OK, at this time, again, I know that we have some members that
are going to be coming to present since we're this late in the session, we'd normally not do this, but I think we all understand that it's gonna be easier probably for us to sit here a few minutes and see if anybody comes in, and if not, I think what the uh what we should probably do is maybe recess to 11:45 and Try to just come back in like
Senator Jimmy Hickey, Jr
Unverified
4:08
that. So OK. All right. Have do you with something like
a, if we recess to 11:30, does that sound good or? OK, because I think we've only got We've got the House bill on the top, the 1695, uh, I know myself worked on this amendment with the with these folks and there's agreed upon amendment that's coming. There was 11 additional thing that had to be done that they're working on, that's on the wean thing that we went over, over, so. What I hate to, hate to present their bill, but again, with the
knowledge I have on it, I'll say what what we're doing is actually We're making it so that the, the notice would have to be done just like
Chair (Senator Jimmy Hickey, Jr)
Unverified
5:00
a regular judicial foreclosure so that that that would come into play, but then we're also making it so that the banks and the first mortgage holders, there,
Senator Jimmy Hickey, Jr
Unverified
5:08
there was an I don't know if it was in the original bill or one of the other amendments so that they would maintain their priority lien throughout no matter what, that will no longer happen. It'll be go back to the way of
practice that it's been for the last A few years so that that lien would would not be the priority lien, so that's what's supposed to be coming. It's also my understanding as of a minute ago that Uh, that it might have had 365 days on there. They're backing that up too. They've all agreed to the 120 days. Did they agree to anything on section. I don't know what what's that one Senator. I don't know, so I know there's
some folks here with the, uh, probably the Bankers Association and the municipalities might want to just talk with them during this during this break. I'll tell you
Chair (Senator Jimmy Hickey, Jr)
Unverified
6:00
what, I don't know. Let's, let's just sit around here and wait for uh till about 10:50 if it's OK with you all, and then if nobody's here at that time, let's just recess till 11:30 to give you all some,
Senator Jimmy Hickey, Jr
Unverified
6:14
uh, time to go do some other stuff.
OK, I said we would, uh, stop for 10:50,
or excuse me, until 10:50. Is there anybody here right now in House Bill 1695. To present it. Do we have the amendment back? We're still waiting. It looks like. 1851. House Bill 1589. Senate Bill 568. OK, I see no one here, so what we're going to do is we're going to recess until 11:30, uh, Miss Hickman here, what
she's going to do is try to text one of the Senate
and House sponsors that are on here and let them know that what we're doing and to try to get at least one or for them to send somebody down to run that if they want to. So that's what we're going to be attempting to do between that time to try to help
out. So like I say, at this time, we're just going to re recess and. till 11:30.
OK, it's 11:30, so. Here in just a moment, but we're gonna get back started.
Senator Jimmy Hickey, Jr
Unverified
1:02:10
OK. Let me just go in order. I don't, I think, is there anybody here right now for 1695? OK, uh, House Bill 1851 is in Jean and Crow's name, Senator Boy though. I think he's giving you authorization to run that.
Speaker 43
1:02:25
Is that correct? OK. OK. Yes, sir. OK
Speaker 22
1:02:42
All right, we got the No problem. 1589 with your
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:02:53
permission, so it's instead members it's going to be House Bill 1589. So you can recognize yourself center boy whoever else is going to help with this, just come sit at the table. Everybody's welcome. How are you? Good. So if you all would just recognize yourself whenever you
sit down and then you will be
Senator Jimmy Hickey, Jr
Unverified
1:03:17
recognized to present. And again,
Senator Justin Boyd
Unverified
1:03:19
we're doing 1589. Thank you, Mr. Chair. State Senator Justin Boyd from Fort Smith here presenting House Bill 1589 with uh some help.
Speaker 53
1:03:29
Selena Blair, Columbia County treasurer and president of the Treasurers Association. So I'll just start and
Senator Justin Boyd
Unverified
1:03:34
then and say a couple of things and then hand this over. There is no fiscal impact or taxpayer impact according to our green sheet on,
Speaker 53
1:03:44
on the bill. So if you want to go. And this is a lot of cleanup. It's modernization of some language in the bill. Um, it's changing some words like mons to revenues or monetary funds, replacing the word warrant with check because now all 75 counties are no longer on the warrant system. And replacing the words holder of a warrant with the word claimant. Um, section 7, that was sections
1 through 6, section 7 is probably the biggest change. Um, it's to the annual financial report. There are 3 major changes. There are 5 or 6 counties now that have a comptroller that actually do the annual financial statement and we're giving them recognition for that. It clarifies the date that the annual financial reports begins and ends, which is January 1st to December. 31st. And it also allows, it's not
required, um, that allows us to report those funds in the aggregate for county general road funds, and the other funds in the aggregate and we took our inspiration from that from our annual audit report that we get from legislative audit. And the last section in section 8, we added for ACH payments. There are a few counties, um, that either county court or circuit or a district court did
orders from the court to make payments by ACH and this just allows the county to use that as authorization to make those ACH payments. Do any of the members have any questions on this
Senator Jimmy Hickey, Jr
Unverified
1:05:40
one? I I, I do, maybe, and I don't, I don't know. Just something that just jumps out at me, and again, I think in practicality it probably works, but so.
In section 7, it says, county clerk or a county comptroller and the county treasurer. So we've got a non-elected official that's directing, that's actually directing this or, you know, drafting, OK. I don't, I don't assume that's a problem. Nobody, nobody has brought that up or anything within y'all's discussion that since we're having a somebody that's not an elected official
to actually request that or to do that. I mean, I think it was probably known that the county comptroller was the one that
Speaker 53
1:06:28
would be doing it, but in most counties the comptroller is underneath the county judge, so they do have an elected official. Over them. So then
Senator Jimmy Hickey, Jr
Unverified
1:06:36
after it's made out, of course, it's just gonna be presented to the board itself published in the paper
Speaker 53
1:06:43
by March 15th of every year. Does the board have to sign off
on that or they have to approve that, certify whenever we put it in the paper, there's a statement in there that it's a true and accurate reflection of the county books. So the court or
Senator Jimmy Hickey, Jr
Unverified
1:07:06
whatever, they, they're not gonna be involved in this either, so. Anybody else have any thoughts on that or questions. I just
Let me ask you this. And I know this is
for the, the county. Do we have any type of similar situations in this with school boards or municipalities or things like that, so they have a non-elected official who's directing
Speaker 53
1:07:42
that. Not that I'm aware of. Well, and I'm sure with municipalities, the city treasurer is probably the one that prepares the annual financial statements for municipalities. I just, I guess
Senator Jimmy Hickey, Jr
Unverified
1:07:55
I always assumed that the the court in this case. The vote or whatever have a vote on that,
Speaker 53
1:08:03
so by state law, the treasurer and the county clerk are responsible for that. That's my issues and now
Senator Jimmy Hickey, Jr
Unverified
1:08:08
we're allowing the comptroller, who's not an elected official to do it. And again, I don't know this is an issue. I just want to make sure everybody recognizes that and sees it, so. Nobody here is gonna, from the audience or anything has any other objections
and we'll be fine in a minute. So are y'all are y'all finished on your
finishes or any other questions in regards to that? OK. Is there anybody, uh, uh, in the audience that wants to speak for this bill. Anyone want to speak against it? Anybody else have any other concerns? Are you all closed? I'm closed. I would make
Senator Justin Boyd
Unverified
1:08:44
a motion do pass and hope someone will give me a second. OK, so we have a motion by
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:08:50
Senator Boyd. Do we have a second? We have a 2nd by Senator Hester. Any other discussion on the motion?
Senator Jimmy Hickey, Jr
Unverified
1:11:56
All right. OK, members, we're going to hear House Bill 1851, Senator Boyd, you're going to present that. OK,
Speaker 67
1:12:02
y'all want anybody else here we have someone from
Senator Justin Boyd
Unverified
1:12:09
DFA if we need them here. Come on, you're gonna know more
than I am. I'll just with your permission, I'll start and introduce myself. Senator Justin Boyd Fort Smith here to present House Bill 1851. We're going to have a couple of people join us and the only
thing I'll say before they help get me started here is again, there's no fiscal impact or no taxpayer impact based on the green sheet. OK, y'all just introduce yourself.
Senator Jimmy Hickey, Jr
Unverified
1:12:41
Alicia Austin Smith with DFA. Shane Broadway ASU system.
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:12:44
OK, you're recognized center boy to do House Bill 1851. There's not an amendment on this. Thank
Speaker 84
1:12:50
you, Mr. Chairman. Members of the committee, I'll try to be brief because I'm going to probably yield to her most of this, but Since 1941 or the legislature
back in 1941 passed a sales tax exemption for schools, K through 12 schools and college cafeterias. Um, obviously, The model of managing those cafeterias has changed over the last 80 years. And many of us, including some school districts contract that service out. It's Better for us in terms of contracting out instead of doing it ourselves. And this just ensures that those who do contract for those
services out that that sales tax exemption remains intact. That's simply what it does is update really updates the 1941 law to what current practices are. That's correct. I'll add to
Speaker 86
1:13:43
that that it it clarifies that just because that contractor that they're working, the school is working with is a for-profit business, that in itself does not take them out of the exemption. So it's just, it's neutral and it's clarifying the law. OK. Any questions from the members?
Senator Jimmy Hickey, Jr
Unverified
1:14:02
He went from the audience want to speak for this. Anyone want
Speaker 49
1:14:05
to speak against it? Are you all closed? I'm closed. I would make a motion to pass
Senator Jimmy Hickey, Jr
Unverified
1:14:13
and hope someone will give me a second. OK. We don't guarantee that, but You're gonna make the motion or not? Soen Boyd makes a motion do pass Senator Hester is a 2nd. Do we have any discussion on the
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:14:28
motion? All in favor say aye. Any oppose? OK, so that one's also passed. Thank
Senator Jimmy Hickey, Jr
Unverified
1:14:33
you and we'll just continue to wait just a little bit longer. I know Senator Crow is in education and he's trying to get there also.
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:15:55
OK, Senator Crowe, uh, he's going to do Senate Bill 5681. this OK, hold on just a
Senator Jimmy Hickey, Jr
Unverified
1:16:22
second here. We're going, we have a handout, I think.
Chair
Unverified
1:16:59
All right, Senator Crow, you're a recognized if, uh, if you all would just introduce yourself and then you can begin. Senator
Senator Steve Crowell
Unverified
1:17:10
Steve Kroll, District 3. Hugh McDonald,
Senator Jimmy Hickey, Jr
Unverified
1:17:13
Secretary of Commerce. Jennifer Emerson, Deputy Director, AEDC.
Senator Steve Crowell
Unverified
1:17:19
You reckon as Senator Crow. Yeah, so what uh Senate Bill 568 does this. It's a very comprehensive, very complicated bill about lithium and upstream and downstream, uh.
Um, possibilities that are going to come with the, the production of lithium, one of the things we tried to work very hard at was to incentivize the producers to keep the lithium in state and build the other businesses within the state borders instead of shipping those out to Texas and and whatnot, um, there's, there's a little section in there that talking to the producers and working with uh with Hugh.
Senator, or I mean uh secretary, um, the producers really want to make sure that the counties got their severance tax, so we made sure we squared that in really well, kept it going to central services, kept it going to every place it had to be kept the GR hole and then started once their growth happens to start going back to the counties to take care of their roads. So with that, I mean it it is pretty straightforward, uh, tax incentives.
Hugh Mcdonald
Unverified
1:18:32
Uh, Secretary, if you would like to add. Yes, uh,
thank you, Senator. I appreciate it. It's all about trying to support this industry, which is a nascent industry as we know in this country. China dominates the industry globally and um we've we've done some analysis with a company called Benchmark Minerals, and there are global expert in terms
of the lithium space and critical minerals and There's been a lot of money capital spent in the United States on the downstream end of the lit lithium value chain, EV cars, assembly plants for EVs and the battery facility big gigafactories for batteries. Where the United States has a gap in its supply is in more of the upstream side, the mining refining processing, conversion,
and leading into the cathode, for example, the cathode industry, which is a critical component of all batteries, cathodes, anodes, separators, as well as grid storage and so we, we, the sales tax exemption associated with this was really to incentivize. Uh, further processing of that value chain. You pull the brine out of the ground, extract it from the brine, process it into
lithium hydroxide, lithium. Carbonate and then further process that into cathode factories, for example, is probably the best example, zinc bromide also for which also uses lithium for large grid storage fuel cell batteries, so that's the intent of the bill. And I think if you look at the maps in front of you that we'd
Senator Steve Crowell
Unverified
1:20:35
handed out, you can see the whole area that lithium is available. The, the advantage of Arkansas and the reason we're trying to attract them here is we have the policies with the oil and gas industry, um, you know, 414 Louisiana starts a legislative session right now, Texas is in, so we expect that they're going to also do um a package, but we definitely want to be first to market and Hi, uh, the most impactful to market to make sure that they do
come here because as of right now there has not been soil turned or a contract on a building, so we want to make sure we get them here. OK,
Senator Jimmy Hickey, Jr
Unverified
1:21:18
are you finished, Senator Crow? All right. We have any Senator dismay, you have a question. Alright, thank you. Um, if
Senator Jonathan Dismang
Unverified
1:21:32
you can, right, because we're doing a little bit of everything with this. It is very comprehensive, so I
appreciate the acknowledgement of that, and it is very complicated and I don't think very simple, and I was even trying to decipher the green sheet and I was having a little bit of a difficulty trying to understand what all it is we're doing, so we're going to provide a sales tax exemption. We're going to provide a severance tax exemption on New Bromine. Did I read
that correctly? Yes. So the the cities and counties aren't going to get those funds or are they? As of
Senator Steve Crowell
Unverified
1:22:03
right now, the cities and counties get 25%. That stays the same. It would be on only new
production, so the current production, the saltwater production that that that the current companies that are here that would stay the same. It'd be on the new production. So once they get these plants built and start doing pulling the saltwater. That's where there would be that 5 year break. But they would not lose any money whatsoever. Well I understand. I,
Senator Jonathan Dismang
Unverified
1:22:36
I would, they would lose the revenue for the 5
year period for anyone that knew comes into the market, and I mean, as someone that's experienced some new production. There are, you know, traditionally very severe impacts to your infrastructure when we have projects that decides to come in and one of the offsets for that for those in the Fayetteville Shell was the severance tax. It was the only reason that people from central Arkansas supported the severance tax, and so I There will be
a cost associated with at least, would you agree
Hugh Mcdonald
Unverified
1:23:14
or whoever. Uh, certainly there will be some infrastructure impacts, yes, OK, and
Senator Jonathan Dismang
Unverified
1:23:18
then the last one is we've got even have an income tax credit that's going to be made available to them, and I think that's in the recycling, but it is a little more comprehensive than that because I was kind of having a hard time understanding when I read the bill, for instance, if I go to page 2, line 30. It says lease payments is this is where we define eligible facilities. And that definition is used. Uh I believe it's used almost in all sections, so whether we're
talking about sex or sales tax or income tax credits and whatever else, lease payments. Are we actually saying that the lease payments made to mineral owners is going to be able to be part of the total calculation. For the $100 million investment to be able to Create The incentive Or these lease payments on buildings that maybe they don't own. My interpretation would be
Hugh Mcdonald
Unverified
1:24:13
lease payments on the buildings, the
infrastructure that's required for the the new facility, the qualifying facility that
Senator Jonathan Dismang
Unverified
1:24:20
may need to get cleaned up because the way that it reads, because then I go to facility. On 3, we talk about extraction and lease payments are a portion of extraction. And so that may be an issue with the way that it's worded because Surely we wouldn't make the lease payments made to landowners, those speculative payments part of What then would be, you know, calculated in the overall, but I think it's the way that it's written, it's what it says, and I'd asked EFA just full
disclosure beforehand and they felt as though that the lease payments made to the mineral owners were what you were targeting with that, that were these payments. And then so throughout it, it talks about extraction. So throughout the bill it talks about extraction and that being part of what's accumulated as part of the overall number that would need to be realized to be able to achieve the sales tax or the income tax. Are we, are y'all aware of any other type of production that we do in
the state of Arkansas that allows for extraction to have an
incentive tied to it. I, I am
Hugh Mcdonald
Unverified
1:25:22
not aware of an extraction related incentive. We have a lot of areas
Senator Jonathan Dismang
Unverified
1:25:30
in the state that would like to be more competitive with what we have. The state of Arkansas has a completely different perspective on those various entities in exactly the opposite perspective in a lot of ways. Why would we in this particular instance, want to incentivize extraction, whereas we don't in any other normal mining process.
Hugh Mcdonald
Unverified
1:25:51
Senator, I think it's a, it's a very reasonable question, a good question.
And I, I, I can't speak for the industry, but how they look at it is the extraction process. And the refining process is. What if, if you extract. When you extract the brine, you still have a product that has zero market value. And so that is part of the process. The rest of the process is hundreds of millions of
dollars investment that they have to invest to actually create that product and make it worth something in the marketplace, so they would, they would say it's a, it's, it's part of the overall process. Um, and, and so we have not separated out the mining component from the incentive. I'd also say that um Um, as, as Senator Crowe has mentioned. we expect Texas to do something
as well. The brine concentrations in Texas are in some areas are actually stronger, uh, uh, higher concentrations than they are in the smackover formation in Arkansas. So we have we have Texas to compete with. Um Certainly, uh, uh, it is a nascent industry in this country that the current administration is trying to develop, uh, we know that the Secretary of the new Secretary of Energy wants to
develop the smack over formation. He stated that in his confirmation hearings, so and frankly, the price of lithium today, China, which is dominates the lithium. A supply chain is flooding the market, driving the price down, so frankly, um, you know, an incentive on the mining portion we think is also appropriate to get to bring the industry,
Senator Justin Boyd
Unverified
1:27:56
develop the industry here in Arkansas. Senator Boyd, Thank you, Mr. Chair. Uh, so Senator Karl, thank you for bringing this bill. You know, we always hear about everything's bigger in Texas. I certainly hope that lithium production is not one of those things ultimately, um, and I do have a question that might sound silly, but it is a serious question because we got to think about everything, um, so deer hunting has a 300 to $800 million dollar a year economic impact. I
understand from Senator Hickey that they grow some really nice deer in Southern Arkansas and A deer hunter drops about $2100 in the economy every year when they come to there, I just want to make sure that, you know, we've thought about, you know, you, you start doing all this or we're going to impact another important industry to Arkansas negatively. That,
Senator Steve Crowell
Unverified
1:28:49
that is a great point, uh, the wells that when they go down, they frack out so it is
one well for many, many acres. In fact, uh, the And I don't have a photo of it, but the proposed tetra plant has 3 wells, and it covers somewhere around, I want to say 2800 acres, so there'll be minimal disruption to anything like that. Senator Hester. So You know, we've
Speaker 123
1:29:20
been like apparently, you know, on the
Senator Bart Hester
Unverified
1:29:27
cusp of this happening for years now. Um, I keep understanding that the landowners and the You know, the, the, the operators can't come to terms. Like is, is is your hope that we do this and the taxpayer steps in the middle to help them come to terms. What, what is it,
Speaker 125
1:29:46
is that what the intent of this is. I think the number one issue right
Hugh Mcdonald
Unverified
1:29:53
now, I think for the producers. I don't want to speak for them, but it's royalty.
Getting the royalty clarity, that's number one. this is a low margin business in the first place, um, we're developing it in the United States. And we have an opportunity in Arkansas to actually be a dominant player in the lithium development and further refinement and that's, so that's the intent to try to build not just extracting it if, if, if all the minerals are extracted and sent somewhere else.
We're trying to prevent that, but that will happen, but we're also doing everything we can to incentivize for Exxon, who develops, who refines. Uh, lithium into a lithium carbonate, a battery, uh, quality product that that product can be sold to a cathode manufacturer without a sales tax on it. If, if they build that cathode facility here in Arkansas follow
Senator Bart Hester
Unverified
1:31:00
up, yes, sir. Yeah, and so the benefit to the to the state of Arkansas and is just, uh, the advancement of increase of
Speaker 125
1:31:09
just jobs, I mean, not just you know you understand like that's,
Hugh Mcdonald
Unverified
1:31:14
that's what, that's the benefit. Jobs, capital investment, tax revenue, yeah, a new industry that uh has Fallen into our lap that we want to develop and and develop where as much as that investment and much of those jobs happen here in the state of Arkansas, kind
Senator Steve Crowell
Unverified
1:31:32
of an example is talking to the producers. They are going to go through millions of gallons of water through their pipes a minute and so they have to fix. They're going to have to fix these engines and right now the only place they can go is in West Texas. But the talking to all the the producers, they're probably going to have 13 to 20 of those being fixed at a time. That's a business that can produce about 100 jobs in the state if somebody were to choose to put
that right here in this state. So that's just one example of the ones that they've given me examples of. Yeah, I,
Senator Jimmy Hickey, Jr
Unverified
1:32:12
I don't think I have to do this, but I'm gonna go ahead based on a question you had, uh, of course, this is in my area. I'm not a sponsor of this, but I do own equities and real property that's located within this zone. Again, it's general in nature, not specific, but you ask some questions about, you know, the conflict that the landowners are are holding and his answer was no, that it was
not to try to drive that, but since that could be an issue with some of my stuff. I'm going to go ahead and make that disclosure again, General in nature and nothing but out of abundance cost you and I want to do that here. So just because of Senator Hester's question. Senator Dismay, do you have a, yeah, and it's really
Senator Jonathan Dismang
Unverified
1:32:50
based back on, so I would agree the number one issue between this being a viable deal and not being a viable deal isn't what we do with this bill. It's what the terms are for the royalty
interest, um, that I mean, and that's not determined at this point, and I would argue that we are in some ways because we're going allow so many incentives to take place, uh, allow those royalty rates probably to be higher than the otherwise because the state of Arkansas is going to be subsidizing them to some degree because I mean you've got a limited number of impacts that are based on a percentage basis and as an example, if you look at the Fayetteville Shell right now we have the state of Arkansas benefits more in its severance tax collection than
the actual royalty owners that own property in that section. Even, even if their royalty interests were more. Do you not believe that it would be better for us to wait and see what happens with the royalties, because we could do all this for nothing if the royalty owners or the mineral owners don't come to terms on what those leases should look like
Hugh Mcdonald
Unverified
1:33:57
and how they move forward. Royalty, the royalty decision is clearly the number one issue right now for the producers, um,
I think. Either the applications have been filed before the oil and gas commission or they'll soon be filed, so I think we're going to have a decision on that within the next couple of months. I don't think this is getting the cart before the horse. I think it is also, it is sending us a message to the industry, the global manufacturing industry that Arkansas is serious about this. We want to recruit the industry to the state and the investment and the jobs that come with that, but in other parts of our
Senator Jonathan Dismang
Unverified
1:34:38
in other industry. Or other sectors that do mining, we pretty much have dictated and allowed the courts to dictate what those royalty interests and amounts are and how they're to be paid. Should we do the same thing legislatively for y'all and maybe we should drop into this bill what those royalty rates should look like so that the industry has certainty.
Hugh Mcdonald
Unverified
1:35:01
Um Getting out of my expertise, but oil and gas commission sets sets the royalty.
Speaker 126
1:35:11
And don't believe the courts unless there's a dispute of some case, some, some, what we have
Senator Jonathan Dismang
Unverified
1:35:15
allowed our statues to be interpreted by a federal court that essentially sets the way that royalties are to be paid in Arkansas. We haven't done this for this industry, and maybe we should that way that there is certainty for the industry coming in if the goal is for the industry as opposed for the state, which I think you kind of see that with the way that it's written. I mean, I, I completely agree with the concept of making sure when these things get out of the ground that we're creating
incentives to attract all the ancillary industry that may want to benefit from it coming out of the ground. I'm concerned, being first means that we'll probably end up being last. We've seen that in other places of legislation where we've passed thinking that we were going to get ahead of everyone else. In fact, we had to, you know, create a cleanup bill for the data centers because other states, we were the first. Other states followed back up and did better incentives than we did. Are you concerned at all that by
launching this legislation that we're going to create competition, pretty much show our full hand to
the rest of the world that's trying to track these
Speaker 128
1:36:22
same industries, the same industry. Yeah, I think it's a good question.
Hugh Mcdonald
Unverified
1:36:28
uh, there's I've, I've heard Louisiana's going to do something. I would expect Texas will do something, certainly they're watching us. We will, we will watch them for the next, the next time where there's an opportunity for to refine this incentive.
Senator Ronald Caldwell
Unverified
1:36:45
Senator Caldwell, do you have a question, sir? Thank you, Mr. Chairman, Senator Disma pretty much hit what I was going to ask, uh, talking about the amount of tax benefits that we're giving this industry and and kind of a rate of return on what we're going to get back in the mentioned Fayette and the fact that we make a lot of money off that. At what point in time will the state, the counties, the cities, the schools.
the tax benefit of having this industry especially with the amount of incentives that you're wanting us to give them basically when we start getting a payback for the money that we've
Speaker 128
1:37:30
invested. You know, just like any incentive, I think whenever you
Hugh Mcdonald
Unverified
1:37:35
start seeing those jobs appear, the capital investment appear. We start getting the payback. And all of this is subject to meeting cost positive cost
Senator Ronald Caldwell
Unverified
1:37:49
benefit analysis by AEDC in my debate on capital investment has been that we're making all those tax exempt. Oh, we're not getting payback on that other than we will get a few jobs out there, and I'm not opposed to that. I want this to happen, but by the same token, I don't want to give the farm away again, put our hands on it, lay our hands on the table so that somebody comes up with a better deal than what we do. It is something, but it, but again, giving all the tax incentives
and tax breaks out there at some point we can have a billion dollars investment, but if it's all tax free, the state has no investment in that. And
Hugh Mcdonald
Unverified
1:38:31
this, this is just sales tax exemption, so there still would be property taxes paid, payroll taxes would be paid accordingly. Any other questions from the committee? And
Senator Jimmy Hickey, Jr
Unverified
1:38:43
this man, do you have another question, or no, sir, you've done Senator Caldwell. Anyone else
Speaker 90
1:38:54
OK. Anyone from the audience want to speak for this bill? I do have a question for DFA on the lease payment. All right, well, let's go back
Senator Jonathan Dismang
Unverified
1:39:05
to that. Uh I apologize. We are, I'm, I am 10 minutes late for a meeting. I called. Um, so I'm trying to, if you don't mind Senator,
Speaker 137
1:39:13
I do appreciate because I was late presenting, so I do appreciate your patience with me. Senator Dimay had a question, I believe,
Senator Jimmy Hickey, Jr
Unverified
1:39:19
at the, it was in uh the the thing about making sure that it was just going to be the
lease on the buildings, right? Senator Dimay? Yeah, it's a, it's a good question that maybe needs an amendment unless, unless you all
say that it's specific enough. Page 2, 30. If you'd introduce yourself,
Senator Jonathan Dismang
Unverified
1:39:42
Mr. Paul Gehing DFA. Page 2 line 30 mentions or has two words, lease payments. It's in the Eligible facilities cost as we define that, which then we further define what facility is and then those definitions we mentioned the words extraction,
and you can't have extraction without a lease. Would y'all interpret that to be
lease payments for royalty interest or lease payments on structures and When we were reviewing the bill,
Speaker 141
1:40:09
Senator dismaying certainly appears that the intent is to be limited to facility costs which are actual costs of the facility and not necessarily lease payments to royalty owners. We think anyone's going to contest that because that
Senator Jonathan Dismang
Unverified
1:40:27
would be a sizable amount and again that is maybe in a
Speaker 141
1:40:32
little conflicting, which what I thought I understood earlier, but certainly if the bill were to be amended to clarify that particular issue that would provide greater guidance for DFA to have a greater level of confidence.
Hugh Mcdonald
Unverified
1:40:47
And, OK. We, we could do that, we could also clarify it in the rules as well that would be. associated
Senator Jimmy Hickey, Jr
Unverified
1:40:54
with this. I personally, I personally would rather have it in the, in the
legislation. I mean, which is, uh, we can, we can get that over here if we need
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:41:04
to. I mean, make all this happen if, if that, if there's going to be other problems that a member, of course, is going to vote no on the bill and here it's not gonna pass anyway, so we'll just, uh, we'll kind of proceed forward from here and see which way we want to go. Uh
Senator Jimmy Hickey, Jr
Unverified
1:41:16
Any other questions? Anyone from the audience want to speak for this. Anyone who wants to speak against it.
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:41:23
I'm gonna ask you if you're ready to close, but I guess we're going to have to also
address this amendment, how we want to do it, if we'd want to sit here for another. 10 minutes,
Senator Steve Crowell
Unverified
1:41:36
which is fine with me Senator, I'll defer to you. How would you want to
Senator Jonathan Dismang
Unverified
1:41:39
handle this, sir? I would like to have a bigger discussion about Why we're doing, what we're doing with extraction and where we're allowing that to be something that we're going to incentivize, that is just unlike any other, anything. I am all for trying to accomplish what you want to accomplish. And so if we're in discussion now, then that's what this is. I am all for doing what you want to do as far as making sure that
once we pull that stuff out of the ground, we're trying to refine it and have it here. We've done similar things for other industry just like that in the state of Arkansas. I just don't understand why we would subject ourselves to the risk. Of the mine, I mean that that's just a different. Place to to put the stadium. Fair enough. Yeah And
Senator Steve Crowell
Unverified
1:42:26
that way. I just think it and and again, maybe this won't clarify, but
it's such a different industry, um, a lot of the things that come from the wells are marketable at the well. You can literally take them. This has a Multimillion dollar investment to even get it to where it is refined, um, I mean talking probably 56 $700 million for the plant just to get it refined, so that it's just that that's what I'm seeing is a, it's a little bit unfortunately I know more
about lithium than I've ever wanted to know in my life, uh, the process to get it to where they have it, um, refined and markable is extensive, very extensive. OK, as far
Senator Jimmy Hickey, Jr
Unverified
1:43:15
as, as far as the amendment goes. I mean, of course, we've got Representative Jean and Doby and Henley and
Shepherd on there. I mean, I, I'm sure we could, we could make that happen in the house and get their guarantee on that at this late date, but if there's going to be other issues
here, then we'll just have to go. So if you don't mind, let's just say that we'll get that amendment to just clarify that lease by the time it comes from the house. Yes, I will get
it. I will get it, but, and then you go ahead and close and then we'll see if we have a motion we'll
Senator Steve Crowell
Unverified
1:43:50
vote this thing. gentlemen, I just, I do want to close saying that it has been reported in the USA today that there's approximately $225 billion over the next 15 years, uh, once they start production,
that's about 6 to 7 years away before they can actually get to that production as we see it now, um, but they're gonna have to start building soon. Start the process of getting these plants going and I just, again, I know being first to market does make some people nervous, and I respect that. But I don't think if we're not first market we're going to, it's going to end well, right now I do know there's 9 wells
being test wells being done in Texas, and there's 3 being done in Louisiana, and I think from these looking at these maps. It's everywhere. Um, and I, I don't want to pass that up. And so I would respectfully ask for a good vote. I will promise that I will get that amendment on there for you, Senator Dismay. But I think this is the way we need to move forward with with what's got to be done for the state of Arkansas, not only with the lithium industry, but with all the subsidies subsidiary
industries that are in our future. OK, thank you, thank
Senator Jimmy Hickey, Jr
Unverified
1:45:08
you all. OK, at this point, do we have a motion for the bill. We
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:45:11
have a motion from Senate. Did you make a motion? All right, Senator Crow as a member of this committee makes a motion do pass. Senator Calwell is a 2nd. Uh, any other discussion? Yes, sir, Senator dismay. Again, I would like to have a
Senator Jonathan Dismang
Unverified
1:45:35
further discussion probably beyond this. I want someone to tell me that this is going to happen unless we pay for extraction, which is the way that the bill is written again that is unlike we treat any other mining operation. There are costs associated with anyone that's trying to get anything out of the ground. I mean, the feeding lines and everything else that has to be put in place for natural gas production is also incredibly expensive but not incentivized. Um. Again, I want, I want to have a bigger, more complete conversation about why that's included, because to this date,
no one's provided me what I would call a satisfactory answer, and I'll, and again I'll also just go back to a concern of if we do this now and everyone else is pending legislation. I know what that looks like, and we will be Setting a bar that everyone else will meet and surpass that we will come back in and we will be bidding against ourselves to kind of try to chase it back around. So that that's my concern about what it is we're doing. We're probably a little bit ahead. I think if we were limited to everything but
Speaker 129
1:46:37
extraction, I would be a lot more comfortable that's, that's
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:46:42
my part of any any other discussion from the members. OK, we have a motion and a second to pass on this. All in favor say aye. Any oppose? Motion fails, so that bill does not pass. We appreciate the testimony today.
Speaker 36
1:47:02
Thank you. All right, so now we are 95. Yeah.
Senator Jimmy Hickey, Jr
Unverified
1:47:10
OK. House Bill 1695, I believe there is an amendment on it. OK, we're gonna go into uh About
Speaker 42
1:47:29
a 10 minute recess, so we're going to have a 10 minute recess before we do this.
Senator Jimmy Hickey, Jr
Unverified
1:55:15
OK, we're back from a recess and we're gonna be uh Senator Crow will be doing House Bill 1695. It's my understanding that you have
Speaker 101
1:55:21
an amendment. Is that correct? Yes, sir. We've got an amendment and I'm going to let Senator Kroll District 3, and I'm gonna let Mr. Wilkerson, go over the amendment. Go ahead and introduce yourself, Wilkerson, counsel of the municipal League. OK, let us get the amendment passed out. I guess
Senator Jimmy Hickey, Jr
Unverified
1:55:38
we already have to sit here. Everybody have their amendment. OK, if you would, uh, uh,
Speaker 156
1:55:45
If you would please go over the amendment. Of course, so in the original version of the bill, we extended the time for a city to file a lien, a lien, to the county clerk from 120 to 365 days in two instances and in one instance from 60 to 180 days, we have, I'm working with the title title folks, we have scrapped that. It's going back to the original time frame, and there's no extension of time for cities to perfect the lien and record the lien and all that sort of all that, all that sort of thing. So that's the first change. Uh, also,
uh, we have um made sure working with the bankers, uh, banker folks that we are required to give notice to any existing lien holders. Truth be told, I thought that was already sort of been there inherently, but they know foreclosure law better than I do, and they weren't comfortable. I was just relying on my ignorant legal opinion, and I certainly understand that. So we've made it clear that we have to give notice to lien holders and we appreciate everybody's work over the weekend to get that done. And then finally, there is a portion here that would allow cities to petition. the land commissioner to avoid a sale of property to those that
have existing liens. It was kind of our way to make sure that we can give notice to the state land commissioner about what we're seeing out there with people buying property that, you know, just keep repeating the same lean issues, but in working with Senator Dismay, he pointed out that that was a new process and maybe was not the best solution. So we took that out as well, and with those amendments, there's no known opposition. I think we've satisfied
Senator Jimmy Hickey, Jr
Unverified
1:57:15
everybody's concerns. I appreciate, appreciate everybody's uh Uh, working on this thing, like
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:57:20
I say, I know you've spent a lot of hours on the weekend because I think y'all were on the phone with me for
Senator Jimmy Hickey, Jr
Unverified
1:57:27
an hour and a half, so I know y'all probably got 10 to 15 in it. So anyway, uh, as far as members, does any of the members here have any questions? Senator Petty. And I will be
Senator Jim Petty
Unverified
1:57:37
going to the audience in a minute. Thank you, Mr. Chair. I, I was just trying to sort through this, uh, uh, is there anybody signed up from the mortgage bankers or anybody to represent them, they can come to the table if they want. It's my understanding
Senator Jimmy Hickey, Jr
Unverified
1:57:51
that they said that they're good with at this point. They've been heavily
Senator Jim Petty
Unverified
1:57:55
involved all weekend working with. Well, what I wanted to clarify, I know that there was a conversation with Senator dismay and whether or not this amendment incorporates any of his concerns. It
Speaker 156
1:58:06
does. Yeah, he had two concerns. One, Yeah, he had two concerns. 12 concerns from last time. The extension of time for cities to perfect the lane and record the lien and then the
Senator Jim Petty
Unverified
1:58:16
land commissioner notice provision. And and that would not have affected the mortgage bankers or any of
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:58:22
those? OK. OK. Any other, uh, questions from the members? OK, I've got some people signed up here for and against, but I don't know if some of this has changed. Do we need to adopt the amendment? Oh, I'm sorry, we're on the amendment. So
Senator Jimmy Hickey, Jr
Unverified
1:58:41
that was the amendment itself. Thank you for reminding me that Senator Boyd. Senator Boyd makes a motion to adopt the minute. Senator Caldwell's the 2nd, all in favor, say I, I, OK, that'll
Chair (Senator Jimmy Hickey, Jr)
Unverified
1:58:53
carry. OK, so now if you'll present your bill, uh, as
Speaker 156
1:58:57
amended same as last time we are trying to work, work to find ways to help cities navigate the dilapidated dilapidated properties issues, neglected properties. One of the issues that Senator Disma raised as well was about, you know, how the the language that looks to be new, which is actually old language. We, we did some more research on that and, you know, we, we were very comfortable, even even more so than before to say that this process doesn't
work until the city, there is an actual nuisance, and so we, we found the law and and AG opinion as well, so we feel comfortable with that. But again, this is just about allowing cities and towns to Um, have a foreclosure process really first and foremost is to allow them to have a foreclosure process, which there was a foreclosure language we could foreclose, but there was no process in place, so the biggest thing it does is allows for that foreclosure process to be in place. That's what we worked on over the weekend. OK, let me do something a little out of the ordinary,
Senator Jimmy Hickey, Jr
Unverified
1:59:49
and I wasn't going to do this and Senator Dismay was
not here, but since his name has been brought up, Senator Dimay has a disclosure. He went to another meeting unless he comes back, he won't be voting on it, but since his name's been brought up. I'm gonna read this disclosure out, out of abundance of caution again, so just try to keep everything. He said House Bill 1695. Section 10 contains language about the potential setting aside of a property property by the commissioner of state lands and part owner of an entity that is purchased COSL property in the past, of state land, property in the past. So
anyway, we've read that disclosure again. I don't even see that he's going to be able to vote on it, but I won't, I want to do that. The way that I feel is probably correct. Sorry about that. OK, so you all presented your bill. Is there any que as amended, is there any questions in regards to
Senator Jim Petty
Unverified
2:00:44
the bill itself, Senator Petty. Thank you, Mr. Chair.
Just so I just want to be clear, uh, again, uh, the concern out of the banking community was that you were somehow with this
language is drafted, you were jumping your place in line ahead of bankers, and, and this, as amended, does not change the priority in terms of the the lien itself. I think the biggest concern for the bankers, and I let them speak as well
Speaker 156
2:01:09
was that they weren't being notified of. the foreclosure process. Again, I, I, I've thought that that was already sort of in the law, but they felt more comfortable putting it in there, which of course makes sense. As far as the priority liens, it doesn't change any of that as it is. The
foreclosure process does create a priority status, but it's only under special circumstances that we could ever even jump, jump and and ahead of the bankers or the the other liens, um, so they were comfortable with that and um we, we, I won't speak for them, but we, we don't know that there's going to be a whole lot of overlap. Between us for closing on a dilapidated property and them having a foreclosure and a mortgage. So we're hopeful that there won't be much overlap anyway, but if there is, the process is set out that I think everybody's comfortable. Thank you. Thank you.
Chair (Senator Jimmy Hickey, Jr)
Unverified
2:01:57
OK, any other questions from the committee? OK. He won't want to speak for this bill. Again, there's some people signed up. So if you're here and you want to speak for
Senator Jimmy Hickey, Jr
Unverified
2:02:12
it, just come forward. Or if any of you all that have worked on this want to say that you're good with it. I know I'm getting thumbs up, so,
OK, so, right. So, is there anybody that's supposed to speak against it? OK, if you'll come forward and recognize yourself.
Paul, I know you know the drill.
If you'll just touch the So your red light will come on, recognize yourself, and then you can begin. Yes sir, thank you
Paul Calvert
Unverified
2:02:50
committee. So I've had a little experience you want to introduce yourself. Yes, sir. My name is Paul Calvert. I'm not representing anyone other than myself, so I've had a little experience with liens being filed against my properties. There's supposed to be a an appeal process, um. And in my experience, the liens
that were filed against my property, I believe all of them were unlawful and When I went to appeal, um, They had already filed the lien that I did appeal. They had already filed the lien before the The the deadline for the for the appeal, and so I had to pay it. Um, because it was attached to my taxes and it would be delinquent taxes. And When I went to the appeal, The judge threw my case out and part of his justification for throwing the case out was the
fact that I'd sold the property and I had paid the lien. So in my experience we don't have a good enough process, or at least not effective process for dealing with for adding accountability for liens that are filed, at least in my experience personally and so this bill is going to expand. The double the amount that the cities can can take from from property owners when they file liens for various issues that's
on pay at least the previous bill is page 3. I don't know where it is, where it lands after the amendment. And it Um, it restates in the In the code, I think it moves it simply moves it over where it talks about the city of the first class, city of the second class, or corporated town may order the removal or raising of property, basically like tear down a house and they can do it without a
court order from what I understand they have to they merely have to vote on a city council and in my experience, They voted and they carried out, they imposed the lien on me. Prior to giving me an opportunity to appeal. And then when I appealed, the judge threw my case out and part of his justification for the for throwing my case out. was that I had already paid the lien. Um And so I've got major heartburn
over the problem over the fact that they can tear a house down without a court order. They can't search a house unless they have a warrant from a judge, but apparently they can tear a house down without getting an order from a judge or getting without without a trial. So I, I would ask you all to To vote against this. And Let's, before we expand their power. Let's Maybe fix some of the issues we have right now.
And it was with the abuses that are going on because I've attempted to use this appeal process, and I didn't get anywhere with it because the judge threw my case out. Any,
Senator Jimmy Hickey, Jr
Unverified
2:05:59
any questions from the members? But most of your issues are going to be as in regards to the tax liens, is that right, Mr. Calvert is kind of what you were talking about, right, so the kind of a little bit of a different animal with
those, but I see what you're tying them together, so, so the liens are taxed
Paul Calvert
Unverified
2:06:17
or sorry, the liens are attached to property taxes when they're filed, and so then A normal lien you'd pay when you sell the property, but the liens that the city imposes they're attached directly to their taxes, and if you don't pay them, they send your property to the
Speaker 170
2:06:33
land commissioner's office. To be sold, right? And I think the part
Senator Jimmy Hickey, Jr
Unverified
2:06:38
about the them where they are able to declare a property that's uninhabitable or things that they've had that authority, I believe they have had that authority, right, so
it's not new. It's not new language, so I just think, yeah, we need to make, make sure that that specific since we're being live streamed, people don't think that we're changing that're not adding that. You're correct, but you, but you, so your, your argument is, is current statute that's on the books that you think that there needs to be some work
Paul Calvert
Unverified
2:07:04
on that. Well, that or just some better oversight in how it works, yes, yes sir, so that is current law, but we are expanding their ability to We're doubling their ability to file to as far as the amounts they can file against your
Senator Jimmy Hickey, Jr
Unverified
2:07:19
property. Yes, they are within and that is new language they're current, current, uh, increases on that because it's been quite a few years, so that would be great.
Senator Jim Petty
Unverified
2:07:30
So any other questions in regards to that, Senator Petty and this may be
Speaker 88
2:07:35
more for the presenters, but um if it's at this point it's just
Senator Jim Petty
Unverified
2:07:39
for for him, so, so it's your understanding that the in order for
a property to be torn down. Currently, as it's written in
statute, it has to be court ordered in these situations, under current law, I think I think cities are a little tear down a house without a court order. I'm saying we should require a court order, so that part is not is being changed, is not being changed, changed it's being
Paul Calvert
Unverified
2:08:06
shifted over and part of my beef with it is that it's, it's still in law, but we're expanding the of we're doubling their their amounts that they can charge the homeowner after having torn a house down without a court
order. So you can tear my house down without a court order, and then you can charge me for it. Um And now it's going to be double what they could charge me before. I mean, all of this without a court order if I understand the law correctly and my experience and I haven't had a house torn down, but I've had cleanups done where a tenant. Left up in the yard and it. Um, and they would do a cleanup. And then they would charge me for it, which is unlawful. I did and then when I um
Attempted to appeal one of these liens. My case was thrown out, and part of their justification was that I had
Senator Jim Petty
Unverified
2:09:02
paid the lien already. OK, but in, in this case we're talking about this deal and and you may have a, you know, something to look at in the future with with your court appointed or court ordered issue, but that's not
Paul Calvert
Unverified
2:09:14
addressed in this current bill, other than the the amounts are expanded and that that is part of, so the, I believe the lien that was filed
against my property would have been part of the expanded. Um Amounts so unrelated to this, I have
Senator Jim Petty
Unverified
2:09:32
had bought some land that had some uh existing buildings on it. There's 3 different tracks,
unrelated, no, no lien situation, but each one of them were between 15 and $18,000 to tear down. So I think those numbers are probably in line with market, uh, and, and as Senator Hickey said, probably
Paul Calvert
Unverified
2:09:56
needed to be updated. I don't, I don't disagree except that. We're tearing down houses without a court order, so that makes it a bigger problem. If it was if it was after a court order, I charge them whatever's right,
Senator Jimmy Hickey, Jr
Unverified
2:10:10
if that makes any sense. I appreciate the question. No, and just one more clarification up to or no more
than whenever I want to make sure that everybody thinks that we may be doable and you may say double in the amounts. It's just gonna be, there's a, there's a potential that it could go up to that. So I just, again, I just want to
make it clear and uh Appreciate your comments.
Paul Calvert
Unverified
2:10:30
Yes, sir. I think you are correct though that yeah, you'll still be up too so if it only costs 5000, it doesn't go up to
Senator Jimmy Hickey, Jr
Unverified
2:10:37
150. Yes, sir, so just I don't want anybody to have any false pretenses on that. Thank you, sir. Thank you sir. Let me turn this off. Yes, sir. Thanks for
being here today. All right. Anyone else want to speak either way? We have some people here West,
did you, you don't, you, you're, you're just saying you're good, you're saying you're good. Hauser you're, yeah, you're thumbs up on stuff. Right, I think everybody then spoke for or against, did what they wanted to do, so. You, you all want to
Senator Steve Crowell
Unverified
2:11:20
close, uh, I would just, we've made a lot of changes. I think we got to where everybody's agreeable, obviously, and I feel sorry for
the witness, and I think that's a little bit not to do with this bill, but I would close
and ask for a good vote, and I would make a
Chair (Senator Jimmy Hickey, Jr)
Unverified
2:11:38
motion to pass. All right, Senator Crowe. Senator Crow is making a motion to do pass as amended. Senator Caldwell is a 2nd. Any other discussion as far on the motion. All in favor say aye. Any oppose? OK, that bill passes. Thank
Senator Jimmy Hickey, Jr
Unverified
2:11:52
you all. Anyone here else want to say anything, present any other bills?
Unknown speaker
2:11:58
I think with that we're we're adjourned.
Agenda
CALL TO ORDER - Senator Jimmy Hickey
HB1695 J. Richardson TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN PERSONS; AND TO PROVIDE FOR THE PRIORITY OF UNRECORDED MUNICIPAL LIENS.
Recess till 12:30
Reconvene
HB1851 Jean TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING FACILITY.
HB1657 Beck TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT.
HB1589 Schulz TO AMEND THE LAW CONCERNING THE FINANCIAL OPERATIONS OF A COUNTY; AND TO AMEND THE LAW CONCERNING THE ANNUAL COUNTY FINANCIAL REPORT.
SB568 Crowell TO AMEND THE LAW CONCERNING THE TAXES APPLICABLE TO LITHIUM EXTRACTION AND DEVELOPMENT; TO PROVIDE A SALES AND USE TAX EXEMPTION FOR LITHIUM RESOURCE DEVELOPMENT; AND TO AMEND THE LAW CONCERNING THE SEVERANCE TAX ON LITHIUM.
SB535 Hester TO CREATE A SALES AND USE TAX EXEMPTION FOR THE ARKANSAS MUSEUM OF FINE ARTS AND THE ARKANSAS MUSEUM OF FINE ARTS FOUNDATION.
RECESS Till 10:50
RECONVENE
RECESS TILL 11:30
RECONVENE
ADJOURNMENT
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAX - SENATE, Apr 7, 2025 | Agenda | 3 | Official source ↗ |
Speakers
Senator Jimmy Hickey, Jr
Unverified
Chair (Senator Jimmy Hickey, Jr)
Unverified
Representative Rick Beck
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Senator Bart Hester
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Speaker 43
Speaker 22
Senator Justin Boyd
Unverified
Speaker 53
Speaker 67
Speaker 84
Speaker 86
Speaker 49
Chair
Unverified
Senator Steve Crowell
Unverified
Speaker 101
Hugh Mcdonald
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Senator Jonathan Dismang
Unverified
Speaker 123
Speaker 125
Speaker 126
Speaker 128
Senator Ronald Caldwell
Unverified
Speaker 90
Speaker 137
Speaker 141
Speaker 113
Speaker 129
Speaker 36
Speaker 42
Speaker 156
Senator Jim Petty
Unverified
Paul Calvert
Unverified
Speaker 170
Speaker 88