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Agriculture, Forestry & Economic Development - Senate

March 18, 2025 ·10:00 AM ·Room 309 ·19:09
Video Transcript 1 document

Bills discussed (11)

Bill Title Sponsor Status
SB421 Act 578 · 5 mentions in agenda, transcript, chapter
Matched: “…HOLESALER OF PETROLEUM PRODUCTS FOR THE PETROLEUM PRODUCTS. SB421 Hester TO AUTHORIZE THE ARKANSAS NATURAL RESOURCES COMMISSI…”
TO AUTHORIZE THE ARKANSAS NATURAL RESOURCES COMMISSION TO ISSUE GENERAL OBLIGATION BONDS FOR THE DEVELOPMENT … Hester Notification that SB421 is now Act 578
HB1149 · 1 mention in agenda
Matched: “…ON AND CONSERVATION. DEFERRED BILLS Number Sponsor Subtitle HB1149 Vaught CONCERNING VEGETABLE GARDEN PROTECTION. SB281 Gilmor…”
CONCERNING VEGETABLE GARDEN PROTECTION. Vaught Died in Senate Committee at Sine Die adjournment.
HB1656 Act 1024 · 1 mention in agenda
Matched: “…EMOVE CERTAIN SUBSTANCES THAT ARE DEFINED AS HEMP PRODUCTS. HB1656 Beck TO AMEND THE LAW REGARDING OIL AND GAS PRODUCTION AND…”
TO AMEND THE LAW REGARDING OIL AND GAS PRODUCTION AND CONSERVATION. Beck Notification that HB1656 is now Act 1024
SB281 · 1 mention in agenda
Matched: “…title HB1149 Vaught CONCERNING VEGETABLE GARDEN PROTECTION. SB281 Gilmore TO AMEND THE LAW REGARDING AGRICULTURE; TO ESTABLIS…”
TO AMEND THE LAW REGARDING AGRICULTURE; TO ESTABLISH THE PRODUCER BILL OF RIGHTS FOR COMMODITY … Gilmore Died in Senate Committee at Sine Die adjournment.
SB290 Act 921 · 1 mention in agenda
Matched: “…sor Subtitle SB400 Irvin TO AMEND THE FAIR-FUNDING PROGRAM. SB290 B. Johnson TO PROHIBIT A MORATORIUM ON THE ISSUANCE OF PERM…”
TO PROHIBIT A MORATORIUM ON THE ISSUANCE OF PERMITS IN WATERSHEDS AND OTHER BODIES OF … B. Johnson Notification that SB290 is now Act 921
SB396 · 1 mention in agenda
Matched: “AGENDA (REVISED 03/17/2025 @ 8:30AM Removed SB396 from Agenda Senate Committee on Agriculture, Forestry, and…”
TO AMEND THE LAW CONCERNING HUNTING AND FISHING LICENSES; AND TO AUTHORIZE THE ARKANSAS STATE … A. Clark Sine Die adjournment
SB400 Act 933 · 1 mention in agenda
Matched: “…Jr Sen. Jamie Scott REGULAR AGENDA Number Sponsor Subtitle SB400 Irvin TO AMEND THE FAIR-FUNDING PROGRAM. SB290 B. Johnson T…”
TO AMEND THE FAIR-FUNDING PROGRAM. Irvin Notification that SB400 is now Act 933
SB415 · 1 mention in agenda
Matched: “…SSUANCE OF PERMITS IN WATERSHEDS AND OTHER BODIES OF WATER. SB415 Crowell TO AUTHORIZE THE DIVISION OF ENVIRONMENTAL QUALITY…”
TO AUTHORIZE THE DIVISION OF ENVIRONMENTAL QUALITY TO MAINTAIN A DELINQUENT LIST OF BUSINESSES FAILING … Crowell Sine Die adjournment
SB455 · 1 mention in agenda
Matched: “…OF WATER, WASTE DISPOSAL, AND POLLUTION ABATEMENT PROJECTS. SB455 J. Bryant TO ALLOW REGULATION OF HEMP PRODUCTS BY ARKANSAS…”
TO ALLOW REGULATION OF HEMP PRODUCTS BY ARKANSAS TOBACCO CONTROL; AND TO AMEND THE UNIFORM … J. Bryant Died in Senate Committee at Sine Die adjournment.
SB84 · 1 mention in agenda
Matched: “…IRE CERTAIN ACTIONS RELATED TO COMMODITY CHECKOFF PROGRAMS. SB84 B. Johnson TO PROHIBIT A MORATORIUM ON THE ISSUANCE OF PERM…”
TO PROHIBIT A MORATORIUM ON THE ISSUANCE OF PERMITS IN WATERSHEDS AND OTHER BODIES OF … B. Johnson Sine Die adjournment
SB85 · 1 mention in agenda
Matched: “…SSUANCE OF PERMITS IN WATERSHEDS AND OTHER BODIES OF WATER. SB85 Caldwell TO PRESERVE PUBLIC PROPERTY; AND TO PRESERVE TIMBE…”
TO PRESERVE PUBLIC PROPERTY; AND TO PRESERVE TIMBER AT THE PINE TREE RESEARCH STATION. Caldwell Died in Senate Committee at Sine Die adjournment.

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October 2, 2026
Senator Ronald Caldwell Unverified 0:12
several on the agenda today, I don't think it's gonna run. Irvine, you go, Senator Irving? Are, are you, are you, are you gonna pass over your pass over there, uh, Senator Hester. Senate Bill 421. Sharon if you would introduce yourself,
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Senator Bart Hester Unverified 0:42
please, for the record. Introduce yourself for the record, please. So State Senator Bart Hester, uh, Senate Bill 421. Remember, this is a program that we've been doing for 40 years in the state and every 20 years we have to re-up it, um, and by re-upping it means it goes to the people of the state of Arkansas for a vote. So it would, it's not a constitutional amendment, it, it'd be very similar. It will be on the ballot, the whole, all the people of Arkansas have to vote on it. And it's these general obligation bonds, and it is the bonds that we use to leverage the federal. Resources for the water and sewer projects for our local communities. And if you want, I can pass this around, but over the last 4 years, here are the projects that were funded by this bond. Um, program. And so, um, Uh, a majority of, of these, um, our, our low interest loans. There are natural Resources commission. Some are forgivable depending on the needs, but this is the same language we've been using for 40 years in the state of Arkansas and how we, how we re up but the reason we need to do it today, even though we have 2 years left, is, like I say, the people of Arkansas have to vote on it in 2027 to continue the program growing. So, uh, from a, from a perspective of accountability, a, the people of Arkansas have to vote this committee agrees to send it to the people. The people have to vote on it, and then, uh, every 2 years, uh, the Natural Resources Commission has to come to this body and say, here's our plan, here are the projects that we plan to be doing with this money, uh, and then this body through, uh, ALC most likely would approve the project lists that they're going to do. So, uh, we have oversight down to the, from the beginning. and at the end. I'm happy to answer any questions or certainly, uh, Secretary War could help answer questions. Questions of the committee, Senator
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Speaker 10 2:41
Hicks. So Senator Hester, uh, I'm sorry, I'm
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Senator Jimmy Hickey, Jr Unverified 2:46
I'm just, just now seeing this. So has anything changed as far as the 500 million, any of these numbers, or is that's what's been on the books? The number is
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Senator Bart Hester Unverified 2:55
increasing, but I'd ask Secretary Ward to sit down here with me. I'll step over. you would introduce yourself for the
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Speaker 19 3:09
record. Yes sir. West Ward from the Department of Agriculture. So, so you're, you're, you're correct in the question. So the, the, the authorities stay the same, the, the funding has increased from 300 million to 500 million, but it still has the maximum of 60 million per biennium. So overall amount increases just to make that that process a little bit easier, but the, the yearly biennial process is the same. Something
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Senator Ronald Caldwell Unverified 3:33
you brought up, uh, here says some of this is forgivable. Uh, what is obligation to the state if it's a forgivable, uh, How does that affect general revenue? So, um, and, and we do, we
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Speaker 24 3:46
do have some numbers of what, what
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Speaker 19 3:50
we've used over the last, uh, since 2021, all, all of that has been through loans over the last 5 years. Uh, so there is, um, some of that gets deferred where they, like some of the irrigation projects, up to 165 million can be used for the irrigation projects, uh, but overall, the debt the debt service is 14.8 million per year, uh, which is, this would just continue that doesn't doesn't add any additional general revenue costs. It's just continuation of existing authorities
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Senator Ronald Caldwell Unverified 4:21
revenue funds is used to pay back the bond.
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Speaker 16 4:25
That's right. Yes, sir. Yeah, you took
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Senator Jimmy Hickey, Jr Unverified 4:29
part of my question, but that's, that's OK. So you, I think Senator Hester said, 20 years. So We, we're never gonna reach the or or we're gonna go, we could go over up to the 500 million. So if we, if we do that though, why, why would the GR not increase? I don't guess I understand that. It looks like to me, Although it may be out in the future, that from where we are now, that there will be, there could be an increase in GR. In the future from what
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Speaker 19 5:03
it is now. I, I think that's A possibility. I, I think that's where to and what this bill lays out is the department and through natural resources would come up with a general obligation work plan that gets reviewed by the governor, it gets presented to the chief fiscal officer officer of the state. They make sure that the fiscal impacts are, are able to be covered. The legislature also approves that. So I think it, it could increase, but it would only be if the legislature decided to increase it. And look, I,
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Senator Bart Hester Unverified 5:34
I would, I would add on that to say that this is a choice like every one of us have water and sewer needs, desperate needs in our districts. This is a direct response to that, um, the 300 million is just not adequate anymore. uh, we have to have increases. I mean, I, I don't know, you, you can, my number's gonna be wrong. Is it $8 billion or $13 billion worth of needs in the state of Arkansas, uh, right now, uh, but, but the, the current RSA accounts for what we've had in RSA for the, for the previous years, about $30 million. a year to go to this. It's already accounted for in the budget that was presented to us. May I
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Senator Jimmy Hickey, Jr Unverified 6:13
continue? If we were staying at 300 million. I, I would, I would say, well, it's what we've been doing and it's where we're at. But because of this increase, I see no way that it's, it's not going to affect our GR and I mean, if we should have a green sheet on this the way I see it. I don't know that this committee requires that or doesn't require that, but, uh, It the forgivable amount. So if we increase this, Any amount that's forgave, of course, is, is the state, the state forgives it and that's a direct hit on our GR. So by increasing this, if we do go to 500, and I, and I hear what you're saying, the general, the general assembly would have to do that. Which we will. I mean, it's, you know, people are gonna be coming down here saying my water project and this and that. So if if we're increasing it, is the forgivable layout usually a percentage of what the total has been. Is that the way that works, or? So, so recently,
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Speaker 19 7:16
Over the last 5 years, it's all been loan, so there, there has, we've not used any of this for principal forgiveness and, and I, I would ref on that question, I would, I would kind of point back to page 6. Um Lines 1 through 3 were the total principal amount of bonds to be issued during any bond by any shall not exceed 60 million per year, which, which is what the Existing. So we, we cannot exceed that in a biennium, which is what we're doing now, so it would not increase how much we're pulling out. I understand. just over
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Senator Jimmy Hickey, Jr Unverified 7:49
the 20 years, it, it, it's definitely gonna go up. About $200 million.
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Senator Ben Gilmore Unverified 8:00
More than likely. Michael Gilmore. Well, thank you, Mr. Chair, and that was, that was my question because I had read there on page, page 6 about the 60 million and then, um, so that you address that. Second one was going back to what you were talking about the terms of the bonds. Is that, is that all that on page 7? Is that where that's spelled out just to make sure I'm tracking. It, it, it is so, so these are
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Speaker 19 8:30
This, the authorities that exist in this Senate Bill 421 are essentially the very same. The same authorities that we used in 1997 for general obligation bond authority and then in 2007, General Bo General Bond, uh, obligation authority. So it's, it's a written exact same like nothing, nothing has changed. We, we have bond council that helps, helps us walk through that process and the terms and all the conditions to make sure that we're complying with um with the laws written, but
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Speaker 30 8:56
it is, is, it is a continuation the same as what
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Speaker 44 9:01
we've used for the last 20 plus years. Thank you. Thank
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Senator Jonathan Dismang Unverified 9:07
you, Mr. Chair. I may have a question later. Just if you don't mind, walk me through the process of one more, one more time of what this is setting up. So and it doesn't, you can't go into effect until July 1st, 2027. And walked
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Speaker 19 9:20
me back from there. Yes, sir, if I'll, I'll try to answer that, correct me if I get off, off course here. So, so we do have remaining, I, I think about 72 million in bond authority remaining right now. So, uh, so this, once the legislature, should the legislature pass this, it would have to go to a vote of the entire population of Arkansas in November of 2026. So there's a, there's a gap there and our existing bond authority would cover that period, uh, following that, uh, is when we would work to implement the the same process. So we would, uh, before we use any a new bond authority, Natural Resources commission, we would come up with a work plan, we would work through that, work with the governor's office. It would be presented through, uh, DFNA Chief Fiscal Officer of the state to make sure the financial impacts are not, um, not insurmountable or burdensome. Uh, that's, that's when it gets presented back to, to the legislature to review the work plan, make sure that there's not any issues, any anything of concern that that y'all see, uh, then it goes back to the governor for, for final signature after that just to make sure
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Senator Jonathan Dismang Unverified 10:22
when we're talking about green sheets, you're trying to predict what that looks like. Number one, it's going to take a vote by the people. It doesn't go into effect until July 1, 2027, then ultimately, it's going to be based, that, that green sheet would be based on What the governor would provide to the legislature and ultimately the approval by the legislature. So there's no, I'm not even sure how we would arrive at a number of impact with so many variables and hurdles in place to even get to be able to realize. The potential of what you have not to even mention our bond rating and all these other things that would go into account to be able to achieve that, and we're talking about something that could not even go in place until July 1st, 2027. Thank you. And Agree
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Senator Jimmy Hickey, Jr Unverified 11:12
with Senator dismay on that, although I'd mentioned the green sheet. So I don't know if this might be cinder Hester. So we passed this. It gets, if it gets passed by the people, Then we, we have it structured where ALC would be the one that would be the, the body where it would have to come before, as far as that. Let, let me ask you, is it, is it, is that the way it's been done for the last 20 or 40 years or whatever, because Since it's getting up to this amount, I'm not for sure that we don't need to navigate this through a regular session. So I wonder, instead of doing that, if we could just structure this, especially since we meet every year so that it comes before before the full General Assembly since it's such a, such a large number. You know, I understand what you all are trying to do. Again, if it, if it wasn't for the increased amount, I'd be like, well, we're, we've been doing what we're doing. It's important projects, but I'm, I'm just thinking that maybe we need to alter it so that, so that it comes before us each time. Oh, I say us. This body so that As Senator Dimayor, whoever the budget chair may be at that time, that they'll be able to navigate through that along with the DFNA, the governor's office, and we can all do it at one time. So you've got to present soon. Who are you presenting to the
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Senator Bart Hester Unverified 12:28
ALC or through what, what, what is the process you're about to present? So we, we, we do, so any, any time before we issue any bonds,
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Speaker 19 12:40
it, it does go through that process, um. So we're, I, I would say before any money ever leaves the door, there, there is a constant
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Speaker 25 12:47
process of going back to the legislature to make sure that that that work plan, that two-year biennial work plan is, has been reviewed and is sufficient for. I, I wouldn't care if you're
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Senator Jimmy Hickey, Jr Unverified 12:57
under, under a bind, under a bind now that you could say in this fiscal year that it could be done the way that you've always done, but in the future fiscal years or whatever that it would, it would somehow come before the Before this whole body during, during, and again I don't, you do it annually or what do you normally do? It's, it's a biannual process we could actually, it could coincide with the regular session. I, I may,
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Speaker 30 13:24
we do have bond council here that they're OK. I may ask them to comment on that
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Senator Jimmy Hickey, Jr Unverified 13:30
if I don't mean to be hard on this. It's just it's, it's getting up to the number of half a billion dollars that It has the potential, you know, We like to
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Senator Ronald Caldwell Unverified 13:39
have someone else comment on it? No, I just think
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Senator Jimmy Hickey, Jr Unverified 13:42
that's where I'm gonna be on it. Again, I want to be supportive of what we're trying to do here. I just, uh, Because of the numbers, I think, I think maybe it possibly needs a little. A little rework in a different structure. Thank you. Senator
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Senator Matt Stone Unverified 13:58
Ward, um, the, the $300 million that, that was a number from 20 years ago. Is that correct? Yes, sir, that's, that's correct,
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Speaker 19 14:05
that's, we use 300 million in 1997, as well as in 2007. So the purpose was really just to make it. To make that authority extend a little bit longer so that we didn't have to go through this.
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Senator Matt Stone Unverified 14:19
Well, I understand that it's $200 million more, but basically it's just, um, um, the present value of that money, so we're not really doing anything different from what we've already done, although it's a larger number, it's 300 million have the same purchase of power back then. And so I mean it's been working so if we have a process it's set up in place, we may just need to continue that process.
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Senator Ronald Caldwell Unverified 14:53
Any other questions? I don't signed up to speak for or against anyone in the audience, wish, wish to speak for or against. Long time no see. Yeah. Introduce yourself for
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Speaker 62 15:11
the record, please. Thank you, Dennis Sternberg, CEO of Arkansas R Water Association. Just to give you a quick rundown, we got about 680 some public water systems, 300 and some, uh, wastewater systems. This money is essential as Secretary Ward has mentioned, the last two bond issues has been a tremendous help, but the future is going to need more money. And I think it's appropriate to do this, and I just like to speak in favor of the bill.
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Speaker 8 15:36
Thank you. Thank you. Anyone have a question, Mr. Derenberg? Just,
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Senator Jimmy Hickey, Jr Unverified 15:39
yeah, just, uh, appreciate you being here and I don't think anybody's debating what, what you're saying. I want to be very, very upright with that. But do you see any issues? I guess you've been involved in this somewhat, of course. Do you see, do you see any issues if we did a restructure to just allow this, so. As those monies have been increased, that they would have to come during to the General Assembly so that we would deal with all of that during our normal, normal budgeting process. To make sure that whenever it does start getting up above the 300 or 400 million. That'll be years down the road, but we're setting policy right now, which is, is the way we have to look at this. Do you see a problem with With that timing of that? With your experience?
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Speaker 62 16:27
I, I, I can't hardly say yes or no on that. You know, it's built in with the 60 million biennium, uh, again, it's worked. So I, I, I wouldn't want to change myself.
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Speaker 28 16:38
Thank you. Thank you, sir. Any other questions? Thank you Sternberg. So like clothes for your bill. I would members I'll just
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Senator Bart Hester Unverified 16:46
show you again and we know, and I think that, uh, this is critical to every, there's a, there's a star on here, at least in the last 4 years in every county. Um, this is critical to what we do. The legislature has ample oversight now when we vote to the people, and then when it comes back for, uh, for, uh, the legislature's approval. So, uh, with that, I, uh, asked for
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Speaker 6 17:07
a good vote. Will of the committee
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Senator Ronald Caldwell Unverified 17:11
With motion. Senator Gilmore, all in favor say aye, all opposed. Congratulations bill passes. Uh, Andrew, are you still in the room? Uh, would you stay here until the meeting's over? I'd like to visit with you. Uh, that way you don't drive up here if for n. Yeah, thank you. Senator Brown, are you in the room? Let me see if I can find him. There's a lot of people here, uh, do that, uh. Representative Beck's not here, uh, I think there's gonna be an amendment on that bill, so they're gonna pass over that today. We'll get over that. Uh And I passed over hers. OK, Johnson passed over here. Let me see if I can get Senator Bryant here because there's a lot of people here for that just messaged him. We'll stand in recess for about 5 minutes waiting to see if we can get an answer, see whether or not he's coming.
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Senator Ben Gilmore Unverified 18:54
So he says he's presenting the bill in committee right now. OK, uh,
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Senator Ronald Caldwell Unverified 18:59
Brian shot up, so, uh, he's not gonna be here. Uh, we'll stand adjourned.
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Agenda

Call to Order

0:10

SB421 Hester TO AUTHORIZE THE ARKANSAS NATURAL RESOURCES COMMISSION TO ISSUE GENERAL OBLIGATION BONDS FOR THE DEVELOPMENT OF WATER, WASTE DISPOSAL, AND POLLUTION ABATEMENT PROJECTS.

0:27

Recess

18:32

Reconvene

18:58

Adjourn

18:57

Speakers

Senator Ronald Caldwell Unverified
9 segments
Senator Bart Hester Unverified
12 segments
Speaker 10
1 segment
Senator Jimmy Hickey, Jr Unverified
22 segments
Speaker 19
14 segments
Speaker 24
1 segment
Speaker 16
1 segment
Senator Ben Gilmore Unverified
3 segments
Speaker 30
2 segments
Speaker 44
1 segment
Senator Jonathan Dismang Unverified
4 segments
Speaker 25
1 segment
Senator Matt Stone Unverified
2 segments
Speaker 62
3 segments
Speaker 8
1 segment
Speaker 28
1 segment
Speaker 6
1 segment