Week 1 Legislative Report 2023
It is a new day in Arkansas. The 94th General Assembly began on Monday, January 9, with Senators, Representatives, and Constitutional officers being sworn in, rules adopted, and leadership announced. The state also has a new Governor in Sarah Huckabee Sanders.
Gov. Sanders got right to work with a series of executive orders flexing her conservative muscles by banning critical race theory and indoctrination in government schools, instituting a hiring freeze and new regulation freeze, cracking down on unemployment insurance fraud, and improving education success of students. You can read a full review of those executive orders HERE.
It is a staggering change already between former Gov. Asa Hutchinson’s first days in office where he was working on how to keep the largest expansion of welfare and government in Arkansas history by giving it a new name (Obamacare Medicaid Expansion – Private Option – Arkansas Works) versus Gov. Sanders’ executive orders to improve education results, shrink government, and decrease fraud.
Bills have been filed, and committees are in place to hear them soon. This will be the 8th year and fourth straight session that Conduit will publish a weekly legislative report highlighting bills affecting the Economic and Individual Freedom of Arkansans.
Conduit will flag and analyze bills that may be considered for the annual Legislative Scorecard that will be published later in 2023 scoring legislators on their votes. Conduit uses the proprietary Economic Freedom Filter to determine what bills to flag for potential scoring.
The Economic Freedom Filter considers whether a piece of legislation provides or promotes more freedom or less freedom by considering: (1) If it Grows or shrinks government (2) Increases/Decreases dependency on government and/or (3) Spends money the state does not have. Conduit will also score bills that support a transparent, open, and honest government that is accountable to the people.
Each week a legislative report detailing important legislation impacting Arkansans economic freedom will be published. This report will be sent weekly to state legislators to have outside analysis of legislation and know about potential scoring of their votes on this legislation.
Conduit hopes this weekly legislative report tool will help aid the public and legislators in knowing exactly what a bill does– giving historical context, real world impact, and cutting through any carefully crafted language that may confuse people.
Week 1 Summary of Conduit Bill Analysis (see Details Below):
OPPOSE
HB1087 – Increased Speeding Tickets + Required Community Service – OPPOSE
SUPPORT
HB1012 – Increased Standard Deduction – SUPPORT
HB1016 – Standard Deduction Increased by Inflation; No Cap – SUPPORT
HB1026 – Prohibits Cities Enacting a Local Income Tax – SUPPORT
HB1027 – Required Voter Approval for New/Increased A&P Taxes – SUPPORT
HB1032 – Increased Homestead Property Tax Credit – SUPPORT
HB1067 – No Residency Requirement for Firefighters – SUPPORT
SB5 – Telehealth for Vets – SUPPORT
SB42 – Deregulation on Licensed Counselors – SUPPORT
Bill Details:
HB1012 – Increased Standard Deduction – SUPPORT
By: Rep. David Ray
This bill would double the individual income tax standard deduction from $2,200 to $4,400 per individual tax filer beginning January 1, 2023. This would save taxpayers $34.2 million in FY2023 and $68.2 million FY2024 according to the Department of Finance and Administration (DF&A).
HB1016 – Standard Deduction Increased by Inflation; No Cap – SUPPORT
By: Rep. David Ray and Sen. Jonathan Dismang
Titled in the Inflation Reduction Act, this bill ensures that the standard deduction for individual income tax filers is increased annually based on the increase in inflation, with no cap. Currently, there is a cap of 3% that the standard deduction may increase by, even if the inflation rate is much higher. The bill also adjusts the inflation rate metric used to a more regional rate rather than a national rate. This bill would save taxpayers up to $32.6 million in FY2023 and up to $65 million in FY2024 if inflation remains at around 8.0%, according to DF&A.
HB1026 – Prohibits Cities Enacting a Local Income Tax – SUPPORT
By: Rep. David Ray and Sen. John Payton
This bill would prohibit cities and other local governments from enacting an income tax on their residents. Although no current cities do this, this will prevent those from considering it as an option to continue growing government and decreasing liberty. The bill would also require any taxes not specified in the current statutory framework allowed to local governments be held only by election of the people.
HB1027 – Required Voter Approval for New/Increased A&P Taxes – SUPPORT
By: Rep. David Ray and Sen. Mark Johnson
This bill would require voter approval at the primary or general election for any new or increased advertising and promotion taxes (A&P Taxes) at the local level. Local governments create and raise taxes at the local level through increased taxes on items like food, hotels, and other items to grow government within their local government. This is done typically by a commission with little to no oversight by any elected officials of the people. This change puts the power back with the people to decide if they want these new or increased taxes in their town.
HB1032 – Increased Homestead Property Tax Credit – SUPPORT
By: Rep. Lanny Fite
This bill would increase the homestead property tax credit by $50 from $375 to $425 for property owners. This credit would offset up to $425, property taxes of a property owner on their primary residence. According to DF&A this would provide property tax relief of $34 million for taxpayers.
HB1067 – No Residency Requirement for Firefighters – SUPPORT
By: Rep. Wade Andrews and Sen. Matt Stone
This bill would prohibit municipal fire departments who employ firefighters from having a residency requirement that may require a firefighter to live in a certain city limits or area to be employed. This should increase opportunity and access for the pool of firefighters that can be hired, increasing potential competition for positions, thus improving quality of service to consumers. Exceptions are included for those who have both paid and volunteer firefighters, or those required to respond within a certain time period if off duty. This is a good pro-freedom bill that can help hire more firefighters and keep more people and property safe.
HB1087 – Increased Speeding Tickets + Required Community Service – OPPOSE
By: Rep. Mark Berry and Sen. Ricky Hill
This bill would add new and additional fines for speeding between $250-$1,000 in addition to the initial fine for those ticketed for speeding 25-45 mph above the speed limit. The fines would go to the Public Health Fund. The bill would also, in addition to the fines, require between 20 and 40 hours of community service for those speeding 25-45 mph above the speed limit. The increased fines would be used to grow government with unknown impact in public safety. It would seem the required community service would be a better stand-alone deterrent for people getting speeding tickets as it would more restrict their time and provide a potentially create a positive impact with community service provided.
SB5 – Telehealth for Vets – SUPPORT
By: Sen. Ricky Hill and Rep. DeAnn Vaught
This bill would direct the Veterinarians Medical Examining Board to make rules for the use of telehealth that mirror the state laws and rules for telehealth use for humans. Over the past few sessions, the legislature has dramatically improved the telehealth laws in the state to allow increased access and use of telehealth services. Extending expanded telehealth services to vet visits should both benefit vets to see more animals and allow for possible emergency visits or other visits between the animal patients and their vets. This is a pro-freedom and free market bill if the board writes rules consistent with telehealth laws for humans.
SB42 – Deregulation on Licensed Counselors – SUPPORT
By: Sen. Dan Sullivan and Rep. DeAnn Vaught
This bill would remove the requirement for licensed counselors who will specialize in a certain area, such as marriage and family counseling, to provide additional testing and review if they are already a licensed counselor. Currently for anyone specializing they must get additional permission from the government to show competency in a specialty even if they are already a licensed counselor. This should allow licensed counselors to offer more services for their clients without worrying about the government stopping them or having to meet additional regulations that could be costly and waste time. Ultimately this should allow more opportunity for both services offered and services consumed for Arkansans from licensed counselors in the state.
Download and review our Arkansas Legislative Scorecard for the 93rd General Assembly Regular Session 2021. Click here.
