Week 2 Legislative Report 2023

Week 2 Summary of Conduit Bill Analysis (see Details Below):

OPPOSE

NONE.

SUPPORT

HB1045 – Repeal of the “Throwback Rule” – SUPPORT

HB1082 – Occupational Therapist Licensing Compact – SUPPORT

HB1149 – Prohibit Gifts from Lobbyists to Executive Branch Cabinet Secretaries – SUPPORT

HB1155 – Increased Childcare Access – At-Home Childcare Providers – SUPPORT

SB80 – Exempt Capital Gains Tax from Property Conveyed via Eminent Domain – SUPPORT

Bill Details:

HB1045 – Repeal of the “Throwback Rule” – SUPPORT

By: Rep. Howard Beaty Jr. and Sen. Ben Gilmore

This bill would repeal the “throwback rule.” The logic of the throwback rule is that an origination state has the right to tax income properly associated with another state simply because that other state does not choose, or is unable, to tax the income itself. This is obviously a tax which discourages corporations from doing business in Arkansas. Repealing this tax would change sales of tangible personal property that are subject to taxation now to only being subject to taxation if the property is delivered to a purchaser in Arkansas. This change would save taxpayers $37 million in FY2024 and $74 million in FY2025 according to DFA as well as promote Arkansas as a business-friendly state.

HB1082 – Occupational Therapist Licensing Compact – SUPPORT

By: Rep. Aaron Pilkington

This bill would add Arkansas to the occupational therapist licensing compact to allow those licensed as an occupational therapist in other compact states to move to Arkansas and have a streamlined process to go to work here in Arkansas. The compact would recognize licensed occupational therapists and assistants in other states here in Arkansas. It would also provide increased scrutiny with FBI background checks required and inclusion of the licensee in a data system tracking an adverse action against a licensee between the states. This is a good bill that increases the potential access to occupational therapists and assistants and potentially improve quality of care with more competition allowed in the state.

HB1149 – Prohibit Gifts from Lobbyists to Executive Branch Cabinet Secretaries – SUPPORT

By: Rep. Fran Cavenaugh

This bill would add executive branch cabinet level secretaries to the list of those prevented from accepting any gifts from lobbyists, or those acting on behalf of a lobbyist. This prohibition already applies to elected state officials. It is argued that this bill would prevent the situation that arose under Gov. Hutchinson where the Secretary of the Department of Commerce, Mike Preston, received additional income in excess of his state salary from outside private interests but was not required to be transparent regarding who was paying him to act in a government role. This is a good bill and should be expanded to all government employees to prevent bribes or other influence peddling used to secure better standing to gain state contracts or state benefits.

HB1155 – Increased Childcare Access – At-Home Childcare Providers – SUPPORT

By: Rep. Mary Bentley

This bill would allow single-family residential zoned homes to provide childcare services without having to adhere to local commercial zoned property regulations. This would allow more opportunity for “at home” childcare services to open without being subject to burdensome and costly regulations currently applicable to commercial property. Relieving this burden may create more access to childcare services.

SB80 – Exempt Capital Gains Tax from Property Conveyed via Eminent Domain – SUPPORT

By: Sen. Clint Penzo

This bill would exempt from income taxes any gain a taxpayer may incur on the sale of the taxpayer’s real property due to an eminent domain action by a government actor. This is a good bill that exempts taxes owed when the government forces a taxpayer to sell their property to them for a public benefit.

Status of Bills Tracked by Conduit on Weekly Scorecard Reports:

OPPOSE

HB1087 – Increased Speeding Tickets + Required Community Service – OPPOSE

STATUS: Scheduled for Hearing 1/24/23 – Public Transportation House Committee

SUPPORT

HB1012 – Increased Standard Deduction – SUPPORT

STATUS: Referred to Committee; No hearing scheduled.

HB1016 – Standard Deduction Increased by Inflation; No Cap – SUPPORT

STATUS: Referred to Committee; No hearing scheduled.

HB1026 – Prohibits Cities Enacting a Local Income Tax – SUPPORT

STATUS: Referred to Committee; No hearing scheduled.

HB1027 – Required Voter Approval for New/Increased A&P Taxes – SUPPORT