Week 6 Legislative Report 2023

February 21, 2023

Week 6 Summary of Conduit Bill Analysis (see Details Below):

OPPOSE

HB1422 – Special Tax Credits for Healthcare Professionals – OPPOSE

SUPPORT

HB1401 – Reduction in Cash Welfare Program – SUPPORT

HB1407 – Improving Election Integrity – SUPPORT

HB1410 – Let Youth Work – No Government Certificate for Employment – SUPPORT

SB255 – No Outside Funding of Elections – SUPPORT

SB258 – No Absentee Drop Boxes for Elections – SUPPORT

Bill Details:

HB1401 – Reduction in Cash Welfare Program – SUPPORT

By: Rep. Rebecca Burkes & Sen. Clint Penzo

This bill would reduce the time an able-bodied adult recipient of cash welfare can receive cash welfare from 24 months to 12 months. This would reduce dependency on welfare and get people back to work quicker, increasing self-sufficiency and self-purpose.

HB1407 – Improving Election Integrity – SUPPORT

By: Rep. Rick McClure & Sen. Matt McKee

This bill would first require notification from any third-party organizations collecting voter registration applications that they must submit them to the county clerk on or before thirty days before the election. This bill would require additional screening to ensure accurate voting rolls are used in the election. This will include cross-checking with other states’ voter rolls, address changes, verification of citizenship status, and cross-check death records. Ensuring accurate voter rolls will help with election integrity and ensuring we have fair elections in which the results can be trusted.

HB1410 – Let Youth Work – No Government Certificate for Employment – SUPPORT

By: Rep. Rebecca Burkes & Sen. Clint Penzo

This bill would remove the government issued certificate requirement for minors under sixteen (16) who want to work. Current law requires employers of minors under sixteen (16) to keep on file (accessible to the Division of Labor and Division of Elementary and Secondary Education or local school officials) a government issued certificate which includes proof of age, description of work, and the written consent of a parent or guardian. Removing this certificate requirement should allow increased participation for youth to begin work, gaining valuable skills, experience, knowledge of what it means to work, and the value of work– without involving the government.

SB255 – No Outside Funding of Elections – SUPPORT

By: Sen. Matt McKee & Rep. Delia Haak

This bill would further restrict the funding of elections from outside sources, such as Facebook/Mark Zuckerberg, George Soros, or other groups wishing to influence election results by paying those state, county, or other officials overseeing and counting the votes. Specifically, it would prohibit state or county employees or officials from receiving funds, grants, or gifts (outside of the government) for paying election related expenses.

SB258 – No Absentee Drop Boxes for Elections – SUPPORT

By: Sen. Tyler Dees & Rep. Rebecca Burkes

This bill would ban the use of election drop boxes to collect absentee ballots and prohibit delivery of any absentee ballot through a drop box.

HB1422 – Special Tax Credits for Healthcare Professionals – OPPOSE

By: Rep. Lee Johnson

Conduit wants to support any measure which reduces government revenues. However, Conduit does not support bad tax policy. This bill is an annual tax credit (which means it is Arkansas taxpayer dollars paid to a select group of taxpayers) whether they have paid in any Arkansas income tax in that year. This special carve-out would be for licensed physicians, registered nurses, APRNs, NPs, P.A.s, and licensed counselors who also train student health professionals. Upon filing their state income tax return, these individuals could get up to $10,000 per year from the state of Arkansas, whether they had actually paid in any state income taxes.

Conduit has not supported similar tax credits in the past such as the Earned Income Tax Credit proposed by then Senator Jim Hendren, nor has it supported corporate incentive tax credits paid to companies in the name of Economic Development. Conduit has likewise opposed tax policies which favor other special groups such as exempting retired military pay from state income taxes (while taxing other military pay.) We have also opposed reducing tax rates for those who move into the state during their first three years of residency while not reducing taxes for those who did not just move in. Tax credits or tax rate reductions for special groups is bad tax policy.

Also, it should be noted that we see this tax credit as different than the recent bill which increased tax deductions for unreimbursed, on the job expenditures paid by teachers. Increasing those deductions for out-of-pocket money spent for their job simply has the effect of treating them like other taxpayers who deduct on-the job expenditures or like businesses which deduct money spent by them to produce their revenue.

HB1422 is not good, fair tax policy, as this bill grants to the medical profession a carve-out to receive government dollars not provided to others.

Status of Bills Tracked by Conduit on Weekly Scorecard Reports:

OPPOSE

HB1087 – Increased Speeding Tickets + Required Community Service – OPPOSE

STATUS: Withdrawn by Sponsor

HB1189 – New Licensure Regulations/Penalties on Behavior Analysts – OPPOSE

STATUS: Referred to Committee; Hearing scheduled for 2/21/23

HB1237 – Increased Regulations and Costs for Ridesharing – OPPOSE

STATUS: Referred to Committee; no Hearing scheduled.

HB1275 – Banning Access to Paper Medical Records if Online Access Provided – OPPOSE

STATUS: Referred to Committee; no Hearing scheduled.

SB207 – Increased Franchise Taxes; Banning Businesses from Doing Business – OPPOSE

STATUS: Referred to Committee; no Hearing scheduled

SB233/SB234/SB235 – Promoting Election Fraud and Cheating – OPPOSE

STATUS: Referred to Committee; Hearing scheduled for 2/21/23

SUPPORT

HB1012 – Increased Standard Deduction – SUPPORT

STATUS: Referred to Committee; On Deferred Agenda

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

STATUS: Referred to Committee; On Deferred Agenda

HB1026 – Prohibits Cities Enacting a Local Income Tax – SUPPORT

STATUS: Passed House (Vote); Passed Senate (Vote). Sent to Governor.

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

STATUS: Passed House (Vote); Referred to Senate Committee.

HB1032 – Increased Homestead Property Tax Credit – SUPPORT

STATUS: Heard in committee; Chair Eaves did not allow a vote. On Deferred Agenda.

HB1067 – No Residency Requirement for Firefighters – SUPPORT

STATUS: Heard in committee; Failed on voice vote – Rep. Carol Dalby & Municipal League helped kill.

SB5 – Telehealth for Vets – SUPPORT

STATUS: Heard on 1/24/23 in Committee; Opposition from out of state academics, cattle related associations; no vote taken. Amended 2/8/23; Referred to committee.

SB42 – Deregulation on Licensed Counselors – SUPPORT

STATUS: Passed Senate (Vote); Passed House (Vote); Sent to Governor

HB1045 – Repeal of the “Throwback Rule” – SUPPORT

STATUS: Referred to Committee; On Deferred Agenda.

HB1082 – Occupational Therapist Licensing Compact – SUPPORT

STATUS: Passed House (Vote); Referred to Senate Committee; No hearing scheduled.

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

STATUS: Withdrawn by the Author (1/25/23)

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

STATUS: Passed House (Vote); Passed Senate (Vote); Signed by Governor – Act 60 of 2023

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

STATUS: Referred to Committee; No hearing scheduled.