How this Report Works:
Conduit will publish our weekly Legislative Report highlighting upcoming bills which affect the economic freedom of all Arkansans.
Similar to 2019, these bills will be considered for inclusion in the annual Conduit for Commerce, Inc. (CFC) Legislative Scorecard published after the Session. This scorecard reviews the Session votes of all 135 legislators. As in prior years, Conduit uses its flag-ship Economic Freedom Filter to determine which bills are appropriate for scoring and whether votes cast are “correct” or “incorrect.”
Each week this Legislative Report will be released to the public and sent individually to all 135 state legislators. It will include new bills and updates on previously reported bills. It is intended as a tool for a better understanding of a bill–what it does, its historical context, its real-world impact, as well as any carefully crafted language used to confuse.
If a legislator reviews these weekly reports before voting, they will learn our analysis and position on these economic bills and whether it: (1) Grows or shrinks government; (2) Increases or decreases dependency on government; and/or (3) Spends money the state does not have. Conduit will also evaluate bills that support or diminish government transparency.
Starting in 2020, “Present” or “Not Voting” votes cast by a legislator may be scored by CFC as an incorrect vote. (This will also be the position of the nation organization, Club for Growth [i], for its 2020 state scorecard.) We strongly encourage legislators to take all opportunities to cast a “yes” or a “no” vote and resist the weaker “less colleague-contentious path” of voting “Present’ or “Not Voting.”
Week 3 Summary of CFA Bill Analysis (see Details below):
OPPOSE
HB1030 – Ensuring Increases in Gas Tax Revenue – OPPOSE
HB1034 – DFA Disclosing of Confidential Tax Records in Certain Circumstances – OPPOSE
HB1038 – Internet Sales Tax on Delivery Charges – OPPOSE
HB1045 – Defines Cigarette Paper to Include Vaping Products – OPPOSE
SB141 – Granting Power Over Election Changes to the Secretary of State During an Emergency – OPPOSE
SUPPORT
HB1211 – Religious Freedom Protected During Emergencies – SUPPORT
HB1215 – Full Practice Authority for Nurse Midwives – SUPPORT
SB153 – Waiving of License, Permit, and Filing Fees for New Businesses – SUPPORT
SB176 – Allowing Pharmacists to Treat Certain Health Conditions – SUPPORT
Bill Details
HB1030 – Ensuring Increases in Gas Tax Revenue – OPPOSE
By: Joe Jett – (R- Success)
This bill would use a new calculation to ensure that gas tax revenues are calculated to always be increasing rather than decreasing. Specifically, if the wholesale price of gas goes down, the tax multiplied by that lower amount would be ignored and, in its place, would be the higher amount from the year before or the highest amount from 2018 to the date of calculation, whichever is higher. This new method of calculation will ensure that gas taxes are maxed out and likely always increasing rather than rising and falling with the wholesale price of gasoline. This would mean no chance of lower tax prices at the pump and ensure Arkansans keep paying higher and higher gas taxes each year.
HB1034 – DFA Disclosing of Confidential Tax Records in Certain Circumstances – OPPOSE
DFA is currently limited in what confidential tax information they can share without a subpoena for those records. This bill would open that up and allow them to disclose records to the Attorney General or a prosecutor without a subpoena. It would also allow disclosure in administrative hearings under the Arkansas Taxpayer Procedure Act and when the DFA Secretary is a party to a lawsuit. It would allow disclosure of information in bankruptcy proceedings, corporate dissolution, and other similar proceedings when DFA is a party. It will allow them to share information with the Department of Workforce Services towards eligibility for pandemic unemployment assistance. The bill also makes the DFA Secretary as the official custodian of records for the department of motor vehicles driver services.
HB1038 – Internet Sales Tax on Delivery Charges – OPPOSE
By: Joe Jett (R – Success)
This bill would make marketplace facilitators (MF) responsible for including the “delivery charges” in the total price on which sales tax is collected and remitted to AR. This is an expansion of the internet sales tax passed in 2019 which only required remote “sellers” to collect the tax on delivery charges. A warning to legislators is to ignore the title “To Clarify” which is always a red herring in bill reading. This implies a “clean-up bill.” Do not be fooled. If passed, this would be a new tax—otherwise, its passage would not be needed. DFA estimates their bill will not produce additional revenue. If passed, it will certainly mean additional revenue coming into the state from those MF who are not including delivery charges as part of the total sales price for calculating internet sales taxes owed. This means a tax increase (more taxes going to government) for Arkansans and their internet purchases.
HB1045 – Defines Cigarette Paper to Include Vaping and Marijuana Uses – OPPOSE
By: Rep. Joe Jett (R – Success)
This bill defines the term “cigarette paper” for purposes of assessing the excise tax on cigarette and other products. It includes a definition that may include vaping and marijuana products[1] as well. One of the definitions of cigarette paper used in this bill includes paper-like products that “by advertising, design, or use, facilitates the use of tobacco or other substances of inhalation”. This appears to incorporate vaping and marijuana products into the definition of cigarette paper since these are not specifically or clearly taxed like cigarette and tobacco products under current law. This is likely a major tax increase as more people have moved to vaping products instead of traditional cigarettes; and marijuana use continues to expand as well.
HB1211 – Religious Freedom Protected During Emergencies – SUPPORT
By: Mary Bentley (R – Perryville)
This bill would ensure churches and houses of worship are not forcefully closed, even during an emergency declared by the government. They will be deemed “essential” and allowed to remain open. It would not allow churches to be singled out like they have been during the COVID19 pandemic as specific gatherings that are restricted in some way. Churches would have to comply with health and safety standards and could not be penalized for remaining open during an emergency. You can learn more about this good bill from Family Council HERE.
HB1215 – Full Practice Authority for Nurse Midwives – SUPPORT
By: Mary Bentley (R – Perryville)
This bill would grant full practice authority for Nurse Midwives to provide healthcare services without having to have a costly and burdensome collaborative practice agreement. A collaborative practice agreement between an advanced practice registered nurse (APRN), such as these Nurse Midwives, and a licensed physician can be costly and prevent APRNs from providing health services that they have been educated and trained to provide. This bill removes those excessive regulations and provides more economic freedom for nurse midwives to practice their trade.
SB141 – Granting Power Over Election Changes to the Secretary of State During an Emergency – OPPOSE
By: Sen Jonathan Dismang (R – Beebe)
This bill would grant procedural rulemaking authority to the Arkansas Secretary of State (SOS), to oversee elections during an emergency. It would allow the SOS to unilaterally determine if the election would be impacted by the emergency declaration and determine whether the SOS needed to change a state law in order to carry out an election. If he or she so finds, then the SOS may then come up with his or her own emergency rules. While the Legislative Council may have to approve an emergency rule, that does not involve the entire legislature; therefore, some constituents would not have representation in the matters that change election laws. Also, if the SOS determines he or she cannot provide notice of the new emergency rule, they can move forward with adopting that rule without giving notice. This emergency rule may last six months and then be extended. Under the U.S. Constitution it is the state legislatures’ job to oversee election procedures and laws. They should not be giving that power to the Secretary of State (or Governor or Courts), even during an emergency. The Legislature is in session now and may change the law to address future emergencies that would include their own actions for calling a special session of the entire legislature to hear potential changes that need to be made during such times rather than giving up that power to an administrative position such as the SOS or Governor. This places too much power and not enough legislative oversight over the integrity of our elections, as has been proven across the US during our most recent national elections.
SB153 – Waiving of License, Permit, and Filing Fees for New Businesses – SUPPORT
By: Sen. Ben Gilmore (R – Crossett)
This bill would waive new license, permit, and filing fees for new businesses opening up in Arkansas. The state must post on their website the availability of this workforce expansion opportunity. A licensing entity would not be allowed to require an initial fee for those families at or below 200% of the federal poverty level. This bill should incentivize new and lower income individuals towards opening a business or beginning their profession in this state without burdensome and costly licenses that prevent them from doing so.
SB176 – Allowing Pharmacists to Treat Certain Health Conditions – SUPPORT
By: Sen. Dave Wallace (R – Leachville)
This bill would allow pharmacists to treat specific, minor health conditions without a person first going to see a doctor or other healthcare professional. These include the flu, strep throat, lice, insect bites, athletes’ foot, ringworm, cold sores, motion sickness, and prescriptions for travel including antimalaria prescriptions. This will allow people to go straight to their pharmacists to be seen for these minor health issues rather than the likely higher cost and longer wait time of seeing a doctor.
[1] https://www.ark.org/dfa-act896/index.php/api/document/download/20170831.pdf
