Arkansas Legislative Update – 3/20/2009

Posted on March 21st, 2009

Date: March 20, 2009
Contact: House Information Office, 501-682-7771
For Immediate Release

Lawmakers nearly done with lottery, ring up grocery-tax cut

      LITTLE ROCK –Both chambers are nearly done with their work to set up the state lottery and the college scholarship program that will be funded by lottery revenues, and another 1 percent cut in the state sales tax on groceries has been signed into law.

      In closing out the 10th week of the session, the House also gave final approval to House Bill 1111, by Rep. Tracy Pennartz of Fort Smith, to cut the 1-cent-per-card tax on bingo games operated by charity to three-tenths of a cent. The original bill sought to eliminate the tax, but the amendment for the three-tenths of a cent will retain enough revenue to pay the expenses of the state Department of Finance and Administration in regulating the games. The bill goes to the governor.

      On the lottery front, the House is one step from approving the Senate’s bill, and the Senate is one step from approving the House’s bill, filed by Speaker Robbie Wills of Conway. Passage is certain for both, as is the governor’s signature. The sale of lottery tickets could begin before the end of the year, and the first scholarship could be awarded for the fall semester of 2010.

      In the meantime, a nine-member lottery commission will be established, with the governor, the Speaker of the House, and the Senate president pro tempore each selecting three members. That commission will hire a lottery director. Together, they’ll decide what sort of games the Arkansas lottery will consist of, including multi-state games such as Powerball. A legislative oversight committee also will be formed.

      The size of the scholarships will be determined by how much revenue is generated by the lottery. Those estimates range from $55 million a year to more than $100 million. As we stand now, the scholarships will range from $2,500 a year to $6,000 a year to attend a four-year university. For two-year schools, the scholarship range will be from $1,250 a year to $3,000. Eligibility requirements include a 2.5 grade point average to get – and then retain – a scholarship. They also will be made available to nontraditional students.

      The legislation also sets a two-year ban on former lottery commissioners from becoming lobbyists for the lottery industry and sets an ethics code for commissioners and employees. Voters approved the lottery in November, and lawmakers have been working on lottery legislation ever since.

      The House also gave final approval to Senate Bill 875 to reduce the sales tax on energy consumed by manufacturers by three-fourths of a cent. Rep. Mike Burris of Malvern presented the bill in the House as a way to save Arkansans jobs. It now goes to the governor. The identical HB 1624, by Rep. David Dunn of Forrest City, has cleared the House but remains in the Senate. The bill will save manufacturers up to $9 million a year.

      All 100 members of the House were co-sponsors of the bill to cut the state sales tax on groceries from 3 percent to 2 percent, leaving no suspense on the outcome of the vote on SB 88. Rep. R.D. “Rick” Saunders of Hot Springs presented the bill in the House. Now signed into law, the cut takes effect July 1 and reduces state general revenue by about $30 million a year. Lawmakers two years ago cut the tax from 6 percent to 3 percent as part of the largest tax cut in Arkansas history.

      Also during the week, the House:

•     Approved HB 2007, by Rep. Barry Hyde of North Little Rock, to require state colleges and universities to go smoke-free by August 1, 2010. About half of the taxpayer-supported schools have already gone smoke-free, and the others have no objections and wanted the legislature’s stamp of approval, according to supporters.
•     Approved SB 38 to raise from 14 years old to 16 the minimum age for operating a personal watercraft, maybe better known as jet-skis. Rep. Steve Harrelson of Texarkana presented the bill in the House. It goes to the governor
•     Approved HB 1256, by Rep. Dan Greenberg of Little Rock, to make it a misdemeanor to be an active and intentional spectator at illegal street races. Those who “promote and assist” the race could face Class B misdemeanor charges, punishable by up to 90 days in jail and a fine of up to $500. The bill had been amended so that an “accidental” observer isn’t punished. The bill goes to the Senate.
•     Approved HB 1578, by Rep. Dawn Creekmore, setting restrictions on sex offenders whose crimes involved computers. The bill allows judges to restrict or even forbid computer usage by those offenders and limits those offenders to one e-mail address or one screen name. There’s an exception for computer usage required at work, and if the computer is provided by the employer.
•     Approved HB 1473, also by Creekmore, requiring the collection of a DNA sample from those who are arrested or charged with capital murder, first-degree murder, kidnapping or first- and second-degree assault. Current law requires a DNA sample only after a person is convicted of a felony.
•     Approved SB 312 to provide defibrillators to public schools, for the resuscitation of heart attack victims. The bill is in honor of a Little Rock youth who collapsed and died during a high school basketball game. The devices will be paid for by the recent increase in tobacco taxes. The bill goes to the governor.
•     Approved HB 1978, by Robert S. Moore Jr. of Arkansas City, to provide a tax rebate for rehabilitating historic structures in Arkansas. The rebate amounts to 25 percent of a project’s cost up to the first $500,000 on income-producing property and up to the first $100,000 on non-income-producing property. There’s a cap of $4 million on total rebates awarded in a fiscal year. The bill goes to the Senate.

Lawmakers on the House and Senate State Agencies and Governmental Affairs committees also have begun their study of proposed constitutional amendments. Up to three proposed amendments on general topics can be referred to a vote of the people each general election. The next general election is in November 2010.

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