Get Ready Cause Here I Come to a State Near You ~ Taxes, more Taxes and Obamacare

Only two weeks left in the Arkansas 88th General Assembly Session and what a two weeks it will be. Here is the calendar for just next week~ (http://ow.ly/4iqgE )

Tomorrow the Special Language Committee is meeting and according to statements made by Senator Kim Hendren and Rep. Tim Summers and Russ Carnine at a breakfast I attended Saturday morning, this committee needs to be abolished. Evidently there are some shenanigans that go on in that room that would make even Rod Blagojevich blush. 

The Special Language committee is evidently going to be voting on an unpublished amendment by Rep K Ingram, published here now, tomorrow that would take some $3million from the Land Commissioners budget and use it for special ear marks that are lined out on page 6 , thoughts? you decide~

Also Tomorrow in the Senate Transportation Committee the Diesel Tax, HB1902 is on the agenda. Keep in mind, as posted before, this bill increases Arkansas’ diesel tax to 7.7 cents HIGHER than all of our surrounding states (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi). Diesel taxes are almost entirely passed on to consumers in higher cost of retail goods including food, clothing, office supplies, etc. (according to a Stanford University study conducted in March of 2010.1) For every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents. Because Arkansas has the third highest per capita recipients of social security payments in the United States, just over 20% of our population2, the burden will be felt most significantly by those living on fixed incomes

Another tax to be on the look out for Tuesday is the Hwy Tax HJR1001,  due before the House State Agencies Committee.

If that ain't enough to get your dander up then start looking for the "Head and Shoulders" cause the bill to implement Obamacare in Arkansas I am told is set to run on Wednesday in the House Insurance and Commerce Committee. HB2138 by Rep Hyde which according to an email was amended late on Friday, copy of Amendment here.

Not sure where the Senate twin (SB880) is to this but it hasn't been amended yet. Arkansans beware that they could ram Obamacare thru here in Arkansas in as little as 3 days…”

Bill Adventures~

With more than 2300 bills having been filed this session you can imagine the frenzy with which they are shuttled from the filing stage, through committees,both houses and, if the pass the muster, ultimately to the governors desk .

If you just look at the House Education Committee you will see that they had nearly 100 bills on their agenda for today alone.

The Twitter-verse was filled today with a flurry of activity as it becomes crunch time in the Ole Arkansas Legislature. There is even a bit of a buzz about Saturday Sessions in order to get everything accomplished by April 1st.

Some things to take note of today. Sen. Rapert's SJR4 - the “Taxpayer Protection” Amendment was stopped in the Senate State Agencies Committee. A Tweet directly following this news from Rep. David Meeks was "Msg of the day: Its ok to refer tax increases to the voters but not a taxpayer protection amendment? Really?"

Two other candidates for the 2012 ballot were taken down SJR6 – a bill to limit the total amount of years served to 14 years total by Sen. Bill Pritchard, and SJR7 - the bill to eliminate and consolidate certain constitutional offices by Sen. Robert Thompson.

That committee approved Sen. Hutchinson's SJR2 - the bill that will put the Highway Commission, Game and Fish Commission and the lottery appropriation under the supervision of the state legislature and SJR5 - a bonds bill for cities and counties by Sen Files. 

The Diesel Tax (HB1902) was not heard in the Senate Transportation Committee today. I am not sure what that means or where it stands but will have an update as soon as I know anything~

Charter School Bill (SB346)- a bill that would remove the limitation on the number of open-enrollment Charter Schools, made it out of the Senate today by a vote of 20-10 and is on it's way to the House Education Committee~

Prison Reform (SB750) passed through the House Judiciary Committee and is headed for it's last vote before going to the Governor for his signature into law. (Read more...)

Several appropriation bills failed in the House today, visit the Twitter Feed at the #ARLeg for details.

Some other bills to watch

As I posted earlier today  the Capital Gains Tax Reduction (HB1002) and The Constitutional Offices Transparency Bill (HB1046) will both be heard tomorrow. You still have time to make a difference in helping to cut taxes and promote government transparency. (Read more...)

The Clean Energy Act, SB721 by Sen Sue Madison, was suppose to be heard today but will be heard on Thursday by the Senate Insurance Committee. 

I received an email today that had this letter from Larry Thompson, Financial Services Director for City Water & Light Jonesboro:

"This bill includes a 20%/200mW renewable portfolio standard (RPS) for Arkansas (23-18-904(c)(1)(B)). Each utility would be required to purchase renewables under a tariff based on its load ratio share. These higher-cost renewables will increase our retail rates to families, business and industry.

Since many cities purchase power thru full-requirements, long-term agreements, this renewable mandate may be in conflict with these contracts. The cities which own more than 80% of their needs may find some of their generating capacity effectively “stranded”. This could further increase prices to customers."

Also received this update from the Family Council on 7 Pro-life bills to watch~  

  

An Opportunity to Engage for Transparency and Lower Taxes

Tomorrow will be a big day at the Capitol. This is a wonderful opportunity for you and your friends and family to engage, impacting the future of our state and the economic future of our children.


The Capitol Gains Tax Cut, HB1002  will be heard at 10 am by the Senate Revenue and Tax Committee. Rumors flying that key members will not be present- Please call Committee members and respectfully request they attend and vote.


 Uncommitted Votes:  Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville).  Senate Phone 501-682-2902.


There is also a bill that has been flying under the radar which is a huge step for government transparency, HB1046, TO PROVIDE THAT CASH FUNDS RECEIVED BY CONSTITUTIONAL OFFICERS OR STATE AGENCIES AS A RESULT OF AN AWARD BY THE COURT OR SETTLEMENT AGREEMENT ARE SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY.


It is scheduled for the Senate State Agencies at 10 am as well. 


It is my understanding, that the Attorney General has the majority of discretion currently of where this money is spent, although he told me that the Judges are involved to an extent.


There are millions of dollars that flow in and out of this fund and in the spirit of transparency the tax payers of Arkansas need to know the details of that flow and have more oversight.  


The Arkansas Senate sent a resounding message on transparency yesterday with a unanimous vote for the "online checkbook" This would be an additional step to help bring fiscal responsibility and government transparency to our state. Please call the committee members and ask them to once again stand with Arkansans and support transparency. 

WINNER WINNER~ BUDGET THINNER... AND ONLINE

Today was an EPIC day in the Arkansas Legislature!


By a vote of 5-76-7 the House voted down 113 GIF (General Improvement Fund) request, totaling nearly a BILLION dollars. WAY TO GO!








They also reportedly voted down another 8 bills according to Tolbert Report. In his post today Jason explains what GIF's are and list the other 8 bills (read more...)


And that's not all...


A tweet from Rep. David Meeks this afternoon said "I've been assured that HB1992,the severance tax bill, will be pulled.It has been killed for now. Will let u know if that changes."
You will recall that HB1992 was the "shale tax" bill that I spoke of in my post "I Picked the Wrong Week..." and the committee meeting that was so horrible.


But wait there's more...


Just when you thought it couldn't get any better, HB2060, the bill that was a mandate for union dues to be taken from paychecks and paid directly to the union is being pulled and will be removed from the calendar~ 


AND.... Drum Roll Please

The Arkansas State Senate UNANIMOUSLY voted to approve SB221 the online checkbook bill!


IT IS A GREAT DAY IN THE STATE OF ARKANSAS~ 
PLEASE CALL YOUR REPRESENTATIVES AND SENATORS AND TELL THEM YOU APPRECIATE THEM STANDING WITH ARKANSANS!


AND>>> While you have them on the phone encourage them to vote the rest of this session to GROW JOBS~ NOT GOVERNMENT~ Yes on Capital Gains Tax Cut (HB1002), NO on Diesel Tax (HB1092) and Internet Tax(SB738)

A Note From AFP Arkansas on TAX Issues~

Stand with AFP Arkansas

Grow Jobs NOT Government

Capital Gains Investment Tax Reduction: SUPPORT

When it comes to creating new jobs, Arkansas is at a competitive disadvantage. Texas, Tennessee, Oklahoma, Missouri, Mississippi and Louisiana have eliminated or have reduced the job killing capital gains tax.  Arkansas has the opportunity to do the same by passing HB 1002.  According to the Wall Street Journal, “Businesses in high tax states invest less…and this leads to lower productivity and eventually lower average pay for workers.”  Let’s invest in Arkansas future by growing jobs, NOT government!

Uncommitted Votes:  Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville).  Senate Phone 501-682-2902.

Billion Dollar Diesel Tax INCREASE: OPPOSE

HB1902:  A bill that increases Arkansas’ diesel tax to 7.7 cents HIGHER than all of our surrounding states (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi).  Diesel taxes are almost entirely passed on to consumers in higher cost of retail goods including food, clothing, office supplies, etc. (according to a Stanford University study conducted in March of 2010.¹)  For every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents.  Because Arkansas has the third highest per capita recipients of social security payments in the United States, just over 20% of our population², the burden will be felt most significantly by those living on fixed incomes.

Uncommitted Votes:  Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville).  Senator Jake Files (Fort Smith), Senator Bill Sample (Hot Springs) Call Senate Phone 501-682-2902

1.http://www.gsb.stanford.edu/facseminars/events/applied_microecon/
documents/ame_10_10_marion.pdf
2.Social Security Administration Master Beneficiary Record

Remember, states with more economic freedom grow faster, have better wages and better quality of life.  Let’s get government out of the way and work together to grow jobs, not government!

For Freedom & Liberty,

Teresa Crossland-Oelke
Arkansas State Director
Americans for Prosperity

“Man is not free unless government is limited.” - Ronald Reagan

Update on Internet-TAX

Thought Arkansans would be interested to know what impact the "Internet Tax" our legislators passed through the Senate last week is having in other states such as Illinois. 

Illinois Governor Pat Quinn (D) signed the tax into law on Thursday.  Amazon and other online retailers wasted no time pulling out.

Call your Representatives and let them know you do not want to follow Illinois~

Here are a few stories with the details~ Pay attention Arkansas! 

From Townhall Finance~ Amazon cuts Ill. ties over sales tax collection

 "Amazon.com has made good on its threat to cut ties with Illinois affiliates because of a new law requiring the online store to collect sales taxes.

Amazon notified its Illinois partners Friday that it will stop doing business with them April 15. It calls the tax law "unconstitutional and counterproductive.

Online retailer Overstock.com said later that it also will cut ties with Illinois-based partners beginning May 1.

Gov. Pat Quinn signed legislation Thursday that requires online companies to collect sales taxes on Internet purchases if they have any affiliates based in Illinois. Affiliates are businesses that refer customers to Amazon and Overstock and receive commissions on purchases.

The sales tax always applied to Internet sales. But individuals _ not online businesses _ were responsible for paying it. Few people did.

 From Investors.com Illinois' Illogical Internet Tax

Fiscal Policy: Illinois becomes the latest state to enact a law imposing a sales tax on Internet retailers. Advertised as saving "main street" jobs, it's yet another creative way to drive them off.
Ignoring the truism that when you tax something you get less of it, Illinois Gov. Pat Quinn on Thursday signed legislation making the Land of Lincoln the latest state to enact what's dubbed the Amazon Tax. It's designed to collect state sales taxes from online companies if in-state businesses do business through websites such as Seattle-based Amazon.com.

In the past, online companies such as Amazon avoided collecting and paying state sales taxes, arguing they have no physical presence in a given state. A 1992 Supreme Court decision found that businesses had to collect sales taxes only in states in which they had a substantial physical nexus there.

Amazon has no physical presence in Illinois, but its affiliates — companies that market through Amazon — do.

Illinois now joins Hawaii, North Carolina and Rhode Island in getting around this impediment by considering affiliates as the required nexus. Amazon's in court with New York over a similar law.
According to the Tax Foundation, such taxes do not produce huge revenue streams. "Rhode Island," it says, "has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax."

Illinois has about 9,000 such affiliates, and Rebecca Madigan, director of the Performance Marketing Association, an affiliate trade group, estimates the state will lose 25% to 30% of tax revenues collected from the affiliates themselves as they lose business, cut jobs or move out of Illinois.

"We had opposed this new law because it is unconstitutional and counterproductive," Amazon said in a letter announcing it was severing ties with its Illinois affiliates. Businesses targeted by the new tax are already packing their bags to move to friendlier tax climes.

Until Quinn's action in signing what is called the Main Street Fairness Act, those Amazon or Overstock.com affiliates didn't have to collect the state sales tax as a local store selling the same product must.

Quinn says this law "will put Illinois-based businesses on a level-playing field," putting online retailers under the same tax burden as brick-and-mortar stores.

Likelier, it will simply force businesses to flee the state and leave their brick-and-mortar offices and buildings empty.

I Picked the Wrong Week...

I felt like Lloyd Bridges in Airplane, "I picked the wrong week to stop drinking"... Red Bull...






My youngest daughter, Hannah, and I spent this past week pacing the halls of the state Capitol trying to keep a pulse on what is going on with all the tax increases, tax cuts and new government regulations. 


It started very late Monday night when news spread fast about Governor Beebe hoping to make Arkansas the Flagship for socialized healthcare by being the first state to fully implement Obamacare. (Read more...)


Which, among other reasons, is why Rep Ed Garner chose to not run HB1002, Captial Gains Tax Cut on Wednesday (will run next Wednesday), to allow the focus to be on Sen. Missy Irvin's bill SB 709, a bill that would have required  state agencies to document the expenses they incur to implement the federal health law. That committee meeting (IMHO) was a embarrassment to the system and to our state. (Read why...)


Thursday brought the "Internet Tax" bill that flew threw the Senate 26-7, meaning many thought-to-be conservatives voted YES to this tax increase. (Read more...)

But Friday was the clincher. I was truly feeling the depths of Mr. Bridges' sentiments as I scoured the Capitol for the nearest Red Bull vendor.


Yesterday morning bright and early the "Shale Tax" bill was heard in the House Insurance and Commerce Committee. (scratching my head) One might think that it would be heard by the House Revenue and Tax Committee. Oh wait the House Revenue and Tax Committee is majority Republican....


This meeting was the Coup de grace' of  back room politics. 


(this is a true parenthetical moment ...My brain just did a flash to Tony Soprano saying "I'm in the waste management business. Everybody immediately assumes you're mobbed up. It's a stereotype. And it's offensive... There is no Mafia.")  I'm not sure why that scene just popped into my head, let's continue.


The "Shale Tax" meeting was packed. The media reported 250 but I can tell you if there was one, there were 400. The word was spreading fast that Speaker Moore was considering not running the bill because he felt he did not have the votes, even in this stacked committee, to get a do pass; plus the size of the turn out (and I am not speaking of the number of people).


But he ultimately did and  it was quite the show. Don't take my word for it, watch it for your self here http://arkansas-house.granicus.com/MediaPlayer.php?view_id=2&clip_id=393




I was slinging the Red Bull back one after the other around the time the House convened at 10 am, anxiously awaiting the floor vote on HB1902, another bill Speaker Moore supports, the "Diesel Tax" bill, that would raise the price of diesel fuel on Arkansans an additional .05/gal over the rest of the nation. (Read more...)


In case you haven't heard the diesel tax passed through the Arkansas house 67-24. Once again legislators Arkansans thought they could trust to protect us from additional taxation and government regulations voted to increase the cost of diesel fuel on us by .05/gal. 


Don't be fooled by any rhetoric you hear them justifying it about putting it to a vote of the people, Horse Feathers!, we sent them there with a CLEAR message in November, NO MORE TAXES.




Not only that but with that vote the said yes to spending millions of tax payer dollars to do it. See the powers that be recognize you can't let a good crisis go to waste, when thousands of Arkansans are dying everyday because of lack of good roads and safe bridges. We must implement this tax NOW by holding a SPECIAL ELECTION, which will cost more than 1million tax payer dollars (some estimates I have gotten over the last 24 hours say $2million) EACH time.


I say each time because unbeknownst, evidently, to several who voted for this tax increase, the language in the bill provides that the Governor can run "subsequent" elections if the proposition fails as many times as it takes to pass and as often as every six months (page 10 staring line 7 http://www.arkleg.state.ar.us/assembly/2011/2011R/Bills/HB1902.pdf)


We also know that there will be an "education" campaign from our illustrious protectors, to ensure that every Arkansan knows the urgency that is before us with regards to our roads.


Watch the House vote here~http://arkansas-house.granicus.com/MediaPlayer.php?view_id=2&clip_id=394


Friends, I know you are busy, tired and perhaps feel unable to make a difference. But that is simply not true. If not for the people who have engaged in the past two years all of this stuff would have already been implemented with not a single hiccup. We have been able to shine the light on what has been going on now for decades right under our noses, and we ARE MAKING a difference.


Regardless of what you have been told the government is still run of, by and for the people. The people just need assert their power by the means afforded us in our system, IT WORKS! We just need to work it.


What you can do~

1. Spread this information FAR AND WIDE, make sure those in your spheres of influence    know what is going on, it affects their families too.
2. Find out who your elected officials are and COMMUNICATE with them. Let them know you willing to do the work it takes to come alongside them so they CAN represent YOU according to your beliefs and values
3. Read and investigate. What episode of Glee is more important than the future of your children and the families in our communities.
4. Ask questions. Tons of questions
5. GET INFORMED AND ENGAGED~

If you need help and want a little more direction, call me 501-258-6353, the more people we have seriously involved the faster we get our state on the right track and the more we secure the futures of the next generation.

The Truth about the Diesel Tax

Today the House Public Transportation Committee allowed an increase to Arkansas Diesel fuel to move forward. Speaker of the House, Robert Moore's HB 1902, which would increase the cost to Arkansans for diesel fuel an additional .05 per gallon, sailed through the republican controlled committee on a voice vote with nary a roll call.

The committee has 10 republican members, 3 [Reps. Denny Altes (R-Fort Smith), Gary Stubblefield (R-Branch), and Prissy Hickerson (R-Texarkana.)] of which admitted to blogger Jason Tolbert they voted for the bill. (read details here)

This bill will it the House floor tomorrow afternoon. Here some things you should know and pass on to your representative.

**This information provided by Teresa Oelke, Executive Director of Americans for Prosperity Arkansas.

The Arkansas chapter of Americans for Prosperity opposes HB1902, a bill that increases diesel taxes. Currently, Arkansas has the highest diesel taxes in the region (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi) by 2.7 cents. This measure will increase Arkansas’ diesel tax to 7.7 cents higher than all of our surrounding states.

More importantly, diesel taxes are almost entirely passed on to consumers according to a Stanford University study conducted in March of 2010.[1] According to the study, for every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents. Because Arkansas has the third highest per capita receipiants of social security payments in the United States, just over 20% of our population[2], the burden will be felt most significantly by those living on fixed incomes.

Proponents of this legislation admit the tax increase will pull $100 million dollars in tax revenue each year out of the private sector, one billion over ten years. Each year, that is $60 million in NEW taxes or $600 million in new taxes over ten years taken out of the private sector.

Arkansas AFP will score the vote on HB 1902 on their legislative score card.

Overview

In a detailed study of the effects gas and diesel tax increases have on consumer prices, Stanford University concluded “We find that state gasoline and diesel taxes are on average fully passed on to consumers.”[3] In regards to diesel taxes, “Our base findings indicate that diesel taxes are fully passed on to consumers. Increases in state diesel taxes of one cent per gallon lead to an increase in the state retail price of 1.09 cents.”[i]

In addition to keeping the .04 cent diesel tax that is schedule to sunset; this bill adds .05 cents to the diesel tax, for a tally of .09 cents in diesel taxes increases. This will push Arkansas to have the highest diesel tax in the region by 7.7 cents[4] which puts us at a significant competitive disadvantage.

---

[1] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

[2] Social Security Administration Master Beneficiary Record

[3] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

[4] http://www.easy-tax-information.com/support-files/diesel-fuel-taxes-by-state-january-2011.pdf

[i] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

Internet Tax Passes Through Senate

Some Arkansas legislators are still evidently not convinced that Arkansans were serious in November when we sent a resounding message to stop raising taxes and begin to reign in spending.

Today the Arkansas Senate passed the "Internet Tax Bill", SB 738,  by a vote of  26-7-2. "Yes" votes would include all 20 Democrats and 6 Republicans. 

Many proponents of this bill will tell you it is not a tax increase, which technically is true, BUT the net effect is a tax increase to the consumer on all internet purchases. 

According to a letter sent by Grover Norquist, President of Americans for Tax Reform, to Members of the Arkansas State Senate this bill could put Arkansas at risk of legal action, circumvents the law and negatively impacts in-state business, just what we need given the current economic state. 

I am wondering why the Attorney General has not stepped in to speak against this particular bill given his consistent concern over the state being sued for other bills. Why just yesterday his office spoke against SB709, which failed to make it through committee, sighting that it might place the state in a situation of litigation. 

SB709 would have given transparency to Arkansans when dealing with the implementation of Obamacare here in Arkansas. Read more about yesterday's shenanigans here. 

Here is the entire letter sent to Arkansas Senators by Grover Norquist: 

I write in strong opposition to establishing an affiliate nexus Internet tax in Arkansas under Senate Bill 738. The bill’s intent is to require out-of-state retailers to collect and remit sales tax on products purchased online by residents. However, the realistic outcome of this legislation will do more to negatively impact in-state businesses than it will to level the playing field.

Current jurisprudence, under the Supreme Court’s ruling in Quill v. North Dakota, requires a business to have a physical presence in a state in order for the state to compel that business to collect sales taxes. SB 738 attempts to circumvent this law and require out-of-state retailers to collect tax by presuming a company has a presence if 1) business is solicited through a third-party affiliate in the state, or 2) it is part of a “controlled group of corporations” with another one based the state.

This bill flies in the face of the Supreme Court’s ruling and could bring a lawsuit to Arkansas at a time when the same tax is already undergoing legal challenge in New York.

Senate Bill 738 could inadvertently punish Arkansas advertisers and other businesses. This tax expands the definition of doing business to include an out-of-state retailer that has an affiliate in Arkansas. If having an affiliate in Arkansas creates a nexus for out-of-state retailers, these retailers will likely terminate advertising or other agreements with Arkansas businesses. This is precisely what has happened when similar legislation passed in other states, such as Rhode Island and North Carolina.

If online retailers sever nexus to avoid the tax change, the state will not raise revenue. In fact, should this bill pass and online retailers sever contracts, 1,800 advertising affiliates in Arkansas will lose business and the state will lose the $9 million in state income tax that these affiliates pay.

There are two potential outcomes. If SB 738 is scored assuming no online retailer severs their in-state ties, the bill will be a tax increase that raises revenue and Americans for Tax Reform considers it a violation of the Taxpayer Protection Pledge. If SB 738 is scored to not raise revenue, it assumes out-of-state retailers will sever their ties with Arkansas businesses, causing them and the state to lose revenue without leveling the playing field between brick-and-mortar and online retailers. This is no contradiction – it simply depends on how economic actors react to the tax change. Regardless, both of these outcomes make for bad tax policy, and the more likely outcome makes the intent of this legislation – leveling the playing field – irrelevant.

For these reasons, the affiliate nexus Internet tax has been rightly rejected in at least 14 other states. We urge you to reject Senate Bill 738. If you have any questions, please contact Kelly William Cobb at (202) 785-0266.

 Onward,

Grover Norquist
President, Americans for Tax Reform

New Shale Caucus

A new bi-partisan caucus has formed in the Arkansas Legislature. The Fayetteville Shale Caucus is made up of 16 legislators (there are others joining) that want to protect the economic well-being of the Fayetteville shale from potentially damaging legislation.

The Arkansas Democrat Gazette reported today that "there have been 27 bills filed that would affect natural gas drilling in the state, many of them by Rep. Kathy Webb of Little Rock."

The article also printed this statement issued from the Caucus:

“We all have issues that our constituents want addressed. Sometimes, however, people file bills with good intent that effect the lives and jobs of people not in their district. It’s become pretty clear the Fayetteville Shale Play has become a target for a lot of recent legislation. The Fayetteville Shale is an economic engine that we must protect. Our goal is to protect the economic impact of the affected counties while working with the industry folks to encourage good corporate citizenship. We think we can do that without a ton of legislation. Hopefully, the people will appreciate the bi-partisan cooperation and the unity between members of different chambers.

We, and many of our colleagues, agree that we need to send the right message to the business community that we appreciate their business and can find ways to work pro-actively through issues. The Fayetteville Shale Play is important to the long-term economic future of our districts and also the State ofArkansas. We are confident this will be a constructive working group that will strengthen the relationship between this important industry and the people of Arkansas.”

 TalkBusiness had this to say about the new Shale Caucus:

The Shale Caucus could face their first test tomorrow morning in House Insurance and Commerce. HB 1992, which would eliminate a severance tax reduction for "high-cost" wells, is expected to be considered. The bill could threaten drilling activity in the region, in part due to the low price of natural gas in the commodities markets. More details on that bill and an interview with Southwestern Energy executive Mark Boling, who discusses the economics of drilling as well as some interesting comments on the mystery of earthquake activity in Arkansas, at this link

Members of the Caucus include: 

State Representative Mark Biviano (R-Searcy)

State Representative Robert Dale (R-Dover)

State Representative Jane English (R-North Little Rock)

State Representative Jeremy Gillam (R-Judsonia)

State Representative Andrea Lea (R-Russellville)

State Representative Josh Johnston (R-Rose Bud)

State Representative Stephen Meeks (R-Greenbrier)

State Representative David Meeks (R-Conway)

State Representative David Sanders (R-Little Rock)

State Representative Tommy Thompson (D-Morrilton)

State Representative Linda Tyler (D-Conway)

State Senator Gilbert Baker (R-Conway)

State Senator Jonathan Dismang (R-Beebe)

State Senator Michael Lamoureux (R-Russellville)

State Senator Jason Rapert (R-Bigelow)

State Senator David Wyatt (D-Batesville)

Locomotive Speeds Through Arkansas Capitol

WOW! Did anyone else out here notice that locomotive that roared full-bore through the Senate Public Health Committee  today, as SB709 was set for a visit?

As the engineer (Chairman), Senator Percy Malone, grabbed for the whistle to get the train movin,’ people filed in like slabs of beef in a refrigerator car until there wasn’t an inch of space to spare.

It was quite evident from the strike of the gavel that Chairman Malone was going to ensure a fair and balanced debate this morning…NOT (This means I’m kidding).

The meeting hadn’t gotten a full head of steam when Malone suggested time limits for each side. If he’d had it his way, it was evident to me the committee would’ve passed this stop all together. The meeting began at 10 a.m. and was over just shy of 11, with more than a dozen folks slated to speak. So much for open and reasonable debate in conducting the people’s bidness.

I’ll not belabor the blow-by-blow. However two people I spoke with after the meeting, who had traveled from out of state just to testify for this particular bill, were shocked at the way things went.

Christie Herrera, Director Health and Human Services Task Force at the American Legislative Exchange Council (ALEC), and John Nothdurft, Director of Government Relations for the Heartland Institute both travel extensively to testify before legislative bodies all over the country. They shared with me that, in their experience, neither had felt so “railroaded” before. They each recognized quickly that the committee meeting was nothing more than a formality to a predestined end, regardless of what expertise they each brought to the table. In other words, my friends, the thing had been all planned out beforehand.

It was no surprise that the Attorney General’s office showed to testify against the bill, as did a few other government agencies, to which one observer said and was later tweeted by @AFPArkansas: “What happened today was as follows: the gov’t lobbying the gov't for more gov't.” No truer synopsis of the day.

The end of the tracks for SB709 was a split vote 4-4 straight down party lines.

The bug slinger here was Senator David Burnett (D-Osceola) who,  up until today’s steamrolling, was considered relatively conservative. He ran last November unopposed, I somehow doubt that happens again.

I’m sure the fact that this is Governor Beebe’s pet project had nothing to do with the speed at which engineer Malone ran his locomotive through today’s session. But as with all speeding trains at some point there is a stop. And it can be ugly to watch.

That’s when passengers that have been riding along for long time without feeling appreciated or respected can become quite disgruntled. That usually means they search for find a new carrier who will listen to them and give a whistle about meeting their needs and concerns.

My hope and prayer is that this happens well before this high velocity engine jumps the tracks, leaving untold numbers of Arkansans among the carnage and wreckage. 

As a side note here is a statement released today on this issue from our Lt. Governor Mark Darr:

"I appreciate Senator Missy Irvin’s efforts today to help bring to light the cost of implementing the Patient Protection and Affordable Care Act (PPACA).  Senate Bill 709, would have provided to the legislature as well as Arkansans the total cost of this act to our state, how many individuals will directly be affected and the consequences of not implementing it. As a candidate I traveled the state talking about the importance of government transparency and spoke openly against government mandated healthcare. Senator Irvin’s bill would have simply provided the accountability and transparency citizens demand from our Government. We all have the right to better understand how PPACA is going to affect each and every one of us. I applaud the four Senators who voted for this bill in committee as well as the many citizens who lined the hallways, placed calls and emails in support of this bill.”

Other articles you may want to read on the issue:

http://tolbertreport.com/2011/03/09/sen-irvins-senate-committee-showdown/

http://talkbusiness.net/article/ALL-EYES-TURN-TO-FEDERAL-HEALTH-CARE-AGAIN-UPDATED-/1600/

http://www.curtiscolemaninstitute.com/blog1/?p=1585