Religious freedom legislation passes
The Senate voted Thursday to send Gov. Sarah Huckabee Sanders a bill that is intended to strengthen religious freedom protections in state law.
The Senate voted 28-4 to approve House Bill 1615 by Rep. Robin Lundstrum, R-Elm Springs.
Lundstrum told the Senate Judiciary Committee on Wednesday that the bill would update definitions in the state's 2015 Religious Freedom Restoration Act and codify legal precedent to prevent the state from discriminating against religious organizations.
Opponents of the bill counter that it's unnecessary.
House Democratic leader Tippi McCullough of Little Rock told the House on Monday that the legislation includes a "massive rewrite of our civil rights code." She pointed to a section of the bill that would allow a person to use a future violation of their religious exercise as a claim or defense in a judicial or administrative proceeding regardless of whether the government is a party to the proceeding.
In November, Arkansas voters narrowly rejected a proposed religious freedom amendment to the state constitution. The amendment would prohibit state and local governments from burdening people's ability to practice their religion unless there is a compelling reason to do so.
-- Michael R. Wickline and Will Langhorne
Senate advances 'throwback' bill
The Senate on Thursday approved a bill that would gradually phase out the "throwback rule" on business income over a seven-year period.
The gradual phase-out would begin in the tax year starting on or after Jan. 1, 2024, and be complete in tax year 2030, under House Bill 1045 by Rep. Howard Beaty, R-Crossett. Beaty said the bill would make the state more attractive to manufacturers and distributors.
The Senate voted 32-0 to send the bill to the governor.
Under current state law, a multistate corporation that conducts business in Arkansas must calculate Arkansas income tax through a formula based on its total sales in the state, the finance department said in a written impact statement on HB1045. A multistate business is required to include "unreported" out-of-state sales in its sales in this state. Thus, all sales must be reported somewhere or else a taxpayer would have untaxed "nowhere" income. "Nowhere" sales are recaptured under Arkansas Code Annotated 25-51-716.
Under that state law, for the purposes of calculating corporate income tax, sales of tangible personal property are "in this state" if the property is delivered to a purchaser within Arkansas, the finance department said. Sales also are considered to be "in this state" if the tangible personal property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government or the taxpayer is not taxable in the state of the purchaser, according to the finance department. This is known as the "throwback rule."
HB1045 is projected by the finance department to reduce general revenue by $10.6 million in fiscal year 2024 and ultimately reduce general revenue by $74 million a year in fiscal year 2030 and thereafter.
-- Michael R. Wickline
DHS medical bill sent to governor
The appropriation for the state Department of Human Service's Division of Medical Services for fiscal 2024 zipped through the Arkansas House of Representatives on Thursday
The House voted 95-3 to send Senate Bill 53 to the governor.
The bill would grant the division up to $9.9 billion in spending authority for grant payments, up to $12.8 million for personal services and operating expenses, up to $4.5 million for nursing home closure costs, up to $4 million for nursing home quality care grants, and up to $100,000 for the payment of expenses of long-term care facility receivers in fiscal year 2024.
Rep. Lane Jean, R-Magnolia, who is co-chairman of the Joint Budget Committee, said the additional revenue earmarked in Arkansas Department of Human Service's budget will depend on how many Medicaid recipients are removed from the rolls because they are no longer eligible for the program, before the start of the 2024 fiscal year on July 1.
The Division of Medical Services appropriation often struggles to get the required three-fourths vote for approval in the House and Senate because it includes spending authority for the state's Medicaid expansion program that provides health care coverage to more than 300,000 low-income Arkansans.
-- Neal Earley and Michael R. Wickline
Security proposal for official OK'd
The Arkansas House on Thursday approved an appropriation that would change state law so the Arkansas State Police would no longer be responsible for the safety and security of the lieutenant governor and the elected official's family.
The House voted 95-0 to approve Senate Bill 18, sending it to the governor.
Act 422 of 1973 requires state police to provide security for the governor and lieutenant governor and their families. Lt. Gov. Leslie Rutledge was sworn in as the state's lieutenant governor Jan. 10 after serving the previous eight years as attorney general.
SB18 also authorizes the addition of two security officers with maximum-authorized salaries of $75,000 in the lieutenant governor office's appropriation for fiscal 2024, which begins July 1. The appropriation totals $543,438, and includes a chief of staff/legal counsel, communications/policy director and executive assistant/scheduler in the office.
-- Michael R. Wickline
House backs ban on cannabis mix
The Arkansas House of Representatives voted Thursday to approve a bill that would make certain kinds of cannabis products illegal.
The bill bans tetrahydrocannabinol, also known as delta-8, a psychoactive substance found in cannabis. The substance is used in several cannabis products, including those that have CBD, a cannabis compound that is legal in Arkansas.
Rep. Jimmy Gazaway, R-Paragould and sponsor of Senate Bill 358, said Wednesday the bill "simply bans unregulated products that are hurting people."
Under the bill, Delta-8 and similar substances such as Delta-9 and Delta-10 will be classified as Schedule VI controlled substances, the same designation recreational marijuana has under state law. The House voted 82-4 in favor of the bill, sending it back to the Senate for further consideration of two House amendments to the bill.
-- Neal Earley