State Capitol news in brief: Senate OKs change to steel tax credit

Former Democratic Sen. Irma Hunter Brown (right) of Little Rock hugs Sen. Stephanie Flowers, D-Pine Bluff, while Brown is honored for her service to the state during the Senate session Thursday at the state Capitol in Little Rock.
(Arkansas Democrat-Gazette/Staci Vandagriff)
Former Democratic Sen. Irma Hunter Brown (right) of Little Rock hugs Sen. Stephanie Flowers, D-Pine Bluff, while Brown is honored for her service to the state during the Senate session Thursday at the state Capitol in Little Rock. (Arkansas Democrat-Gazette/Staci Vandagriff)

Senate OKs change to steel tax credit

The Senate on Thursday approved a bill that would change the state law providing for an income tax credit for steel manufacturers that purchase certain waste reduction, reuse and recycling equipment.

The Senate voted 30-0 to send Senate Bill 314 by Sen. David Wallace, R-Leachville, to the House for further consideration.

The credit is available to qualified steel specialty products manufacturing facilities that started construction on or after July 1, 2017, with a closing date of July 1, 2023, under state law, the finance department said.

SB314 changes the definition of a "qualified steel specialty products manufacturing facility" to allow a facility with a closing date before Oct. 1, 2023, to qualify for the credit, according to the finance department. The department said the bill is "revenue neutral."

Wallace told senators the measure would lead to a more than $200 million investment by U.S. Steel that would create 150 jobs at an average salary of $75,000 a year.

-- Michael R. Wickline

Pot-tax extension advanced to House

A bill that would extend the sunset date for two years until July 1, 2025, for the 2017 state law mandating all sellers of medical marijuana collect and remit the special 4% privilege tax on sales zipped through the Arkansas Senate on Thursday.

The Senate voted 34-1 to send Senate Bill 419 by Sen. Jonathan Dismang, R-Searcy, to the House for further action.

Extending the sunset clause for the Medical Marijuana Special Privilege Act will allow for continued collection of the privilege tax, the state Department of Finance and Administration said in its impact statement on SB419. The department said medical marijuana special privilege tax collections totaled $16 million in fiscal 2022 that ended June 30, 2022.

The state has collected more than $94 million in tax revenue since the medical marijuana industry launched in mid-2019 with $47,473,853 from the 6.5% state sales tax and $47,252,048 from the 4.0% privilege tax, finance department spokesman Scott Hardin said Wednesday.

Revenue from the 4.0% privilege tax has been directed to UAMS for the effort to obtain a National Cancer Institute designation, and UAMS has received a portion of the revenue from the 6.5% state sales tax on medical marijuana, Hardin said. A total of $62.44 million has been provided to UAMS for the National Cancer Institute effort, he said.

Arkansans voted to legalize medical marijuana in November of 2016, but it took more than two years for the program to get off the ground.

-- Michael R. Wickline

Between-session meetings backed

The Senate on Thursday approved a bill that would require the Senate president pro tempore to call for a meeting of the Senate at least once every three months between legislative sessions to consider recommendations from the Senate Rules Committee regarding confirmation of gubernatorial appointments.

The bill also would authorize the Senate Rules Committee to meet between legislative sessions to consider gubernatorial appointments and make recommendations to the Senate regarding confirmation of gubernatorial appointments.

The Senate voted 35-0 to send Senate Bill 413 by Dismang to the House for further action.

The bill would require the governor to submit the names of all appointments for which Senate confirmation is required by law to the Senate within 10 days following the appointment.

During a regular, fiscal or special session, the Senate would be required to consider confirmation of gubernatorial appointments in accordance with the Rules of the Senate under the bill.

-- Michael R. Wickline

School-abortion ban clears Senate

The Senate on Thursday advanced a bill that would bar a public school or open-enrollment public charter school from knowingly entering into any type of transaction with an individual or entity that offers or provides abortion referrals.

The Senate voted 27-6 to approve Senate Bill 466 by Sen. Jim Dotson, R-Bentonville, sending it to the House for further action.

State law already bars a public school or open-enrollment public charter school from knowingly entering into any type of transaction with an individual or entity that performs abortions, induces abortions or provides abortions.

-- Michael R. Wickline

Bill on bathrooms passes House vote

The Arkansas House on Thursday passed a bill that aims to create a criminal penalty for adults who knowingly enter or remain in a bathroom of the opposite sex to arouse or gratify a sexual desire while knowing a minor who is a member of the opposite sex is present.

Senate Bill 270 by Sen. John Payton, R-Wilburn, advanced with a vote of 83-0 and 9 lawmakers voting present. The measure returns to the Senate for concurrence on a House amendment.

The House Committee on Judiciary adopted an amendment Tuesday that would require a person to remain in a public changing facility "for the purpose of arousing or gratifying a sexual desire of himself or herself or any other person."

Originally the bill would have criminalized instances where a person 18 or older knowingly "enters into and remains in a public changing facility that is assigned to persons of the opposite sex while knowing a minor of the opposite sex is present in the public changing facility."

Members of the committee requested the change after hearing from several opponents who said the bill would target transgender people who already face hostility when attempting to use public facilities.

A person who violates the bill would be guilty of a Class C misdemeanor for sexual indecency with a child.

-- Will Langhorne

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