Legislative Update/IIAA Insider - February 15, 2019

 
     

BY STATE CONSTITUTION WE ARE HALF WAY THROUGH WITH THE 60 DAYS REQUIRED... BUT MOST PROBABLY WILL GO TILL EARLY APRIL.
 
We just finished our fifth week and 33rd day of the current legislative session. There have been eight hundred and thirty bills introduced...486 in the House and 344 in the Senate. Although the Constitution calls for a 60-day session, it almost always runs over. The session usually finishes about tax time in the middle of April.
 

COVENANTS NOT TO COMPETE
   
As reported in last week's Legislative Update, HB 1068 by Rep. Brian Evans and Sen. Ricky Hill would repeal all the current statutes pertaining to non-compete agreements. This would, of course, impact hundreds of insurance agencies in Arkansas. The bill has been placed on the deferred list on the House Insurance and Commerce Committee agenda and we continue to have discussions with the bill's sponsor. Rep. Evans is purportedly working on some amendments to the bill. We will follow this closely.


CONSTITUTIONAL AMENDMENTS BY THE DOZENS - 
42 TO BE EXACT

Traditionally, the Arkansas General Assembly would refer three proposed constitutional amendments to the voters. The three would be agreed upon during joint meetings of the House and Senate.

SO, LET THE FUN BEGIN because Wednesday was the last day for Joint Resolutions to be filed that seek to refer issues to the 2020 General Election Ballot. The Senate has recommended 13 proposed constitutional amendments and the House added 29 joint resolutions.
 
The Arkansas State Chamber of Commerce has comprised a list of all Joint Resolutions proposing changes to the Constitution at: https://arkansasstatechamber-my.sharepoint.com/:w:/p/khall/ESKkD4s92exOmQc4FZitD7UBHlKHWP8W9yvV1iYZG_el-g?e=g2cu0h
 
INCOME TAX REDUCTIONS
 
SB 211 by Sen. Jonathan Dismang and Rep. Joe Jett passed the House Thursday afternoon. This is the Governor's plan to reduce the top income tax rate from 6.9% to 6.6% effective January 1, 2020, then to 5.9% effective January 1, 2021.
 
We believe this bill's tax cut will alleviate the tax burden for many businesses in Arkansas, particularly small and growing businesses, which are the ones that we want to thrive and do well, hire more people and invest more capital.       SB 211 will make Arkansas a more competitive state that will be more attractive to investors, business owners, companies looking to locate , expand, grow and serve our people, our markets and the rest of world with products made and exported from Arkansas.


UNEMPLOYMENT INSURANCE

SB 298 by Sen. Kim Hammer and Rep. Robin Lundstrum received a Do Pass recommendation Wednesday from the Senate Public Health, Welfare and Labor Committee.
 
This bill a djusts the amount of wages paid by employers that is subject to the unemployment insurance tax, by calculating adjusted amounts according to unemployment statistics and the fund balance of the unemployment insurance trust fund. If it was in effect today, the wage base would drop from $10,000 to $8,000. It is possible, that by the time the law goes into effect, the wage base could be reduced to $7,000, which is the federally enforced minimum.
 
A bill filed in 2017 reduced the wage base from $12,000 to $10,000. That change produced $43 million in annual savings to employers. Based upon this history, if adopted, SB 298 would save Arkansas employers another $40 to $50 million annually!
 

NEW HOUSE INTRODUCTIONS
  HB 1406  
Allows intermediate driver's license holders to renew their license as a regular license prior to its expiration date, which is currently the date of their 18th birthday.

Enacts "Jacob's Law," redefining "motor vehicle" for the purposes of the Omnibus DWI or BWI Act to include all-terrain vehicles and agricultural vehicles but excluding an enumerated list of devices

 
 

       
Amends the interpretation of state agency rulemaking authority and the legislative review process for those rules. Applies review process to the Workforce Services Dept. and the Public Service, Workers' Comp. And Pollution Control Commission.  
 

 
 

Authorizes local ordinances that permit ATV usage on streets and highways. Requires registration of ATVs and creates the All-Terrain Vehicle Off-Road Trail Fund for fee revenues.
 
   HB 1462 
 Gazaway, Jimmy(R)
  Provides that a person has a cause of action for actual damages or injury resulting from deceptive trade practices, and may recover those damages and attorney's fees.  

 
 
NEW SENATE INTRODUCTIONS

   SB 284
Clarifies the provision for modification of property and casualty insurance policies that are not at the request of the named insured.
 
 
  
 
Authorizes an insurer to renew a policy through an affiliate or subsidiary that has a financial strength rating that is the same or better than the insurer issuing the superseded policy.
 
                            
 
  
 
Makes various changes to the Life and Health Insurance Guaranty Association Act 
 
SB 309  
Prohibits insurance companies from refusing to insure or limiting the amount of insurance available to individuals based on their status as organ donors.
   
 SB 310  
The State Insurance Department's General Omnibus Act.
    
 SB 339  
Prohibits insurers from denying physicians from participating in a provider network, or changing reimbursement levels to physicians who decide to not participate in any form of maintenance of certification.
 
SB 342  
Makes various changes to the Contractor's Licensing Board's authority and procedures for for financial statements, surety bond requirements, and other regulatory functions.
 
 
 

 

CONTACT INFORMATION

 

State Senators: 501-682-2902

State Representatives: 501-682-6211

 

To view schedules, calendars, bill information and legislator information, visit: www.arkleg.state.ar.us.

To view live stream video and audio from the Arkansas House of Representatives, visit www.arkansashouse.org.

 

Independent Insurance Agents of Arkansas phone: (501) 221-2444

IIAA web site: www.iiaar.org

  

 

The Weekly Legislative Update is written by Lynn Zeno;

edited and distributed by Kari McAfee.

  

 
 
As a reminder, the Legislative Update is sent to all IIA of Arkansas members via electronic communications unless you notify us otherwise at [email protected] or by telephone at 501-221-2444
  
The Legislative Update is a publication of the Independent Insurance Agents of Arkansas to members and associate members of this Association. Reproduction, by any means, of material appearing in the Legislative Update is strictly forbidden without permission.