Week in Review

State Capitol Week in Review
February 6, 2009
LITTLE ROCK – The General Assembly provided victories for the governor on the two major items in his legislative package, a reduction in grocery taxes and an increase in tobacco taxes.
The Senate approved SB 88 to lower the state sales tax on food by a penny. If it is approved by the House it would lower the grocery tax to 2 cents. Passage of the measure would save Arkansas consumers about $40 million a year at current prices. Those tax savings for consumers would increase every year as inflation drives up the cost of food.
Most news reports say the revenue decrease from the grocery tax cut would be $30 million. That is how much the state's general revenue fund would decrease. However, SB 88 also would reduce revenue in several special accounts for a total revenue loss to the state of $40 million, with an equal savings to consumers.
The lower tax rate would go into effect on July 1 of this year.
The other victory for the governor was passage of HB 1204 in the House. It would raise taxes on cigarettes and smokeless tobacco products and would generate about $88 million a year in new state revenue. The money would pay for a statewide trauma system and a list of health care programs.
The tobacco tax measure now goes to the Senate and the grocery tax reduction goes to the House.
Approval of the tobacco tax increase was made more difficult by a Constitutional provision that requires a super majority of 75 percent for passage. That means it needed 75 votes in the 100-member House and will need 27 votes in the 35-member Senate.
The Senate also passed a measure to prohibit teenaged drivers from using a cell phone while they're behind the wheel of a motor vehicle. Under SB 28, drivers under the age of 18 could not talk on a cell phone or use it for texting or accessing the Internet.
A first offense would bring the offender a citation and a second offense would result in a fine of up to $50. It would be a secondary offense, meaning the police could not pull over a young driver only on the suspicion the driver was talking on a phone.
The police officer could only write the citation after stopping the driver for other traffic violations. A citation for using a cell phone while driving could not be used to suspend or revoke a driver's license.
SB 28 was transferred to the House, which has already passed a similar bill, HB 1119, with stricter enforcement provisions. They are among several bills to restrict the use of cell phones or texting in motor vehicles, and most of them focus on young drivers.
The different sponsors have been working to eliminate conflicting provisions, and thus to improve their chances for final passage of a bill.
The governor signed the Senate bill that makes aggravated cruelty to dogs, cats and horses a felony for a first offense. It is Act 33 of 2009.
The Senate gave final passage to legislation moving the presidential primary from February back to May, when it will be held with primary elections for all other state offices. Combining the dates of the primaries will save the state about $1.7 million.
A bill honoring Arkansas servicemen who are killed in the line of duty was passed by the Senate and is now Act 30. It directs Arkansas state flags over public buildings to be flown at half-staff for three days whenever an Arkansan in the armed forces is killed in action.