LEGISLATIVE UPDATE

TO: CEOs, Presidents & Legislative Contacts

FROM: Charles M. Miller, SVP / Director of Legislation & Regulation

DATE: January 30, 2009

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As most of you are aware, the two major initiatives of Governor Beebe and the legislative leadership for this session are a statewide trauma system and laws to facilitate the lottery. While almost all of the lottery discussions continue to be behind closed doors, two bills were filed this week regarding the trauma system. HB 1204 by Rep. Gregg Reep, D-Warren was filed on Monday and would levy an additional tax on cigarettes and other tobacco products to fund improvements to our heath care system. Also this week, Rep. Ed Garner, R-Maumelle introduced HB 1238 designed to fund a statewide trauma system by raising various fines and earmarking existing insurance premium taxes. The ABA is opposed to HB 1238 because it redirects revenue from a tax currently paid by our membership which may well cause that same tax to be increased.

I reported last week on a recent ruling by the Arkansas Court of Appeals in a case dealing with a forged lien release – Pine Meadow Autoflex, LLC v. Susan Taylor. We continue to discuss the problems created by this decision with the Department of Finance and Administration (DF&A). They recognize that much of the fallout could have been prevented by DF&A and are working with us for a regulatory or legislative solution.

We maintain a watchful eye on several other bills like: The Bank Department’s appropriation which is still in the Joint Budget Committee and SB 10 that would move revenue derived from bank assessments away from the control of the Bank Commissioner, which remains in the Senate Revenue & Tax Committee.