TO: CEOs, Presidents & Legislative Contacts
FROM: Charles M. Miller, SVP / Director of Legislation & Regulation
DATE: March 13, 2009
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Monday, March 9th marked the last day to file regular bills during this session. Consequently, this past week was extremely busy – reviewing the rash of bills filed just under this deadline and working on previously filed legislation.
Rep. Richard Carroll, Green Party-N. Little Rock, has filed House Bill 2218 which would force a lender to allow a renting tenant to remain in a house up to 90 days after the property was foreclosed. It is our position that this legislation is unreasonable, will further lower real property values and drive up borrowing cost. HB 2218 has been referred to the House Committee on Public Health, Welfare & Labor. If you know one of the following committee members please contact them and ask that they vote against HB 2218: Rep. Greg Reep, Rep. Gene Shelby, Rep. Curren Everett, Rep. Roy Ragsdale, Rep. George Overbey, Rep. Eddie Cooper, Rep Willie Hardy, Rep. Pam Adcock, Rep Stephanie Flowers, Rep. Mike Burris, Rep. Nathan George, Rep John Paul Wells, Rep. Fred Allen, Rep. Billy Gaskill, Rep. Eddie Hawkins, Rep. Johnny Hoyt, Rep. Lance Reynolds, Rep. Jon Woods, Rep. Clark Hall, Rep. Tracy Pennartz. Your Representative can be reached at (501) 682-7771 or through www.arkleg.state.ar.us.
Late last week Rep. David Dunn introduced HB 1984 to require agricultural liens be filed with the Secretary of State rather than the County Clerk. Agricultural was left out of the centralized UCC filing system passed several years ago. We feel that it is time for all UCC filings to be submitted through the same office. HB 1984 is pending the House Agricultural Committee.
Rep. Jim Nickels, D-Sherwood, recently filed HB 1935, allegedly to deal with pay-day lenders, and the bill does have an exemption for banks. However, we are very concerned because the exemption is poorly drafted and may not hold up. Furthermore, since the legislation would create a statutory limitation rather than a constitutional one, the language of one or more federal preemption statutes may not apply. There is a lot of opposition to Rep. Nickel’s bill and it is doubtful that it will pass. We will be in touch at the first indication of mounting support for HB 1935.
House Bill 1885 by Rep. Barry Hyde, D-N. Little Rock, would require that hold harmless language in contracts be stated in a conspicuous manner. This legislation may require that numerous contracts be re-written and software updated. We are talking with Rep. Hyde to see if a compromise can be reached so that bank contracts are not affected.
HB 1624 by Rep. David Dunn and SB 875 by Sen. Barbara Horn are identical bills that will reduce the sales and use tax rate on electricity and natural gas used by certain manufacturers. The legislation was introduced in an attempt to give us parity with our surrounding states which charge little or no sales tax of this kind. This has been a long-standing industrial development goal of the Arkansas business community. Both bills have a great deal of support and should pass.
We sincerely ask that you respond when asked to contact a legislator on the industry’s behalf. You, as bankers, are the best tools the ABA has when it comes to our government relations program.