Nevada County Picayune and Gurdon Times Newspaper Archive

Legislative Action In '99

The Arkansas General Assembly, during the 1999 legislative session, enacted laws to deregulate the electric power industry and to allow voters to reform the state property tax system.

Other highlights of 1999 were the approval by voters of a $575 million bond issue to pay for improvements to four-lane highways across Arkansas and changes to juvenile justice laws.

Competition among power companies for retail sales of electricity could begin as soon as January 1, 2002, and no later than June 30, 2003, under the provisions of Act 1556 of 1999. The act is meant to provide consumers the benefits of competition, such as improved service and lower rates.

The act is expected to provide a tremendous boost to economic development efforts for several reasons. First of all, industrial recruiters can lure companies with the promise of competitive electric rates. Manufacturers that consume a lot of power will be in a good position to negotiate favorable contracts with utility companies.

Also, it is important to power companies and to manufacturers to have a stable regulatory environment. The passage of Act 1556 means that the state's manufacturers know with certainty the future price of electricity, which is often a significant portion of the cost of doing business. Many other states have yet to create a competitive environment and their electric power industry is strictly controlled by utility regulators.

Property tax rates and assessments can vary widely from county to county within Arkansas.

The system has created considerable controversy in recent years, and has prompted efforts by some groups to try to totally abolish property taxes. Such a move would require a constitutional amendment, which voters would have to approve in a general election.

In 1999 the General Assembly worked at length to write a proposed amendment that would reform the property tax system while protecting revenues for schools, city and county governments, libraries and institutions of higher education.

The legislative proposal would limit increases in assessments, freeze assessments on property owned by senior citizens and provide tax credits to offset homeowners' property taxes. It also would require regular reassessments, at least once every five years, so that assessments and collections of property taxes remain equitable. The measure will be on the ballot in the November general election.

In June voters overwhelmingly approved the issuance of bonds to accelerate repairs to worn-down interstates in Arkansas. The bonds will be paid off with federal funding the state is to receive in future years. Also, revenues from an increase in diesel fuel taxes are pledged to pay off bonds.

Highway officials say that bonds will allow completion of construction projects within four or five years. The same projects would have taken more than 10 years to complete under the old 'pay-as-you-go' system of paying for highway repairs. Arkansas has 589 miles of interstate highways and the bonds will pay for improvements to 372 miles of the worst parts.

The legislature enacted important changes to our juvenile justice laws in Act 1192 of 1999. The most significant change in the new law is a provision allowing prosecutors to seek extended prison sentences when juveniles commit particularly horrible crimes. Previously, juveniles were released at the age of 18.