Economic incentives on Gov.'s special session agenda

LITTLE ROCK -- A special legislative session focusing on economic development incentives also will include an effort to move up Arkansas' primary, a reorganization of some agencies and a change in the state's driving while intoxicated law, Gov. Asa Hutchinson said Wednesday.

The Republican governor detailed the items that will be on the agenda for next week's session, which he called to take up a package aimed at helping Lockheed Martin land a major defense contract in south Arkansas. Hutchinson last week announced he planned to call the session, which begins Tuesday.

"This limited agenda focuses on job creation and economic development, while highlighting government efficiencies that will ultimately result in savings to all Arkansas taxpayers," Hutchinson said in a statement released by his office.

Hutchinson provided few details on the top agenda item for the session, a proposal to issue bonds to help Lockheed Martin land a contract to manufacture a light tactical vehicle that will replace the Humvee. The Maryland-based company has said it plans to build the vehicles at its facility in Camden, and Hutchinson has said the project would create nearly 600 new jobs.

Arkansas Economic Development Commission Deputy Director Danny Games told lawmakers earlier Wednesday they would see a draft of the proposed incentive package and an independent analysis of the project by the end of the week.

Hutchinson is backing a proposal to move Arkansas' primary from May to March, part of an effort to create a regional presidential nominating contest among southeastern states that supporters have dubbed the "SEC primary." Unlike a bill that stalled in the Legislature earlier this year, the proposal would move up all of Arkansas' primaries and not just the presidential contest.

The proposal also would move next year's legislative session from February to April. Hutchinson spokesman J.R. Davis said the governor is backing the move because it would be revenue-neutral compared to splitting the primaries.

The reorganization proposal includes merging the state's Department of Rural Services along with the Science and Technology Authority with the Arkansas Economic Development Commission, and merging the Arkansas Building Authority with the Department of Finance and Administration.

State highway officials said the change in the state's DWI law is needed to avoid losing more than $50 million in federal transportation funds. The move comes after the state Supreme Court ruled last month that prosecutors must prove intent in DWI cases. The highway department says requiring intent could run afoul of federal requirements the state must meet to receive some highway funds.

Hutchinson's office said the agenda will also include changing state law regarding farm equipment traffic on a new section of interstate highway and correcting technical errors to bills approved earlier this year.

Legislative leaders say they expect support for the economic development incentives, but the SEC primary faces opposition from Democrats and some Republicans who question the need for moving up the state's nominating contests.

"I think there is very little upside to it and tremendous downside to it," said Senate Minority Leader Keith Ingram, a Democrat from West Memphis.

State Desk on 05/21/2015

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