Week In Review

State Capitol Week in Review

            LITTLE ROCK – Arkansas school districts applied for state aid in paying for 381 capital projects over the next two years, and 263 of them were approved.

            The Public School Academic Facilities and Transportation Commission distributed more than $212 million to Arkansas schools for projects such as new roofs, heating and air conditioning systems, building renovations and additions.

            Schools will match the state aid with revenue from local sources, with more prosperous school districts matching at a higher rate than poorer schools. 

The legislature created an Educational Facilities Committee in 2003 in response to a state Supreme Court ruling in 2002 that public schools were inadequately and inequitably funded.  The ruling came in the Lake View school funding case.

Since then, the legislature has been closely involved not only in distributing state funding for operations and maintenance of schools, but also in distributing “one time” money for capital projects.  The goal is to ensure that all children in Arkansas have equal opportunities to get a good education, whether they live in poor or prosperous areas.

Before the ruling in the Lake View case, Arkansas school districts relied predominately on local property taxes to pay for facilities and equipment. Even when local voters approved higher taxes, schools in poor areas were unable to build the same quality of facilities as those in prosperous areas.

When the legislature created the Facilities Committee in 2003 to begin the work of making educational facilities more nearly equal throughout the state, one of the first steps was to inventory the existing conditions of public schools across Arkansas.

The inventory required sending teams to assess 1,205 schools that were operating in 5,766 permanent buildings and taking up more than 85 million square feet of indoor space.

One finding was that a little more than 40 percent of the school buildings in Arkansas were built before 1970.

Since 2003, when the legislature approved the first round of appropriations for facilities funding, state aid has been a valuable source of money for school construction and maintenance.

National Prescription Take Back Initiative

            Arkansas law enforcement agencies collected more than nine tons of expired prescription drugs in a national effort to safely eliminate unwanted and unused drugs.  The program was called the National Prescription Take Back Initiative and 122 Arkansas law enforcement agencies took part.

            The state Crime Lab estimated that more than 26.1 million pills were collected.  In the six Take Back initiatives in which Arkansas has taken part, more than 33 tons of expired medications have been collected. This year was the most successful Take Back event for Arkansas authorities.

            Unused drugs in the house are liable to be abused and increase the danger of accidental overdoses and poisonings. It is not a good idea to flush them because many prescriptions drugs don’t break down and create a health risk in public waterways.

            The unused prescription drugs that were collected in Arkansas were transported by the National Guard and the Drug Enforcement Administration to an incinerator in Tulsa, where they were destroyed.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – Thanks to legislation approved during the 2013 regular session, the state will set up an Office of Inspector General charged specifically with investigating fraud and abuse in the $5 billion-a-year Medicaid program.

            Under Act 1499 of 2013, the inspector general must have at least 10 years’ experience investigating fraud, prosecuting fraud, auditing or comparable experience in detecting fraud in the health care industry.

            The act sets up a series of penalties ranging from a misdemeanor to a Class A felony, if it is proven that a medical provider submitted false information in order to claim more than $1 million in Medicaid payments.  The Office of Inspector General will have 33 employees, including an attorney, and will also investigate allegations that recipients knowingly supplied false information in order to fraudulently receive Medicaid services.

            In addition to making criminal referrals, the office also will take legal steps to recover misspent funds.

            Medicaid is administered through the state Human Services Department, the largest single state agency.  There already exists a unit within the department to eliminate fraud and abuse, but a crucial provision in Act 1499 will remove those investigators from within the department, thus making them independent.

            The governor will appoint the inspector general and the Senate must confirm the appointment.  The office will work with local, state       and federal law enforcement agencies.  Audit findings of the Inspector General may be turned over to prosecutors to be used as evidence of suspected criminal acts. 

The Inspector General will have power to issue subpoenas in order to compel the attendance of witnesses to be examined under oath, and to compel people receiving Medicaid funds to produce documents, records and other forms of written evidence.

            The Inspector General’s Office can take legal action to exclude providers and vendors from the Medicaid program, and it will make regular reports to the legislature.  Providers who receive more than $750,000 a year from Medicaid will have to adopt a compliance program, which will outline how billing errors and overpayments are to be corrected.

            Act 1499 becomes effective on July 1.

            Medicaid is a government health coverage program for low-income families, people with disabilities and elderly people who reside in long term care facilities.

            The legislature enacted other laws to limit Medicaid fraud, including Act 1265 to set up a computer system within the Human Services Department for verifying the eligibility of Medicaid applicants.  The system will electronically check the applicants’ income and citizenship status.

            Act 1436 requires the Human Services Department, which administers Medicaid, and the Department of Finance and Administration, which collects state taxes, to share information to make sure that all Medicaid providers have paid their state income taxes.  Providers who have not paid their taxes will be terminated from the Medicaid program.

            Providers include physicians, hospitals, pharmacists, rehabilitation facilities, therapists, businesses that sell or rent medical equipment, dentists, hospices, long term care facilities, mental health professionals, assisted living facilities, nurses, businesses that sell prosthetics, companies that provide testing services such as X-rays and chiropractors.  Numerous other medical fields are included in the list of providers who can be reimbursed by the government for treating Medicaid patients.  

Week In Review

State Capitol Week in Review

            LITTLE ROCK – The Arkansas economy is rebounding modestly, according to finance officials who recently upgraded the budget forecast for state government.

            The administration rarely changes its official forecast for state government revenue.  Before the change made on May 1, it had been November since finance officials revised their estimate of state revenues.  They adjust revenue estimates so that state agencies and institutions of higher education can more accurately plan their budgets.

            Upward changes in the forecast reflect growth in the state’s economic activity, because tax rates remain constant.  Therefore, any growth in revenue is due to growth in the economy and not to higher taxes.

            Net revenues will increase by 2.4 percent this fiscal year, which ends on June 30.  That compares to growth of 3.9 percent in net revenues last year and estimated growth of 1.9 percent next year.

            Forecasts for the U.S. and the Arkansas economies “indicate continued slow economic recovery and subdued inflation,” according to a letter from the director of the Department of Finance and Administration to the Senate and House chairmen of the Joint Budget Committee.

            Arkansas experienced moderate job growth in the private sector over the past year, with additional gains expected in the near future, the letter said. However, the near-term outlook still holds “significant risk of faltering,” it said.

            The letter quotes worldwide analyses that predict continued low inflation, continued low interest rates and falling average energy prices.  One potential drag on the American economy will be continued weakness in Europe.

            The success of economic recovery in Arkansas will depend heavily on a rebound in construction and manufacturing, which suffered in the recent downturn.  Also, potential growth in the steel and metals industry could boost a recover, as could gains in the transportation industry.

            The major sources of the state’s general revenue fund are individual income taxes and sales taxes.  The third largest source is corporate income taxes. Taxes on alcoholic beverages rank fourth, while taxes on tobacco and insurance products are the fifth and sixth greatest sources of state general revenue. Taxes on games of skill rank seventh, and severance taxes on gas, oil and other natural resources are eighth.

            General revenue is the single largest discretionary fund controlled by the state legislature. The state has other sources of revenue, the largest of which are federal matching funds and special revenues.  Federal matching funds have plenty of strings attached, so the state legislature has relatively little control over how they are spent.  The U.S. Congress in Washington determines how they are spent.

            Special revenues are dedicated taxes for specific purposes, such as motor fuels taxes that are spent on highway maintenance and construction.

            Last fiscal year state net general revenue was $4.8 billion.  When this fiscal year ends on June 30 it is projected to be $4.9 billion. Next year it is projected to be $5 billion.

            Last year the state had a surplus of $146 million.  This year the surplus will be an estimated $138 million.  According to the most recent forecast the surplus next year will be $14 million.  A major reason for the reduction in the size of the surplus is that the legislature enacted a package of tax cuts earlier this year, and they will begin taking effect next year.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – Although the governor vetoed three Senate bills that would change Arkansas election laws, several other important election bills were enacted during the 2013 legislative session.

            On April 23, the final day of the 100-day session, the governor vetoed Senate Bills 719, 720 and 721.  If the President Pro Tem of the Senate and the House Speaker agree to call the legislature back into session before May 17, lawmakers could consider overriding the vetoes. 

May 17 is the official final day of the session, and the legislature cannot call itself into session after that date.  Until May 17 the legislature is in recess and the Pro Tem and the Speaker can call legislators back to the Capitol to consider veto overrides.

            Earlier in the session the legislature overrode the governor’s veto of a fourth bill to change election law, SB 2 to require voters to present a government-issued photo ID in order to get a ballot.  It is now Act 595 of 2013.

            People in nursing homes will not have to present a photo ID, but they must be able to prove they are residents of the long term care facility. People who vote absentee must submit a copy of their photo ID.

            Act 1211 limits the size of precincts to 3,000 registered voters.  It also requires absentee ballots and early voting ballots to be counted before the closing of the polls on election day.  Results of absentee voting and early voting must be reported to the Secretary of State no later than 30 minutes after the polls close.

            Act 1085 requires organizations that contribute to referendum campaigns to file financial disclosure reports, listing donors and listing how dollars are spent.

            Act 1413 tightens regulations governing canvassers and organizations that gather signatures to get referenda on the ballot. It sets penalties for canvassers who knowingly sign the names of other people. Canvassers must provide an address, and paid canvassers must disclose their names.  They must sign a form stating that they have read and understood the laws on collecting signatures.  Also, they must submit a recent photo.

            Act 1110 makes prosecuting attorney a non-partisan office. Candidates for judge and prosecutor will be on separate ballots in the May primary elections. Runoffs will be in the November general election.

SB 719 would create a Voter Integrity Unit within the Secretary of State’s office to investigate complaints of voter fraud and irregularities in elections.  The governor said he vetoed it because it would place too much authority in a political office.  Currently, the state Board of Election has authority to investigate allegations of voting irregularities.

SB 720 would authorize the state Board of Election Commissioners to remove county election commissioners who fail to perform their duties.  In his veto letter the governor said the process of removal set forth in the bill was confusing.

SB 721 would expand the state Board of Election Commissioners to nine members.  The governor vetoed the bill because it would give political parties more appointments than they have under current law.

The sponsor of the bills said that the vetoes simply maintained the status quo, and that there should be a method of removing unqualified county commissioners.  He said that he filed the bills to correct problems that came to light last year, when an incumbent legislator pleaded guilty to conspiracy to commit election fraud. 

Week In Review

State Capitol Week in Review

            LITTLE ROCK – Although much about the 2013 legislative session was new and different, it was like previous sessions in the long hours and hectic pace at which legislators worked to finish business on difficult and challenging issues.

            The 89^th General Assembly was the first in 138 years that had a Republican majority.  Another innovation in the 2013 session was how legislators of both political parties used new technology.  With lap tops and smart phones, senators kept in constant touch with constituents and colleagues, even while they were in session in the Senate chamber.

            This year, when senators presented legislation to the body they often brought a hand-held computer so they could reference the bill and ancillary material such as fiscal impact statements and position papers.

However, the Senate is a conservative body that is slow to relinquish old habits, and many senators still carried a stack of paperwork to the front of the chamber when it was their turn to present legislation.

Another legislative tradition remained intact – the difficult decisions were made in the final hours on funding of education and health care. The most time consuming duty for legislator is writing budgets, and in the 2013 session the most difficult budget issue was whether to fund an expansion in health coverage for about 250,000 working adults. 

The legislature approved the “private option” health plan with 75 percent majorities in both the Senate and House. It’s called the “private option” because it takes Medicaid dollars and uses them to purchase private health insurance for people whose yearly income is less than 138 percent of the federal poverty level.

The goal was to not simply expand a government program, as the federal government had initially directed, but instead to provide health coverage through the private sector and thus allow the free market to hold down costs.

The Senate also approved a package of tax cut bills that will save Arkansas taxpayers more than $150 million a year when they take full effect. They include reductions in state individual income taxes, capital gains taxes and sales taxes on energy used by manufacturers, farmers and poultry growers.

Arkansans in the military will not have to pay income taxes on their service pay, saving them more than $7 million a year. Volunteer firefighters who buy their own equipment or have it damaged in the course of duty will qualify for income tax deductions.

The legislature created a revolving loan fund for charter schools to build or renovate facilities.  A new school choice law was enacted, replacing the one that was stricken by a federal judge last year.  Public school will get a 2 percent increase in state foundation aid.

A package of election laws were enacted to ensure more transparency and accountability in the counting of ballots, including legislation requiring voters to present a government-issued photo ID to get a ballot.

Numerous laws were enacted to protect Second Amendment rights, such as legislation protecting the privacy of concealed carry permit holders from disclosure under the Freedom of Information Act.  Another new law allows churches the choice of whether to allow their members with concealed carry permits to bring firearms into church.

Also, this year’s session will be remembered for the number of pro-life bills approved, including legislation prohibiting abortions after 12 weeks of the physician can discern a heartbeat.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – The State Agencies and Governmental Affairs Committee chose three proposed constitutional amendments to refer to voters.  If the legislature agrees with the committee’s decision, the three will be on the 2014 general election ballot.

            One amendment, HJR 1009 would impose stricter ethical standards for public officials, to lessen the influence of special interest lobbyists.

It would prohibit contributions to political campaigns from corporations, and it would prohibit legislators from registering as lobbyists for at least two years after they leave office.

            If the amendment is approved by voters, public officials would not be able to accept gifts from lobbyists. 

The amendment would make slight changes in term limits for legislators.  Under the current term limits amendment, an individual is limited to three terms of two years each in the House of Representatives, and two terms of four years in the Senate.

            The amendment would allow an individual to serve a total of 16 years in the General Assembly.  Those 16 years could all be served in one chamber, or they could be served in a combination of both the Senate and the House.

            In addition, the amendment would create an independent commission to determine salaries of the legislature, judges and executive branch officials.

            A second proposed amendment adopted by the Senate, SJR 16, would tighten standards for organizations that try to place initiated acts and constitutional referendums on the ballot.

            Currently, organizations supporting a ballot initiative must submit a minimum number of signatures of registered voters four months prior to the November general election, i.e., a date in early July. 

Last year it took 62,507 signatures, which represented 8 percent of the number of votes cast in the most recent election for governor.

If signatures are invalidated, the groups can get an extension to collect more.  Under the amendment, the groups could get a 30-day extension but only if they had submitted 90 percent of the required number of signatures.

            This would prevent situations such as what happened last year.  A group in favor of a tax increase submitted petitions on which only 30 percent of the signatures were valid.

            The third constitutional amendment, SJR 7, would grant the legislature power to approve new rules and regulations proposed by state agencies.  Currently, legislators can review but they cannot overturn new rules with which they disagree.

            If voters approve SJR 7, no new rules put forth by executive branch agencies would take effect unless they had been approved by legislators, who answer to the voting public.

Election Laws

            Numerous changes to election laws have been filed this session.  Act 595, to require voters to have a photo ID, has garnered most of the attention.  Others include SB 719 to create a voter integrity unit within the Secretary of State’s office and SB 721 to end the terms of the state Board of Election Commissioners, effective July 1, and expand it from seven to nine members. The Senate approved both bills.

Both the Senate and House have approved HB 1737 to limit the size of a voting precinct to 3,000 registered voters.  The bill also requires that no later than 30 minutes after the polls close on election day, the county board of election commissioners shall report the initial count of early votes and absentee ballot votes to the Secretary of State.

State Capitol Week in Review

            LITTLE ROCK – With the eyes of the nation watching intently, the Arkansas Senate approved legislation to expand health insurance coverage to 250,000 adults.

            Arkansas would be the first state in the union to adopt a “private option” model for implementing the expansion of health care under the federal Affordable Care Act (ACA). 

The federal health care act has generated heated controversy since it was debated at length and enacted by Congress.  It was a politically charged campaign issue in Arkansas and across the country in 2012 and it was a hotly contested legal issue as opponents challenged its implementation all the way to the U.S. Supreme Court.

            The Supreme Court upheld most of the provisions of the federal law, including one that mandates that everyone purchase health insurance.  Poor people will get a subsidy from the federal government to help them pay for insurance.  In its ruling, the Supreme Court allowed states the option of whether or not to expand their Medicaid programs.

            When the 2013 legislative began, the governor initially proposed to expand the Arkansas Medicaid program through the same formula many other states have followed - by adding more people to the list of eligible recipients.

 In this case, they would be working adults whose yearly incomes are less than 138 percent of the federal poverty level.  The governor’s proposal would have set Arkansas against the trend of other Southern states, many of which have indicated they will reject Medicaid expansion.

            However, the Arkansas Senate chose a different approach.  It is not an outright rejection, but neither is it unqualified acceptance of Medicaid expansion.  Rather than simply expand the Medicaid program, the Arkansas Senate voted to use federal funds to pay for private health insurance that low-income families will have to purchase anyway under the federal ACA.

            With this method, the Arkansas Medicaid program is likely to get smaller because SB 1020 will transfer low-income families’ health coverage from Medicaid to a private insurance carrier.

            The measure is SB 1020, the Health Care Independence Act of 2013. The Senate approved it by a vote of 24-to-9.  Another vote will come in the final few days of the legislative session, when an appropriation to fund SB 1020 is considered in separate legislation. 

Appropriations require a 75 percent majority for passage, which in the Senate means 27 votes are needed. 

Tax cuts will share the spotlight as the session winds down.  Senate leadership is working on a package of bills to reduce state taxes by $100 million a year. Bills that have been progressing through the legislature would lower individual income taxes, income taxes paid by active duty military personnel, capital gains taxes, sales taxes on manufacturers’ utility bills, corporate income taxes and sales taxes paid by farms and agricultural businesses.

Another close vote is expected in the House on legislation that would authorize the state to issue $125 million in bonds to help finance a steel mill in eastern Arkansas.  It would employ 525 workers with average salaries above $70,000 a year. 

If enacted, the legislation would mark the first time Arkansas has used economic development bonds for a so-called superproject, under the terms of Amendment 82 to the state Constitution.

The amendment was referred to the ballot by the legislature in 2003 and approved by Arkansas voters in a 2004 statewide election.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – Tax cut legislation advanced in both chambers of the General Assembly.

            The House Committee on Revenue and Taxation advanced HB 1585 to reduce state income taxes.  It would cut the state’s 7 percent income tax rate to 6.875 percent on taxable income of $44,000 and above. The 7 percent rate now applies to taxable income of $34,000 and up.

            The current 6 percent rate applies to taxable income from $20,400 to $33,999 and HB 1585 would apply it to taxable incomes of $20,400 to $43,999. It would become effective for tax year 2014 and subsequent tax years.

            The bill would reduce state general revenue by $28.6 million in fiscal year 2014 and $57.2 million in fiscal 2015, according to the state Department of Financial Administration.

            Also, the committee advanced HB 1966 to lower capital gains taxes. It would create a 70 percent exemption for any net capital gains from the sale of Arkansas real property and Arkansas based businesses if they were made after Jan. 1, 2014.

            It also creates an additional exemption for net capital gains on assets acquired before Jan. 1, 2014. Net capital gains up to $5 million would continue to receive the current 30 percent exclusion, but 70 percent of gains above $5 million be exempted.

            HB 1966 would reduce state general revenue by $3.1 million in fiscal 2014, $10 million in fiscal 2015, $18.3 million in fiscal 2016 and $27.9 million in fiscal 2017.

            The Senate passed SB 108, which would benefit businesses by extending the period in which they can report net operating losses on their income tax, from five to 10 years.  It would apply to losses incurred after January 1 of this year.

            By Fiscal Year 2020, the extended operating loss carry-forward period would save Arkansas businesses more than $13 million a year.  Within four more years the savings to Arkansas businesses would increase to $63.4 million a year.

            Members of the Senate leadership have said that they are working on tax cuts of $100 million.

            Also last week the Senate overrode the governor’s veto of SB2, which requires voters to present a government-issued photo ID.  The bill was sent to the House, which would have to vote to override in order for it to become law.

            The Senate passed three measures to hold down costs and improve the financial integrity of the Teacher Retirement System.  One measure, SB 162, would authorize the Board of Trustees of the system to raise the contribution rate of local school districts from 14 percent to 15 percent if necessary to address a critical funding issue. 

A second bill, SB 123, would authorize the board to raise the contribution rate of working members from 6 to as much as 7 percent if necessary to address a critical funding issue. SB 130 would to allow the board to reduce the $75 a month benefit stipend.

            The three Senate bills were reviewed by the Joint Retirement Committee before the entire Senate voted on them.  Because the Joint Retirement Committee has already reviewed them, they were placed on the House calendar.  That means they will not be referred to committee again, and will be voted on by the entire House.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – As lawmakers turn their focus to fiscal matters, several bills to lower state taxes made steady progress through the legislative process.

            The total amount of tax cuts that will be enacted during the 2013 legislative session is estimated to be more than $100 million a year. Some legislators are pushing for cuts of up to $150 million a year. Arkansas operates under a balanced budget law, so any reduction in taxes will mean a proportionate reduction in state government spending.

            House Bill 1039 would benefit farmers and cattle, catfish and poultry growers.  It would create an exemption from the state sales tax for utility bills and energy consumption in chicken houses, barns and other qualified structures used for agricultural purposes.  Utilities include electricity, natural gas and liquefied petroleum gas.

            The estimated tax savings for Arkansas farmers would be more than $10 million a year when it takes full effect in July of next year.

            The House passed HB 1039 by a vote of 94-to-0.  The Senate has passed SB 463 to exempt the service pay of active duty members of the military from the state income tax. It would save Arkansas members of the armed services about $7.2 million a year. National Guard and Reserve units are included in the exemption.

            Legislative leaders are negotiating with the governor on other tax cuts, including proposals to lower income taxes, capital gains taxes and sales taxes on energy use by manufacturers.

            Also, the legislature advanced several ethics and election reform bills.  Both chambers passed SB 331, which imposes the same ethical restrictions on constitutional officers, state agency heads and judges as are currently imposed on legislators.  They may not register as lobbyists for at least a year after they leave office.

            SB 331 specifically includes officials of the Public Service Commission, which regulates utility companies. 

            HB 1855 makes prosecuting attorney a non-partisan office, which is now the case with judges.  The House approved the bill and sent it to the Senate.

            Both chambers gave final approval to SB 2 and it was sent to the governor. It requires voters to present a photo ID in order to get a ballot, and it sets up a process for voters who cannot afford a driver’s license to get a photo ID from their local county clerk for free.

            The Public Retirement Committee advanced bills intended to solidify the financial stability of the Teacher Retirement System.  One was SB 123, which authorizes the Board of Trustees of the retirement system to raise the contribution rate for working teachers from 6 percent to as much as 7 percent, if necessary to preserve the financial integrity of the system.

            SB 130 authorizes the board to raise or lower the monthly stipend that retired teachers receive, if such a move is required to address a critical funding issue. It began at $50 in 1999 and is now $75.

            Still on the Retirement Committee’s agenda was SB 162, to authorize the board to raise the contribution rate of local school districts from 14 percent to 15 percent of payroll.  Under SB 162, as is true for SB 130 and SB 123, the Board’s authority to lower benefits or raise contribution rates could only be used if necessary to address a critical funding issue.

            Both chambers passed SB 332 to require school districts to contribute at least $150 a month for each participating teacher in the health insurance program.  The current minimum is $131 a month.

Week In Review

State Capitol Week in Review

            LITTLE ROCK – The Senate Education Committee is putting long hours into making sure that Arkansas’ new school choice law strikes the right balance.

            Co-sponsors of the school choice bill want parents to have every opportunity to send their children to the best possible schools in their area, regardless of district boundaries. School choice is good for families, and it also creates competitive incentives for school administrators to improve their schools.

            On the other hand, legislators don’t want to create a system that returns Arkansas to the days of segregated schools.  With this in mind, the Senate Education Committee is hearing from superintendents, attorneys for parents in school choice lawsuits and the state attorney general’s office.  The committee is getting input from parties in the long-running Pulaski County desegregation case.

            Five of the eight members of the Education Committee are co-sponsors of Senate Bill 65, the school choice bill.  Although the co-sponsors could have already advanced SB 65, they are taking the time in committee to make sure they have heard all sides and addressed as many concerns as possible.  The bill has already been amended five times.

            The previous Arkansas choice law used race as a basis for denying some students the opportunity to transfer outside of their resident school districts, and it was stricken as unconstitutional by a federal judge last year.  The judge’s ruling has been stayed, meaning it has not taken full effect, until it has been appealed.

Some educators want to wait until all appeals of that ruling have been decided, which would likely mean the legislature would not approve a bill this session.  However, supporters of SB 65 prefer to be prepared for next school year, rather than do nothing.

             Under the bill, the deadline for applying to a non-resident district would be July 1.  The school would have 30 days to respond.  Students may accept only one transfer per year, and if they changed their minds they would have to wait until the following year to return to their previous school.

            Criteria for accepting or rejecting transfer applications could be the receiving schools’ capacity.  They are under no obligation to add teachers, staff or classrooms to make rooms for students who wish to transfer into the district.  Priority will be given to siblings.

            Districts may not set standards for rejecting applications that include students’ academic achievements or athletic abilities. Nor can the standards include proficiency in speaking English or a student’s disability.  Previous disciplinary records may not be used either, although a student’s prior expulsion can be used.

            Receiving school districts may not discriminate on the basis of race, gender, religion, ethnicity or national origin.

            In related news, the House Education Committee advanced HB 1770, which extends from two to five years the period in which a school district can be in academic or fiscal distress before the state Education Department takes it over.

            Also, the House Education Committee advanced HB 1528, which creates an office within the state Education Department specifically to hear applications for new charter schools. The state Board of Education, which is appointed by the governor and which rules on all charter applications now, would only hear appeals if HB 1528 is enacted.