Arkansas State Chamber of Commerce

Business Monthly/Policy E-Watch

March 31, 2004

ARKANSANS FOR VOTER RIGHTS: A coalition--Arkansans for Voter Rights--is being formed to support passage of the proposed term limits extension that the legislature referred to the November 2004 ballot. The proposed extension would amend the Arkansas Constitution to allow state senators to serve three four-year terms and state representatives to serve six two-year terms.

The next coalition meeting is set for 9 a.m. Thursday, April 15, in the Bob Lamb Conference Room at the Arkansas State Chamber/AIA offices located at 410 South Cross Street in Little Rock. Everyone interested is encouraged to attend.

A sample resolution and membership form will be available soon on the State Chamber/AIA web site, www.statechamber-aia.dina.org. If you have questions or would like to join the coalition, please contact Angela DeLille at 501-374-9225 or adelille@arkansasstatechamber.com.

PAC DONATIONS NEEDED: During the 2003 legislative session, the State Chamber/AIA was successful in helping pass significant tort reform legislation and in fighting off what could have been huge tax increases to the corporate business community.

To promote the election of pro-business legislators, the State Chamber/AIA is currently working to raise funds for its political action committees (PACs). Our PACs have no administrative costs, allowing 100 percent of the contributions made to the State Chamber/AIA PACs to be spent on pro-tort reform, pro-business candidates.

The opportunity to support pro-business candidates is a primary factor in our ability to accomplish our organizationsÕ mission. Please send your financial support to the State Chamber and/or AIA PACs right away to help in this very important election year. Checks should be made payable to either the Arkansas State Chamber PAC or Associated Industries of Arkansas PAC and mailed to P.O. Box 3645, Little Rock, AR 72203-3645.

A "person" may contribute up to $5,000 per calendar year to each PAC. "Person" includes any individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee, or any other organization or group of persons acting in concert. The name and address of each "person" who contributes more than $500 to a PAC must be reported to the secretary of state.

You can also help by providing information on pro-business candidates in your district. Please send this information to Kenny Hall, vice president for governmental affairs, by e-mail at kenrhall@arkansasstatechamber.com or by fax at 501-372-2722.

SPRING GOLF TOURNAMENT: The State Chamber/AIA Spring Golf Tournament is set for Monday, April 19, at the Lost Springs Golf and Athletic Club in Rogers. Lunch will be served at 11:30 a.m. followed by a 12:30 p.m. shotgun start.

The tournament is another way you can help with our political action efforts. We need teams, hole sponsors, a lunch sponsor, a reception sponsor and prizes. Sponsorship of a flight is $1,000, which includes a four-person team entry and signage. Team/hole sponsorship is $750 and includes a four-person team entry and hole signage. The $500 team sponsorship includes a four-person team entry while the $250 hole sponsorship features hole signage. Mulligans are available at $20 each, with a limit of one per player.

All proceeds from the golf tournament go into our Legislative Fund, which we use to offset unbudgeted lobbying expenses and to self-fund our PACs.

For additional information, please contact Kenny Hall at 501-374-9225 or kenrhall@arkansasstatechamber.com.

ARKANSAS EXECUTIVE SUMMIT: ArkansasÕ leading business and organization executives will discuss developing and implementing winning strategies in a global environment at the second annual Arkansas Executive Summit on Wednesday April 28, at the Statehouse Convention Center in Little Rock.

"Leaders from businesses across the state will come together to discuss how to develop and implement winning management strategies as the role of global competition and business off-shoring continue to increase," said Jim Lilly, director of the Management Education and Development Program for UALRÕs Institute for Economic Advancement.

Presented by UALRÕs Institute for Economic Advancement, the Arkansas State Chamber of Commerce/AIA, Arkansas Capital Corporation and Arkansas Business Publishing Group, the summit, entitled "Strategic Management in a Global Environment," will feature presentations, panel discussions and a keynote speech from John Tyson, president and CEO of Tyson Foods.

Bob Shoptaw, president of Arkansas Blue Cross Blue Shield, will speak on the importance of strategic management while the panel discussions will focus on setting the right strategies and bringing those strategies to life. Panelists include: Randy Cameron, vice president of Global Development for Wal-Mart; Breck Speed, CEO of Clear Mountain Spring Water; Doug Duncan, president and CEO of FedEx Freight; and Marla Johnson-Norris, CEO of Aristotle, Inc.

"Through the summitÕs share-and-learn environment, business leaders can develop strong peer relationships, best practices alliances, and on-going synergies as they face the challenges of an uncertain and constantly transitioning business landscape," Lilly said.

This yearÕs summit will merge with the GovernorÕs Awards for Entrepreneurial Development that is managed by Arkansas Capital Corporation, creating an event highly focused on today's Arkansas businesses and those of tomorrow. Presented by Gov. Mike Huckabee, the awards recognize outstanding student business plans and provide cash awards to allow them to bring their ideas and talents forward, creating tomorrowÕs successful Arkansas businesses, according to Holly Sellers of the Capital Resources Group.

Sponsored by Dassault Falcon Jet, Wal-Mart Foundation, Arkansas Manufacturing Extension Network, Acxiom, Entergy Arkansas, SBC Arkansas, Metropolitan National Bank, Stephens, Inc., Equity Broadcasting Corporation and CJRW Executive Strategies, the Arkansas Executive Summit and Governor's Awards for Entrepreneurial Development begins at 8 a.m. and ends at 1:30 p.m.

For more information or to register, contact UALRÕs Institute for Economic Advancement at 501-569-8569 or e-mail rkdeloney@ualr.edu. Or contact the Arkansas Capital Corporation at 501-374-9242. State Chamber/AIA members can attend at the discounted rate of $95 by indicating on the registration form that you are a State Chamber/AIA member.

CONGRESSIONAL SALUTE: A roundtable discussion on international trade has been added to the agenda for the 45th Annual Salute to the Arkansas Congressional Delegation, which is set for May 1-4 in Washington, D.C.

Leslie Schweitzer, senior trade advisor for the U.S. Chamber of Commerce, will host the discussion at 3 p.m. Monday, May 3, at the U.S. Chamber office.

Other events on that Monday include a 6 p.m. reception and a 7 p.m. banquet at the Capital Hilton honoring delegation members and their staffs. Separate luncheons with Congressmen Marion Berry, Vic Snyder and John Boozman are planned for earlier in the day on Monday, with a breakfast with Congressman Mike Ross set for Tuesday morning.

A registration form with more details is available at http://statechamber-aia.dina.org/events/wash04.doc. For more information, contact Bill Paddack at bpaddack@arkansasstatechamber.com or 501-374-9225.

SMALL BUSINESS AWARDS LUNCHEON: Gov. Mike Huckabee will be the guest speaker at the 14th Annual Arkansas Small Business Awards Luncheon on June 7 at the Wyndham Riverfront in North Little Rock.

The event, sponsored by the State Chamber/AIA, honors the U.S. Small Business AdministrationÕs annual award winners, including advocates in a number of categories. A registration form with more details is available at http://statechamber-aia.dina.org/events/smallbizreg04.doc. For more information, contact Deb Mathis at dmathis@arkansasstatechamber.com or 501-374-9225.

ECONOMIC DEVELOPMENT COURSE: The Mid-South Basic Economic Development Course is less than a month away, and the early bird registration deadline of April 2 is fast approaching. The course is set for April 19-22 at the University of Arkansas at Little Rock.

The course is designed to help participants meet the challenges their communities face in todayÕs new economy, and it provides a general survey of community economic development by focusing primarily on strategies and practices.

This year's course, which is offered by the UALR Institute for Economic Advancement and now accredited by the International Economic Development Council, features more than 20 speakers from Arkansas, Texas, Mississippi, Alabama, North Carolina and Tennessee. They include:

Hugh T. McDonald, President and CEO of Entergy Arkansas.
John Metcalf, Senior Partner of Corporation for a Skilled Workforce in Charlotte, North Carolina.
Janet Miller, CEcD, V.P. of Economic Development for the Nashville, Tennessee, Chamber
Pamela Mundo, CEcD, Executive Director of Mundo and Associates of Rockwall, Texas.
David Rumbarger, CEcD, President and CEO of the Community Development Foundation in Tupelo, Mississippi.
Bill Shelton, CEcD, Managing Director of the Buxton Company of Fort Worth, Texas.

There will also be several speakers from Entergy, the Arkansas Department of Economic Development, UALR and other Arkansas agencies. Several scholarships are still available, but they must be applied for quickly. For a complete description, list of faculty, and downloadable registration and scholarship application forms, please see: www.aiea.ualr.edu/econdev/ or call Dr. Ron Swager or Neva Wayman at 501-569-8519.

VENTURE CAPITAL CONFERENCE: The third annual Arkansas Venture Capital Conference is set for April 13-14 at the Peabody Little Rock. It will feature presentations from companies that have been screened by venture capitalists and demonstrate significant growth potential.

Steve Burrill, CEO of Burrill & Co. of San Francisco will deliver the event's keynote address. He has been very involved in the growth and prosperity of the biotechnology industry for more than 35 years. An early pioneer, Burrill is one of the original architects of the industry and one of its most avid and sustained promoters. He currently serves as board chairman for Paradigm Genetics and Pyxis Genomics.

The conference will offer seminars and workshops addressing timely information of interest to entrepreneurs and private equity investors and their service providers. It furthers the purpose of the Arkansas Venture Forum, which is to bring together resources that can be helpful in advancing promising Arkansas companies.

The cost for the conference is $110 for attendees registering before April 10 and $125 thereafter. To register online, click the link below http://www.arkansasventureforum.com/special_events_and_conferences/2004_arkansas_venture_capital_conference

If you have questions about registration, call Brenda Bennett at 501-975-3000 or Holly Sellers at 501-374-9247 or 800-216-2737.

ARKANSAS LITERARY FESTIVAL: The first-ever Arkansas Literary Festival will be held April 23-25 in the River Market Area of downtown Little Rock.

Hear readings and discussions by your favorite authors and get books signed. Author bios and schedules have both been posted on the web site at www.arkansasliteraryfestival.org.
Find your favorite books, great food, and entertainment - all in one place. Booksellers, publishers, and authors will greet guests from booths at the Riverfront Park West. The concessions area will be host to great food from Arkansas-based restaurants and businesses. Musical entertainment will be onstage throughout the festival.
Bring the kids! Authors, illustrators and storytellers will be scheduled throughout Saturday and Sunday in the ChildrenÕs Reading Tent, while reading-related crafts are created in the nearby Craft Tent.
Support literacy and mingle with authors. Three special events will be held during the festival weekend, including The Author Party, ChildrenÕs Breakfast with Authors and Illustrators, and the "Totally Booked" Literary Gala. Check the web site for details.

NATIONAL ISSUES

This update is from the U.S. Chamber of Commerce "Small Business Matters" newsletter.

STATE LEGAL FAIRNESS RANKINGS: The U.S. Chamber Institute for Legal ReformÕs annual State Liability Systems Ranking Study found that states vary widely in legal fairness. This underscores the need for both federal and state-based legal reform. Trial lawyers flock to courts known for doling out huge awards in frivolous cases. Due to this venue shopping by the plaintiffsÕ bar, small businesses are being embroiled in these suits even if they have a very small degree of responsibility.

States with the best-rated legal systems enjoy an advantage over the lower-ranked states in attracting investment through businesses, jobs, and economic growth. Arkansas is ranked 42nd. To view the rankings from best to worst, please click here.

SURVEY SHOWS OPPOSITION TO NEW FAX RULES: If the Federal Communications Commission (FCC) goes ahead with new restrictions on commercial faxes, it will cost the average small business $5,000 to comply with the paperwork the first year, and more than $3,000 every year after that. More than 27 hours of staff time will be needed to obtain the initial written consent from customers and another 20 hours each year to keep those forms current. Businesses would also end up delaying the completion of projects, and losing current and potential customers. ThatÕs what the U.S. Chamber learned from a recent survey of its small business members to measure the costs of complying with the FCCÕs proposed fax rule.

The FCCÕs proposed rule would restrict the sending of commercial faxes, including those between businesses and their pre-existing customers, without the recipientÕs prior written consent. The survey confirms what the Chamber said when the rule was first proposed: the time burden for the required paperwork far exceeds the FCCÕs estimate of 30 minutes. The FCC is reviewing comments on the proposed rule.

SBA TEMPORARY EXTENSION: President Bush signed H.R. 3915, extending the authorization of the Small Business Administration (SBA) until April 2, 2004.

H.R. 3915 ensures that the surety bond program (enabling small businesses to obtain surety bonds in order to bid on government contracts), SBAÕs co-sponsorship authority (allowing the SBA to partner with the private sector to host events, print publications, etc.), and certain procurement assistance programs to small businesses remain authorized pending the completion of the SBA reauthorization bill (H.R. 2802). H.R. 3915 also authorizes the SBA to charge fees for the 504 or Certified Development Company (CDC) loan program until May 21, 2004. This program operates solely based on the fees charged by the SBA to CDCs and hasnÕt received an appropriation since 1996. Without the fee extension, CDCs wonÕt be able to make the type of long-term loans that small businesses rely on to create new jobs.

The current fiscal yearÕs funding shortfall for the Small Business AdministrationÕs (SBA) 7(a) guaranteed lending program has already precipitated major restrictions on lending. The 504 program was given the short extension to allow Congress to work on a 7(a) fix and then have it reattached. Legislation to raise fees on lenders will provide a short-term solution to fully fund the 7(a) program and provide much needed access to capital for small business owners currently being denied loans.

Restricting small businessesÕ access to capital from the 7(a) program would have an immediate negative impact on the economy and dampen efforts to create jobs. In the long term, the uncertainties of the sizes and numbers of loans available from the program could disrupt current avenues of long-term capital to entrepreneurs willing to invest in starting and growing businesses.

U.S.-AUSTRALIA FTA: Two-way trade with Australia totaled approximately $28 billion in 2002, making it the 13th largest export market for U.S. goods and services. Australia purchases more goods from the United States than from any other country, and the U.S. enjoys a bilateral goods and services trade surplus of $9 billion.

The U.S.-Australia Free Trade Agreement (FTA) is important for American manufacturers and their employees. Over 90 percent of our exports to Australia are manufactured goods. Under the FTA, more than 99 percent of these U.S. manufactured exports will become duty free right away. U.S. manufacturers estimate that eliminating tariffs could result in $2 billion per year in increased U.S. exports to Australia and more jobs for Americans.

Show your support of the U.S.-Australia FTA by joining the free U.S.-Australia FTA coalition, which is making the case to Congress for a strong, bipartisan vote to approve the U.S.-Australia FTA in the weeks ahead. To join, go to www.uschamber.com/media/email/Australia_Join_the_Coalition!.doc or contact Erin Pham at 202-463-5615.

UNION "SALTING" OF SMALL BUSINESSES: In order to put a stop to "salting," the U.S. Chamber testified in favor of H.R. 1793, the "Truth in Employment Act of 2003," which removes any requirement that an employer hire any person who is not a bona fide employee applicant. "Salting" is the act of deliberately inserting a union organizer, or "salt," into a non-union company. The "salt" applies for a position with the company, not always notifying the small business owner of his or her union status. The purpose is either to establish support for unionization or simply to disrupt the business and its employees. In most cases, the "salt" is paid for his or her services by a local union of which he or she is a member.

Once the "salt" is exposed as such, employers can either hire the applicant, often leading to a disruption in the business, or, fearing that, reject the application and face charges of unfair hiring practices with the National Labor Relations Board. These charges often lead to a long and costly litigation process that becomes an enormous financial burden for the company. In more than one case, this process has driven the company out of business.

HOUSE PASSES PTO MODERNIZATION ACT: The House overwhelmingly passed bipartisan legislation that will streamline and modernize the Patent and Trademark Office (PTO). H.R. 1561 would raise patent fees by an average of 15 to 25 percent across the board. The new fee schedule is designed to better cover the costs of the agency in processing patent applications and to fund PTOÕs strategic plan.

A managerÕs amendment approved by voice vote applies a 50 percent discount in all patent search fees for "small entities." Those search fees would also be suspended after six years. There would also be a joint study by PTO and the Small Business Administration (SBA) on the impact of the billÕs new fee structure on small entities. The amendment also included compromise language that would establish a PTO reserve fund for any fees collected by PTO in a given fiscal year that exceed CongressÕ appropriation to PTO that year.

Increased funding for PTO should reduce the time it takes to complete the patent application process and improve the overall quality of those patents that are issued. Enactment of this legislation will enable businesses to better protect their intellectual property.