ALEC Policy Champions Increase Flexibility for Workers, Advocate for Taxpayers in Arkansas

ALEC is honored to recognize Arkansas Rep. David Ray, Sen. Ben Gilmore, and Sen. Jim Dotson as ALEC Policy Champions for increasing financial flexibility for workers and advocating for taxpayers in the Natural State.

HB 1517, also known as the Earned Wage Access Services Act, was sponsored by Ray and Gilmore and signed into law this year by Governor Sarah Huckabee Sanders. This legislation establishes a process for employees to receive earned income before their payday. It sets guidelines for providers to follow, including requiring them to disclose all fees for the service, providing a no-cost option, and guaranteeing free cancelation of the service. The law does not require earned wage access providers to be registered or licensed in the State of Arkansas.

HB 1517 resembles ALEC’s model policy, the Earned Wage Access Act. The model policy establishes rules for earned wage access providers, such as making sure that any payments are made without the risk of debt collection, all fees are transparent and prevents providers from requiring mandatory payments or charging late fees.

Ray discussed the need for the reform in the Arkansas House Insurance and Commerce Committee, stating, “Most companies process payroll either twice a month or once a month but for a lot of workers, especially lower and moderate-income workers, they live paycheck to paycheck … Earned wage access exists so that they can better control when they get paid.”

Ray and Dotson sponsored HCR 1002, also signed by Sanders, which urges the United States Congress to permanently extend the Tax Cuts and Jobs Act of 2017.

HCR 1002 lays out how the provisions of that 2017 bill—many of which are set to expire at the end of this year—reduced taxes for individuals and businesses. These expiring provisions include lower personal income tax rates, the near doubling of the standard deduction, and reductions to the Alternative Minimum Tax. HCR 1002 also calls for commensurate spending cuts to avoid increasing the federal debt.

More than 100 million Americans, especially middle- and working-class taxpayers, enjoyed real tax relief under the act. The average middle-income earner saw a tax cut of more than $1,500. The 2017 legislation resulted in a $1.5 trillion net tax cut followed by historically low unemployment, increased business investment, and a $6,000 increase in median household income over two years.

After years of price increases across sectors—from energy to housing to groceries—Americans can ill afford the massive tax increase that would come from Congressional inaction. The resolution sponsored by Ray and Dotson urges Congress to take action before Americans are hit hard, echoing our ALEC Model Resolution Urging Congress to Permanently Extend the Tax Cuts and Jobs Act of 2017.

ALEC congratulates Representative David Ray, Senator Ben Gilmore, and Senator Jim Dotson for their leadership in Arkansas.