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Daily Legislative Update: Tuesday, March 4, 2025

Date
Category Daily Legislative Update
Photo Courtesy of the Arkansas Senate

Tuesday, March 4, 2025 – Day 50

TODAY AT THE CAPITOL
Standing committees met at 10:00 a.m. The House and Senate will convene at 1:30 p.m. To view committee schedules, agendas, and live streams—including live coverage of the House and Senate—visit www.arkleg.state.ar.us.

 

**CALL TO ACTION – SB 307**

SB 307 – Sen. Jonathan Dismang and Rep. Les Eaves
SB 307 allows Arkansas electric utilities to implement gradual, annual rate adjustments to help fund new power plant construction, rather than imposing large, sudden rate hikes once a plant is completed. Under this bill, utilities can request incremental rate adjustments—known as riders—by filing annually with the Public Service Commission (PSC), which must review and approve them to ensure they serve the public interest. Under this proposal, rate increases cannot exceed 10% below the national average unless justified by economic development benefits.

This bill provides key benefits like:

  • Preventing sudden, steep rate hikes by spreading costs over time.
  • Lowering borrowing costs, leading to more stable, long-term electricity rates for consumers.
  • Supporting economic growth by ensuring affordable and reliable energy.

Why SB 307 Matters:
Arkansas’ electricity demand is rising due to growth in manufacturing, transportation electrification, data centers, and population increases. However, Arkansas lacks surplus power-generating capacity to meet this demand. Without reliable and affordable electricity, businesses may choose to expand or relocate elsewhere. SB 307 helps Arkansas to meet this growing need by allowing utility providers to implement a proactive approach to meeting electricity demand, making Arkansas more attractive for business expansion and preventing companies from seeking locations with more available power capacity.

At a press conference last Wednesday, economic developers from across the state voiced strong support for the bill.

Randy Zook, our president and CEO, emphasized its importance, stating, “Economic growth from higher value-added jobs is right at our fingertips. Electrons equal growth equal jobs equal tax revenue.” He emphasized that this bill is the economic development opportunity of this generation—an opportunity to ensure Arkansas remains competitive in attracting and retaining businesses.

This bill was passed over yesterday and is on this afternoon’s Senate Calendar.

The State Chamber/AIA Executive Committee has voted to support SB 307. The bill is also supported by Gov. Sarah Huckabee Sanders and a bipartisan group of legislators.

**Ask your legislators to support SB 307** 

 

**CALL TO ACTION – SB 284 – 288**

SB 284 – SB 288 – Sen. John Payton
These bills would significantly increase workers’ compensation costs, creating uncertainty for Arkansas businesses and threaten the long-term stability of a system that has served employees and employers for decades. If passed, these changes would drive up costs, prolong claims, and weaken incentives for timely recovery and return to work.

Key Concerns:

  • SB 285 – This bill would dramatically raise the maximum benefit amount by setting an annual benefit cap of $120,000. Compared to the annualized amount of our current weekly benefit maximum would equal on $46,956, which is more than a 2 ½ times increase. This would create a substantial financial strain on employers.
  • SB 286 – This bill would expand wage loss disability benefits in ways that could make the system less predictable, requiring the Workers’ Compensation Commission to estimate an injured worker’s long-term earning potential. This could prolong disputes and create uncertainty for both workers and employers.
  • SB 284 & SB 288 – These bills would allow injured workers to change their physician and medical specialists annually, rather than just once. While access to quality care is critical, these changes could increase medical costs, extend claim durations, and create unnecessary delays in recovery.
  • SB 287 – This bill would raise attorney fee caps on medical benefits from $500 to $2,500 on appeals to the commission level and from $1,000 to $5,000 on appeals to the Court of Appeals. This could lead to more litigation and higher costs, ultimately making the system less efficient and more expensive for everyone.

Arkansas’ existing workers’ compensation system is competitive with neighboring states and provides strong protections for injured workers. These bills would implement changes that will drive up costs, disrupt the system’s stability, and make Arkansas a more expensive place to do business.

A stable and predictable system benefits everyone. This is why we oppose these bills.

All of these bills are all set to be heard in a Special Order of Business in the Senate Public Health, Welfare and Labor Committee on Wednesday.

We oppose these bills and encourage you to contact state senators and ask them to Vote NO on SB 284-288.

 

YESTERDAY AT THE CAPITOL

SB 258 – Sen. Clint Penzo and Rep. Stephen Meeks
This bill seeks to create the Arkansas Digital Responsibility, Safety and Trust Act. This bill was heard yesterday in the Senate Transportation and Technology Committee. It did not receive a motion. Senators on the committee encouraged the sponsor to break the bill into pieces. Randy Zook spoke against the bill, but with AI removed, the privacy parts of the bill could be amended satisfactorily. This bill needs significant amendments.

HCR 1006 – House Speaker Brian Evans and Senate President Pro Tempore Bart Hester
This resolution seeks to extend the session beyond its 60 day maximum and call for adjournment no later than April 16, with sine die adjournment no later than May 5. The Senate concurred in this  Concurrent Resolution 33-1 yesterday.

HB 1413 – Rep. Matthew Shepherd and Sen. Matt Stone
This bill from the state Department of Energy & Environment seeks to amend laws concerning brine production and the formation of brine production units. This bill passed the Senate yesterday 34-0. We support this bill.

SB 208 – 212 – Sen. Kim Hammer and Rep. Kendon Underwood
The following bills from the Secretary of State’s office seek to improve the ballot initiative process:

  • SB 208 – Requires canvassers to request photo identification before obtaining a petition signature. The Senate concurred in House amendments yesterday.
  • SB 209 – Disqualifies signatures obtained by a canvasser under specific circumstances. This bill awaits consideration in the House State Agencies Committee.
  • SB 210 – Requires petition signers to read the ballot title in the presence of a canvasser. This bill awaits consideration in the House State Agencies Committee.
  • SB 211 – Mandates that canvassers submit an affidavit before collected petition signatures can be counted. The Senate concurred in House amendments yesterday.
  • SB 212 – Establishes the Document Validity Division. This bill awaits consideration in the Senate State Agencies Committee.

SB 188 – Sen. Clarke Tucker
This bill seeks to amend Arkansas law concerning initiative petitions and referendum petitions and require public posting of statewide initiative petitions and referendum petitions. This bill passed the Senate yesterday 34-0.

HB 1442 – Rep. Brandon Achor and Sen. Dave Wallace
This bill seeks to set restrictions on pharmacy contracting and conflicts of interest, and to establish pharmaceutical patient freedom of choice. This bill passed the House yesterday 80-8. We have concerns about this bill.

HB 1576 – Rep. Robin Lundstrum and Sen. Joshua Bryant
This bill prohibits the placement of solid waste landfills or transfer stations over Karst topography. A second amendment was adopted yesterday.

 

PENDING BILLS

HB 1500 – Rep. Howard Beaty and Sen. Ben Gilmore
This bill enhances economic competitiveness by repealing the throwback rule. This bill is part of the State Chamber/AIA tax package. We support this bill.

HB 1501 – Rep. Howard Beaty and Sen. Ben Gilmore
This bill adopts federal income tax law regarding depreciation and expensing of property. It increases the allowable amount for expensing certain depreciable business assets to align with federal law. This bill is part of the State Chamber/AIA tax package. We support this bill.

HB 1538 – Rep. David Ray
This bill seeks to extend the state’s existing net operating loss carry forward law from 10 years to 20 years. This bill is part of the State Chamber/AIA tax package. We support this bill.

HB 1500, 1501 and 1538, await consideration in the House Revenue & Taxation Committee.

HB 1446 – Rep. Robin Lundstrum and Sen. Jane English
This bill seeks to amend the Arkansas Workforce Challenge Scholarship Program by adding the ability for scholarship funds to go towards a public or private vocational – technical school or institute in Arkansas. The bill is focused on associate degrees or certificate programs that result in a portable license or certificate in high demand fields including manufacturing, health care trades, information technology, construction trades and logistics and distribution. It awaits consideration in the House Education Committee. We support this bill.

HJR 1014 – Rep. Howard Beaty and Sen. Jonathan Dismang
This constitutional amendment concerns economic development in the state of Arkansas. It authorizes the General Assembly to provide for the creation of economic development districts to promote economic development. This joint resolution awaits consideration in the House State Agencies Committee. We support this bill.

HB 1435 – Rep. Brandon Achor and Sen. Jane English
This bill seeks to amend the law regarding income tax credits for childcare by modifying the employer-provided childcare credit and establishing a new income tax credit for licensed childcare providers. This bill awaits consideration in the House Revenue and Taxation Committee. We support this bill.

HB 1469 – Rep. Howard Beaty and Sen. Blake Johnson
This bill creates the Broadband Expansion and Efficiency Act and a sales and use tax exemption for machinery and equipment used in producing broadband communications services. It awaits consideration in the House Revenue and Taxation Committee. We support this bill.

HB 1560 – Rep. Richard McGrew and Sen. Ronald Caldwell
This bill amends public works contracts law. It requires pricing information for lighting components in public works projects. This bill awaits consideration in the House State Agencies Committee. We oppose this bill.

HB 1150 – Rep. Jeremiah Moore and Sen. Kim Hammer
This bill prohibits healthcare payors and pharmacy benefits managers from obtaining specific pharmacy permits. It awaits consideration in the House Insurance and Commerce Committee. We oppose this bill.

HB 1521 – Rep. Frances Cavenaugh and Sen. Jim Petty
This bill from the Arkansas Economic Development Commission seeks to repeal certain unused, underused, no longer needed or unfunded tax incentives. This bill awaits clarification/modification to the bill before consideration in the House Revenue and Taxation Committee. We support this bill with adjustments to a couple of sections.

HB 1582 – Rep. Mindy McAlindon and Sen. Jane English
This bill requires individuals to meet specific conditions to be eligible for benefits under the Division of Workforce Services law. It awaits consideration in the House Public Health, Welfare and Labor Committee.

 

NEWLY TRACKED BILLS
We added seven bills to our tracking list based on yesterday’s filings. 

HB 1636 – Rep. David Ray and Sen. Jim Petty
Phases out the Arkansas Soft Drink Tax based on sales tax collections from soft drink sales. Referred to the House Revenue and Taxation Committee.

HB 1637 – Rep. David Ray and Sen. Mark Johnson
Requires fiscal impact statements for statewide initiative and referendum measures, as well as legislatively referred constitutional amendments. Referred to the House State Agencies Committee.

HB 1643 – Rep. Carol Dalby and Sen. Missy Irvin
Allows current or former employers to disclose substantiated allegations of sexual abuse or harassment to prospective employers with written consent. Referred to the House Public Health, Welfare and Labor Committee.

SB 351 – Sen. Jonathan Dismang and Rep. Les Eaves
Amends laws related to ethics and campaign finance. Referred to the Senate State Agencies Committee.

SB 353 – Sen. Bart Hester and Rep. Jeremy Wooldridge
Moves the preferential primary election to March and adjusts the date of the fiscal session of the General Assembly. Referred to the Senate State Agencies Committee.

SB 358 – Sen. Jim Dotson and Rep. John Maddox
Amends various laws related to higher education. Scheduled for the  Senate Education Committee.

SB 361 – Sen. Tyler Dees and Rep. Howard Beaty
Creates the Industrial Development Authorities Expansion Act to establish industrial development authorities for securing and fostering economic growth. Referred to the Senate Agriculture and Economic Development Committee.