March 7, 2025

Daily Legislative Update: Friday, March 7, 2025

Photo by Will Newton/Arkansas House of Representatives

Friday, March 7, 2025 – Day 53

TODAY AT THE CAPITOL
The House and Senate are in recess until 1:30 p.m. Monday afternoon. 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.

Yesterday, the Senate adopted a motion to have the Public Service Commission review the bill by 9:00 a.m. on Monday.

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**

WORKERS’ COMPENSATION BILLS

SB 284 – SB 288 – Sen. John Payton
These bills would significantly increase workers’ compensation costs, creating uncertainty for Arkansas businesses and threatening 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 284 – This bill changes the current law, which allows for a one-time physician change, to allow an annual physician change. Employers are required to provide coverage and compensation for all on-the-job injuries, regardless of fault. In exchange, they are allowed to direct care. Established processes within the commission already address situations where a change of physician is needed or requested. Allowing annual changes could lead to “doctor shopping,” disrupt ongoing treatment plans, increase medical costs, extend claim durations, and create unnecessary delays in recovery.
SB 285 – This bill would increase the maximum benefit amount by 2.5 times, setting an annual indemnity benefit cap of $120,000 or $2,300 per week—the highest in the nation. The current weekly benefit maximum is $903, and these benefits are not taxed. This change would place a substantial financial burden on employers and put Arkansas out of line with neighboring states.
SB 286 – This bill would conflate two separate determinations: medical impairment and wage loss. A medical impairment rating is an objective medical diagnosis, while wage loss is already calculated separately based on factors such as job requirements, retraining, and return-to-work status. This change would prolong disputes, increase litigation, and create uncertainty for both workers and employers.
SB 287 – This bill would increase attorney fee caps on medical benefits from $500 to $2,500 for appeals to the commission and from $1,000 to $5,000 for appeals to the Court of Appeals. It would also allow attorneys to claim up to 12.5% of all medical bills as compensation, even for benefits they did not secure. This would lead to significantly more litigation and higher costs, ultimately making the system less efficient and more expensive for everyone.
SB 288 – This bill changes the current law, which allows for a one-time specialty physician change, to allow an annual specialty physician change. Employers are required to provide coverage and compensation for all on-the-job injuries, regardless of fault. In exchange, they are allowed to direct care. Established processes within the commission already address situations where a change of physician is needed or requested. Allowing annual changes could lead to “doctor shopping,” disrupt ongoing treatment plans, increase medical costs, extend claim durations, and create unnecessary delays in recovery. Additionally, many medical specialties in the state do not have enough providers to accommodate such frequent changes.

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.

SB 284 was passed over in the Senate yesterday. SB 285-288 are scheduled for a Special Order of Business, Monday afternoon after the Senate adjourns in the Senate Public Health, Welfare and Labor Committee.

These bills will raise the cost of workers’ compensation insurance for every business in the state. It is in your best interest to make sure your state senator understands how these bills will impact you.

Please contact state senators the rest of the week and over the weekend. To leave a message dial 501-682-2902.

Just ask them to Vote NO on SB 284, 285, 286, 287, 288.

YESTERDAY AT THE CAPITOL
SB 209 and 210 – 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 209 – Disqualifies signatures obtained by a canvasser under specific circumstances. This bill received a “Do Pass” recommendation from the House State Agencies Committee.
SB 210 – Requires petition signers to read the ballot title in the presence of a canvasser. This bill received a “Do Pass” recommendation from the House State Agencies Committee.

NEXT WEEK AT THE CAPITOL

HB 1116 – Rep. David Ray and Sen. Jonathan Dismang
This bill seeks to establish the Remote and Mobile Work Modernization and Competitiveness Act. The bill proposes income tax and withholding exemptions for certain remote and mobile employees as well as nonresidents. It is set for a Special Order of Business in the House Revenue and Taxation Committee next Tuesday, March 11. We support this bill.

HB 1656 – Rep. Rick Beck and Sen. Breanne Davis
This bill amends laws related to oil and gas production and conservation. It is expected to be heard next Wednesday in the House Agriculture, Forestry, Economic Development Committee. We oppose this bill.

PENDING BILLS

The tax committees have started hearing testimony on tax cut bills but are not taking a vote on any that have a revenue impact.

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. It awaits consideration in the House Revenue and Taxation Committee. This bill is part of the State Chamber/AIA tax package. We support this bill.

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

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

SB 390 – Sen. Jane English and Rep. Robin Lundstrum
This bill establishes the State Apprenticeship Agency Act. It awaits consideration in the Senate Education Committee. We support this bill.

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. This bill 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 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 This bill awaits consideration in the House Insurance and Commerce Committee. We oppose this bill.

HB 1069 – Rep. Stephen Meeks
This bill seeks to eliminate Daylight Savings Time and set local standard time year round in Arkansas. If Congress were to pass a law setting Daylight Savings Time for the entire United States, then Arkansas would follow. This bill awaits consideration in the House State Agencies Committee. We oppose this bill.

SB 7 – Sen. Clint Penzo
This will seeks to allow members of the General Assembly to request a sales and use tax report from the Department of Finance and Administration. This bill awaits consideration in the in the Senate Revenue and Taxation Committee. We oppose this bill.

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 awaits consideration on the House floor.

HB 1574 – Rep. DeAnn Vaught and Sen. Kim Hammer
This bill amends the law concerning canvassers by requiring Arkansas domicile. This bill awaits consideration in the House State Agencies Committee.

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. This bill awaits consideration in the House Public Health, Welfare and Labor Committee.

HB 1602 – Rep. Lee Johnson and Sen. Kim Hammer
This bill seeks to amend the Arkansas Pharmacy Benefits Manager Licensure Act and to establish fees and require reporting of certain information by a pharmacy benefits manager. This bill awaits consideration in the House Insurance and Commerce Committee.

HB 1531 – Rep. Brandon Achor
This bill seeks to prohibit pharmaceutical manufacturers from restricting or limiting prescription medication to a limited distribution network of out-of-state pharmacies. This bill awaits consideration in the House Insurance and Commerce Committee.

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

HB 1698 – Rep. Randy Torres and Sen. Jim Petty
Amends income tax law regarding employer contributions to healthcare sharing ministries or medical cost-sharing programs. Referred to the House Revenue and Taxation Committee.

HB 1702 – Rep. Jeremy Wooldridge and Sen. Jim Petty
Modifies sales and use tax exemptions for certain manufacturing machinery and equipment, including a new exemption for closed-loop recycling systems. Referred to the House Revenue and Taxation Committee.

HB 1703 – Rep. Lee Johnson and Sen. Missy Irvin
Establishes a drug reimbursement process for specific healthcare providers. Referred to the House Insurance and Commerce Committee.

HB 1706 – Rep. Austin McCollum and Sen. Bart Hester
Prohibits ranked-choice voting in Arkansas elections. Referred to the House State Agencies committee. We support this bill.

HB 1708 – Rep. Kendon Underwood
The Keep the Bonus, Axe the Tax: The No-Tax Bonus Act. Referred to the House Revenue and Taxation Committee.

SB 397 – Sen. Dave Wallace
Protects confidential personal information of rail employees in reports on railroad fatalities. Scheduled for March 10 Senate Transportation, Technology & Legislative Affairs meeting.

SB 398 – Sen. Clarke Tucker and Rep. Jeremy Wooldridge
Revises initiative and referendum petition laws, introducing a cure period for insufficient submissions. Referred to the Senate State Agencies Committee.

SB 401 – Sen. Justin Boyd and Rep. Brandon Achor
Amends the Arkansas Underground Facilities Damage Prevention Act. Referred to the Senate City, County, and Local Affairs Committee.

SB 403 – Sen. Clarke Tucker and Rep. Howard Beaty
Creates the 2030 Arkansas Complete Count Committee to improve awareness and participation in the 2030 federal census. Referred to the Senate State Agencies Committee. We support this bill.