Daily Legislative Update: Monday, March 31, 2025
Photo by Will Newton/Arkansas House of Representatives
Monday, March 31, 2025 – Day 78
LEGISLATIVE SCHEDULE
The Senate Education Committee will meet at 9:30 a.m., followed by the Senate Judiciary and Senate Revenue and Tax Committees at 10:00 a.m. The Senate Transportation, Technology, and Legislative Affairs Committee is scheduled to meet at 10:00 a.m. and again after adjournment. The House and Senate will convene at 1:30 p.m. The House Insurance and Commerce Committee and the House State Agencies Committee will meet after adjournment.
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
Ask state senators to OPPOSE SB 284, 285, 286, 287, 288, and 418.
These bills affect all employers, not just businesses. Colleges, K-12 schools, state, county, city governments and non-profits will also be faced with increased costs.
SB 285 is on today’s Senate calendar. SB 284 and 288 await consideration on the Senate floor.
SB 284 and SB 288 would change the ability to switch physicians and specialists from a one-time option to an annual allowance. Following a March 19 amendment, SB 285 would raise the maximum weekly benefit from $903 to $1,923, making it the fifth highest in the nation.
SB 286 and 287 have been put back on the Senate Public Health, Welfare and Labor Committee’s agenda, which meets tomorrow.
SB 286 – Expands wage loss disability benefits in ways that would make the system less predictable. Currently, those benefits are largely determined on objective measures that derive the percentage of impairment, as assigned by a physician, and applied to the rate schedule. This bill would allow the Workers’ Compensation Commission to be able to increase those benefits, over and above the schedule, based on subjective criteria that includes age, education, work experience, and “other matters.” According to the National Council on Compensation Insurance (NCCI), this bill will result in an “indeterminate increase in cost to the system.”
SB 287 – Increases attorney fee caps for medical benefit appeals, which are currently capped at $500 for appeals to the commission and $1,000 for appeals to the Court of Appeals. It also allows attorneys to claim 12.5% of all medical bills, even if they had no involvement. This could drive excessive litigation, raise costs, and reduce system efficiency.
Why Do These Bills Matter?
- Workers’ Compensation is one of Arkansas’ most competitive business cost elements. It is a key measure of our overall economic standing compared to other states.
- The cost of doing business is one of the top five factors influencing investment location decisions.
- These bills will undermine recent years’ improvements in operating costs through tax reductions.
- In short, these bills will undermine all of the State’s efforts to attract business and industry and create and maintain jobs.
- Any one of these bills alone will increase the cost of doing business; passing more than one of these bills will make that exponentially worse
- Employers are already on edge because of concerns with the economy. Common sense dictates that we do not impose additional costs on them during this uncertainty.
**Please contact your state senators and ask them to Vote NO on these bills.** To leave a message dial 501-682-2902.
Click HERE to view a ONE-PAGE SUMMARY of these bills.
AT THE CAPITOL: A SYNOPSIS OF WHAT YOU NEED TO KNOW
Bills on Floor Calendars Today
SB 285 – Increase the workers’ compensation maximum weekly benefit from $903 to $1923, the fifth highest in the nation. Senate calendar. We oppose this bill.
HB 1444 – Seeks to amend the sales and use tax exemption for data centers. Senate calendar. We support this bill.
HB 1571 – Amends the Arkansas Adult Diploma Program Act. House calendar. We support this bill.
SB 403 – Seeks to create a complete count committee for the 2030 census. House calendar. We support this bill.
Bills on Committee Agendas Today
SB 258 – Known as the Arkansas Digital Responsibility, Safety, and Trust Act, it seeks to address technology privacy and artificial intelligence (AI). Senate Transportation, Technology, and Legislative Affairs Committee. We oppose this bill.
HB 1150 – Seeks to restrict healthcare payors and pharmacy benefits managers from obtaining specific pharmacy permits, which could limit market competition. House Insurance and Commerce Committee. We oppose this bill.
HB 1797 – Seeks to amend the law concerning the Arkansas Development Finance Authority. House State Agencies Committee. We support this bill, which was brought by the Arkansas Economic Development Commission.
HB 1706 – Prohibits ranked choice voting. House State Agencies Committee. We support this bill.
HJR 1014 – Seeks to create economic development districts. House State Agencies Committee. We support this bill, which was brought by the Arkansas Economic Development Commission.
SB 5 – Establishes a criminal offense for prescription drug harm or homicide Senate Judiciary Committee. We oppose this bill.
SB 6 – Introduces a criminal offense for vaccine harm. Senate Judiciary Committee. We oppose this bill.
SB 7 – Seeks to grant legislators the ability to request sales and use tax reports. It failed in committee before spring break but is back on the committee agenda. We have concerns about confidentiality and business privacy. Senate Revenue and Taxation Committee. We oppose this bill.
HB 1069 – 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, Arkansas would follow. This bill was defeated in committee before the break but is back on the committee agenda. House State Agencies Committee. We oppose this bill.
Tomorrow at the Capitol
HB 1750 – Repeals the franchise tax. House Revenue and Taxation Committee. This bill is part of our tax package. We support this bill.
SB 390 – Creates an apprenticeship program. House Education Committee. We support this bill.
SB 286 – Expands wage loss disability benefits in ways that would make the system less predictable. Currently, those benefits are largely determined on objective measures that derive the percentage of impairment, as assigned by a physician, and applied to the rate schedule. This bill would allow the Workers’ Compensation Commission to be able to increase those benefits, over and above the schedule, based on subjective criteria that includes age, education, work experience, and “other matters.” According to the NCCI, this bill will result in an “indeterminate increase in cost to the system.”
SB 287 – Seeks to increase attorney fee caps for medical benefit appeals in workers’ compensation cases, which are currently capped at $500 for appeals to the commission and $1,000 for appeals to the Court of Appeals. It also allows attorneys to claim 12.5% of all medical bills, even if they had no involvement. This could drive excessive litigation, raise costs, and reduce system efficiency. Senate Public Health, Welfare and Labor Committee. We oppose this bill.
SB 418 – Seeks to amend the Workers’ Compensation Law to require workers’ compensation insurers to spend at least 85% of premium collections on healthcare and wage claims. Senate Public Health, Welfare and Labor Committee. We oppose this bill.
SB 456 and HB 1754 – Seek to limit/eliminate local zoning authorities. We oppose these bills.
- SB 456 – Pending on Senate floor
- HB 1754 – House Judiciary Committee
HB 1469 – Establishes the Broadband Expansion and Efficiency Act. House Revenue and Taxation Committee. We support this bill.
HB 1807 – Amends the sales tax exemption for aircraft held for resale and used for rental or charter and clarifies eligibility for the exemption. House Revenue and Taxation Committee. We support this bill.
HB 1656 – Seeks to make changes to existing royalty contracts. It failed to receive a second in the Senate Agriculture and Economic Development Committee before spring break. It is back on the committee’s agenda. We oppose this bill.
HB 1888 – Provides access to employment records at the Division of Workforce Services for individuals. House Public Health, Welfare and Labor Committee. We have concerns about this bill.
HB 1442 – Seeks to place additional restrictions on pharmacy contracting, potentially increasing costs for businesses and consumers. House Public Health, Welfare and Labor Committee. We oppose this bill.
Two senate joint resolutions have been placed on tomorrow’s agenda in the Senate State Agencies Committee. These proposals seek to be referred to the 2026 ballot.
- SJR 2 – This proposed constitutional amendment would change the current method of apportioning political districts.
- SJR 15 – This proposal would create economic development districts. We support this resolution.
Pending Bills We Support
Our tax package includes these four bills because the Tax Foundation has identified these measures as critical to improving Arkansas’ tax competitiveness ranking. All but HB 1750 have been presented, but no votes have been taken on bills with revenue impacts.
- HB 1500 – Repeals the throwback rule
- HB 1501 – Aligns Arkansas’ income tax law with federal standards for expensing depreciable business assets
- HB 1538 – Extends the net operating loss carryforward period
- HB 1750 – Repeals the franchise tax
Other tax-related bills we support that are pending in the House Revenue and Taxation Committee:
- HB 1435 – Provides income tax credits for childcare
- SB 465 – Provides for a sales and use tax refund for speculative development projects and requires concurrent financial incentive agreements under the Consolidated Incentive Act of 2003.
Other bills we support that are pending on committee or floor agendas:
- SB 361 – Creates the Industrial Development Authorities Expansion Act. It is pending in the House Agriculture, Forestry and Economic Development Committee.
- SB 322 – Allows third parties to review plans and perform site inspections. It is pending in the House City, County and Local Committee.
- HB 1446 – Expands the Arkansas Workforce Challenge Scholarship Program. It is pending in the House Education Committee.
- HB 1731 – Strengthens child labor laws by reinstating employment certificate requirements.
To view the status of each of the bill we support, click HERE.
Pending bills we oppose:
To view the status of each of the bills we oppose, click HERE.
Recent Bills of Interest
HB 1800 – Rep. Mindy McAlindon and Sen. Matt McKee
Amends campaign finance disclosure laws, requiring agents of a foreign principal to disclose their activities. The sponsor had the bill returned to the House State Agencies Committees to adopt an amendment.
HB 1852 – Rep. Jeremiah Moore and Sen. Matt Stone
Establishes a right to repair for certain agricultural equipment. Awaits consideration in the House Agriculture, Forestry and Economic Development Committee.
SB 528 – Sen. Ben Gilmore and Rep. Howard Beaty
Defines the powers of the Office of Skills Development and the Career Education and Workforce Development Board regarding secondary technical centers. Awaits consideration in the Senate Education Committee.
SB 529 – Sen. Blake Johnson and Rep. Frances Cavenaugh
Amends the Independent Tax Appeals Commission Act. Awaits consideration in the Senate Revenue and Taxation Committee.
Constitutional Amendments
The General Assembly will need to narrow its choices for constitutional amendment referrals to the 2026 General Election Ballot within the respective State Agencies Committee. The State Chamber/AIA supports SJR 15 and HJR 1014, companion bills that would create economic development districts to promote growth and investment.
NEWLY TRACKED BILLS
We added 13 bills to our tracking list based on bills filed last week.
SB 556 – Sen. Mark Johnson
Prohibits surface wastewater discharge into a watershed.
SB 557 – Sen. Mark Johnson
Amends water permit laws to deny applicants with a history of noncompliance and prohibit certain wastewater discharges.
SB 558 – Sen. Steve Crowell and Rep. Steve Hollowell
Requires electronic filing of certain corporate income tax returns.
SB 560 – Sen. Jane English
Adjusts contribution and administrative assessment rates to increase funding for skilled workforce training through the Division of Workforce Services Training Trust Fund. We support this bill.
SB 561 – Sen. Mark Johnson
Allows issuance of an additional temporary preprinted paper buyer’s tag in specific cases and establishes penalties for using expired tags.
SB 568 – Sen. Steve Crowell and Rep. Lane Jean
Revises tax laws related to lithium extraction and development, including a sales and use tax exemption for lithium resource development and amendments to the severance tax on lithium.
SB 569 – Sen. Mark Johnson and Rep. David Ray
Proposes an amendment to the Arkansas Constitution regarding ballot titles for proposed measures, modifying provisions under Article 5, Section 1.
SB 571 – Sen. Jim Petty
This bill aims to amend existing laws related to municipal building and zoning regulations, specifically preventing municipalities from enforcing these regulations on county property.
SB 573 – Sen. Jim Petty and Rep. Lane Jean
This bill proposes to amend the valuation methodology outlined in the Arkansas Constitution, specifically Article 16, § 5. The goal is to define terms used in property tax valuation methods more clearly.
SB 574 – Sen. Jim Petty
This bill requires municipalities that manage waterworks or sewage systems to provide service to county properties located within their boundaries upon request by the county judge.
HB 1891 – Rep. David Ray and Sen. Ben Gilmore
Allows an appointed Justice of the Supreme Court or Judge of the Court of Appeals to use their current title as a prefix when filing as a candidate.
HB 1892 – Rep. Jack Ladyman
Amends energy regulations to address nonexport facilities and prohibit discrimination against them.
HB 1893 – Rep. Matt Brown and Sen. Kim Hammer
This bill seeks to authorize private property owners or business owners to prohibit emotional support animals from being on their property or business premises. Additionally, it addresses the regulation of liability concerning emotional support animals on private property.