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Daily Legislative Update: Friday, April 11, 2025

Photo by Will Newton/Arkansas House of Representatives

Friday, April 11, 2025 – Day 89

LEGISLATIVE SCHEDULE

The General Assembly is in recess until Monday when the Senate will convene at 10:30 a.m. and the House at 1:30 p.m.

Committees are now following irregular meeting schedules. For the latest updates, visit www.arkleg.state.ar.us, where you can find committee schedules, agendas, and live streams.

**CALL-TO-ACTION**

SUPPORT SJR 15

The General Assembly can refer up to three proposed amendments to the Arkansas Constitution. The House has selected HJR 1018—the only amendment related to citizen-led ballot initiatives—and the Senate has chosen SJR 2, which would codify the Second Amendment of the U.S. Constitution into the Arkansas Constitution.

*Please contact your legislators and urge them to support SJR 15 as the third referral.*

What SJR 15 does:

  • Allows the General Assembly to authorize the creation of Economic Development Districts at the city, county, or regional level.
  • Enables these districts to issue bonds, invest in infrastructure, and craft incentives to attract businesses.
  • Encourages collaboration and competition between communities, both within Arkansas and with neighboring states.

Why this matters:

  • Arkansas needs more locally driven solutions for economic development.
  • Under the current structure, counties and localities in Arkansas lack certain authority to reduce taxes or tailor incentives to attract and retain businesses.
  • The Arkansas Economic Development Commission plays a key role in growing jobs in Arkansas. However, because it is a state entity with limited resources, it cannot always meet the unique needs of every Arkansas community.

This legislation would allow localities to:

  • Pursue customized economic development strategies.
  • Compete for jobs and investment on a more level playing field.
  • Promote innovation and flexibility at the community level.

Click HERE to see how other states have used similar districts to drive local economic development—and what that could mean for Arkansas.

This is a game-changing opportunity to give local leaders the authority they need to build stronger communities and a stronger Arkansas.

Resolutions have been filed seeking authority to designate either SJR 15 or one of the following as the third constitutional amendment referred by the General Assembly. The selected joint resolution must be approved by a two-thirds majority in both the House and Senate.

  • SJR 6 – Proposes that a portion of the proceeds from the sale of medical marijuana and casino gaming be allocated to crime reduction, prevention programs, and post-release supervision services.
  • SJR 13 – Allows candidates for Supreme Court justice, Court of Appeals judge, circuit judge, or district judge to declare their party affiliation or independent status when running for judicial office.

Contact your legislators and ask them to SUPPORT SJR 15.

Support Pro-Growth Economic Development Legislation

The following four bills from the Arkansas Economic Development Commission’s (AEDC) legislative package are currently moving through the legislature. Each one plays a key role in supporting economic growth, business investment, and job creation in Arkansas.

SB 568 – Amends the law concerning taxes applicable to lithium extraction and development; provides a sales and use tax exemption for lithium resource development; and amends the severance tax on lithium. This bill establishes a comprehensive lithium incentive program that encourages in-state extraction, process, refining, manufacturing, and recycling. This bill awaits consideration in the House Agriculture, Forestry and Economic Development Committee. We support this bill, which is part of the Arkansas Economic Development Commission’s legislative package.

HB 1935 – Amends the Consolidated Incentive Act of 2003 and creates a modernization and automation tax credit to encourage investment by existing businesses within the state. This bill establishes an incentive program that encourages Arkansas businesses to generate large capital investments within the state, particularly those directed at modernizing and automating existing operations. This bill awaits consideration in the Senate Revenue & Taxation Committee. We support this bill, which is part of the Arkansas Economic Development Commission’s legislative package.

HB 1797 – Seeks to amend the law concerning the Arkansas Development Finance Authority (ADFA) and a portion of the Arkansas Code resulting from Initiated Act 1 of 2000. This bill finalizes the privatization of ADFA, allowing it to operate independently of the Department of Commerce. This bill awaits consideration in the House State Agencies Committee to concur in a Senate amendment. We support this bill, which is part of the Arkansas Economic Development Commission’s legislative package.

HB 1922 – Seeks to amend the Consolidated Incentive Act of 2003; creates an income tax credit for relocating corporate headquarters to Arkansas; and encourages corporate relocations to the state. This bill makes Arkansas a more attractive destination for national and regional headquarters, boosting our local economies and job growth. This bill awaits consideration on the Senate floor.  We support this bill, which is part of the Arkansas Economic Development Commission’s legislative package.

Please contact your state legislators and encourage them to vote YES on SB 568, HB 1935, HB 1797, and HB 1922.

AT THE CAPITOL: A SYNOPSIS OF WHAT YOU NEED TO KNOW

Bills on Floor Calendars

HB 1955 – Seeks to repeal the Shielded Outdoor Lighting. This bill awaits consideration on the House floor.

HB 1956 – Creates the Arkansas Nighttime Environment Protection Act. This bill awaits consideration on the House floor.

HB 1706 – Prohibits ranked choice voting. It received a “Do Pass” recommendation from the Senate State Agencies Committee and awaits consideration on the Senate floor. 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. This bill awaits consideration on the Senate floor. We support this bill.

SB 537 – Establishes the Earning Safe Reentry Through Work Act, allowing individuals on probation, parole, or post-release supervision to earn time credits through employment. This bill awaits consideration on the House floor. We join ARSHRM in support of this bill.

SB 560 – Seeks to decrease the unemployment insurance base contribution rate, increase the administrative assessment rate to increase funding for the state’s skilled workforce and amend the Department of Workforce Services (DWS) Training Trust Fund. It received a “Do Pass” from the House Public Health, Welfare and Labor Committee yesterday and awaits consideration on the House floor. We support this bill that will provide much needed additional funds to the DWS Training Trust Fund at no cost to employers.

SB 610 – Amends the Generating Arkansas Jobs Act of 2025. It awaits consideration on the House floor.

 

Bills on Committee Agendas

HB 1800 – Seeks to amend disclosure laws requiring reporting of foreign spending in political activities. This bill passed in the Senate 27-3 and awaits consideration in the House State Agencies Committee to concur in a Senate amendment. This bill has been amended to our satisfaction, so we support this bill.

HB 1970 – Amends the law on prepayment of sales tax by increasing the threshold for retailers required to prepay. This bill awaits consideration in the House Revenue and Taxation Committee. This bill would benefit small retailers.

SB 462 – Provides for re-entering convicted persons to obtain a certificate of employability which will then provide some protection to employers for alleged “negligent hiring.” This bill awaits consideration in the Senate Judiciary Committee. We join the Arkansas Society of Human Resource Managers (ARSHRM) in support of this bill.

HB 1656 – Seeks to make changes to existing royalty contracts. This bill passed in the Senate 27-6. It has been referred to the House Agriculture, Forestry and Economic Development Committee to concur in a Senate amendment. We oppose this bill.

 

Yesterday at the Capitol

HB 1930 – This bill failed in the House yesterday, 44-45.

This bill proposed mandated minimum reimbursement levels for healthcare providers in Arkansas. Although the bill intended to address low reimbursement rates, the language in this bill would have caused a significant increase in healthcare costs for employers, employees, and self-funded health plans, including those operated by private businesses, and nonprofit organizations. It would have had broad and costly consequences across the state.

SB 258 – Known as the Arkansas Digital Responsibility, Safety, and Trust Act, this bill sought to address technology privacy and artificial intelligence (AI). This bill failed on the Senate floor 17-11. We opposed this bill.

SB 615 – Sought to amend energy regulations to address non-export facilities and prohibit discrimination against them. This bill failed in the Senate 12-20. We opposed this bill.

 

Pending bills we support

To view the status of each of the bills we support, click HERE.

 

Pending bills we oppose:

HB 1754 – Seeks to limit/eliminate local zoning authorities. House Judiciary Committee. We oppose this bill.

HB 1900 – Seeks to amend the law regarding information provided to royalty owners related to deductions and to amend the law concerning sanctions for noncompliance related to information provided to royalty owners. House Agriculture, Forestry and Economic Development Committee. We oppose this bill.

To view the status of each of the bills we oppose, click HERE.