Daily Legislative Update: Monday, March 10, 2025

Photo by Will Newton/Arkansas House of Representatives

Monday, March 10, 2025 – Day 56

TODAY AT THE CAPITOL
A joint education committee met at 9:00 a.m. to hear the ACCESS bills (higher education reforms, SB 246 & HB 1512). The House and Senate will convene at 1:30 p.m. Two Senate committees will convene after the Senate adjourns, and one House committee will convene after the House adjourns.

To view committee schedules, agendas, and live streams—including live coverage of the House and Senate—visit www.arkleg.state.ar.us.

 

SB 307 – Sen. Jonathan Dismang and Rep. Les Eaves
SB 307 helps Arkansas meet rising electricity demand due to growth in manufacturing, transportation electrification, data centers, and population increases by allowing utility providers to implement a proactive approach to meeting electricity demand. Utility companies will be allowed 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.

Randy Zook, our president and CEO, emphasized the importance of this bill, 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 provides key benefits like:

• Providing much needed expansion of electricity capacity.
• 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.
• Providing surplus power-generating capacity to meet rising demand.
• Enhancing Arkansas’ appeal for business expansion and reducing the risk of companies relocating to areas with greater power availability.

This bill failed on the Senate floor last week 17-11. Thursday, a motion was adopted to request information from the Public Service Commission by 9:00 a.m. Monday morning.

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

Ask senators to vote YES on SB 307.
To leave a message dial 501-682-2902.
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SB 284 – SB 288 – Sen. John Payton

Workers’ Compensation Bills

• 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.

 

These bill 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, in addition to driving up costs it would prolong claims and weaken incentives for timely recovery and return to work. Arkansas’ existing workers’ compensation system is competitive with neighboring states and provides strong protections for injured workers. These bills make Arkansas a more expensive place to do business.

SB 284 was passed over on the Senate floor Friday. SB 285-288 were scheduled for a Special Order of Business this afternoon in the Senate Public Health, Welfare and Labor Committee. But further consideration of all of these bills has been delayed until official cost estimates are received from the National Council on Compensation Insurance (NCCI).

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

Please contact state senators. To leave a message dial 501-682-2902. Just ask them to Vote NO on SB 284, 285, 286, 287, 288.

 

TODAY AT THE CAPITOL (CONTINUED)

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 is on today’s House Calendar.
• SB 210 – Requires petition signers to read the ballot title in the presence of a canvasser. This bill is on today’s House Calendar.

HB 1706 – Rep. Austin McCollum and Sen. Bart Hester
This bill prohibits ranked-choice voting in Arkansas elections. It is on today’s agenda in the Senate State Agencies Committee. We support this bill.

SB 403 – Sen. Clarke Tucker and Rep. Howard Beaty
This bill creates the 2030 Arkansas Complete Count Committee to improve awareness and participation in the 2030 federal census. This bill is on today’s agenda in the Senate State Agencies Committee. We support 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 is on today’s agenda in the House State Agencies Committee. We oppose this bill.

 

THIS WEEK AT THE CAPITOL

HB 1656 – Rep. Rick Beck and Sen. Breanne Davis

This bill amends laws related to oil and gas production and conservation. One of the primary problems with the bill is it upends a decades-long legal standard and seeks to undo terms of existing contracts. This would violate the “Contracts Clause” of the Arkansas and U.S. Constitutions.

Another provision would require operators and working interest owners to provide a statement of accounting that is “itemized for each separate deduction” and “clearly identifies” each deduction’s purpose and amount. This would prevent the use of an industry standard of bundling expenses into categories to improve efficiency. This provision would lead to check stubs having dozens or hundreds of pages of detail. Such a detailed requirement would invite numerous lawsuits.

The bill seeks to undo a law that has been in place since 1985 regarding royalty payments in a way that would create liability for reimbursing any unauthorized deductions within 30 days, regardless of who made them.

Finally, these royalty issues have been adjudicated numerous times in federal court, and all were decided in favor of the industry.

This bill is expected to be heard Wednesday in the House Agriculture, Forestry, Economic Development Committee. We oppose this bill.

HB 1116 – Rep. David Ray and Sen. Jonathan Dismang

This bill seeks to establish the Remote and Mobile Work Modernization and Competitiveness Act. It proposes income tax and withholding exemptions for certain remote and mobile employees as well as nonresidents. This bill is set for a Special Order of Business in the House Revenue and Taxation Committee on Tuesday, March 11. We support 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 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.

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.

SJR 15 and HJR 1014 – Sen. Jonathan Dismang and Rep. Howard Beaty
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 seeks to amend 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.

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

 

BILL FILINGS
The House has filed 709 bills, and the Senate has filed 406 bills, bringing the total number of bills and resolutions filed to 1,591.