March 13, 2025

Daily Legislative Update: Thursday, March 13, 2025

Photo by Will Newton/Arkansas House of Representatives

Thursday, March 13, 2025 – Day 59

TODAY AT THE CAPITOL
The Joint Budget Committee met at 9:00 a.m. Standing committees will meet 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**

Workers’ Compensation Bills

SB 284, 285, 286 and SB 288 – Sen. John Payton

SB 285, 286 and 288 were given a “Do Pass” recommendation from the Senate Public Health, Welfare and Labor Committee yesterday and are on this afternoon’s Senate Calendar.

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.

These bills affect all employers, not just businesses. Colleges, K-12 schools, state, county, city governments and non-profits will all be faced with increased costs.

Specifically these bills will:

SB 284 and 288: Allow an annual change of physician instead of a one-time change. SB 284 addresses personal physicians, while SB 288 addresses specialty physicians. While employers must cover all job-related injuries, they can direct care. Annual changes could encourage “doctor shopping,” disrupt treatment plans, increase medical costs, prolong claims, delay recovery, and effectively provide lifetime medical benefits.
SB 285: Dramatically raise the maximum benefit amount by over 255%, setting an annual cap of $120,000—the highest in the nation. (Annualized, our current weekly benefit maximum is $46,956.) Arkansas’ current weekly maximum of $903 would jump to $2,307.69, one of the highest in the country. This increase would create a financial strain on employers and Arkansas would be misaligned with neighboring states.
The National Council on Compensation Insurance (NCCI), a nationally recognized group with expertise in these matters, has done an initial evaluation of SB 285. It will cost the workers’ compensation system $12 million to $16 million annually.
Our cap already exceeds that of Mississippi and Louisiana; this will widen the gap dramatically, making Arkansas less competitive for industry and business investment.
SB 286: Expand 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.”

In committee yesterday, Dale Douthit, chairman of the Arkansas Workers’ Compensation Commission testified that, “rates are going to be affected. All these bills are labor leaning, and they are going to have an effect on workers’ compensation rates in Arkansas. These bills will increase costs for employers. These bills will most likely increase litigation in workers’ comp. They will most likely cause the Workers’ Compensation Commission to hire more staff. It will have an impact and without knowing that impact, I would be hesitant to go down that road.”

Please contact state senators and ask them to Vote NO on SB 284, 285, 286 and 288.

To leave a message dial 501-682-2902.

TODAY AT THE CAPITOL (CONTINUED)

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 undue 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 received a “Do Pass” recommendation yesterday from the House Agriculture, Forestry, Economic Development Committee. It is on today’s House Calendar. We oppose 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. It’s on today’s agenda 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’s on today’s agenda 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’s on today’s agenda in the House Revenue and Taxation Committee. This bill is part of the State Chamber/AIA tax package. We support this bill.

SB 279 – Sen. Missy Irvin and Rep. Jeremy Wooldridge
This bill seeks to assist the division of labor with enforcing the fair and prompt payment of wages to Arkansas citizens. It also seeks to clarify the manner in which wage and hour complaints are investigated. This bill is on today’s Senate Calendar. We support this bill.

HB 1731 – Rep. DeAnn Vaught
This bill strengthens child labor laws by reinstating employment certificate requirements. This bill is on today’s agenda in the House Public Health, Welfare and Labor 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. This bill is on today’s agenda in the House Revenue and Taxation Committee. We support this bill.

YESTERDAY AT THE CAPITOL

SB 307 – Sen. Jonathan Dismang and Rep. Les Eaves
Arkansas’ electricity demand is rising due to manufacturing growth, transportation electrification, and data centers. SB 307 helps meet this demand while keeping energy costs stable by allowing gradual, annual rate adjustments instead of sudden price hikes after a power plant is built. By proactively planning for future energy needs, SB 307 makes Arkansas more attractive for business expansion and prevents companies from relocating due to power shortages.

According to Randy Zook, our president and CEO, this bill is the economic development opportunity of this generation.

After adoption of a second amendment this bill passed the Senate yesterday 23-9.

HB 1069 – Rep. Stephen Meeks
This bill seeks to eliminate Daylight Savings Time and set local standard time year-round in Arkansas. It failed yesterday in the House State Agencies committee. We oppose 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 was given a “Do Pass” recommendation yesterday in the House State Agencies Committee. We oppose 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. It received a “Do Pass” recommendation yesterday in the State Agencies Committee. We support this bill.

PENDING BILLS

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 Joint Education 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 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. This bill was presented March 11, but no vote was taken in the House Revenue and Taxation Committee. We support this bill.

HB 1706 – Rep. Austin McCollum and Sen. Bart Hester
This bill prohibits ranked-choice voting in Arkansas elections. It awaits consideration in the House State Agencies 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.

SB 418 – Sen. John Payton
This bill amends the Workers’ Compensation Law to require workers’ compensation insurers to spend at least 85% of premiums on healthcare and wage claims. The bill was filed March 11 and was placed on the deferred list in the Senate Public Health, Welfare and Labor 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 is pending in the House Insurance and Commerce Committee. We oppose this bill.

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 presents the significant risk of the regulation of self-insured employer health plans and is likely preempted by ERISA, which prohibits states from dictating employers’ self-funded health plan structures, and is therefore likely to face a legal challenge if adopted. This bill is pending in the Senate Public Health, Welfare, and Labor 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. This bill is pending in the Senate Revenue and Taxation Committee. We oppose this bill.

SB 5 and SB 6 – Sen. Brian King
SB 5 seeks to add the criminal offense of prescription drug harm or homicide. SB 6 would create the criminal offense of vaccine harm. This bill is pending in the Senate Judiciary Committee. We oppose these bills.

CONSITUTIONAL AMENDMENTS

The House and Senate State Agencies Committees are working their way through lengthy lists of joint resolutions proposing changes to the Arkansas Constitution. The legislators will not vote on the resolutions until later in the session.

SJR 15 and HJR 1014 –Sen. Jonathan Dismang and Rep. Howard Beaty
These constitutional amendments concern economic development in the state of Arkansas. They authorize the General Assembly to provide for the creation of economic development districts to promote economic development. We support this joint resolution.

BILL FILINGS
We added 14 bills to our tracking list based on those filed yesterday.

HB 1747 – Rep. DeAnn Vaught
Creates the Babies at School Act, allowing school employees to bring infants (six months or younger) to work. Referred to the House Education Committee.

HB 1748 – Rep. Matt Brown and Sen. Tyler Dees
Adopts the Uniform Electronic Legal Materials Act. Referred to the House State Agencies Committee.

HB 1750 – Rep. Frances Cavenaugh
Repeals the Arkansas Corporate Franchise Tax Act of 1979 and makes conforming changes. Referred to the House Revenue and Taxation Committee. This bill is part of the State Chamber/AIA tax package. We support this bill.

HB 1752 – Rep. John Maddox and Sen. Justin Boyd
Exempts certain savings plans from judgment execution. Referred to the House Judiciary Committee.

HB 1753 – Rep. Wayne Long
Amends voter registration laws, opting out of the National Voter Registration Act of 1993 and modifying Arkansas Constitution, Amendment 51, § 5. Referred to the House State Agencies Committee.

HB 1757 – Rep. Joey Carr and Sen. Joshua Bryant
Amends laws on railroads and establishes the offense of tampering with rail infrastructure. Referred to the House Public Transportation Committee.

HB 1762 – Rep. Brad Hall and Sen. Jim Petty
Requires revocation of permits for poultry processing waste disposal after a certain number of violations. Referred to the House Public Health, Welfare and Labor Committee.

HB 1763 – Rep. Kendon Underwood and Sen. Joshua Bryant
Amends the Human Trafficking Act of 2013 by creating the offense of unlawful use of a communication device during human trafficking. Referred to the House Judiciary Committee.

HB 1768 – Rep. Robin Lundstrum and Sen. Missy Irvin
Requires landfill contracts involving host fees to be voted on at a regularly scheduled meeting of the host community. Referred to H-Public Health, Welfare and Labor.

HB 1771 – Rep. Mark Perry
Amends laws on policyholder disclosures and mandates monthly reporting by insurers. Referred to the House Insurance and Commerce Committee.

SB 437 – Sen. Bart Hester and Rep. Brad Hall
Establishes the Arkansas Wind Energy Development Act. Referred to the Senate Insurance and Commerce Committee.

SB 441 – Sen. Bart Hester and Rep. Aaron Pilkington
Creates the Junk Lawsuit Prevention Act of 2025. Referred to the Senate Judiciary Committee.

SB 445 – Sen. Kim Hammer and Rep. RJ Hawk
Amends licensing laws for electrical inspectors. Referred to the Senate Public Health, Welfare and Labor Committee.

SB 448 – Sen. Jim Petty and Rep. Robin Lundstrum
Authorizes financing for energy efficiency, alternative energy, building resiliency, and water conservation improvements. Referred to the Senate City, County and Local Affairs Committee.