March 11, 2025

Daily Legislative Update: Tuesday, March 11, 2025

Photo by Will Newton/Arkansas House of Representatives

Monday, March 11, 2025 – Day 57

TODAY AT THE CAPITOL
Standing committees met this morning. 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**

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 awaits reconsideration on the Senate floor.

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.

**CALL TO ACTION**

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 are on tomorrow’s agenda in the Senate Public Health, Welfare and Labor Committee.

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)

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 today. We support 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 is 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 is 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. This bill is 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 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 is on today’s agenda in the Senate State Agencies Committee. We support this bill.

TOMORROW AT THE CAPITOL

HB 1656 – Rep. Rick Beck and Sen. Breanne Davis
This bill seeks to amend 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 the only bill on tomorrow’s agenda in the House Agriculture, Forestry, Economic Development committee. The meeting has been moved to Big MAC A. 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 is set for a Special Order of Business tomorrow in the House State Agencies Committee. We oppose this bill.

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

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 passed the House yesterday 62-29.
SB 210 – Requires petition signers to read the ballot title in the presence of a canvasser. This bill passed the House yesterday 57-33.

PENDING BILLS

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 awaits consideration in the House Revenue and Taxation 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.

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

HB 1442 – Rep. Brandon Achor and Sen. Dave Wallace
This bill sets restrictions on pharmacy contracting and conflicts of interest and establishes pharmaceutical patient freedom of choice. This bill presents the significant risk of the regulation of self-insured employer health plans.

This bill is likely preempted by ERISA, which prohibits states from dictating employers’ self-funded health plan structures and therefore likely to face a legal challenge if adopted. Courts have consistently struck down similar laws mandating network inclusion, and HB 1442 will likely face the same fate, leading to costly legal battles for Arkansas.

Unlike Act 900, which the Supreme Court upheld for regulating PBM reimbursement rates, HB 1442 directly interferes with plan design by forcing self-funded plans to include all pharmacies. This overreach makes it subject to ERISA preemption.

By restricting how self-funded plans use PBMs, HB 1442 would increase compliance burdens and costs for Arkansas employers and workers. It opens the door to broader state regulation of all self-funded employer health plans, setting a concerning precedent.

This bill passed the House 80-8 on March 3 and was assigned to the Senate Public Health, Welfare, and Labor Committee. It was moved to the committee deferred list on March 4. 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 awaits consideration in the 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. These bills were amended on March 6 and await consideration in the Senate Judiciary Committee. We oppose these bills.

CONSITUTIONAL AMENDMENTS

The House State Agencies Committee is hearing presentations on the 24 joint resolutions that propose changes to the Arkansas Constitution. The committee is not currently taking votes on the resolutions; votes will be taken in the future. The Senate State Agencies Committee will begin reviewing the pending 19 joint resolutions this week and will delay voting until later.

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 18 bill to our tracking list from those filed Friday and yesterday.

HB 1710 – Rep. DeAnn Vaught
Prohibits schools from using or referencing public school ratings in advertising, promotional materials, or public communications. Filed.

HB 1711 – Rep. Steve Unger and Sen. Fred Love
Allows municipal port authorities to establish a police force and defines the powers and duties of municipal port authority law enforcement officers. Filed.

HB 1713 – Rep. Ryan Rose and Sen. Mark Johnson
Requires ballot titles for initiated measures to meet a specified reading level and declares an emergency. Filed.

HB 1714 – Rep. Ryan Rose and Sen. Kim Hammer
Amends the definition of a paid canvasser. Filed.

HB 1715 – Rep. Robin Lundstrum and Sen. Joshua Bryant
Limits the increase in assessed value of real property after a sale or transfer. Filed.

HB 1716 – Rep. Frances Cavenaugh and Sen. Ronald Caldwell
Amends tax assessment and collection laws; prohibits certain sales and use tax assessments. Filed.

HB 1717 – Rep. Zachary Gramlich and Sen. Justin Boyd
Creates the Arkansas Children and Teens’ Online Privacy Protection Act. Filed.

HB 1723 – Rep. Aaron Pilkington and Sen. Jamie Scott
Amends the Tobacco Settlement Proceeds Act; directs the Arkansas Minority Health Commission to establish and administer a grant program for school-based health centers. Filed.

HB 1724 – Rep. Brit McKenzie and Sen. Jane English
Amends laws related to local school boards and school board elections; changes election dates for school district board members. Filed.

HB 1726 – Rep. Zachary Gramlich and Sen. Justin Boyd
Creates the Arkansas Kids Online Safety Act. Filed.

HB 1729 – Rep. Rebecca Burkes and Sen. Joshua Bryant
Amends the Homestead Exemption Act to allow a homestead owned by a limited liability company to qualify for the exemption under certain conditions. Filed.

HB 1731 – Rep. DeAnn Vaught
Strengthens child labor laws by reinstating employment certificate requirements. Filed.

HB 1732 – Rep. DeAnn Vaught
Increases the income tax deduction for teachers’ classroom investments. Filed.

SB 405 – Sen. Jonathan Dismang and Rep. John Maddox
Amends the Online Marketplace Consumer Inform Act. Referred to the Senate Insurance and Commerce Committee.

SB 408 – Sen. Blake Johnson
Provides an income tax exemption for certain payments from the U.S. Department of Agriculture. Referred to the Senate Revenue and Taxation Committee.

SB 415 – Sen. Steve Crowell and Rep. Paul Childress
Authorizes the Division of Environmental Quality to maintain a delinquent list of businesses that fail to pay petroleum wholesalers. Referred to the Senate Agriculture and Economic Development Committee.

SB 418 – Sen. John Payton
Amends the Workers’ Compensation Law to require workers’ compensation insurers to spend at least 85% of premiums on healthcare and wage claims. Filed . We oppose this bill.

SB 419 – Sen. Greg Leding
Creates a sales and use tax exemption for certain sales to cultivation facilities. Filed.