Photo by Will Newton/Arkansas House of Representatives

Tuesday, March 18, 2025 – Day 64

LEGISLATIVE SCHEDULE
The standing committees met 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.

The General Assembly plans to recess for spring break from March 24-28, and aims to adjourn by April 16.

 

CALLS TO ACTION

ASK STATE SENATORS TO OPPOSE SB 284, 285, 286, 287 and SB 288.

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.

SB 284, 285, 286 and 288 were on yesterday’s Senate Calendar. But they were all passed over. SB 285 and 286 have been referred back to the Senate Public Health Welfare and Labor Committee, which meets Wednesday at 10 a.m. SB 287 is also on the committee agenda.

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.

In committee last week, 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. To leave a message dial 501-682-2902.
Just ask them to Vote NO on SB 284, 285, 286 and 288.

For more details, see the “Call to Action Bills” section below.

 

ASK STATE REPRESENTATIVES TO SUPPORT SB 307

SB 307 – Sen. Jonathan Dismang and Rep. Les Eaves

This bill received a “Do Pass” recommendation from the House Insurance and Commerce Committee yesterday and is on today’s House calendar.

SB 307 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.

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.

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 state representatives to vote YES on SB 307.
To leave a message dial 501-682-6211.

For more details, see the “Call to Action Bills” section below.

 

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

Today at the Capitol

The House Revenue and Taxation Committee will meet this morning, and any of the tax reduction bills could be discussed, including our tax package (HB 1500, 1501, 1538, and 1750). We will be present in case testimony is needed on any of these bills.

The Tax Foundation has identified these measures as critical to improving Arkansas’ tax competitiveness ranking:

• 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

The committee has been reviewing, but not yet voting on, bills with state revenue implications. This approach allows the General Assembly to finalize budgetary plans before implementing any tax reductions.

Other tax-related bills we support are still awaiting consideration in the same committee, including:

• HB 1435 – Provides income tax credits for childcare
• HB 1469 – Establishes the Broadband Expansion and Efficiency Act

For more details, see the “Tax Bills We Support” section below.

We also plan to be available to testify before the House Education Committee this morning in support of HB 1571, which amends the Arkansas Adult Diploma Program Act—a valuable program we have supported in the past.

We oppose HB 1656, which seeks to modify existing royalty contracts. It is scheduled for discussion this morning in the Senate Agriculture and Economic Development Committee. We also oppose SB 456, which impacts local zoning authority. It is on today’s agenda in the Senate City, County and Local Committee. For more details, see the “Bills We Oppose” section below.

We support SB 322, which is on this afternoon’s Senate calendar and would allow third parties to review plans and conduct site inspections. Additionally, SB 279, which clarifies the process for investigating wage and hour disputes, is on today’s agenda in the House Public Health, Welfare, and Labor Committee.

 

Tomorrow at the Capitol

Bills we support that are on committee agendas tomorrow:

• SB 390 – Creates an apprenticeship program. It is on tomorrow’s agenda in the Senate Education Committee.
• HB 1446 – Follows the adoption of Issue 1 in the 2024 General Election regarding lottery scholarships for workforce training. It is on tomorrow’s agenda in the House Education Committee.
• HB 1706 – Prohibits ranked choice voting. It is on tomorrow’s agenda in the House State Agencies Committee.
• SB 361 – Creates the Industrial Development Authorities Expansion Act. It passed the Senate last week 30-0 and is on tomorrow’s agenda in the House Agriculture, Forestry and Economic Development Committee.
• HB 1706 – Prohibits the use of ranked-choice voting in Arkansas elections. It is on tomorrow’s agenda in the House State Agencies Committee.

Bills we oppose that are on committee agendas tomorrow:

• SB 5 – Establishes a criminal offense for prescription drug harm or homicide
• SB 6 – Introduces a criminal offense for vaccine harm
• Both SB 5 and SB 6 have recently been amended and are on tomorrow’s agenda in the Senate Judiciary Committee
• SB 7 – Grants legislators the ability to request sales and use tax reports, raising concerns about confidentiality and business privacy. It is on tomorrow’s agenda in the Senate Revenue and Taxation Committee.
• HB 1150 – Restricts healthcare payors and pharmacy benefits managers from obtaining specific pharmacy permits, which could limit market competition. It is on tomorrow’s agenda tomorrow in the House Insurance and Commerce Committee.
• SB 258 – Establishes the Arkansas Digital Responsibility, Safety, and Trust Act, which seeks to address technology privacy and artificial intelligence (AI). It was amended last week and was expected to be heard yesterday in the Senate Transportation, Technology, and Legislative Affairs Committee. The industry does not believe the amendments went far enough. Sen. Clint Penzo decided not to run the bill yesterday.

 

Yesterday at the Capitol

We support SB 403, which seeks to establish a complete count committee for the 2030 Census. The bill passed the Senate yesterday with a 32-0 vote and has been assigned to the House State Agencies Committee, where it is scheduled for consideration tomorrow.

 

Pending Bills We Support

The State Chamber/AIA supports several key bills aimed at workforce development, employment regulations, and government operations.

• HB 1446 – Expands the Arkansas Workforce Challenge Scholarship Program, improving access to workforce training opportunities.
• SB 421 – Authorizes the Arkansas Natural Resources Commission to issue general obligation bonds.
• HB 1435 – Seeks to create income tax credits for childcare.

For more details, see the “Pending Bills We Support” section below.

 

Pending Bills We Oppose

The State Chamber/AIA opposes HB 1442, which seeks to place additional restrictions on pharmacy contracting, potentially increasing costs for businesses and consumers.

For more details, see the “Bills to We Oppose” section below.

 

Constitutional Amendments

The State Agencies Committees are currently reviewing Joint Resolutions that propose constitutional amendments for referral to the 2026 General Election Ballot. The State Chamber/AIA supports SJR 15 and HJR 1014, which are companion bills aimed at improving the state’s legal and regulatory framework.

For further information, see the “Constitutional Amendments” section below.

 

NEWLY TRACKED BILLS
We added 18 bills to our tracking list based on bills filed yesterday.

HB 1802 – Rep. Les Warren and Sen. Jim Petty
Creates the Talent Recruitment Grant Program to incentivize individuals to relocate to the state. Referred to the House Public Health, Welfare, and Labor Committee.

HB 1804 – Rep. David Ray and Sen. Jim Petty
Amends the law on gross receipts tax to provide a sales tax exemption for utility vegetation line management services. Referred to the House Revenue and Taxation Committee. 

HB 1807 – Rep. Les Eaves
Amends the sales tax exemption for aircraft held for resale and used for rental or charter; clarifies eligibility for the exemption. Referred to the House Revenue and Taxation Committee. 

HB 1811 – Rep. Trey Steimel and Sen. Blake Johnson
Amends property and casualty insurance law, requiring proof of deductible payment to recoup recoverable depreciation. Referred to the House Insurance and Commerce Committee.

HB 1813 – Rep. Zachary Gramlich
Proposes adoption of the Fair and Efficient Transmission Compact. Referred to the House Insurance and Commerce Committee.

HB 1814 – Rep. Jimmy Gazaway
Amends municipal authority over utilities and revises the definition of “public utility” under Title 14, Chapter 200. Referred to the House Insurance and Commerce Committee.

HB 1816 – Rep. Lee Johnson
Prohibits healthcare providers and insurers from using AI in healthcare services or medical records unless certain requirements are met. Referred to the House Public Health, Welfare, and Labor Committee.

HB 1820 – Rep. Matt Brown
Regulates automatic renewal and continuous service offers. Filed. 

SB 466 – Sen. Jonathan Dismang and Rep. Jeremiah Moore
Places a moratorium on certain wind power device heights and requires a study on their environmental effects. Referred to the Senate Agriculture and Economic Development Committee.

SB 468 – Sen. Clint Penzo and Rep. Matt Duffield
Amends the law on public water fluoridation, allowing county voters to decide for or against it. Referred to the Senate State Agencies Committee.

SB 474 – Sen. Clint Penzo and Rep. Matt Duffield
Allows public water system boards to prohibit fluoridation. Deferred in the Senate Public Health, Welfare, and Labor Committee.

SB 475 – Sen. Jonathan Dismang
Establishes the Pharmacy Services Administrative Organization Act to regulate pharmacy service administrators. Referred to Senate Insurance and Commerce Committee.

SB 476 – Sen. Jamie Scott
Grants leave for organ donation to certain state employees and prohibits life insurance discrimination against organ donors. Referred to the Senate State Agencies Committee.

SB 478 – Sen. Gary Stubblefield
Creates the Arkansas Diesel Engine Freedom Act of 2025, prohibiting state enforcement of federal diesel engine regulations. Referred to the Senate Transportation, Technology, and Legislative Affairs Committee.

SB 482 – Sen. Kim Hammer and Rep. RJ Hawk
Repeals the Arkansas Opportunity Public School Choice Act and amends transfer laws between public schools and districts. Referred to the Senate Education Committee.

SB 483 – Sen. Missy Irvin
Repeals the Arkansas Opportunity Public School Choice Act and amends student transfer laws. Referred to the Senate Insurance and Commerce Committee.

SB 486 – Sen. Blake Johnson and Rep. Mary Bentley
Regulates privacy and safety standards for multi-occupancy restrooms, changing rooms, and sleeping quarters based on sex. Referred to the Senate State Agencies Committee.

SB 492 – Sen. Joshua Bryant and Rep. Robin Lundstrum
Amends laws concerning utility relocation, property acquisition, and condemnation by the State Highway Commission. Referred to the Senate Transportation, Technology, and Legislative Affairs Committee.

 

CALL-TO-ACTION BILLS

SB 284-288 – Sen. John Payton

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.”
• SB 287: Increase 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.

SB 284, 285, 286 and 288 were on yesterday’s Senate Calendar. But they were all passed over. SB 285 and 286 have been referred back to the Senate Public Health Welfare and Labor Committee, which meets Wednesday at 10 a.m. SB 287 is also on the committee agenda.

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.

This bill received a “Do Pass” recommendation from the House Insurance and Commerce Committee yesterday and is on today’s House calendar.

 

TAX BILLS WE SUPPORT

HB 1500 – Rep. Howard Beaty and Sen. Ben Gilmore
Enhances economic competitiveness by repealing the throwback rule. This bill 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
Adopts federal income tax law regarding depreciation and expensing of property; increases the allowable amount for expensing certain depreciable business assets to align with federal law. This bill 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 1538 – Rep. David Ray
Seeks to extend the state’s existing net operating loss carry forward law from 10 years to 20 years. This bill 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 1750 – Rep. Frances Cavenaugh
Repeals the Arkansas Corporate Franchise Tax Act of 1979 and makes conforming changes. This bill 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 1435 – Rep. Brandon Achor and Sen. Jane English
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 1469 – Rep. Howard Beaty and Sen. Blake Johnson
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 1116 – Rep. David Ray and Sen. Jonathan Dismang
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 has been placed on the deferred list in the House Revenue and Taxation Committee. We support this bill.

 

PENDING BILLS WE SUPPORT

HB 1446 – Rep. Robin Lundstrum and Sen. Jane English
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.

SB 390 – Sen. Jane English and Rep. Robin Lundstrum
Establishes the State Apprenticeship Agency Act. This bill awaits consideration in the Senate Education Committee. We support this bill.

SB 403 – Sen. Clarke Tucker and Rep. Howard Beaty
Creates the 2030 Arkansas Complete Count Committee to improve awareness and participation in the 2030 federal census. This bill awaits consideration in the Senate State Agencies Committee. We support this bill.

SB 279 – Sen. Missy Irvin and Rep. Jeremy Wooldridge
Seeks to assist the division of labor with enforcing the fair and prompt payment of wages to Arkansas citizens; and to clarify the manner in which wage and hour complaints are investigated. This bill awaits consideration in the House Public Health, Welfare and Labor Committee. We support this bill.

HB 1706 – Rep. Austin McCollum and Sen. Bart Hester
Prohibits ranked-choice voting in Arkansas elections. This bill awaits consideration in the House State Agencies Committee. We support this bill.

HB 1731 – Rep. DeAnn Vaught
Strengthens child labor laws by reinstating employment certificate requirements. This bill has been placed on the deferred list in the House Public Health, Welfare and Labor Committee. We support this bill.

HB 1571 – Rep. David Ray and Sen. Breanne Davis
Amends the Arkansas Adult Diploma Program Act. This bill awaits consideration in the House Education Committee. We support this bill.

SB 361 – Sen. Tyler Dees and Rep. Howard Beaty
Creates the Industrial Development Authorities Expansion Act to establish industrial development authorities for securing and fostering economic growth. Referred to the Senate Agriculture and Economic Development Committee. This bill is supported by the Northwest Arkansas Council, and we echo their support.

SB 421 – Sen. Bart Hester and Rep. Howard Beaty
Authorizes the Arkansas Natural Resources Commission to issue general obligation bonds for water, waste disposal, and pollution abatement projects. Scheduled for hearing in the Senate Agriculture and Economic Development Committee. This bill is supported by the Northwest Arkansas Council, and we echo their support.

 

PENDING BILLS WE OPPOSE

HB 1656 – Rep. Rick Beck and Sen. Breanne Davis
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 awaits consideration in the Senate Agriculture and Economic Development Committee. We oppose this bill.

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. This bill awaits consideration in the Senate Public Health, Welfare and Labor Committee. We oppose this bill.

HB 1150 – Rep. Jeremiah Moore and Sen. Kim Hammer
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
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 therefore is 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
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. These bills are pending in the Senate Judiciary Committee. We oppose these bills.

SB 258 – Sen. Clint Penzo and Rep. Stephen Meeks
SB 258, known as the Arkansas Digital Responsibility, Safety, and Trust Act, seeks to address technology privacy and artificial intelligence (AI). This bill awaits consideration in the Senate Transportation, Technology, and Legislative Affairs Committee.

While the State Chamber/AIA and much of the business community recognize the need for a comprehensive privacy bill, we believe changes were necessary to the privacy provisions in SB 258, and we are currently reviewing the latest amendment. However, a major concern remains—the AI section of the bill. The prevailing consensus among businesses is that it is premature to legislate AI at this stage, and we believe this section should be entirely removed from the bill.

SB 456 – Sen. Jim Petty and Rep. Rebecca Burkes
Creates the Home Opportunities Made Easier Act. Local chambers of commerce have expressed concerns about this bill. It awaits consideration in the Senate City, County, and Local Affairs Committee. We oppose this bill.

 

CONSTITUTIONAL 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.