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Daily Legislative Update: Wednesday, March 12, 2025

Date
Category Daily Legislative Update
Photo by Will Newton/Arkansas House of Representatives

Wednesday, March 12, 2025 – Day 58

TODAY AT THE CAPITOL

The Senate Public Health, Welfare and Labor Committee met at 9 a.m.; Senate Education Committee met at 9:30 a.m.; and the rest of the standing committees meet at 10:00 a.m. The House and Senate will convene at 1:30 p.m. The Senate State Agencies Committee will meet after the Senate adjourns.

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.

A second amendment was adopted yesterday and the bill is on today’s Senate Calendar.

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**

Workers’ Compensation Bills

SB 284 – SB 288 – Sen. John Payton

  • 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 285-288 are set as a Special Order this morning in the Senate Public Health, Welfare and Labor Committee. SB 284 awaits consideration on the Senate floor.

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.

SB 418 – Sen. John Payton
This bill seeks to amend 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 yesterday and placed on the deferred list in the Senate Public Health, Welfare and Labor Committee.  We oppose this bill.

 

TODAY AT THE CAPITOL (CONTINUED)

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 is the only bill on today’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 today 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. This bill is on today’s agenda 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. This bill is on today’s agenda in the Senate Education 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 bill is on today’s agenda in the House State Agencies Committee. We oppose this bill.

 

TOMORROW AT THE CAPITOL

The following three bills are on tomorrow’s agenda in the House Revenue and Taxation committee:

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. 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. 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 part of the State Chamber/AIA tax package. We support this bill.

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

 

YESTERDAY AT THE CAPITOL

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 was presented yesterday, but no vote was taken in the House Revenue and Taxation Committee today. We support this bill.

 

PENDING BILLS

All of these bills await consideration in their respective committees, which are listed below. The House Revenue and Taxation Committee is currently hearing bills but will delay voting until the budget takes shape.

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. 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. House Revenue and Taxation 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. House Revenue and Taxation 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. Senate State Agencies Committee. We support 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. 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. 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. Senate Revenue and Taxation Committee.

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. 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 11 bills from those filed yesterday.

HB 1735 – Rep. Les Eaves
Amends the Arkansas Underground Facilities Damage Prevention Act and revises membership in the One Call Center. Referred to the House Insurance and Commerce Committee.

HB 1737 – Rep. Matt Brown and Sen. Tyler Dees
Amends the Transmitting Utility Act to include fiber optic and broadband lines in the definition of “transmitting utility.” Referred to the House Insurance and Commerce Committee.

HB 1738 – Rep. Cindy Crawford
Provides a sales and use tax exemption for disabled veterans. Referred to the House Revenue and Taxation Committee.

HB 1739 – Rep. Matt Brown and Sen. Tyler Dees
Adopts the Uniform Electronic Legal Materials Act. Referred to the House State Agencies Committee.

HB 1745 – Rep. RJ Hawk and Sen. Kim Hammer
Requires certain commercial driver’s license holders to have U.S. work authorization to operate a commercial motor vehicle and establishes related offenses. Referred to the House Public Transportation Committee.

HB 1746 – Rep. Matt Brown and Sen. Tyler Dees
Amends the Uniform Commercial Code. Filed.

SB 420 – Sen. Bart Hester
Expands eligibility for water development state programs, amends the Water Authority Act, and modifies uses of the Construction Assistance Revolving Loan Fund. Scheduled for hearing in the Senate Insurance and Commerce Committee.

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.

SB 423 – Sen. Jamie Scott and Rep. Denise Ennett
Exempts education scholarships, awards, and grants from nonprofit volunteer service organizations from individual income tax. Referred to the Senate Revenue and Taxation Committee.

SB 424 – Sen. Gary Stubblefield and Rep. Ashley Hudson
Amends the law to enhance accountability and transparency of municipal improvement districts. Scheduled for hearing in the Senate City, County and Local Affairs Committee.

SB 432 – Sen. Jim Petty and Rep. Les Warren
Amends laws related to accountants and updates the definition of substantial equivalency for accountancy practice. Scheduled for hearing in the Senate Insurance and Commerce Committee.