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Daily Legislative Update: Wednesday, March 19, 2025

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

 

Tuesday, March 19, 2025 – Day 65

LEGISLATIVE SCHEDULE

The standing committees met at 10:00 a.m. The House and Senate will convene at 1:30 p.m. House Public Health, Welfare and Labor and Senate Insurance and Commerce committees will meet after adjournment. 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 and 288 await consideration on the  Senate floor. SB 285, 286 and 287 are on this morning’s agenda in the Senate Public Health Welfare and Labor Committee.

SB 284 and 288 would increase physician and specialist changes from one time to annual. SB 285 would increase the maximum weekly benefit from $903 to $2300. SB 286 would add objective findings to scheduled injuries and broaden coverage. SB 287 would increase attorney’s fees.

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.

 

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

Today at the Capitol

SB 279, which clarifies the process for investigating wage and hour disputes, received a “Do Pass” recommendation yesterday from the House Public Health, Welfare, and Labor Committee. It is on this afternoon’s House calendar. We support this bill.

Bills we support that are on committee agendas today:

  • SB 390 – Creates an apprenticeship program. It is on today’s agenda in the Senate Education Committee.
  • SB 361 – Creates the Industrial Development Authorities Expansion Act. It passed the Senate last week 30-0 and is on today’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 today’s agenda in the House State Agencies Committee.
  • SB 403 – Seeks to create a complete count committee for the 2030. It is on today’s agenda in the House State Agencies Committee.
  • HB 1797 – Seeks to amend the law concerning the Arkansas Development Finance Authority. It is on today’s agenda in the House State Agencies Committee.

Bills we oppose that are on committee agendas today:

  • 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 are on today’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 today’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 today’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 is on today’s agenda in the Senate Transportation, Technology, and Legislative Affairs Committee.
  • SB 456 – Impacts local zoning authorities. It received a “Do Pass” recommendation yesterday from the Senate City, County and Local Committee. It is on today’s Senate calendar.

For more details, see the “Bills We Support” and “Bills We Oppose” sections below.

 

Tomorrow at the Capitol

A bill we oppose, HB 1656, which seeks to amend existing royalty contracts, was not considered by the Senate Agriculture and Economic Development Committee yesterday as expected. It remains on the committee’s agenda for its next meeting tomorrow.

 

Yesterday at the Capitol

SB 307, the Generating Arkansas Jobs Act, passed the House yesterday with a 77-13 vote. We supported this bill, which now heads to the Governor’s desk.

The House Revenue and Taxation committee heard testimony on three of our tax package bills yesterday, HB 1500, 1501, and 1538, but no vote was taken.

The Tax Foundation has identified these measures as critical to improving Arkansas’ tax competitiveness ranking, which is why we are supportive of these bills:

  • 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 House Revenue and Taxation 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.

The House Education Committee gave a “Do Pass” to HB 1571, which amends the Arkansas Adult Diploma Program Act. We support this bill.

We support SB 322, which passed in the Senate yesterday 34-0. This bill would allow third parties to review plans and perform site inspections. It has been assigned to the House City, County and Local Committee.

 

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 13 bills to our tracking list today.

HB 1754 – Rep. Justin Gonzales
Creates the Private Property Protection Act to prohibit certain property use restrictions by governmental entities. House Judiciary

HB 1822 – Rep. Kendon Underwood
Introduces the Overtime but not Overtaxed Act. Proposes no income tax on bonus pay. House Revenue and Taxation

HB 1828 – Rep. Harlan Breaux
Establishes a sales and use tax exemption for Inspiration Point Center for the Arts, Inc. House Revenue and Taxation

HB 1830 – Rep. Matthew Shepherd and Rep. Kim Hammer
Amends the law concerning the Attorney General and the procurement of contingency fee contracts. House Judiciary

HB 1831 – Rep. Matthew Shepherd and Rep. Kim Hammer
Modifies regulations on the use of settlement funds by the Attorney General. Committee: H-Judiciary

HB 1832 – Rep. Matthew Shepherd and Sen. Bart Hester
Amends the rules of the Supreme Court and Court of Appeals of Arkansas under the authority granted by the state constitution. House Judiciary

HB 1837 – Rep. Mindy McAlindon
Requires disclosure for voter-referred measures and bans foreign funding for ballot initiatives. Amends portions of the Arkansas Code from Initiated Act 1 of 1996. House State Agencies

HB 1847 – Rep. Mindy McAlindon
Authorizes the Arkansas Racing Commission to maintain a statewide self-exclusion list. House Rules

SB 497 – Sen. Dave Wallace and Rep. Jason Nazarenko
Mandates the creation and display of a poster detailing veterans’ benefits and services in certain workplaces. Senate Public Health, Welfare and Labor

SB 501 – Rep. Jamie Scott
Establishes the Tenant Possessions Recovery Act, requiring landlords to notify tenants before executing a writ of possession. Senate Judiciary

SB 502 – Rep. Steve Crowell
Amends the Arkansas Income Tax Withholding Act of 1965 to require electronic filing of Form 1099 in certain cases. Senate Revenue and Taxation

SB 503 – Sen. Steve Crowell and Rep. James Eaton
Reduces the employee threshold for mandatory electronic filing of annual income tax withholding statements. Senate Revenue and Taxation

SB 505 – Sen. Joshua Bryant and Rep Brit McKenzie
Revises municipal planning laws to require administrative procedures for certain zoning or district designation changes. Senate City, County and Local Affairs

 

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.

 

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. 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.