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Daily Legislative Update: Wednesday, March 5, 2025

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

Wednesday, March 5, 2025 – Day 51

TODAY AT THE CAPITOL
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.

 

**CALL TO ACTION – SB 307**

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

SB 307 allows Arkansas electric utilities 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 provides key benefits like:

  • 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.

Why SB 307 Matters:
Arkansas’ electricity demand is rising due to growth in manufacturing, transportation electrification, data centers, and population increases. However, Arkansas lacks surplus power-generating capacity to meet this demand. Without reliable and affordable electricity, businesses may choose to expand or relocate elsewhere. SB 307 helps Arkansas to meet this growing need by allowing utility providers to implement a proactive approach to meeting electricity demand, making Arkansas more attractive for business expansion and preventing companies from seeking locations with more available power capacity.

At a press conference last Wednesday, economic developers from across the state voiced strong support for the bill.

Randy Zook, our president and CEO, emphasized its importance, 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 was passed over again yesterday and is on this afternoon’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 and a bipartisan group of legislators.

**Ask your legislators to support SB 307** 

 

**CALL TO ACTION – SB 284 – 288**

SB 284 – SB 288 – Sen. John Payton
These bills 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, these changes would drive up costs, prolong claims, and weaken incentives for timely recovery and return to work.

Key Concerns:

  • 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.

Arkansas’ existing workers’ compensation system is competitive with neighboring states and provides strong protections for injured workers. These bills would implement changes that will drive up costs, disrupt the system’s stability, and make Arkansas a more expensive place to do business.

A stable and predictable system benefits everyone. This is why we oppose these bills.

All of these bills are all set to be heard this morning as a Special Order of Business in the Senate Public Health, Welfare and Labor Committee.

We oppose these bills and encourage you to contact state senators and ask them to Vote NO on SB 284-288.

 

TODAY AT THE CAPITOL (CONTINUED)

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.

SB 209 – 212 – 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 is on today’s agenda in the House State Agencies Committee.
  • SB 210 – Requires petition signers to read the ballot title in the presence of a canvasser. This bill is on today’s agenda in the House State Agencies Committee.
  • SB 212 – Establishes the Document Validity Division. A motion for “Do Pass” failed in the Senate State Agencies Committee on February 27.

HB 1531 – Rep. Brandon Achor
This bill seeks to prohibit pharmaceutical manufacturers from restricting or limiting prescription medication to a limited distribution network of out-of-state pharmacies. This bill is on today’s agenda in the House Insurance and Commerce Committee.

HB 1602 – Rep. Lee Johnson and Sen. Kim Hammer
This bill seeks to amend the Arkansas Pharmacy Benefits Manager Licensure Act. It would establish fees and require reporting of certain information by a pharmacy benefits manager. This bill is on today’s agenda in the House Insurance and Commerce Committee.

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 implementing Daylight Savings Time for the entire United States, then Arkansas would follow. This bill is on today’s agenda in the House State Agencies Committee. We oppose this bill.

SB 205 – Sen. Alan Clark
This bill seeks to amend the Arkansas Opportunity Public School Choice Act and amend the Public School Choice Act of 2015. This bill is on today’s agenda in the Senate Revenue and Taxation Committee.

SB 7 – Sen. Clint Penzo
This bill will seek 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 on today’s agenda in the Senate Revenue and Taxation committee. We oppose this bill.

 

TOMORROW AT THE CAPITOL

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 tomorrow’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 Arkansas’ economic competitiveness by repealing the throwback rule. It is on tomorrow’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 is on tomorrow’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 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 tomorrow’s agenda in the House Revenue and Taxation Committee. We support this bill.

SB 188 – Sen. Clarke Tucker
This bill seeks to amend Arkansas law concerning initiative petitions and referendum petitions and require public posting of statewide initiative petitions and referendum petitions. This bill is on tomorrow’s agenda in the House State Agencies Committee.

HB 1574 – Rep. DeAnn Vaught and Sen. Kim Hammer
This bill amends the law concerning canvassers by requiring Arkansas domicile. This bill is on tomorrow’s agenda in the House State Agencies Committee.

HB 1582 – Rep. Mindy McAlindon and Sen. Jane English
This bill requires individuals to meet specific conditions to be eligible for benefits under the Division of Workforce Services law. This bill is on tomorrow’s agenda in the House Public Health, Welfare and Labor Committee.

 

YESTERDAY AT THE CAPITOL

HB 1576 – Rep. Robin Lundstrum and Sen. Joshua Bryant
This bill prohibits the placement of solid waste landfills or transfer stations over Karst topography. This bill was amended for a third time and received a “Do Pass” recommendation in the House State Agencies Committee.

 

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 House Education Committee. We support this bill.

HJR 1014 – Rep. Howard Beaty and Sen. Jonathan Dismang
This constitutional amendment concerns economic development in the state of Arkansas. It authorizes the General Assembly to provide for the creation of economic development districts to promote economic development. This joint resolution awaits consideration in the House State Agencies 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 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.

 

NEWLY TRACKED BILLS
We added nine bills to our tracking list based on yesterday’s filings.

HB 1656 – Rep. Rick Beck and Sen. Breanne Davis
Amends laws related to oil and gas production and conservation. Referred to the House Agriculture, Forestry, Economic Development Committee. We oppose this bill. 

HB 1657 – Rep. Rick Beck and Sen. Breanne Davis
Amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit. Referred to the House Revenue and Taxation Committee. 

HB 1659 – Rep. Stephen Meeks
Amends the Uniform Commercial Code to clarify priority among security interests and entitlement holders. Referred to the House Insurance and Commerce Committee.

HB 1665 – Rep. Jeff Wardlaw
Amends insurance premium tax laws, repealing the tax credit based on insurer employee salaries. Referred to the House Revenue and Taxation Committee.

HB 1666 – Rep. Stephen Meeks
Amends the Arkansas Self-Funded Cyber Response Program. Referred to the House Communications and Information Technology Committee.

HB 1671 – Rep. Lee Johnson
Amends gross receipts tax laws, creating a general sales and use tax exemption for sales to qualified nonprofit organizations. Referred to the House Revenue and Taxation Committee.

HB 1680 – Rep. DeAnn Vaught
Prohibits foreign-party-controlled businesses from leasing land or holding certain real property or agricultural land interests. Referred to the House Agriculture, Forestry, Economic Development Committee.

SB 367 – Sen. Missy Irvin
Repeals the Small Business Revolving Loan Fund for Pollution Control and Prevention Technologies Act. Placed on the deferred list in the Senate Public Health, Welfare and Labor Committee.

SB 368 – Sen. Missy Irvin and Rep. Matthew Shepherd
Amends laws related to state land resources, reduces Natural Resources Committee membership, and modifies lease/permit notifications. Referred to the Senate Agriculture and Economic Development Committee.