94th General Assembly
The seventh week of the 94th General Assembly has wrapped up in Little Rock.
Unlike last week, this week saw a great deal of excitement across the Capitol. Throughout the week large groups of nurses, Realtors, park rangers, gas utility company employees, and homeschool students and parents came through the Capitol to be recognized for various achievements and advocate for their organization.
On Monday, Governor Sarah Huckabee Sanders’ Arkansas LEARNS bill was filed by Senator Breanne Davis. The bill number is SB294. On Wednesday, the bill was heard in the Senate Education Committee. After an extensive committee meeting that lasted most of the day, the bill passed out of the committee. On Thursday, the bill ran on the Senate floor. With a vote of 25-7 the bill passed mostly along partisan lines.
The second largest fight this week surrounded a public notice bill, HB1399. The bill would remove public notice from newspapers to a third-party website. When the sponsor presented the bill to the House City, County and Local Affairs Committee, it became clear that the committee did not find the bill to be favorable. One member asked for a fiscal impact study to be conducted on the bill. This immediately prevented the committee from being able to vote on the bill until that study is returned to the committee. We expect the sponsor to attempt to run the bill again next week.
Please take a moment to review the bills tracked below. Please let us know if your organization intends to support or oppose any of the legislation listed. Otherwise, we will continue to monitor the bills listed in the event any amendments have been made which would impact you further.
Below are bills that Cove Street Consulting is tracking for you and your organization:
Review: New Bills that have been filed
HB1429
Sponsor: Rep. Jay Richardson
Summary: Requires the Office of Motor Vehicles to issue a driver’s license to an applicant who is unable to provide proof of legal residency status but provides identifying information.
Detailed Analysis: This bill would provide a way for non-citizens to obtain a driver’s license if they are able to meet requirements of proving identity via passport, show an IRS taxpayer identification number, provide proof of residence, demonstrate authorization for presence in the U.S., and have filed state tax returns for three years prior.
Action: Referred to House Public Transportation
HB1486
Sponsor: Rep. Ashley Hudson, Rep. Josh Miller, Sen. Missy Irvin
Summary: Amends the law concerning distracted driving
Detailed Analysis: This bill will increase punishment for using a wireless communication device while driving. If someone has a collision or accident that results in serious physical injury or death of another person, they may face a $2,500 fine as well as one year jail time.
Action: Referred to House Public Transportation Committee.
High Priority – Oppose
None
Support
None
Neutral – Monitor
HB1006
Sponsor: Rep. Aaron Pilkington
Summary: Requires an employer with more than 50 employees that covers abortions or travel expenses related to abortions for employees to provide 12 weeks of paid maternity leave to full-time employees who are employed in Arkansas.
Detailed Analysis: This bill was amended in committee to significantly narrow the scope of the bill. The bill has been narrowed from 16 weeks down to 12 weeks of paid maternity leave. This only applies to employers that have more than 50 employees. This law would only apply if the employee is on the employers health benefit plan and is the birth mother.
Action: Senate Public Health Committee.
HB1012
Sponsor: Rep. David Ray
Summary: Increases the standard deduction for state income taxes from $2,200 to $4,400.
Detailed Analysis: Increases the standard deduction for state income taxes from $2,200 per taxpayer to $4,400 per taxpayer beginning on January 1, 2023.
Action: Referred to House Revenue & Taxation Committee.
HB1036
Sponsor: Rep. Aaron Pilkington
Summary: This bill reduces the required liability coverage limits for scooter-share operators.
Detailed Analysis: Reduces the commercial general liability insurance minimum from $1 million to $250,000 for each occurrence and $5 million to $250,000 in aggregate.
Action: Moved to deferred list in House Public Transportation Committee.
HB1037
Sponsor: Rep. Aaron Pilkington
Summary: Requires the Insurance Commissioner to develop and administer a pilot program to support healthcare portability for small businesses.
Detailed Analysis: Repeals the requirement for legal insurance by Arkansas lawyers.
Action: Referred to House Insurance and Commerce Committee.
HB1049
Sponsor: Rep. Stephen Meeks
Summary: Creates the Fair Access to Financial Services Act and establishes that a violation is an unfair and deceptive trade practice.
Detailed Analysis: Prevents any financial institution or institution that provides insurance services from utilizing environmental, social, governance policies--as well as diversity, equity, and inclusive policies--in preventing or limiting an individual from entering a market or business segment. Violation of this law would be a violation of the Arkansas Deceptive Trade Practices Act.
Action: On deferred list of House Insurance and Commerce Committee.
HB1097
Sponsor: Rep. David Ray
Summary: This bill reduces the top marginal income tax rate from 4.9% to 4.5%.
Detailed Analysis: Decreases the 4.9% tax rate down to 4.5% for those that make between $23,600 to and less than or equal to $84,500.
Action: Referred to House Revenue & Taxation Committee.
HB1174
Sponsor: Rep. Richard Womack, Sen. Matt McKee
Summary: Provides that all provisions of the Arkansas Criminal Code apply to a prosecution for the death of an unborn child that would apply to a prosecution for the death of any other person.
Detailed Analysis: This bill removes the provision of Arkansas law which prevented the criminal prosecution of a woman for having an abortion. It replaces that provision of law with language that allows for prosecution for the death of the unborn child, similar to prosecuting the death of any other person.
Action: Moved to deferred list in House Judiciary.
HB1253
Sponsor: Rep. McAlindon, Sen. Bryant
Summary: Outlines how a fiduciary shall discharge duties with respect to a pension benefit plan, precluding nonpecuniary factors.
Detailed Analysis: This bill will prevent a person who manages benefit plans, renders investment advice for a fee, or has discretionary authority in the administration of the pension benefit plan from using ESG factors in making determinations.
Action: Referred to Joint Committee on Public Retirement & Social Security Programs.
HB1301
Sponsor: Rep. Clowney
Summary: Expands the exceptions from the prohibition against abortion to include fetal abnormality incompatible with life.
Detailed Analysis: This bill would allow abortions in the event fetal abnormality exists that is incapable of sustaining life.
Action: Referred to House Public Health Committee.
HB1307
Sponsor: Rep. Wardlaw, Sen. Hill (61 House, 24 Senate)
Summary: An Act Concerning the Regulation of Environmental, Social Justice, or Governance Scores; to Authorize the Treasurer of State to Divest Certain Investments or Obligations Due to the use of Environmental, Social Justice, or Governance-Related Metrics
Detailed Analysis: Allows the Attorney General to determine if a company has discriminated against energy or firearm companies based on ESG principles. Requires the Treasurer of State to maintain a list of companies that use ESG & requires the Treasurer to divest from financial service providers on the list. The AG’s determination is NOT subject to the Arkansas Administrative Procedure Act. The AG may rely on statements or complaints by an energy, fossil fuel, firearm, or ammunition company as well as media reports.
Action: Passed out of the House, Received in the Senate. Referred to Senate State Agencies Committee.
HB1356
Sponsor: Rep. Lee Johnson, Sen. Missy Irvin
Summary: Requires the Insurance Commissioner to consider a health insurer’s surplus levels in determining whether a proposed rate is excessive.
Detailed Analysis: Current Arkansas law allows the Insurance Commissioner to consider a health insurer’s surplus levels in determining whether a proposed rate is excessive. This bill would require the Commissioner to do so.
Action: Referred to House Insurance & Commerce Committee.
HB1361
Sponsor: Rep. McGrew, Sen. Ron Caldwell
Summary: Creates a property management license under which a licensee may rent or lease real property on behalf of an owner.
Detailed Analysis: This bill will require a property manager to be licensed by the Arkansas Real Estate Commission.
Action: Referred to House Insurance and Commerce Committee.
HB1379
Sponsor: Rep. McAlindon, Sen. Crowell
Summary: Allows certain taxpayers to file electronically.
Detailed Analysis: Allows a taxpayer with an average monthly sales tax liability of $5,000 or more to file all returns & remittances electronically.
Action: Referred to House Revenue & Taxation Committee.
HB1436
Sponsor: Rep. John Maddox, Sen. Jonathan Dismang
Summary: Expands the list of reasons for which the Securities Commissioner can deny, suspend or revoke a registration.
Detailed Analysis: Allows the Commissioner to deny, suspend, or revoke the registration of someone convicted or pled guilty or nolo contendere of a felony or misdemeanor within 10 years related to securities, investments, banking, or fraud, bribery, wrongful taking of property, or perjury.
Action: Referred to House Insurance and Commerce.
HB1437
Sponsor: Rep. John Maddox, Sen. Justin Boyd
Summary: Allows an employee or agent of a utility/telecom/cable company to operate an all-terrain vehicle on a public street or highway when performing a function related to company operations.
Detailed Analysis: This bill removes the requirement that an employee only use an all-terrain vehicle during emergencies or severe weather. It expands to cover agents of a utility company as well.
Action: Referred to House Public Transportation Committee.
HB1438
Sponsor: Rep. John Maddox, Sen. Jonathan Dismang
Summary: Makes various amendments to the Uniform Money Services Act
Detailed Analysis: This bill makes various changes to state law related to securities and financial services.
Action: Referred to House Insurance and Commerce Committee.
SB38
Sponsor: Sen. Jim Dotson
Summary: This bill repeals the income tax apportionment throwback rule that applies to the apportionment of business income.
Detailed Analysis: Considers tangible personal property to be any property delivered or shipped to a purchaser in the state.
Action: Referred to Senate Revenue & Taxation Committee.
SB56
Sponsor: Sen. Ricky Hill and Rep. Jeff Wardlaw
Summary: This bill prevents a state agency from engaging in practices that utilize environmental, social, governance policies.
Detailed Analysis: This bill prevents state agencies from utilizing environmental, social, governance policies in rules or regulations.
Action: Withdrawn from consideration.
SB62
Sponsor: Sen. Ricky Hill, Rep. Jeff Wardlaw
Summary: Prohibits public entities from engaging in a boycott of energy, fossil fuel, firearms, and ammunition industries, or from contracting with a company without written certification that the company is not engaged in such boycotts.
Detailed Analysis: This bill will prevent the state government and its agencies all the way down to the local conservation district, as well as public institutions of higher education, from contracting with companies that refuse to do business with energy, fossil fuel, firearm, or ammunition industries. This bill appears to exclude financial service providers, as well as companies that can supply goods or services at a 20% lower cost than other certifying businesses and contracts for under $1,000.
Action: Referred to Senate State Agencies.
SB120
Sponsor: Sen. Love
Summary: Requires a cover or tarp that completely covers the cargo area when a vehicle’s cargo may be a hazard to other motorists.
Detailed Analysis: This bill requires sand, gravel, rock, cement trash, or any other products that may create a hazard to other motorists.
Action: Referred to Senate Transportation Committee.
SB151
Sponsor: Sen. Penzo, Rep. Lundstrum
Summary: Provides that the transfer of real property into a revocable living trust via warranty deed shall not impact the coverage of title insurance or property and casualty insurance if the beneficiary remains a beneficiary during the lifetime of the settlor.
Detailed Analysis: This bill would allow the transfer of real property into a revocable living trust by warranty deed and provides that the insurance coverage for the revocable living trust shall be subject to the defenses available to the insurance company under the policy. Under this bill, if the settlor is a beneficiary of the trust at the time of the transfer of the real property via warranty deed, then the transfer cannot affect the eligibility of homestead property tax credit or accelerate a due-on-sale clause of the mortgage.
Action: Referred to Senate Insurance and Commerce Committee.
SB230
Sponsor: Sen. Bryan King
Summary: Requires employers to provide 8 hours of paid leave to each employee registered to vote.
Detailed Analysis: This bill requires all employers to provide 8 hours of paid leave to every employee that is registered to vote, so that they may vote early in primary, primary runoff, and general elections.
Action: Referred to Senate Judiciary, moved to deferred list.
SB237
Sponsor: Sen. Clark
Summary: An act concerning vehicles, boats, or farming equipment with removed, damages, mutilated, or defaced serial number or vehicle identification number.
Detailed Analysis: This bill raises the penalty to a Class D felony for anyone convicted of buying, receiving, disposing of, selling, offering to sell, or possessing a vehicle or vehicle part.
Action: Referred to Senate Judiciary.
Passed
HB1111
Sponsor: Rep. Les Warren
Summary: This bill raises the applicable age to receive disbursement from police and fire department pensions.
Detailed Analysis: Raises the age from 72 to 73 for those turning 72 years old after December 31, 2022 and raises it to age 75 for those turning 74 after December 31, 2022.
Action: Sent to the Governor. Enacted as Act 44 of 2023.
HB1258
Sponsor: Rep. Lundstrum, Sen. Dees
Summary: Allows cities to issue permits for the use of sky lanterns.
Detailed Analysis: This bill would allow cities of the first or second class to issue and revoke permits for sky lanterns. The event must be open to the public. The city may revoke the permit if the fire department of the city determines that the use of sky lanterns would be dangerous due to weather or other conditions.
Action: Signed by the Governor; enacted as Act 112 of 2023
SB111
Sponsor: Sen. Missy Irvin, Rep. Deborah Ferguson
Summary: Creates new line of insurance, called family leave insurance.
Detailed Analysis: This bill creates a new type of insurance called family leave insurance, which will allow an insurer licensed to transact accident, health, or life insurance in the state to issue an insurance policy covering the risk of family leave. This would include birth, adoption, fostering of a child, care of an employee’s family member who has a serious health condition, or circumstances arising due to a family member’s service in the military.
Action: Signed by the Governor; Enacted as Act 84 of 2023.
