Week 11 of the 94th General Assembly has wrapped up, and the Legislators have returned from Spring Break re-energized. It clearly shows based on how fast the pace has been around the Capitol this week.
This week brought many important bills and debates. On Monday, Governor Sanders unveiled her criminal justice plan, commonly referred to as Protect Arkansas Act. That afternoon, the Governor announced that the Department of Human Services would be piloting a program that would allow parents to bring their children to work with them in certain circumstances.
On Tuesday, the Governor announced three lawsuits against major social media platforms. One suit is against Meta (formerly known as Facebook), and the other two suits are against TikTok and its parent company ByteDance.
Wednesday brought about a significant victory for government transparency and public notice. Members of the House City, County and Local Affairs Committee blocked a bill that would allow local governments to place public notices on websites instead of newspapers.
On Thursday, Governor Sanders held a joint press conference with Speaker Matthew Shepherd and Senator Jonathan Dismang, where she announced her plan to cut income taxes in Arkansas. The Governor’s proposal would impact the more than 1.1 million Arkansas taxpayers who make more than $24,300. The tax cuts will total $100 million in personal income tax cuts, as well as $20 million in corporate tax cuts. The individual top rate will decrease from 4.9% to 4.7%. For Arkansas-based corporations, as well as those domiciled outside the state, the tax rate will decrease from 5.3% to 5.1%. The cuts will be retroactive and go into effect on January 1, 2023.
In that press conference, Speaker Shepherd referenced his intent to still push forward as if the General Assembly is concluding its work on April 7th. However, he did acknowledge that an additional few days may be needed to ensure all work is completed.
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
HB1737
Sponsor: Rep. Scott Richardson and Sen. Jim Petty
Summary: Shields a property owner that allows nonemployees to carry loaded firearms on the property from civil liability and provides a cause of action against property owners who prohibit nonemployees from carrying loaded firearms in certain circumstances.
Action: Amended in House Judiciary; motion due pass.
HB1755
Sponsor: Rep. Grant Hodges
Summary: Allows a motorcycle operator to practice lane splitting.
Action: Referred to House Public Transportation.
HB1822
Sponsor: Rep. Rebecca Burkes
Summary: Requires a court to reduce damages by the amount the plaintiff will receive from a third party once a verdict has been issued in cases involving personal injury, death, or property damage.
Action: Referred to House Judiciary.
SB415
Sponsor: Sen. Matt Stone and Rep. Howard Beaty
Summary: Outlines requirements for a prescribed burn.
Action: Referred to House Agriculture
SB417
Sponsor: Sen. Gary Stubblefield and Rep. Marcus Richmond
Summary: Provides that a person operating or moving a vehicle or object on a public bridge is civilly liable for damages due to careless, negligent, or illegal operation, or due to overweight or width.
Action: Referred to House Judiciary.
SB503
Sponsor: Sen. Jim Petty and Rep. Shad Pearce
Summary: Prohibits a driver from entering an intersection when vehicular traffic is stopped on the other side of the intersection
Action: Referred to Senate Transportation.
SB545
Sponsor: Sen. Josh Bryant and Rep. Grant Hodges
Summary: Provides that the claim files of an insurer are subject to examination by the Insurance Commissioner.
Action: Referred to Senate Insurance and Commerce.
High Priority – Oppose
None
Support
HB1418
Sponsor: Rep. Marcus Richmond, Sen. Missy Irvin
Summary: Prevents recovery of phantom damages
Action: Committee Motion Do Pass Failed
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: Off deferred list in 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: Amendment filed.
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: Placed on the Senate calendar.
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: Moved to deferred list in 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: Sent to the Governor.
HB1313
Sponsor: Rep. Ashley Hudson, Sen. Reginald Murdock
Summary: Provides the exemption of life insurance proceeds from creditors.
Detailed Analysis: This bill will prevent debt and other claims against the insured or beneficiary secured by the proceeds of a life insurance policy.
Action: Referred to Senate Insurance and Commerce.
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.
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; amendment adopted.
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.
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: Sent to the Governor.
HB1511
Sponsor: Rep. Scott Richardson
Summary: Requires school buses acquired by a school to have an electronic child safety alarm system.
Detailed Analysis: This bill will require all buses to have the alarms installed by January 1, 2029.
Action: Failed on Senate floor; vote expunged.
HB1519
Sponsor: Rep. RJ Hawk
Summary: Prohibits a municipality or other political subdivision from regulating animal based on specific breed or perceived breed of the animal.
Action: Failed on House floor; motion to expunge the vote failed.
HB1525
Sponsor: Rep. Grant Hodges, Sen. Jim Dotson
Summary: Provides that the provision of token gifts of $100 or less in value that are used for advertisement purposes is not an unfair or deceptive practice or a prohibited inducement in the insurance business.
Detailed Analysis: This bill will allow gifts valued under $100 for the purpose of advertisement.
Action: Signed by the Governor; enacted as Act 337
HB1548
Sponsor: Rep. Mark McElroy, Sen. Dave Wallace
Summary: An act to amend the law concerning the period of time certain driver’s license applicants are required to wait to complete the driver’s exam
Detailed Analysis: This bill will remove the 30-day waiting period between receiving a valid instruction permit and taking the driving skills portion of the driver’s license exam.
Action: Referred to House Public Transportation.
HB1567
Sponsor: Rep. Richard Womack, Sen. Steve Crowell
Summary: This bill requires school buses to be equipped with red flashing lights.
Detailed Analysis: This bill will apply to newly purchased or leased buses on January 1, 2024.
Action: Referred to House Public Transportation.
HB1581
Sponsor: Rep. Warren, Sen. Hickey
Summary: An act to amend the law concerning unenforceable provisions in certain construction contracts.
Detailed Analysis: This bill will apply a standard of care to engineers & architects to be that of a professional skill and care ordinarily provided by such professionals. This bill preempts any standard of care that may have been contracted for in a construction contract.
Action: Introduced and referred to House Public Health, Welfare, and Labor Committee.
HB1585
Sponsor: Rep. John Maddox, Sen. Ricky Hill
Summary: Amends the law concerning delivery network company insurance.
Detailed Analysis: This bill will impact motor vehicle liability insurances coverage for liability to third parties.
Action: Introduced and referred to House Insurance and Commerce Committee.
HB1620
Sponsor: Rep. Wayne Long
Summary: Prohibits a financial institution, including all entities under the Insurance Commissioner, from knowingly keeping a record of privately owned firearms or owners of privately owned firearms, or from requiring a separate merchant code for a seller of firearms or ammunition.
Action: Referred to House Insurance and Commerce Committee.
HB1628
Sponsor: Rep. Stephen Meeks, Sen. Mark Johnson
Summary: Prohibits covenants not to compete in Arkansas.
Action: Introduced and referred to House Insurance and Commerce Committee.
HB1633
Sponsor: Rep. Shad Pearce, Sen. Jim Petty
Summary: Raises the total property damage threshold that requires a driver to notify law enforcement of an accident from $1,000 to $3,000.
Action: Referred to House Public Transportation.
HB1638
Sponsor: Rep. Shad Pearce
Summary: Prohibits a vehicle from entering and driving on a center left-turn lane for a distance that is more than reasonable and prudent.
Action: Introduced and referred to House Public Transportation.
HB1640
Sponsor: Rep. Grant Hodges, Sen. Justin Boyd
Summary: Provides that offering certain value-added products or services at no, or reduced, cost or token gifts used for advertisement purposes is not an unfair or deceptive trade practice or prohibited inducement.
Action: Referred to Senate Insurance and Commerce.
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.
SB341
Sponsor: Sen. Justin Boyd, Rep. Rick McClure
Summary: Replaces the Commercial Driver Alcohol and Drug Testing Act with FMCA database for purposes of commercial driver’s license applicants.
Action: Referred to Senate Transportation Committee.
SB342
Sponsor: Sen. Gary Stubblefield, Rep. John Maddox
Summary: Allows for settlement agreements involving minors.
Detailed Analysis: This bill will allow suits for which a minor is a party to settle without court approval so long as the sum is under $25,000.
Action: Sent to the Governor.
SB350
Sponsor: Sen. Josh Bryant
Summary: Increases the penalty against insurers for failing to pay a claim within the time specified in the insurance policy from 12% of damages to 25% of damages.
Action: Referred to Senate Insurance and Commerce.
SB351
Sponsor: Sen. Josh Bryant
Summary: Provides that an insurer’s refusal or failure to pay an insurance claim is a breach of the implied covenant of good faith and fair dealing if certain conditions are met.
Action: Referred to Senate Insurance and Commerce.
SB368
Sponsor: Senator Justin Boyd, Rep. Les Eaves
Summary: An act to require disclosure by an insurance company of the monetary amount of a deductible based on a percentage of the insured value.
Detailed Analysis: Property & casualty policy issued or renewed in this state that bases the deductible under the insurance policy on a percentage of the insured value of the insured property shall disclose to the insured the monetary amount of the deductible in a conspicuous manner.
Action: Sent to the Governor.
SB388
Sponsor: Sen. Ricky Hill and Sen. John Maddox
Summary: Amends the law related to municipal and regional airports and peer-to-peer car sharing.
Action: Introduced and referred to the Senate Insurance & Commerce Committee.
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
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: Signed by the Governor: enacted as Act 192 of 1379.
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: Signed by the Governor; enacted as Act 324 of 2023.
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: Signed by the Governor; enacted as Act 269 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.
SB348
Sponsor: Sen. Mark Johnson
Summary: Requires a health insurer to respond to claims within 60 business days after receipt of written documentation by a Medicaid recipient.
Action: Signed by the Governor; enacted as Act 369 of 2023.
