State Legislative Update
The General Assembly session is in full stride with 1,115 bills introduced and nearly 260 enacted. The session will be extended until April 16 with lawmakers taking a break from March 20-March 31, which coincides with the state’s Spring Break week.
A major piece of legislation during this session is a bill that to allow utilities to increase rates sooner and annually to build power plants and to presumably create lower rates long-term. SB307 would permit utilities to file annual riders with the Public Service Commission (PSC) authorizing them to increase rates before a new power plant is fully completed compared to the current process that calls for larger rate increases as projects near completion. PSC would be given authority to determine if the increased rates are in the public interest. Although the bill failed in the Senate by one vote, it will be considered again after the PSC provides responses on Monday to questions posed by the Senate.
Governor Sanders announced a bundle of 6 bills referred to as the "Communist China Defense legislative package" that will divest state resources from China and ban foreign adversaries from buying land in certain areas (read more here). Included in the package is SB317, which would prohibit higher education institutions from conducting research, selling agricultural products, producing agricultural products with or entering into a nondisclosure agreement with a "prohibited foreign party". AR Rice has expressed some concerns as to how rice research could be impacted in the state.
The Governor also announced legislation to remove the final portion of the state sales tax on groceries (SB377) coupled with legislation to expand liability protections to those who donate food items to foodbanks (HB1682).
Other new bills of interest include:
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HB1562 amends the current requirement to only allow written notice sent by certified mail to terminate an oral lease of farmland and adds several additional methods of notice delivery.
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HB1569 changes/removes the ability of some non-residents from having Commercial Drivers Licenses (CDLs). It’s our understanding that those with a farm exemption are not impacted by this legislation..
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HB1594 provides for the Department of Finance & Administration to create a farm sales tax identification card for be issued to eligible farmers to show as proof of sales tax exemption eligibility.
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HB1623 exempts H-2A visa program participants who have a valid international driver's license or permit from the skills portion of the driver's license examination.
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HB1680 prohibits businesses controlled by foreign parties from leasing land and restricts prohibited foreign parties from owning real property or agricultural land under certain conditions.
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SB281 the producers “bill of rights” directed at research & promotion boards and the AR Department of Agriculture with the intent to provide for continued/improved transparency and access to information and meetings.
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SB315 the “Farmer Protection Act” is aimed at large financial institutions serving producers and includes a statement “State governments should take steps to ensure that financial institutions do not unfairly discriminate against agriculture producers.”
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SB338 establishes sales and use tax exemptions to encourage youth involvement in agriculture by supporting student farmers and their educational projects.
Updated Bills of interest:
HB1045
TO PLACE CERTAIN REQUIREMENTS ON AN INDIVIDUAL PLANNING A CROP RESIDUE BURN; TO ADDRESS LIABILITY OF AN INDIVIDUAL WHO HAS FOLLOW CROP RESIDUE BURN REQUIREMENTS; AND TO PROVIDE CIVIL PENALTIES by Rep. Fran Cavenaugh. Has been amended to remove language requiring approval for burns from the AR Department of Agriculture, to remove all civil fines, to provide exemption from Freedom of Information Act for burn information reported to Dept. of Ag, and setting effective date of July 1, 2026. Remains in the House Agriculture Committee.
HB1198
TO PROHIBIT CERTAIN HEIGHTS OF WIND POWER DEVICES FOR WATERFOWL CONSERVATION IN THIS STATE; AND TO DECLARE AN EMERGENCY by Rep. Jeremiah Moore & Sen. Jonathan Dismang. Seeks to prohibit windmill height to no more than 150 feet, primarily in eastern AR. Failed to pass out of Joint Energy Committee.
HB1417
TO DESIGNATE THE OFFICIAL DUCK OF THE STATE OF ARKANSAS by Rep. Jack Ladyman & Sen. Blake Johnson. Names the mallard as the official state duck of Arkansas. Now Act 215.
HB1450
TO AMEND THE LAW CONCERNING REPORTS BY THE DEPARTMENT OF AGRICULTURE by Rep. Stetson Painter. Streamlines current reporting requirements for the AR Department of Agriculture. Now Act 213.
HB1464
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FOR AND REPAIR OF AGRICULTURAL EQUIPMENT AND MACHINERY by Reps. DeAnn Vaught & Frances Cavenaugh. Establishes a sales tax exemption for repair and replacement parts used in agriculture equipment. Assigned to House Revenue & Tax Committee.
HB1472
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS PURCHASED TO REPAIR AGRICULTURAL EQUIPMENT AND MACHINERY AND TIMBER EQUIPMENT AND MACHINERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN by Rep. Howard Beaty & Sen. Ben Gilmore. Establishes a sales tax exemption for repair and replacement parts used in agriculture, timber/forestry and grain bin equipment. Referred to the House Revenue & Tax Committee.
HB1491
CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT FOR CERTAIN BEER AND SAKE PRODUCED USING ARKANSAS RICE by Rep. Jeff Wardlaw & Sen. Jonathan Dismang. Provides a beer excise tax credit for beer and sake that use at least 20% Arkansas rice. Passed out of House Rules Committee but then referred back to make amendments to make certain craft beer manufacturers/wholesalers are included. AR Rice supports.
HB1525
TO AMEND THE LAW CONCERNING REAL PROPERTY; AND TO ADDRESS AGRICULTURAL IMPACT REMEDIATION AGREEMENTS by Rep. Trey Steimel & Sen. Missy Irvin. Revises the rights and responsibilities of ag landowners and commercial renewable energy facility owners. It provides clear definitions for key terms such as agricultural impact remediation agreement, agricultural land, and commercial renewable energy facilities. Additionally, it outlines important processes related to construction and deconstruction. Is being amended and awaiting action by the House Ag Committee.
HB1562
CONCERNING THE TERMINATION OF AN ORAL LEASE OF FARMLANDS; AND TO AMEND THE LAW CONCERNING NOTICE OF TERMINATION by Jimmy Gazaway. Amends the current requirement to only use written notice sent by certified mail to terminate an oral lease of farmland and allows several additional methods of delivery. Assigned to House Ag Committee.
HB1569
TO CREATE THE SECURE ROADS AND SAFE TRUCKING ACT OF 2025; TO AMEND THE LAW CONCERNING COMMERCIAL DRIVERS; TO CREATE PENALTIES FOR OFFENSES COMMITTED WHILE OPERATING A COMMERCIAL MOTOR VEHICLE by Rep. Wayne Long & Sen. John Payton. Changes and removes the ability of some non-residents from having Commercial Drivers Licenses (CDLs). Referred to House Transportation Committee.
HB1594
TO CREATE A FARMER SALES TAX IDENTIFICATION CARD; AND TO RELIEVE A SELLER OF SALES TAX REMITTANCE LIABILITY UPON GOOD FAITH ACCEPTANCE OF A FARMER SALES TAX IDENTIFICATION CARD by Rep. DeAnn Vaught. Provides for DF&A to create a farm sales tax identification card for be issued to interested farmers so that they can show proof of sales tax exempt. Assigned to House Revenue & Tax.
HB1623
TO EXEMPT H-2A VISA PROGRAM PARTICIPANTS WHO HAVE A VALID INTERNATIONAL DRIVER'S LICENSE OR PERMIT FROM THE SKILLS PORTION OF THE DRIVER'S LICENSE EXAMINATION by Rep. Jeremiah Moore & Sen. Blake Johnson. Exempts H-2A visa program participants who have a valid international driver's license or permit from the skills portion of the driver's license examination. Referred to House Transportation Committee.
HB1680
TO PREVENT A FOREIGN-PARTY-CONTROLLED BUSINESS FROM LEASING LAND; AND TO PROHIBIT A PROHIBITED FOREIGN PARTY FROM HOLDING AN INTEREST IN REAL PROPERTY OR AGRICULTURAL LAND IN CERTAIN CIRCUMSTANCES by Rep. DeAnn Vaught. Prohibits businesses controlled by foreign parties from leasing land and restricts prohibited foreign parties from owning real property or agricultural land under certain conditions. This aims to limit foreign control over land in Arkansas. Referred to the House Ag Committee.
SB10
TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; AND TO REGULATE THE IMPACT ON WATER USAGE AND THE ELECTRIC GRID BY BLOCKCHAIN NETWORKS AND DIGITAL ASSET MINING by Sen. Bryan King. Assigned to Senate City, County, Local Affairs Committee
SB73
TO CREATE THE ACCESS TO CREDIT FOR OUR RURAL ECONOMY (ACRE) ACT; AND TO PROVIDE AN INCOME TAX DEDUCTION FOR CERTAIN AGRICULTURAL LOANS by Sen. Blake Johnson. Provides a state income tax deduction for interest collected on agricultural loans paid by a state/national banks, state trust companies and federal savings banks. Assigned to Senate Revenue & Tax Committee.
SB85
TO PRESERVE PUBLIC PROPERTY; AND TO PRESERVE TIMBER AT THE PINE TREE RESEARCH STATION by Sen. Ron Caldwell & Rep. Steve Hollowell. Restricts the ability for commercial timber harvests at the Pine Tree Research Station. Deferred status in Senate Ag Committee.
SB261
TO AMEND THE LAW CONCERNING THE OPERATION OF AN ALL-TERRAIN VEHICLE ON CERTAIN ROADS; AND TO AMEND THE LAW CONCERNING THE ACCESS OF ALL-TERRAIN VEHICLES TO UNPAVED ROADS by Sen Alan Clark. Amends existing law regarding the operation of ATVs on unpaved roads. Passed by the Senate Public Health, Welfare and Labor Committee and referred back for an amendment..
SB281
TO AMEND THE LAW REGARDING AGRICULTURE; TO ESTABLISH THE PRODUCER BILL OF RIGHTS FOR COMMODITY CHECKOFF PROGRAMS ACT; AND TO REQUIRE CERTAIN ACTIONS RELATED TO COMMODITY CHECKOFF PROGRAMS by Sen. Ben Gilmore. Producers “bill of rights” legislation directed at research & promotion boards and the AR Department of Agriculture to provide for continued/improved transparency, access to information and meetings, and assurance that checkoff dollars won’t be used for AR Department of Agriculture administrative expenses. Assigned to Senate Ag Committee.
SB315
TO ESTABLISH THE FARMER PROTECTION ACT by Sen. Blake Johnson. “Farmer Protection Act” is primarily aimed at larger financial institutions serving producers and includes a statement “State governments should take steps to ensure that financial institutions do not unfairly discriminate against agriculture producers.” Assigned to Senate Ag Committee.
SB317
TO PROHIBIT AN INSTITUTION OF HIGHER EDUCATION FROM PARTICIPATING IN CERTAIN ACTIVITIES WITH A PROHIBITED FOREIGN PARTY by Sen. Blake Johnson & 62 House members) .Would prohibit higher education institutions from conducting research, selling agricultural products, producing agricultural products with or entering into a nondisclosure agreement with a "prohibited foreign party". AR Rice has expressed some concerns as to how rice research could be impacted in the state and we will continue to monitor. Passed out of Senate Education Committee and awaiting action by full Senate.
SB338
TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR STUDENT FARMERS; AND TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR CERTAIN PRODUCTS AND SERVICES TO BE USED IN RELATION TO A PROJECT FOR A YOUTH FARMING by Sen. Ricky Hill & Bart Schulz. Establishes sales and use tax exemptions to encourage youth involvement in agriculture by supporting student farmers and their educational projects. Referred to House Revenue & Tax.
General Information:
All legislative meetings and proceedings can be viewed live online. Go to the General Assembly’s home page to find/search for bills, check the calendar of meetings and access links to watch online. Not sure who your legislators are, click here for assistance in learning who they are and how to contact them or go here for a listing of all state senators and representatives.
On the Federal Front
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