The bill amends the Arkansas Franchise Practices Act to clarify its applicability, specifically regarding the relationship between insurance companies and their agents. It establishes that the Arkansas Franchise Practices Act does not apply to business relations, actions, or transactions between an insurance company and an insurance agent who solicits or sells insurance on behalf of the company. This clarification is supported by legislative findings that reference previous Supreme Court rulings, which affirmed that such relationships do not constitute a franchise under the Act.

To implement these changes, the bill introduces new legal language that explicitly states that the definition of "franchise" excludes the aforementioned relationships and adds a new subsection to the Act confirming its inapplicability to these transactions. Additionally, the bill includes a retroactive provision, ensuring that these clarifications apply to relevant actions and transactions dating back to the effective dates of previous acts from 1991.

Statutes affected:
HB 1177: 4-72-202(1), 4-72-203