The bill amends the law regarding local government authority to regulate land use in flood-prone areas. It allows cities, towns, and counties in Arkansas to enact ordinances and codes for managing land and structures in these areas, with the aim of reducing flood damage and guiding development away from flood hazards. However, the bill introduces a significant restriction: local governments are prohibited from enacting regulations that are more stringent than the requirements set by the National Flood Insurance Program without providing compensation for any decrease in property value in the affected flood-prone areas.

Specifically, the new legal language clarifies that local governments cannot adopt measures that exceed the guidelines established by the National Flood Insurance Program, as they existed on January 1, 2025, in designated special flood hazard areas. This provision aims to ensure that local regulations do not impose undue burdens on property owners while still allowing for necessary flood management practices.