The proposed legislation aims to amend the contribution rates for employers in Arkansas, specifically decreasing the base contribution rate from 1.9% to 1.8% starting January 1, 2026. Additionally, it introduces a new administrative assessment rate that will increase from 0.1% to 0.2% after January 1, 2026. The bill also includes provisions for employers who have been in business in other states, allowing them to elect a lower contribution rate based on their previous experience, provided they meet certain criteria. Furthermore, the bill establishes penalties for employers who submit false information regarding employment to avoid benefit charges.

In terms of funding, the bill reallocates proceeds from the administrative assessment to support the Division of Workforce Services Unemployment Insurance Administration Fund and the Division of Workforce Services Training Trust Fund. The latter will now be used for personal services, operating expenses, construction, grants, and worker training. The bill emphasizes the importance of enhancing the skilled workforce in Arkansas while ensuring that the administrative processes related to unemployment insurance are adequately funded and managed.

Statutes affected:
Old version SB560 Original - 3-24-2025 10:20 AM: 11-10-704(c), 11-10-705(b), 11-10-706, 11-10-101, 19-5-1131(b)
Old version SB560 V2 - 4-1-2025 12:40 PM: 11-10-704(c), 11-10-705(b), 11-10-706, 11-10-101, 04-01-2025, 19-5-1131(b)
SB 560: 11-10-704(c), 11-10-705(b), 11-10-706, 11-10-101, 19-5-1131(b)
Act 740: 11-10-704(c), 11-10-705(b), 11-10-706, 11-10-101, 04-01-2025, 19-5-1131(b)