The bill aims to amend various aspects of the Arkansas workforce services laws, specifically focusing on contribution rates and administrative assessments. It proposes to decrease the base contribution rate for employers from 1.9% to 1.8% starting January 1, 2026, while also increasing the administrative assessment rate from 0.1% to 0.2% effective January 1, 2026. Additionally, the bill introduces a penalty for employers who willfully submit false information regarding employment to avoid benefit charges, which will be assessed at twice the maximum potential benefit amount for the claimant.

Furthermore, the bill modifies the allocation of funds from the administrative assessment. It stipulates that a portion of the proceeds will be directed to the Division of Workforce Services Unemployment Insurance Administration Fund for operational expenses, while the remaining funds will support the Division of Workforce Services Training Trust Fund, which will now cover personal services, operating expenses, construction, grants, and worker training. These changes are intended to enhance funding for workforce development and improve the administration of unemployment insurance programs in Arkansas.

Statutes affected:
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)
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)
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)