This bill amends various laws concerning the Division of Workforce Services in Arkansas, particularly focusing on employment status determination and the definition of "employee" under the Workers' Compensation Law. A significant change is the replacement of the "twenty-factor test" with "factors" as defined by the Internal Revenue Service, in line with the Empower Independent Contractors Act of 2019. The bill also streamlines operations by removing the Department of Commerce from overseeing the Temporary Assistance for Needy Families Program and modifies the distribution of proceeds from administrative assessments. Additionally, it reduces the recall period for short-term layoffs from ten weeks to three weeks and grants the director of the Division of Workforce Services the authority to establish rules regarding work search requirements.

Moreover, the bill introduces new screening techniques for drug testing applicants or recipients, requiring a minimum five-panel drug test, and revises the fee structure for circuit court clerks to include charges for filing certificates related to both the Department of Finance and Administration and the Division of Workforce Services. It also updates the priority of liens on winnings under the Arkansas Scholarship Lottery Act to include overpayment of unemployment insurance benefits as a new priority category. The Office of Skills Development is reestablished, moving it from the Department of Commerce to the Division of Workforce Services. Overall, these amendments aim to improve the efficiency and clarity of workforce services in Arkansas while ensuring proper management of financial obligations related to unemployment benefits.

Statutes affected:
SB 598: 11-1-204, 11-4-103, 11-1-201, 11-4-607(1), 11-9-102(9), 11-9-103(d), 11-10-210(e), 11-10-301(a), 11-10-507(a), 11-10-507(b), 11-10-519(a), 11-10-521(b), 11-10-532, 11-10-720(a), 15-4-3705, 15-4-3704(b), 19-5-984(b), 19-5-1131(b), 20-76-106(a), 20-76-704(a), 21-6-402(c), 23-115-1004(c), 25-30-109(a)
Act 743: 11-1-204, 11-4-103, 11-1-201, 11-4-607(1), 11-9-102(9), 11-9-103(d), 11-10-210(e), 11-10-301(a), 11-10-507(a), 11-10-507(b), 11-10-519(a), 11-10-521(b), 11-10-532, 11-10-720(a), 15-4-3705, 15-4-3704(b), 19-5-984(b), 19-5-1131(b), 20-76-106(a), 20-76-704(a), 21-6-402(c), 23-115-1004(c), 25-30-109(a)