The bill seeks to amend 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 Empower Independent Contractors Act of 2019 for assessing employment status. Additionally, the bill removes the Department of Commerce from overseeing the Temporary Assistance for Needy Families Program and modifies how proceeds from administrative assessments are distributed. Other amendments include streamlining operations, adjusting the timeline for short-term layoffs from ten weeks to three weeks, and granting the director authority to set criteria for waiving work search requirements.

Moreover, the bill introduces new drug testing protocols for applicants and recipients, requiring a five-panel drug test based on reasonable cause. It also revises the fees charged by circuit court clerks, applying them to the Division of Workforce Services for various filings. The priority of liens on winnings under the Arkansas Scholarship Lottery Act is updated to include overpayment of unemployment insurance benefits as a new priority category. Lastly, the Office of Skills Development is reestablished within the Division of Workforce Services, moving it from the Department of Commerce. These changes aim to modernize workforce services in Arkansas and ensure effective management of unemployment benefits and related financial obligations.

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)