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HB 1604

Cost sharing; out-of-pocket expense credit.

2025 Regular Session Introduced by Mike Bohacek and 13 co-sponsors

Act 943 prohibits Arkansas state agencies from using public funds to buy promotional items made in China, promoting domestic sourcing and compliance with new standards.

Public Law 237
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Bill Summary · HB 1604

Summary of House Bill 1604 (Act 943)

Purpose and Intent

House Bill 1604, now known as Act 943, aims to amend existing laws regarding prohibited contracts by state agencies in Arkansas. The primary intent of the bill is to prohibit state agencies from using public funds to purchase promotional items that are manufactured in the People's Republic of China.

Key Provisions

The bill includes several significant provisions:

  1. Definition of Promotional Items:

    • The bill defines "promotional items" as any items purchased by state agencies with public funds for the purpose of promoting or advertising the agency. This includes, but is not limited to:
      • Bumper stickers
      • Clothing items
      • Key chains
      • Mugs
      • Pens
      • Pins

  2. Prohibition on Purchases:

    • State agencies are explicitly prohibited from spending public funds on promotional items made in China.

  3. Amendment to Existing Law:

    • The bill amends Arkansas Code § 25-1-1202 to include the new definitions and prohibitions.
    • It also changes the title of Arkansas Code Title 25, Chapter 1, Subchapter 12 from "Prohibited Contracts by State Agencies" to "Prohibited Actions by State Agencies."

  4. Applicability:

    • The provisions of the bill apply only to contracts executed on or after the effective date of the act.

Affected Parties

  • State Agencies: All state agencies in Arkansas will be affected by this legislation as they will need to comply with the new restrictions on purchasing promotional items.
  • Vendors and Manufacturers: Companies that produce promotional items, especially those based in China, may see a decline in business from state agencies due to this prohibition.

Procedural Timeline

  • Introduced: February 26, 2025
  • Passed: The bill went through several legislative actions, including amendments and committee reviews, before being passed by both the House and Senate.
  • Enacted: The bill was notified as Act 943 on April 21, 2025, after being correctly enrolled and transmitted to the Governor's Office.

Fiscal Impact

The fiscal impact of the bill is currently unknown, as the necessary information to issue a comprehensive fiscal impact statement was not available at the time of analysis.

Conclusion

House Bill 1604 (Act 943) represents a significant legislative step towards restricting the use of public funds for promotional items sourced from China. By defining promotional items and prohibiting their purchase, the bill aims to promote domestic sourcing and ensure that state agencies adhere to new procurement standards.

Compiled from official sources — confirm details with the bill’s official record.

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