WeVote
Log In

Bill

Bill

HB 1177

Home ownership.

2025 Regular Session Introduced by Cherrish Pryor

House Bill 1177 aimed to clarify that the Arkansas Franchise Practices Act does not apply to insurance companies and agents, ensuring legal certainty for their relationships.

First reading: referred to Committee on Commerce, Small Business and Economic Development
#property;realestate #realestateappraisers #brokers #andsalespersons #technology;communication(includinginternet #phonelines #printmedia #radio #andtelevision)
0
WeVote Research Nonpartisan
Bill Summary · HB 1177

Summary of House Bill 1177

Bill Information

  • Bill Number: HB 1177
  • Title: To Amend the Arkansas Franchise Practices Act; and to Clarify the Applicability of the Arkansas Franchise Practices Act
  • Status: Died in House Committee at Sine Die adjournment
  • Introduced: January 21, 2025
  • Classification: Bill

Purpose and Intent

House Bill 1177 aimed to amend the Arkansas Franchise Practices Act (AFPA) to clarify its applicability, specifically regarding the relationship between insurance companies and their agents. The bill sought to codify existing Supreme Court rulings that determined that the AFPA does not apply to these relationships.

Key Provisions

  1. Legislative Findings:

    • The bill begins with findings that reference two Supreme Court cases:
      • Gunn v. Farmers Ins. Exch. (2010)
      • Stockton v. Sentry Ins. (1999)
    • It states that the AFPA does not govern the relationship between insurance companies and their agents.

  2. Amendments to Definitions:

    • Section 2: Amends Arkansas Code § 4-72-202(1) to clarify that the term "franchise" does not include business relations between insurance companies and their agents.
    • Section 3: Amends Arkansas Code § 4-72-203 to specify that the AFPA does not apply to transactions between insurance companies and agents.

  3. Retroactive Application:

    • Section 4: States that the amendments apply retroactively to the effective dates of previous acts from 1991, ensuring that the clarifications are applicable to past and ongoing relationships.

Impact

  • Affected Parties: The bill primarily impacts insurance companies and their agents in Arkansas by clarifying that their business relationships are not subject to the regulations outlined in the AFPA.
  • Legal Clarity: By codifying the Supreme Court's interpretations, the bill aimed to provide legal certainty for insurance agents and companies regarding their operational frameworks.

Legislative Actions

  • January 21, 2025: The bill was filed and read for the first time, with rules suspended for a second reading and referral to the Committee on Insurance & Commerce.
  • May 5, 2025: The bill died in the House Committee at Sine Die adjournment, meaning it did not progress further in the legislative process.

Conclusion

House Bill 1177 was designed to clarify the applicability of the Arkansas Franchise Practices Act concerning insurance agents and companies, reinforcing existing legal interpretations. However, it ultimately did not advance beyond the committee stage.

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

Sign in to ask a question.