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Bi-partisan Sponsorship
Agriculture

SB409

To Prohibit Discrimination Of Agricultural Producers By Financial Services Providers; And To Establish The Farmer Protection Act.

Passed

Last Action (March 31, 2025): Notification that SB409 is now Act 406

Sponsors

AI-Generated Summary

Senate Bill 409, titled the 'Farmer Protection Act,' aims to prevent financial services providers from discriminating against agricultural producers. The bill amends existing state laws that currently restrict discrimination against certain industries based on Environmental, Social, and Governance (ESG) criteria. It specifically adds agricultural producers to the list of industries—alongside energy, fossil fuel, and firearms—that financial institutions cannot categorically refuse to serve. The legislation tasks the ESG Oversight Committee and the Arkansas Treasurer with maintaining a list of financial providers found to be discriminating based on these metrics. It establishes a notification and appeal process, allowing financial providers an opportunity to contest findings of discrimination. Additionally, the bill mandates that if an agricultural producer or industry entity triggers an investigation into a financial provider, the entity must consent to the disclosure of its financial records to the Oversight Committee. Failure to provide such consent results in the termination of the investigation against the financial service provider.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are agricultural producers, including farmers, ranchers, and livestock or dairy operations, who may face difficulties securing loans or banking services due to corporate ESG policies. Additionally, stakeholders in the fossil fuel, energy, and firearms industries benefit from the continued legal framework that prevents financial institutions from using their sector status as a basis for business denial.

Who Might Suffer?

Financial services providers, such as banks and investment firms, may be negatively impacted as the bill imposes regulatory oversight and potential public listing if they decline business based on internal ESG metrics. Additionally, agricultural producers or other industry entities that initiate a complaint against a financial provider may be negatively impacted because they are required to forfeit the confidentiality of their proprietary financial information to the state to proceed with an investigation.

Vote Records

Third Reading

March 20, 2025
Yea: 82 Nay: 10 NV: 8 Absent: 0 Passed
View individual votes (100)
Legislator Party Chamber Vote
Tracy Steele Democrat House Yea
Fred Allen Democrat House NV
Lane Jean Republican House Yea
Stephen Meeks Republican House Yea
Mark Perry Democrat House Yea
Jon Eubanks Republican House Yea
Matthew Shepherd Republican House Yea
Jeff Wardlaw Republican House Yea
Bruce Cozart Republican House Yea
David Whitaker Democrat House Yea
Mike Holcomb Republican House Yea
Stephen Magie Democrat House Nay
Mark McElroy Republican House Yea
Richard Womack Republican House NV
Jack Ladyman Republican House Yea
Robin Lundstrum Republican House Yea
Dwight Tosh Republican House Yea
Rick Beck Republican House Yea
Mary Bentley Republican House Yea
Les Eaves Republican House Yea
Justin Gonzales Republican House NV
Julie Mayberry Republican House Yea
Ken Ferguson Democrat House NV
Ron Mcnair Republican House Yea
Marcus Richmond Republican House Yea
Deann Vaught Republican House Yea
Karilyn Brown Republican House Yea
Sonia Eubanks Barker Republican House Yea
Frances Cavenaugh Republican House Yea
Jimmie Gazaway Republican House Yea
Roger Lynch Republican House Yea
John Maddox Republican House Yea
Aaron Pilkington Republican House Yea
Johnny Rye Republican House Yea
Les Warren Republican House Yea
Carlton Wing Republican House Yea
Austin Mccollum Republican House Yea
Carol Dalby Republican House Yea
Steve Hollowell Republican House Yea
Brian Evans Republican House Yea
Lee Johnson Republican House Yea
Andrew Collins Democrat House Nay
Stan Berry Republican House Yea
Harlan Breaux Republican House Yea
Cameron Cooper Republican House Yea
Nicole Clowney Democrat House NV
Cindy Crawford Republican House Yea
Denise Garner Democrat House Nay
Tippi McCullough Democrat House Nay
Jay Richardson Democrat House NV
Jim Wooten Republican House Yea
Denise Ennett Democrat House Nay
Richard McGrew Republican House Yea
Joy Springer Democrat House Nay
Howard Beaty Republican House Yea
Tony Furman Republican House Yea
Kendon Underwood Republican House Yea
David Ray Republican House Yea
John Carr Republican House Yea
Rick McClure Republican House Yea
Keith Brooks Republican House Yea
Ashley Hudson Democrat House Yea
Jon Milligan Republican House Yea
RJ Hawk Republican House Yea
Wade Andrews Republican House Yea
Rebecca Burkes Republican House Yea
Hope Duke Republican House Yea
Zack Gramlich Republican House Yea
Mindy McAlindon Republican House Yea
Matt Duffield Republican House Yea
Stetson Painter Republican House Yea
Steve Unger Republican House Yea
Wayne Long Republican House Yea
Scott Richardson Republican House Yea
Brandon Achor Republican House Yea
Jeremiah Moore Republican House Yea
Joey Carr Republican House Yea
Matt Brown Republican House Yea
Shad Pearce Republican House Yea
Chad Puryear Republican House Yea
Ryan Rose Republican House Yea
Bart Schulz Republican House NV
Trey Steimel Republican House Yea
Tara Shephard Democrat House Nay
Jeremy Wooldridge Republican House Yea
Kendra Moore Republican House Yea
Brit McKenzie Republican House Yea
Steven Walker Republican House NV
Glenn Barnes Democrat House Yea
Lincoln Barnett Democrat House Nay
Alyssa Brown Republican House Yea
Nick Burkes Republican House Yea
Paul Childress Republican House Yea
James Eaton Republican House Yea
Brad Hall Republican House Yea
Dolly Henley Republican House Yea
Jessie McGruder Democrat House Nay
Jason Nazarenko Republican House Yea
Randy Torres Republican House Yea
Diana Gonzales Worthen Democrat House Nay

Third Reading

March 17, 2025
Yea: 27 Nay: 6 NV: 1 Absent: 1 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Nay
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Yea
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Nay
Frederick Love Democrat Senate Nay
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate Nay
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate NV
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Nay
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Jamie Scott Democrat Senate Nay
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Absent
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us