SB415
To Authorize The Division Of Environmental Quality To Maintain A Delinquent List Of Businesses Failing To Pay A Wholesaler Of Petroleum Products For The Petroleum Products.
Last Action (March 10, 2025): Sine Die adjournment
Sponsors
AI-Generated Summary
Senate Bill 415 authorizes the Arkansas Division of Environmental Quality (DEQ) to maintain a 'delinquent list' of businesses that have failed to pay wholesalers for petroleum products. Under the bill, wholesalers may report delinquent payments to the DEQ, which will then 'red-tag' the business. A business subject to a red tag is prohibited from receiving further petroleum product deliveries until the debt is paid. The bill specifies acceptable methods for making payments to resolve the delinquency. Once full payment is received and reported, the DEQ must remove the red tag. The legislation also provides a dispute resolution mechanism, allowing businesses to file a written statement contesting the delinquency, which the DEQ will review to determine if the red tag should be removed.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are petroleum product wholesalers, who gain a state-backed enforcement mechanism to ensure timely payment for goods sold. By utilizing the DEQ's 'red-tag' system, wholesalers can more effectively mitigate financial losses and pressure delinquent clients into settling outstanding debts.
Who Might Suffer?
The primary groups negatively impacted are retail businesses or other entities that purchase petroleum products and may face cash flow issues or genuine commercial disputes. These businesses face the immediate risk of a 'red-tag' that could halt their supply chain and stop their operations if they are unable to pay, or if they are erroneously reported for delinquency before a dispute is resolved by the state.
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