SR21
To Authorize The Introduction Of A Nonappropriation Bill To Create The Arkansas Property Rights Protection From Sharia Law Act And To Regulate Certain Residential Property Interests Controlled By Certain Entities.
Last Action (April 8, 2026): Read the first time, rules suspended, read the second time and placed on the calendar.
Sponsors
AI-Generated Summary
This bill, titled the 'Arkansas Property Rights Protection From Sharia Law Act,' aims to regulate specific residential property arrangements where individuals purchase an interest in a business entity that owns residential property rather than purchasing the property directly. It mandates that such agreements must clearly disclose the nature of the interest and prohibits contract terms that require disputes to be resolved in tribunals outside of the U.S. or Arkansas legal systems. The bill bars managing entities from taking actions that would violate the Arkansas Fair Housing Act and removes the entities' power to restrict interest transfers or collect fees from such transfers. It authorizes the Attorney General to enforce these provisions under the Deceptive Trade Practices Act. Furthermore, it imposes restrictions on managing entities under investigation for securities violations and allows courts to enjoin these entities from receiving public funds or creating specific utility districts. Certain properties owned by religious or nonprofit organizations, as well as time-share interests, are exempt from these regulations.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries would be individuals entering into residential property arrangements via business entities, as the bill provides increased transparency, ensures access to the state and federal court system for dispute resolution, and restricts the ability of managing entities to impose arbitrary fees or transfer restrictions. Consumers in these arrangements gain enhanced legal protections similar to those found under the Fair Housing Act and the Deceptive Trade Practices Act.
Who Might Suffer?
The entities most negatively impacted would be business organizations, developers, or managing entities that utilize 'residential arrangements' as a business model. These entities would face increased regulatory compliance costs, limitations on their ability to enforce internal contract rules, restrictions on the transfer of ownership interests, and the potential for legal action and injunctive relief from the Attorney General or courts. Additionally, organizations not covered by the religious or nonprofit exemptions could face significant operational constraints.
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