HR1016
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 referred to the Committee on HOUSE RULES
Sponsors
AI-Generated Summary
House Resolution 1016 authorizes the introduction of the 'Arkansas Property Rights Protection From Sharia Law Act.' The proposed legislation aims to regulate residential property arrangements where individuals purchase an interest in a business entity that owns residential property in exchange for exclusive possession of that property. The bill mandates transparency, requiring that agreements disclose they are for entity interests rather than direct real estate interests. It prohibits these arrangements from requiring dispute resolution through non-U.S. legal tribunals and mandates compliance with the Arkansas Fair Housing Act. The bill limits a managing entity’s ability to restrict interest transfers or charge transfer fees and grants the Attorney General enforcement powers under the Deceptive Trade Practices Act. Additionally, it empowers courts to enjoin managing entities from various development or public funding activities if they violate the act or are under investigation for securities violations. The bill provides specific exemptions for residential property arrangements held by religious organizations or nonprofit institutions on parcels of twenty-five acres or greater, and for defined time-share interests.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individuals who enter into 'residential arrangements' involving business entities, as the bill provides them with greater legal protections, disclosure requirements, and the freedom to transfer their interests without entity approval or fees. Furthermore, the Arkansas Attorney General benefits from expanded authority to regulate these business entities and enforce consumer protection standards.
Who Might Suffer?
Business entities, real estate developers, or investment groups that utilize residential entity-ownership models or 'Sharia-compliant' financial arrangements may be negatively impacted. These entities would face stricter regulations, limitations on their ability to manage property transfers or fees, and potential exposure to enforcement actions and injunctions by the Attorney General if they fail to comply with the new statutory requirements.
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