[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6118896,"mediaKeyId","2715538-c893fb989fd12cc6fa8dfc13d811a4da","parentId",2715538,"title","Debate on lease royalties and deductions surfaces as committee hears House Bill 1656; amendment adopted, bill left for further review","audioSeconds",2835,"startMs",3504000,"endMs",6339000,"viewUrl","/Search/View?dp=1&key=2715538-c893fb989fd12cc6fa8dfc13d811a4da&start=3504&end=6339","thumbnailUrl","https://assets.pipeline.soar.com/2715538-c893fb989fd12cc6fa8dfc13d811a4da/thumbnail_3504000.jpg","articleUrl","/articles/6118896/Arkansas/Debate-on-lease-royalties-and-deductions-surfaces-as-committee-hears-House-Bill-1656-amendment-adopted-bill-left-for-further-review","mediaUrl","https://secure.pipeline.soar.com/6118896-c2e59ecfabe4d52937bafb20db6e65af/orig.mp4?Expires=1771124710&Signature=o1D-~djE5geWO6eNvzW2PbQrvIJxWeqq9PhjI43SDD7jAtqDKdxL3S20zwdOQy9imZgoFl6Tk1idDMUW~1qQUYlWfXXyEnxgYyhmnhVOT5y4Z4h4jlY90TStw0fKHBCHIv9Asz3MaZkVtYO~9PeShYY-t3~fMpOBsrS2~MhpZ~g~B6eoU6MfnabQjIlUC8yw-GyRYPSHUHs5Z2y2slEBuyktmMOv069nYc0kZi7CeY5RfN4VDMneYcym~HnxILKrktPsLUkL-UKJlZxBJOYkVEoW2c~dKFxwQ2-dJQeyIeDgGqGLdpNVzHJ5aqwhH3rWEKA7D0TXVOPQYheCBZ5N8Q__&Key-Pair-Id=KUT5TJCACFTXG","author","Arkansas Legislature","date","2025-03-20T00:00:00Z","article","House Bill 1656, presented to the Senate Agriculture, Forestry & Economic Development Committee as amended, aims to increase transparency for royalty owners by clarifying which deductions operators may take from royalty payments and codifying a previous court ruling about integrated lease forms. The bill’s sponsor described it as a compromise drafted by counsel representing both producers and royalty owners; he said the objective is to honor leases as written and make accounting transparent so landowners can reconcile payments against lease terms.

An amendment placed an existing oil-and-gas commission rule into statute to address members’ concerns. The committee adopted that amendment by voice vote.

Testimony divided between royalty owners, county officials and producers and counsel:
- Royalty owners and a county judge said many owners received reduced payments when producers began applying broad post‑production deductions; they asked the legislature to require itemized statements and to constrain deductions to items listed in the lease.
- Producers and industry counsel cautioned that the statute in question (Ark. Code §15‑72‑305, enacted as Act 272 of 1985) already governs unitized gas royalty calculations and that changing the statutory scheme could impair existing contracts and create constitutional problems under the contracts clause. Industry witnesses pointed to federal and state litigation over the same issue and said that most operators already comply with accepted accounting practices, and that changing the law now could chill investment and complicate pooled units that mix conventional and unconventional wells.

Committee counsel and outside attorneys discussed case history: regulatory orders affecting integrated regulatory leases were litigated and reviewed by state courts; separate federal cases interpreted the statute for privately negotiated leases and issued different conclusions. Witnesses asked the committee to consider the contracts clause and the risk of local or special legislation that would affect only portions of the state or certain plays.

Outcome of the hearing: the committee adopted an amendment to include an Oil & Gas Commission rule in statute (passed by voice vote). Testimony continued; the sponsor and participants acknowledged unresolved legal questions and said they would continue conversations with industry counsel, the state bar and affected stakeholders. No final committee vote on the bill’s full text was recorded in the transcript at the hearing’s close; sponsors asked for further review and additional stakeholder input.

Key speakers included Rep. Begg (bill sponsor), Sen. Brianne Davis (sponsor appearance / amendment explanation), industry witnesses (Stevens Production Company), counsel for industry and royalty‑owner groups (Alan Perkins, Nathan Morgan), and local officials (Van Buren County Judge Dale James).","mediaType","Video","parentTitle","AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT - SENATE March 20, 2025 10:00 AM","oneSentenceSummary","House Bill 1656, which seeks to clarify royalty accounting and codify a court interpretation for integrated leases, drew sharply divided testimony from royalty owners and industry counsel; the committee adopted an amendment but left the measure for further review.","taxTitle","AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT - SENATE, Senate, Committees, Legislative, Arkansas","taxId",21184,"location","Arkansas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6118901,"Hemp-derived products debate stalls after agencies warn bill could undermine existing litigation and public-health protections",1316,1978000,3294000,"/Search/View?dp=1&key=2715538-c893fb989fd12cc6fa8dfc13d811a4da&start=1978&end=3294","https://assets.pipeline.soar.com/2715538-c893fb989fd12cc6fa8dfc13d811a4da/thumbnail_1978000.jpg","/articles/6118901/Arkansas/Hemp-derived-products-debate-stalls-after-agencies-warn-bill-could-undermine-existing-litigation-and-public-health-protections","https://secure.pipeline.soar.com/6118901-d583ffe7e1198909f1390ce779995dfb/orig.mp4?Expires=1771124710&Signature=N8wpDGnBoZBe2-zVDZuLzv2SIv9SSins4Lpsoht3T1JKsYz67~~29Z-daxiQSraQvLVf1OZpAjazOcE-pQ7R2EPlV4JWknI1fFnsGwqcFZEOjjVfMAFXkXCWD4Cdxyz9h12KWEqGTOeZPj~xD9GyE3SPbz-SWseO3a-Obk6osDWzSMEtiqJMz9IgekcbSH7uZ9x6wzo9gafyrOPfGiullFo3BKpuV9iJFweIclZfWV7FgXqM8TC3ihVc6hb9k4hEix0x4WrGOwJ7BSupiOCrVUyCV7I5S9CP1O0-f5waIe4Uhu4H1-AiFPrymBs7JXoJrIWIMyKcq9dYrRTEF-ujmA__&Key-Pair-Id=KUT5TJCACFTXG","Senate testimony on a bill introduced by Sen. Joshua Bryant (Senate District 32) would have created a regulatory framework for hemp-derived products containing intoxicating cannabinoids, including childproof packaging, manufacturing and testing requirements, age‑restricted sales (21+), and a contingency-based effective date tied to federal litigation over Arkansas’s 2023 ban (Act 629).

Bryant said the intent is to protect children by restricting marketing and requiring testing from accredited laboratories (ISO/IEC 17025 or equivalent) and to remove synthetic cannabinoids from the market while preserving legitimate hemp commerce. The bill would require products to be tested and labeled, impose manufacturing good‑practice standards and restrict sales and marketing to adults.

Multiple agencies urged caution. The Attorney General’s office said it is actively litigating the 2023 ban in the Eighth Circuit and opposed changes that would strike items from the controlled-substance list or otherwise “moot out” current litigation. The Department of Health highlighted public-health risks from unregulated synthetic cannabinoids and warned that removing language from the controlled-substances schedule — or weakening the statute — could allow new, potent analogs (for example, acetate esters such as THC‑O) to proliferate. The Arkansas Tobacco Control enforcement director said the agency prefers an outright ban rather than a regulatory approach because products persist in schools despite enforcement efforts.

Agency witnesses also answered technical questions about the bill’s testing and enforcement provisions: testing would be industry-paid, using accredited labs; manufacturing standards referenced good manufacturing practices; labeling and childproof packaging were among provisions discussed.

Committee members repeatedly raised constitutional and litigation-related questions. Senator Bryant acknowledged the bill was contingent on the outcome of federal litigation and said he would pull the bill to address drafting concerns, taxation and any unintended impacts on other regulatory boards and enforcement authorities. He asked agencies to confer with him on drafting changes, and committee staff signaled they would allow testimony from multiple agencies prior to any reintroduction.

Outcome: Senator Bryant withdrew the bill from consideration at the hearing to revise language and coordinate with the Attorney General’s office and implementing agencies.","Sen. Joshua Bryant’s proposal to regulate hemp-derived cannabinoid products prompted expert testimony and warnings from the Attorney General’s office and public-health officials that the bill’s current text could interfere with ongoing litigation and weaken enforcement against synthetic cannabinoids.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6118906,"Committee hearing on fair funding accountability stalls after debate over continuing-education requirement; sponsor pulls bill",1695,281000,1976000,"/Search/View?dp=1&key=2715538-c893fb989fd12cc6fa8dfc13d811a4da&start=281&end=1976","https://assets.pipeline.soar.com/2715538-c893fb989fd12cc6fa8dfc13d811a4da/thumbnail_281000.jpg","/articles/6118906/Arkansas/Committee-hearing-on-fair-funding-accountability-stalls-after-debate-over-continuing-education-requirement-sponsor-pulls-bill","https://secure.pipeline.soar.com/6118906-920fea8284714c0d1b49f77a810b5ed5/orig.mp4?Expires=1771124710&Signature=Sz5IBw07X8Fj0bXxJrUGjZkl9PU3al8EwKfxD71rWPu-XlgnujlO~Ee3mjxGf-P9-rbAbXq1zT4wCo77SExRrREH5kkjZpX2Bf9Jr-zn~fnszKV5gkb2MsVIRc8eVgFN3qy5SJ-LN2flKHI4w5LloM4rdjW00c8gt5JUKl-JBJxmIws0Hq3CFhCsIA1WqDNY6fxDNgFVlhJEcA~8VF2BRw-ZHzlFWynwaOj-qRmI9Ml0eN9ReXlK-DU7dC8XPMN9B~6TmYQ5BRmblQbcpprmbhRS9e88n1px8c3uZGrGAZM1mt2vVUGhcDa4YmHFfCCRE-1z678dzYkE44nF9gtuHw__&Key-Pair-Id=KUT5TJCACFTXG","Senate Bill 400, sponsored by Sen. Missy Irvin (D‑24), would change the state’s oversight and funding process for county and district fairs, including requiring nonprofit status, adding the county extension agent as an ex officio fair-board member, and creating a local review step where a county fair that uses county facilities or funds submits plans to the quorum court for review before applying to the Department of Agriculture for state funding.

A central point of contention in committee testimony was a continuing-education requirement that had appeared in earlier drafts. Several fair managers and volunteers told legislators that continuing-education seminars (convention sessions and seminars provided by the Arkansas Fair Managers Association) are essential training that helps small county fairs run safely and raise funds. Witnesses said the association provides continuing-education scholarships that benefit youth and that the association’s convention is a major fundraising and networking event.

Key factual details cited in testimony:
- One witness said the Arkansas Fair Managers Association awards 10 scholarships annually amounting to more than $10,000.
- One witness identified current association dues at $500 and a registration fee of $25 per person; witnesses said some fairs subsidize attendance and that many instructors volunteer time.
- A White County Fair Board president said his organization is a 501(c)(3) and typically receives in-kind county support rather than county cash.

Committee members asked whether placing the materials before the quorum court could limit the authority of Arkansas Legislative Audit. Senator Hickey flagged a potential conflict in language on submission timing (the bill text required submission for review and approval before applying for state funding). Senator Irvin suggested a verbal amendment to change “approval” to “review,” but she did not have the votes to suspend the rules for a verbal amendment at that moment and ultimately announced she would pull the bill to work on language. She told the committee she is willing to remove “approve” so the quorum court step would be review-only and said the department and extension have roles in providing expertise.

Several witnesses — including county fair board representatives and members of the Arkansas Fair Managers Association — asked that the continuing-education requirement remain, saying it supports operations, animal health training and fund-raising techniques important to small rural fairs. Others, including sponsor supporters, argued the bill would increase local collaboration and clarify eligibility for limited state funds.

Outcome: Sponsor Missy Irvin withdrew the bill from consideration at that meeting to pursue amendments addressing continuing-education and audit/approval wording.

Speakers of record included Sen. Missy Irvin; Sen. Hickey; Clayton Edwards (White County Fair Board, president); Andrea Vogue (Sharp County Fair and Arkansas Fair Managers Association Board of Directors); Effie May (Pike County Fair Board); Dustin Parsons (Saline County Fair Association); and committee members who questioned the bill’s wording.

Next steps: Sponsor said she would work with stakeholders and would return the measure after drafting clarifying language to preserve audit access while addressing fair managers’ training concerns.","Senate Bill 400, introduced by Sen. Missy Irvin, drew extended public comment from county fair managers and officials over a proposal to remove a continuing-education requirement tied to state fair funding; the sponsor said she would pull the bill to consider changes after witnesses raised concerns about accountability and audit language.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6118911,"Committee approves amendment, advances bill to clarify sale of raw-milk products",0,3059000,"/Search/View?dp=1&key=2715538-c893fb989fd12cc6fa8dfc13d811a4da&start=3059&end=3059","https://assets.pipeline.soar.com/2715538-c893fb989fd12cc6fa8dfc13d811a4da/thumbnail_3059000.jpg","/articles/6118911/Arkansas/Committee-approves-amendment-advances-bill-to-clarify-sale-of-raw-milk-products","https://secure.pipeline.soar.com/6118911-9568a6e8eca062034513bbdbb40da34c/orig.mp4?Expires=1771124710&Signature=PqywhIpbLSloys9JvQB6qic3uGTPNlhJWyzayRFvASy~X4uCRtw9H8kY6TeLLBuNWqxkh0wyRKA~GYPlVLHafZayq2XtVpOYQ~A00Tr4dJRGaw9FmUkKrizXKo9ql9ALjpMDQmJPULIWczktA5LDUmOEH4yDYevhy8WjLam3SK~PPfiFGI05PuW~om5r51uh9gAGAgDV8dNTi4j0GmwMNYX6YKJ4kzE8U4aSyMj2P6BgObljoiB-x9z54z0htwlWXffuZloHrM2bBD42WR~Bd0MSRddj7r1ps2gN79StSpxdCLP7eOHvrysIqzgVf5~iqP2kAEU9bOrjfDu6Xzs7~A__&Key-Pair-Id=KUT5TJCACFTXG","Senate Bill 464, sponsored by Sen. Allen Clark, D‑7, moved forward after the Senate Agriculture, Forestry & Economic Development Committee approved an emergency-clause amendment and voted to pass the bill out of committee.

The bill defines “raw milk products” to include consumer products using raw milk or raw cream — listing examples such as butter, buttermilk, cheese, cottage cheese, kefir and yogurt — and adds “natural food stores” to the list of places where raw-milk products may be sold. It also reduces the required sign size for sellers from 2 feet by 4 feet to 18 inches by 24 inches. An amendment adding an emergency clause was adopted before the committee voted on the bill.

Senator Allen Clark told the committee the amendment’s emergency clause was requested by supporters and explained the change in sign size as a reduction from what supporters considered an excessively large requirement. Clark also described the bill as “primarily about cheese” while noting the statutory definition is broader.

The amendment was seconded by Senator Stone and approved by voice vote. After final remarks from Clark, the committee approved the bill on a voice vote; no roll-call tally was recorded in the transcript.

What the committee did not do in this hearing: specify effective dates beyond the emergency-clause language adopted in the amendment, and the transcript contains no committee-recorded roll-call with counts or dissenting member names.

The committee chair closed the item after the voice vote and moved to the next agenda item.

Votes at a glance: The committee approved an emergency-clause amendment to SB 464 (motion seconded by Senator Stone) and then voted the bill out of committee on a voice vote (motion to pass by Senator Stone, second by Senator Crowell). The transcript records only voice votes (ayes/voice consent); no named no votes were recorded.

For follow up: The bill text adopted in committee reduces mandated retail signage, expands authorized retail outlets to include natural food stores, and adds an emergency clause. The committee record in the transcript does not enumerate the final effective date or the full statutory placement beyond the text described by the sponsor.","The Senate Agriculture, Forestry & Economic Development Committee approved an emergency-clause amendment and advanced Senate Bill 464, which clarifies permitted raw-milk products, adds natural food stores as an authorized retail outlet and reduces a required retail sign size.","actionData","errors"]

Article not found

Debate on lease royalties and deductions surfaces as committee hears House Bill 1656; amendment adopted, bill left for further review

Hemp-derived products debate stalls after agencies warn bill could undermine existing litigation and public-health protections

Committee hearing on fair funding accountability stalls after debate over continuing-education requirement; sponsor pulls bill

Committee approves amendment, advances bill to clarify sale of raw-milk products