City staff warns state bills could limit Little Rock zoning, flood planning and raise insurance costs

City legislative staff told the Little Rock Board of Directors during an agenda-setting meeting that multiple bills at the state Capitol could restrict municipal authority over zoning and planning and could affect flood planning and insurance costs.

"House Bill 17 54 and Senate Bill 4 5 6 are 2 of the bills that we've had a lot of concern on over zoning and planning," staff member Susan told the board, saying those measures "seem to be 2 of the most radical ones in terms of removing a municipality's ability ability to zone or plan." She said, however, that the authors had "pulled back on both of these as of right now."

Susan also briefed the board on other measures she and city staff are monitoring. She said Senate Bill 3 22 "talks about reviews and inspections with third parties and it does remove a little bit of that jurisdiction away from our planning department," and that the bill has passed the Senate and cleared a House committee. She said the city is watching Senate Bill 5 18 because of concerns that standardizing flood planning could "lead to an increase in insurance rates" by removing locally tailored flood planning. Senate Bill 6 17 would create a planning and zoning jurisdiction around the state capital, she said, and could affect master street planning there.

Susan identified additional measures the city is tracking, including an expedited-permit proposal the transcript records as "House Bridal 11 30" and a newer measure recorded as "House Bill 19 30," which the speaker described as setting a minimum reimbursement for health-care services. On that latter bill, Susan said the city has asked its insurer, Cigna, for cost estimates and is "heavily monitoring" potential impacts. "I do know that some of the universities were estimating that the number was in the thousands per person insured," she said, and noted that universities have received carve-outs the city has been seeking for municipalities.

City officials said they are monitoring bills actively from Little Rock's delegation at the Capitol and thanked Brad, a staff member the city has on-site at the Capitol, for monitoring and speaking on potential impacts.

Board members asked follow-up questions about cost estimates and sector impacts. A director noted hospital reimbursement differences across neighboring states and urged compromise, saying, "if something isn't done, there won't be a hospital in Arkansas." Susan said staff are "working with the author to try to find a friendly amendment."