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Little Rock staff flags state bills on short-term rentals, ADUs, FOIA and county sales-tax distribution
Summary
City staff summarized multiple pending state bills that could affect Little Rock authority over short-term rentals, accessory dwelling units and local control over county turnback revenue and public meeting thresholds. Officials said they are monitoring legislation and working with the Municipal League where appropriate.
Susan, City staff member providing legislative updates, reviewed several bills the city is monitoring during the 2025 legislative session and told the board the administration is tracking possible impacts on local authority and revenues.
Susan said House Bill 1445, which would limit local restrictions on short-term rentals, had seen no recent movement. She described House Bill 1481 as an "anti-ATF commandeering" measure that would prohibit public employees from enforcing federal firearms laws; the bill had been amended to allow enforcement of state firearms laws but would still bar enforcement of federal firearms laws by public employees, creating concern for city staff.
On housing, Susan said House Bill 1503, a measure that would restrict municipal limits on accessory dwelling units, passed out of a Senate committee and is under continued monitoring. Senate Bill 91, she said, would remove local authority to regulate or control rental-application fees or security deposits for private rental property; that bill passed the Senate and was in the House City, County and Local Affairs Committee.
Susan also summarized Senate Bill 376, an amendment to the Freedom of Information Act of 1967 and public-meetings law that would change the threshold for a public meeting from "more than one" to "more than two" individuals; the city is monitoring that language. Finally, she identified Senate Bill 394 as a proposal to change allocation, distribution and use of county sales-and-use tax revenue for capital improvements; staff said they were concerned because the city receives approximately $60,000,000 in annual county turnback funding and the proposal could significantly affect city revenues. Susan said the bill was in committee the following day and staff would work with the Municipal League on the issue.
Board members asked whether lobbyists should have contacted the city about House Bill 1503; Director Webb said she had contacted her state representative and asked whether local lobbying had reached Little Rock. Susan replied she would ensure lobbyists coordinate with city contacts. Director Hines asked to meet with staff to better understand the turnback-revenue proposal in Senate Bill 394.
Why it matters: the bills would curtail some local regulatory powers and could change how cities budget or regulate housing and public meetings. City staff framed the items as monitored legislation rather than finalized policy changes; no board votes were recorded on the bills during the meeting.
Next steps: staff said they will continue monitoring the bills, coordinate with the Municipal League and follow up with directors who asked for additional briefings.
