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Senate committee adopts statewide title notice tied to Right to Farm Act
Summary
The Senate Agriculture committee adopted an amendment and passed SB408 to require a short notice in closing/title packets informing buyers that Arkansas is a Right to Farm state. Supporters say it will reduce nuisance suits; lenders warned of compliance and audit costs.
Senator Pitch told the committee that an amendment to SB408 removes a ‘‘nearby’’ search requirement and instead requires closing agents to place a short notice in the title/closing packet informing buyers that ‘‘in this state, we have the Right to Farm Act, and you should know that.’’
Sponsor remarks and Farm Bureau testimony emphasized that the change came after talks with title agents and is intended to be a simple notice rather than a burdensome research task. Jeff Pitchford of the Arkansas Farm Bureau said the idea sprang from growth pressures in Northwest Arkansas and cited projections that ‘‘about 500,000 people are gonna move into Benton and Washington County over the next 10 to 12 years,’’ which he said is increasing conflict between new residents and long-standing farm operations.
Lender witnesses said the amended language is more workable but raised regulatory-compliance concerns. Keith Little of the Mortgage Bankers Association said he had not seen the final text and warned that ‘‘as a bank lender, I'm still responsible for what the title agent does’’ and that banks routinely must perform vendor due diligence. Rob Robinson of Simmons Bank echoed those compliance costs, saying ‘‘compliance is very expensive’’ and that banks would need to update core systems to ensure the notice is included in closing packets.
The committee adopted the amendment on a voice vote and then approved the bill as amended on a subsequent voice vote. The chair announced the bill passed and directed the sponsor to carry it forward.
