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Senate committee backs bill letting Arkansans sue commercial background vendors for inaccurate criminal records
Summary
Senate Insurance & Commerce advanced SB 381, introduced by Sen. Joyce Elliott, to create a civil cause of action when commercial background repositories publish criminal-history information that Arkansas law says should be sealed; witnesses from the Arkansas Crime Information Center told the panel commercial vendors often publish sealed records and that affected people lack an adequate remedy.
Sen. Joyce Elliott told the Senate Insurance & Commerce Committee that SB 381 would create a statutory civil remedy for Arkansans harmed when commercial background-reporting firms publish inaccurate or sealed criminal-history records. "What we've done in the bill is create a cause of action for people who are adversely affected," Elliott said during the committee hearing.
Mister Kozler, identified in the record as representing the Arkansas Crime Information Center (ACIC), told senators that ACIC regularly fields calls from people who say they lost a job or were denied employment because of erroneous data in commercial background reports. "These commercial companies ... are publishing that conviction that has been sealed and should not have been released," Kozler said. He explained that criminal information from ACIC is exempt from public Freedom of Information disclosure and that commercial vendors sometimes post sealed records that should not be public.
Committee members asked whether the proposed remedy would route these claims to the civil courts and whether existing libel remedies are adequate. Kozler said SB 381 would create a specific civil cause of action and that affected people would sue in circuit court for civil damages; he noted many commercial vendors operate out of state, which raises collection challenges after a judgment. "This bill is creating a civil cause of action," Kozler said. "You're gonna have to sue these companies in circuit court for civil damages."
Senators also clarified the bill's scope: it applies to criminal-background checks, not credit checks, and it does not involve photographs. Senator Ingram asked whether credit checks would be covered; ACIC staff answered, "No. This only deals with criminal background checks." The sponsor said the bill includes punitive damages and attorney-fee provisions intended to encourage legal representation in cases that otherwise might generate only small damages.
The committee moved the bill and voted 'aye'; the motion passed.
The next procedural steps are committee reporting and floor consideration. The record shows no public opposition during the committee's testimony period.
