Arkansas Senate Bill SB283

Arkansas 2025 Regular Session

• Introduced: 2/24/25
• Refer: 2/24/25
• Report Pass: 3/12/25

Caption

To Amend The Law Concerning Unclaimed Property; And To Provide That Certain Nonprofit Organizations Are Exempt From The Law Concerning Unclaimed Property.

Impact

The passage of SB283 would directly impact how unclaimed property is managed by nonprofit organizations within the state. By exempting smaller nonprofits, the bill seeks to promote operational sustainability for these organizations, allowing them to focus more on their missions rather than on compliance. This could encourage the growth of smaller nonprofits and enhance their contributions to their communities by reducing legal and administrative costs associated with unclaimed property laws.

Summary

Senate Bill 283 aims to amend existing Arkansas law regarding unclaimed property to exclude certain nonprofit organizations from the provisions of the unclaimed property laws. The bill proposes that nonprofit organizations with annual revenues of less than five million dollars ($5,000,000) will not be subject to the requirements for reporting and handling unclaimed property under the law. This exemption is significant as it potentially alleviates administrative burdens on smaller nonprofits that may lack the resources to comply with such regulations.

Contention

There may be points of contention surrounding SB283 regarding the criteria for exemption and its potential effects on unclaimed property recovery efforts. Some legislators and advocacy groups may argue that the exemption for nonprofits could lead to less accountability and transparency in how unclaimed property is managed. Concerns may arise about whether larger nonprofits would still benefit under this law, particularly if their revenues fluctuate just above the $5 million threshold. Opponents might argue that this bill could create disparities in treatment between different nonprofit organizations based on size rather than mission or community impact.