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State of Arkansas 1
95th General Assembly 2
Fiscal Session, 2026 HR 1016 3
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By: Representatives Richmond, A. Brown, Gonzales 5
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HOUSE RESOLUTION 8
TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION 9
BILL TO CREATE THE ARKANSAS PROPERTY RIGHTS 10
PROTECTION FROM SHARIA LAW ACT; AND TO REGULATE 11
CERTAIN RESIDENTIAL PROPERTY INTERESTS CONTROLLED BY 12
CERTAIN ENTITIES. 13
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Subtitle 16
TO AUTHORIZE THE INTRODUCTION OF A 17
NONAPPROPRIATION BILL TO CREATE THE 18
ARKANSAS PROPERTY RIGHTS PROTECTION FROM 19
SHARIA LAW ACT AND TO REGULATE CERTAIN 20
RESIDENTIAL PROPERTY INTERESTS 21
CONTROLLED BY CERTAIN ENTITIES. 22
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BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL 25
ASSEMBLY OF THE STATE OF ARKANSAS: 26
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THAT Senator Blake Johnson is authorized to introduce a bill which as 28
introduced will read substantially as follows: 29
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"Title 31
AN ACT TO CREATE THE ARKANSAS PROPERTY RIGHTS PROTECTION FROM SHARIA LAW ACT; 32
TO REGULATE CERTAIN RESIDENTIAL PROPERTY INTERESTS CONTROLLED BY CERTAIN 33
ENTITIES; AND FOR OTHER PURPOSES. 34
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Subtitle 36
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TO CREATE THE ARKANSAS PROPERTY RIGHTS PROTECTION FROM SHARIA LAW ACT; AND TO 1
REGULATE CERTAIN RESIDENTIAL PROPERTY INTERESTS CONTROLLED BY CERTAIN 2
ENTITIES. 3
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 5
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SECTION 1. DO NOT CODIFY. Title. 7
This act shall be known and may be cited as the "Arkansas Property 8
Rights Protection From Sharia Law Act". 9
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SECTION 2. Arkansas Code Title 4, Chapter 88, Subchapter 1, is amended 11
to add an additional section to read as follows: 12
4-88-118. Business entity-owned residential arrangements — 13
Definitions. 14
(a) As used in this section: 15
(1) "Business entity" means a partnership, corporation, joint 16
venture, limited liability company, or other business organization or 17
business association, however organized; 18
(2) "Managing entity" means a business entity that owns 19
residential property used in a residential arrangement; 20
(3) "Residential arrangement" means an arrangement in which the 21
purchaser of an interest in a business entity is entitled to the exclusive 22
possession of the residential property owned by the entity as long as the 23
purchaser holds the interest in the business entity; and 24
(4) "Residential property" means the real property and 25
improvements for a single-family house, duplex, triplex, or quadruplex. 26
(b) An agreement for the purchase of an interest in a managing entity 27
shall disclose to the purchaser that the agreement is for the purchase of an 28
interest in the entity and not in any residential property itself. 29
(c) The purchase agreement and any other agreement or rules governing 30
the residential arrangement or the ownership interest in the entity shall not 31
require that a dispute concerning the arrangement or interest be brought 32
before a tribunal other than a court established under the laws of this state 33
or the United States. 34
(d) A managing entity shall not take an action with respect to an 35
interest in the entity in a manner that would be a violation of the Arkansas 36
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Fair Housing Act, § 16-123-201 et seq., if the interest in the entity were an 1
interest in real property, including without limitation: 2
(1) Restricting the transfer of the interest; 3
(2) Imposing requirements to maintain the interest; or 4
(3) Refusing to grant an interest to an otherwise qualified 5
person. 6
(e) Notwithstanding any provision in an agreement between the owner 7
and a managing entity, an owner of an interest in a managing entity may 8
transfer the interest without approval from the managing entity. 9
(f) A managing entity shall not charge a fee for or share in the 10
proceeds of the transfer of an interest in the managing entity from an owner 11
to a subsequent purchaser. 12
(g)(1) A violation of this section is an unfair and deceptive act or 13
practice, as defined by the Deceptive Trade Practices Act, § 4-88-101 et seq. 14
(2) All remedies, penalties, and authority granted to the 15
Attorney General under the Deceptive Trade Practices Act, § 4-88-101 et seq., 16
shall be available to the Attorney General for the enforcement of this 17
chapter. 18
(h)(1) A managing entity shall not take an action with respect to an 19
interest in the entity if the managing entity is being investigated for a 20
violation of the Arkansas Securities Act, § 23-42-101 et seq. 21
(2) The Attorney General may pursue an injunction against a 22
managing entity if a violation of subdivision (h)(1) is found. 23
(i) A court that finds a violation of this section may enjoin a 24
managing entity or a person affiliated with the managing entity from taking 25
action in furtherance of the development of or construction on residential 26
property used in a residential arrangement subject to an action under this 27
section, including without limitation: 28
(1) Filing a petition with the Division of Environmental Quality 29
for the creation of a municipality or consolidated utility district created 30
under the General Consolidated Public Utility System Improvement District 31
Law, § 14-217-101 et seq.; 32
(2) Taking action in connection with a petition for the creation 33
of a district described by subdivision (i)(1) of this section filed with the 34
division before the issuance of the injunction; or 35
(3) Receiving, directly or indirectly, any public money or 36
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benefit. 1
(j) This section does not apply to: 2
(1) The sale, rental, or occupancy of a dwelling that is a 3
single-family house, duplex, triplex, or quadruplex located on a subdivided 4
lot in a parcel of land twenty-five (25) acres or greater owned by a 5
religious organization, association, or society or a nonprofit institution or 6
organization operated, supervised, or controlled by or in conjunction with a 7
religious organization, association, or society; or 8
(2) A time-share interest as defined under § 18-14-102 et seq." 9
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