AR SB742

Creates the Successor Corporation Asbestos-Related Liability Fairness Act in Arkansas Code Title 16, Chapter 120, Subchapter 6 to limit asbestos-related liabilities for successor corporations that never manufactured or sold asbestos products.

Caps successor corporation liability for asbestos claims at the fair market value of the transferor's total gross assets as of the merger or consolidation date, with the limitation applied to the prior transferor's assets if prior mergers occurred.

Exempts workers' compensation benefits, non-asbestos claims, National Labor Relations Act obligations, and collective bargaining agreements from the liability cap; does not apply to successors that continued the asbestos business after merger.

Establishes methods to determine fair market value of assets including going concern value, arm's length purchase prices, or balance sheet values, with intangible assets and liability insurance included in the calculation.

Provides annual adjustment to asset value equal to the Wall Street Journal prime rate plus 1 percent (non-compounded) until cumulative asbestos liabilities exceed the adjusted asset value; insurance assets are excluded from annual adjustments.