Rep. Mary Bentley's bill would let teachers ignore students' preferred names and pronouns, and she says the state should do more in case a youth identifies "as a cat, as a furry."
Legislators Tuesday overrode Gov. Asa Hutchinson's veto, making Arkansas the first state with such a law.
The news was heralded by LGBTQ+ activists, but the legislature could still override the veto with a simple majority.
The state's Senate approved a bill Monday and the House had passed it earlier this month, so it now goes to Gov. Asa Hutchinson.
Arkansas becomes the latest state to bar trans student athletes from competing under their gender identity.
It's not certain whether the bills will be signed into law, but both governors are anti-trans Republicans.
Gov. Asa Hutchinson hasn't said if he supports the bill, which opponents warn will lead to discrimination against LGBTQ+ people and others.