HB1376
To Encourage State Agencies To Award A Portion Of State Contracts To Arkansas Businesses That Have Been In Operation For Less Than Five Years.
Last Action (Feb. 3, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1376 seeks to amend Arkansas state procurement law to support newer local businesses. The bill directs the Office of State Procurement to encourage state agencies to award at least five percent of their contracts to Arkansas-based businesses that have been in operation for fewer than five years. It defines the term 'state agency' by referencing existing statutes under Arkansas Code § 19-11-203. The primary goal of the legislation is to promote economic growth by providing state contracting opportunities to startups and recently established firms within the state. This initiative aims to foster a more inclusive procurement landscape for newer enterprises.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are small and early-stage Arkansas-based businesses that have been in operation for less than five years. By providing a target for state agencies to contract with these entities, the bill may increase their access to government revenue, improve their ability to scale, and enhance their market visibility.
Who Might Suffer?
Established businesses that have been in operation for five years or longer may be negatively impacted, as they may face increased competition for state contracts or a reduction in the total available contract pool due to the prioritization of newer firms. Additionally, state agencies may face increased administrative burdens to track, report, and prioritize these specific contract awards.
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