HB1377
To Require A Report Concerning Economic Development Funding Supporting Organizations Or Programs For New Businesses Or Businesses Established Within The Previous Five Years.
Last Action (Feb. 3, 2025): WITHDRAWN BY AUTHOR
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AI-Generated Summary
House Bill 1377 mandates that the Director of the Arkansas Economic Development Commission submit an annual report detailing funding directed toward organizations and programs that support new businesses or those established within the last five years. The report must specify the total dollar amount and the percentage of economic development funding, including community development block grants, allocated to these entities. The report is required to be filed annually by January 1, beginning in 2027, with the Governor and the relevant House and Senate Committees on Insurance and Commerce. The primary purpose of this legislation is to increase transparency regarding how state economic development funds are utilized to foster entrepreneurship and early-stage business growth. The bill does not authorize new spending but requires the systematic tracking of existing funding mechanisms for small and emerging businesses.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include policymakers, legislators, and the public, who will gain greater visibility and oversight into how state resources are allocated toward economic development initiatives. Entrepreneurs, startups, and businesses operating for five years or less may also benefit indirectly, as the report could highlight gaps in funding and inform future legislative decisions regarding economic support programs.
Who Might Suffer?
The bill does not directly negatively impact any specific group; however, the Arkansas Economic Development Commission and its staff will face an increased administrative and bureaucratic burden. This mandate requires the agency to dedicate time and resources to data collection, analysis, and report generation annually, potentially diverting personnel from other administrative functions.
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