HB1373
To Encourage The Award Of Workforce Development Funding To New Businesses And 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Last Action (Feb. 3, 2025): WITHDRAWN BY AUTHOR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 1373 mandates that the Arkansas Department of Commerce encourage that at least five percent of state workforce development funding be directed toward supporting individuals launching new businesses or organizations that provide services to businesses established within the last five years. The bill applies to funding allocated by state workforce development boards. Its primary goal is to prioritize emerging businesses and startups in the state's workforce development efforts. The provisions of this act are scheduled to go into effect on January 1, 2027.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individuals starting new businesses in Arkansas, as well as businesses that have been in operation for five years or less. Additionally, workforce development organizations and programs that serve these specific business cohorts would benefit from increased access to state funding.
Who Might Suffer?
Entities that are most directly and negatively impacted are established businesses that have been operating for more than five years, as they may face increased competition for limited workforce development funds. Furthermore, existing workforce development programs that do not specifically serve the startup or early-stage business sector could see a reduction in available funding if the five percent target is strictly prioritized for newer businesses.
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