HB1797

House Bill 1797 proposes to make the Arkansas Development Finance Authority (ADFA) an independent state instrumentality, removing it from the Department of Commerce. The bill asserts that this increased independence will improve administrative efficiency and better address the state's housing crisis by reducing bureaucratic oversight. Under these changes, the ADFA would be exempt from the Arkansas Administrative Procedure Act and several state procurement laws, granting it greater autonomy in managing its operations, hiring, and use of non-appropriated cash funds. While operating with increased independence, the bill maintains that the ADFA remains subject to oversight by the Legislative Council or the Joint Budget Committee for specific procurement or contract matters. Additionally, the bill ensures that the ADFA remains subject to audits by Arkansas Legislative Audit. The act includes an emergency clause, indicating an intent for the changes to take effect immediately upon enactment.