Arkansas House Bill HB1373

Arkansas 2025 Regular Session

• Introduced: 2/3/25
• Refer: 2/3/25
• Report Pass: 2/5/25

Caption

To Encourage The Award Of Workforce Development Funding To New Businesses And Businesses That Have Been In Operation For Less Than Five Years.

Impact

If enacted, HB 1373 would amend existing statutes under Arkansas law by explicitly directing a portion of workforce development funds toward helping new and young businesses. This could potentially lead to an increase in funding opportunities for local entrepreneurs and startups, thus strengthening the state’s economy. It might also contribute to the growth of sectors that are often underfunded, enabling them to thrive and innovate. The bill’s timing is particularly significant as it seeks to address economic challenges presented by the post-pandemic landscape and competitive market conditions.

Summary

House Bill 1373 is designed to promote economic growth by encouraging the award of workforce development funding specifically to new businesses and those that have been operating for less than five years. The bill mandates the Department of Commerce to ensure that at least five percent of workforce development funding distributed by local boards goes to support initiatives that either assist startup companies or provide services to businesses established within the previous five years. This initiative aims to foster a more favorable environment for young businesses, which are often crucial to job creation and economic vitality.

Contention

While the bill broadly garners support for its intent to stimulate business growth, there may be concerns regarding the allocation of workforce development funding. Critics may question whether the specific targeting of funds for new businesses could detract from support needed by established businesses or other sectors facing their own challenges. Additionally, there might be debates around the mechanisms for determining which businesses qualify as 'new' or 'operational for less than five years', potentially leading to discussions about fairness and inclusivity in funding allocations.