Arkansas House Bill HB1841

Arkansas 2023 Regular Session

• Introduced: 4/3/23
• Refer: 4/3/23
• Report Pass: 4/5/23
• Engrossed: 4/5/23
• Refer: 4/5/23
• Failed: 5/1/23

Caption

To Amend The Definition Of "economic Development Projects" Under Arkansas Constitution, Article 12, § 5; And To Establish Requirements For Retail Facilities That Qualify As Economic Development Projects.

Impact

The bill establishes stringent requirements for retail facilities to qualify as economic development projects, such as creating a set number of jobs and achieving specific annual sales thresholds depending on whether they are located in urban or rural areas. For urban areas, the retail facility must create at least 75 full-time jobs and project annual sales of at least $20 million, while rural facilities must create 25 jobs and generate $5 million. Additionally, significant capital investments and support resolutions from local governments are necessary, indicating a strategic approach to bolster economic activity across Arkansas.

Summary

House Bill 1841 seeks to amend the Arkansas Constitution by redefining 'economic development projects' to clarify what constitutes such a project. The bill expands the definition to include not only manufacturing and industrial facilities but also retail facilities that meet specific criteria. This encompasses various types of facilities from recycling to sports complexes, which are deemed critical for economic growth and job creation within the state, emphasizing both urban and rural developments.

Contention

Discussions surrounding HB1841 highlighted some concerns regarding the implications of centralizing economic development definitions and requirements. Supporters argue that the bill will stimulate significant investments and job creation, thus driving economic growth in both urban and rural communities. However, opponents raise apprehensions that the stringent requirements may disproportionately favor larger establishments while marginalizing smaller businesses or projects that do not meet these thresholds. Critics warn that such limitations could hinder local initiatives and economic diversity.