Bill > SB647

This bill creates the Economic Development District Act of 2025, which establishes a comprehensive framework for creating and managing economic development districts (EDDs) in Arkansas. The bill allows municipalities, counties, or cooperative areas to establish EDDs with the primary goal of promoting economic development through job creation, retention, attraction, economic growth, and diversification. Key provisions include allowing the creation of districts with flexible boundaries, establishing a board to govern each district, and providing mechanisms for funding and development. The districts can generate revenue through property and sales charges, which replace traditional property and sales taxes within the district's boundaries. The board of each EDD can provide grants, offer tax abatements, and issue bonds to support economic development projects. The districts must create strategic plans, maintain transparency through public reporting, and undergo regular audits. Importantly, the bill includes safeguards such as performance metrics for grants and abatements, conflict of interest provisions for board members, and oversight mechanisms including the potential for receivership if a district is mismanaged. The Department of Commerce will provide support and guidance to these districts, and the bill sets a contingent effective date of January 1, 2027, pending voter approval in a 2026 general election.