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SB 72

AN ACT FOR THE DEPARTMENT OF COMMERCE - ARKANSAS ECONOMIC DEVELOPMENT COMMISSION REAPPROPRIATION.

2026 Fiscal Session

Funds reallocate to AEDC for broad economic development: public works, job training, infrastructure, and minority business support, starting July 1, 2026.

Notification that SB72 is now Act 93
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Bill Summary · SB 72

Summary of SB 72 (Session 2026F, Arkansas)

Purpose

SB 72 is an appropriation bill that reappropriates balances from prior capital improvement appropriations for the Department of Commerce, specifically the Arkansas Economic Development Commission (AEDC). The bill aims to realign and extend funding to support economic development activities, public works, job training, and related projects by authorizing targeted reappropriations from established funds.

Key Provisions and Changes

  • Minority and Women-Owned Business Loan Mobilization (Section 1)

    • Reappropriates, effective July 1, 2026, up to $129,082 from the Minority and Women-Owned Business Loan Mobilization Revolving Fund.
    • Purpose: To promote the development of minority business enterprises, enhance their ability to compete for state contracts, and sustain their economic growth.

  • Capital Improvement Projects, Grants, and Programs (Section 2)

    • Reappropriations, effective July 1, 2026, from the Development and Enhancement Fund for multiple AEDC-related activities. Specified line items include:
    • (A) Grants/loans to support public works, job training, private-sector job creation, health/public wellbeing threats, access to industrial/technology parks, aircraft/aerospace industry expansion, port/rail/waterway economic development, technology-based economic development, industrial site development, intermodal facilities, environmental mitigation, and water/sewer system projects.
      • Total not to exceed: up to $3,000,000.
    • (B) Grant matching funds and/or loans for projects requiring matching funds to maximize grant funding or contract opportunities.
      • Total not to exceed: up to $189,757.
    • (C) Additional grants/loans with similar purposes as above (public works, job training, industrial site development, intermodal facilities, environmental mitigation, water/sewer systems, etc.).
      • Total not to exceed: up to $375,000.
    • (D) Allocation by the AEDC Executive Director for activities aligned with Arkansas’ state economic development strategic plan.
      • Total not to exceed: up to $80,100.
    • The eligible uses are broad and mirror the kinds of development projects AEDC typically funds, including infrastructure, site development, environmental mitigation, and intermodal transport.

Disbursement Controls and Compliance (Section 3)

  • Funds must be used within the limits of state treasury availability and applicable laws.
  • Agencies may accept grants and donations (including federal funds) and use unobligated cash income to supplement state funds, but maintenance and general operating costs cannot be used for these appropriations.
  • Compliance with state purchasing, accounting, revenue stabilization, and other fiscal control laws is required unless otherwise provided by law.

Legislative Intent and Effective Date (Sections 4–5)

  • Intent: Ensure funds are used in accordance with the purposes stated in the budget process documentation (Agency Requests, Executive Recommendations, Legislative Recommendations).
  • Emergency Clause: The act is designated as an emergency measure to be in effect on July 1, 2026, enabling immediate operation and avoiding delays that could harm essential programs.

Who Is Affected

  • The primary recipient is the Arkansas Economic Development Commission within the Department of Commerce.
  • Beneficiaries include state agencies, cities, counties, community-based nonprofit organizations, and other entities approved by AEDC for public works, economic development, infrastructure, and job training projects.
  • Minority and women-owned businesses may benefit from increased loan mobilization funding and improved access to state contracts.

Timeline

  • Effective date for reappropriations: July 1, 2026.
  • The act contains an emergency clause to ensure immediate effectiveness on that date.

This bill focuses on reusing existing capital improvement funds to support a wide range of economic development and infrastructure projects, with emphasis on minority business development, public works, intermodal and industrial development, and job training, while maintaining strict adherence to state fiscal rules.

Compiled from official sources — confirm details with the bill’s official record.

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