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HB 1797

An Act providing for modernization of unit pricing laws to improve transparency and consistency and for Department of Agriculture rulemaking authority; and imposing penalties.

2025-2026 Regular Session Introduced by Elizabeth Fiedler and 8 co-sponsors

Reclassifies ADFA as an independent state instrumentality outside Commerce, granting broad autonomy (procurement, rulemaking, hiring) with ongoing audits and reporting.

Referred to Consumer Protection, Technology & Utilities
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Bill Summary · HB 1797

Summary — HB 1797 (95th Ark. Gen. Assembly, 2025)

Title: Modifies provisions relating to public accounting / Arkansas Development Finance Authority (ADFA)

NOTE: The provided bill text includes material from multiple states (Arkansas, Illinois, Missouri) under the same bill number. This summary focuses on the Arkansas statute as amended in the 95th General Assembly (ADFA provisions). The Illinois and Missouri excerpts appear to be unrelated insertions.

Main purpose

To recharacterize the Arkansas Development Finance Authority (ADFA) as an independent instrumentality of the state, transfer it out of the Department of Commerce, broaden its operational autonomy (including procurement and rulemaking exemptions), explicitly preserve its revenue-treatment, and otherwise increase the Authority’s administrative independence and operational flexibility — with related reporting/audit provisions and emergency implementation.

Key provisions and changes

  • ADFA declared an independent instrumentality and transferred out of the Department of Commerce (new § 15‑5‑107). ADFA will operate independently from cabinet-level departments.
  • Personnel protection: existing ADFA employees are deemed qualified and retain at least their current rank and salary grade.
  • Departments (Commerce and Shared Administrative Services) must cooperate in providing access/data to facilitate the transfer and ADFA mission.
  • Rulemaking and procurement exemptions:
    • ADFA rules are exempt from the Arkansas Administrative Procedure Act (§ 25‑15‑201 et seq.).
    • ADFA revenues (except appropriations) are specifically declared cash funds restricted for use under ADFA statutes, exempt from § 19‑4‑802, and "not public funds" under the Arkansas Procurement Law (§ 19‑11‑201 et seq.).
    • Certain actions (e.g., mortgage/purchase/loan acquisitions, issuance of bonds, execution of mortgages/deeds of trust, other authority powers) do not require authority-conducted proceedings, notices, or approvals except as expressly stated.
  • Governance and staffing:
    • Board members serve without compensation but may be reimbursed for reasonable expenses.
    • Authority given explicit power to appoint and set compensation for officers, agents, and employees.
  • Oversight and reporting:
    • President of ADFA must appear before Legislative Council or, when in session, the Joint Budget Committee upon request to report on contract/procurement matters identified by those bodies.
    • ADFA and all records are subject to inspection and audit by Arkansas Legislative Audit under § 10‑4‑416.
  • Other statutory clarifications:
    • ADFA intended as exclusive issuer of revenue bonds for certain public facilities (with enumerated exceptions).
    • Several technical and conforming edits to related ADFA code sections; certain prior provisions deleted or renumbered per Senate amendments.

Who is affected

  • ADFA organization and employees (operational independence; staffing/compensation autonomy).
  • Department of Commerce and Department of Shared Administrative Services (responsibilities to assist transfer).
  • State agencies and entities that use ADFA for bond financing and housing/mortgage programs.
  • Vendors, consultants, and legal counsel working with ADFA (changes to procurement and rulemaking processes).
  • Legislative oversight bodies and Arkansas Legislative Audit (retain audit/reporting access).

Potential impacts

  • Increased operational flexibility and faster decision-making for ADFA (e.g., hiring, compensation, bond issuance).
  • Reduced procedural oversight in rulemaking and procurement (exemptions from APA and procurement law), potentially accelerating transactions but raising transparency/accountability concerns; mitigated somewhat by audit authority and requested reporting to Legislative Council/Joint Budget Committee.
  • Maintains ADFA revenue segregation (cash funds restricted) limiting use to statutory purposes.

Procedural / timeline highlights

  • Filed: 2025-01-09 (prefiled H)
  • Passed both chambers with Senate Amendments; Emergency Clause adopted (record shows activity 4/9–4/16).
  • Correctly enrolled and transmitted to Governor: 2025-04-16.
  • Notification that HB1797 is Act 944: 2025-04-21.
  • Primary sponsors (Arkansas): Rep. Beaty Jr. (House) and Sen. Gilmore. (Other names listed in the file relate to unrelated bill texts in other states.)

If you want, I can produce a redline-style comparison showing the exact statutory wording changed, or a short analysis of likely fiscal/administrative effects on ADFA and state oversight.

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

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