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SB 647

Relating to: fraudulent claims for unclaimed property and providing a penalty. (FE)

2025-2026 Regular Session Introduced by Howard Marklein and 2 co-sponsors

Senate Bill 647 creates economic development districts in Arkansas, fostering collaboration among local governments to boost job creation and local economic growth.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 647

Summary of Senate Bill 647: Economic Development District Act of 2025

Purpose and Intent

Senate Bill 647, titled the Economic Development District Act of 2025, aims to establish a framework for creating economic development districts in Arkansas. The bill is designed to promote economic growth, job creation, and revitalization in designated areas through collaborative efforts among municipalities and counties.

Key Provisions

The bill introduces a new chapter (Chapter 177) to the Arkansas Code, which includes several important provisions:

Definitions

  • Economic Development District: A designated area established to facilitate economic development and revitalization.
  • Available Funds: Revenues and grant funds received by an economic development district, minus certain baseline charges.
  • Economic Development Construction: Activities related to constructing or improving facilities that contribute to economic development goals.

Formation and Governance

  • Establishing Authority: The governing body of a municipality or county, or a designated group in a cooperative area, is responsible for establishing the district.
  • Formation Charter: A foundational document that outlines the governance and operational structure of the economic development district.

Financial Mechanisms

  • Property Charge: A monetary charge based on property taxes that would be applicable if the district did not exist.
  • Sales Charge: A charge based on sales and use taxes generated within the district.
  • Baseline Charges: The bill defines baseline amounts for property and sales charges to determine increments that can be used for funding development projects.

Support from the Department of Commerce

The bill mandates the Department of Commerce to provide:
- Ongoing support and assistance for the establishment and management of economic development districts.
- Resources and technical assistance for drafting proposals and conducting economic assessments.
- Training programs for local officials on economic development strategies and financial management.

Impact

The Economic Development District Act of 2025 is expected to:
- Facilitate collaboration between municipalities and counties to enhance local economies.
- Provide a structured approach to economic development, allowing for targeted investments in infrastructure and services.
- Create opportunities for job creation and retention, as well as attract new businesses to the area.

Legislative Timeline

  • Introduced: April 16, 2025
  • Sine Die Adjournment: May 5, 2025
  • Committee Actions: The bill was read and referred to the City, County & Local Affairs Committee, then recommended for study in the Interim Committee.

Conclusion

Senate Bill 647 represents a significant step towards enhancing economic development in Arkansas by establishing a clear framework for the creation and management of economic development districts. Through collaboration and strategic planning, the bill aims to stimulate local economies and improve the quality of life for residents in designated areas.

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

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