RELATING TO PROCUREMENT.

2025 Regular Session Introduced by Henry Aquino and 8 co-sponsors

SB 382 repeals the Arkansas Development Finance Authority's annual reporting requirement for the Capital Access Fund, streamlining processes but reducing oversight for small business loans.

Carried over to 2026 Regular Session.

#debriefing #disclosureofcompetingproposals #hawaiipublicprocurementcode #protest

Purpose and Intent

Senate Bill 382 (SB 382) aims to repeal the requirement for the Arkansas Development Finance Authority (ADFA) to submit an annual report concerning the Capital Access Fund. The Capital Access Fund is designed to facilitate financing for small businesses that may struggle to secure conventional bank loans.

Key Provisions

Repeal of Reporting Requirement: The bill specifically repeals Arkansas Code § 15-5-1110, which mandates the ADFA to prepare and submit an annual financial report detailing:

The financial condition of the Capital Access Fund.
The results and economic impact of the Arkansas Capital Access Program for Small Business and the Arkansas Credit Reserve Program.

Administrative Role of ADFA: The ADFA will continue to administer the Capital Access Program, which allows lenders to set up special reserve funds to cover potential losses from loans. However, the repeal means that the ADFA will no longer be obligated to provide the aforementioned reports to the Governor and the Legislative Council.

Impact

Affected Entities:

The Arkansas Development Finance Authority will no longer need to allocate resources for the preparation of the annual report.
Lenders participating in the Capital Access Program may experience less oversight regarding the program's financial reporting, potentially impacting transparency.
Small businesses seeking loans may continue to benefit from the Capital Access Program, but the lack of reporting may affect the assessment of the program's effectiveness.

Financial and Taxpayer Impact: The bill is projected to have no revenue impact and no taxpayer impact, as it does not alter funding or financial obligations related to the Capital Access Fund.

Procedural Aspects

Legislative Timeline:

The bill was introduced on March 5, 2025.
It has passed through various legislative stages, including committee reviews and readings in both the Senate and House.
As of April 7, 2025, SB 382 has been enacted as Act 466 and is awaiting implementation.

Next Steps: A conference committee meeting is scheduled for April 25, 2025, to discuss any outstanding issues related to the bill.

Conclusion

SB 382 represents a significant change in the reporting obligations of the Arkansas Development Finance Authority regarding the Capital Access Fund. By eliminating the annual reporting requirement, the bill aims to streamline administrative processes, although it may raise concerns about transparency and oversight in the management of public funds intended to support small business financing.

Bill