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Bill Summary · SB 383

Summary of Senate Bill 383 (SB 383)

Overview

Senate Bill 383 (SB 383) is a legislative measure aimed at repealing the requirement for an annual report under the Venture Capital Investment Act of 2001. This bill was introduced on March 5, 2025, and has been enacted as Act 262, effective July 1, 2025.

Purpose and Intent

The primary intent of SB 383 is to eliminate the statutory obligation for designated investor groups to file an annual report detailing their activities and progress under the Venture Capital Investment Act. This change reflects the shifting functions of the fund, which is no longer issuing new financing and has had its responsibilities reassigned.

Key Provisions

  • Repeal of Reporting Requirement: The bill specifically repeals Arkansas Code § 15-5-1408, which mandated that designated investor groups publish an annual report within six months after the close of their fiscal year. This report was required to include:
    • An audit of the activities conducted by the investor group.
    • Documentation of the group's progress in implementing its investment plan.
    • A list of any use, redemption, or transfer of tax credits allowed under the subchapter.

Impact

  • Affected Entities: The repeal will primarily impact designated investor groups that were previously required to submit annual reports. These groups will no longer need to allocate resources for report preparation and submission.
  • Administrative Changes: The Arkansas Development Finance Authority (ADFA) will cease to provide the statutorily required report, streamlining administrative processes related to venture capital investments.

Procedural Timeline

  • Introduced: March 5, 2025
  • Passed: The bill went through several readings and amendments before being passed by both the House and Senate.
  • Enacted: SB 383 was signed into law and became Act 262 on July 1, 2025.

Conclusion

SB 383 simplifies the regulatory framework surrounding venture capital investments in Arkansas by removing an outdated reporting requirement. This legislative change is expected to reduce administrative burdens on investor groups and reflect the current status of the Venture Capital Investment Act.

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

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