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HB 1376

TO ENCOURAGE STATE AGENCIES TO AWARD A PORTION OF STATE CONTRACTS TO ARKANSAS BUSINESSES THAT HAVE BEEN IN OPERATION FOR LESS THAN FIVE YEARS.

2025 Regular Session Introduced by Kim Hammer and 2 co-sponsors

HB 1376 aimed to boost Arkansas' economy by requiring state agencies to allocate 5% of contracts to businesses under five years old, fostering local entrepreneurship and job creation.

WITHDRAWN BY AUTHOR
0
WeVote Research Nonpartisan
Bill Summary · HB 1376

Summary of House Bill 1376

Bill Number: HB 1376
Title: To Encourage State Agencies to Award a Portion of State Contracts to Arkansas Businesses That Have Been in Operation for Less Than Five Years
Status: Withdrawn by Author
Introduced: February 03, 2025
Classification: Bill

Purpose and Intent

House Bill 1376 aimed to promote economic growth and support local entrepreneurship in Arkansas by encouraging state agencies to allocate a portion of their contracts to businesses that have been in operation for less than five years. The intent was to foster a more inclusive contracting environment that benefits newer businesses, thereby stimulating job creation and innovation within the state.

Key Provisions

The bill proposed the following key provisions:

  • Definition of State Agency: The bill defined "state agency" in accordance with existing Arkansas law (§ 19-11-203).

  • Contract Allocation Requirement: The Office of State Procurement would be tasked with encouraging state agencies to award at least 5% of their contracts to:

    • Businesses that have been in operation for less than five years.
    • Businesses whose principal place of business is located within the state of Arkansas.

Impact

If enacted, HB 1376 would have had the following impacts:

  • Support for New Businesses: The legislation would have provided a financial opportunity for newer Arkansas businesses, helping them to compete for state contracts and potentially increasing their market presence.

  • Economic Development: By directing state funds to newer businesses, the bill aimed to stimulate local economies and create jobs, contributing to the overall economic development of Arkansas.

Legislative Timeline

  • February 03, 2025: HB 1376 was filed and read for the first time. The rules were suspended, and it was read a second time before being referred to the Committee on Agriculture, Forestry & Economic Development.

  • February 05, 2025: The bill was returned by the committee with a recommendation to pass.

  • February 11, 2025: The bill was withdrawn by the author, halting its progress through the legislative process.

Conclusion

While HB 1376 was designed to enhance opportunities for emerging businesses in Arkansas, its withdrawal means that the proposed changes will not be implemented. The bill reflects ongoing discussions about how to support local economies and encourage entrepreneurship within the state.

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

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