HB1374
Concerning A Report By The Director Of The Arkansas Economic Development Commission Concerning Contracts Awarded To Businesses In Operation Less Than Five Years.
AI-Generated Summary
This bill proposes to add a new section to Arkansas Code concerning a report by the Director of the Arkansas Economic Development Commission. The report would focus on state contracts awarded to businesses that have been in operation for less than five years. Annually, by January 1st, the Director must file this report. The report's content would include the number and total dollar amount of such contracts, with a breakdown by demographic segments and geographic areas. It would also detail the percentage of total state contracts awarded to these newer businesses, both in terms of number and dollar amount. Furthermore, the report must include recommendations to improve access to state contracts for these emerging businesses. This includes specific attention to businesses in statistically underrepresented demographic segments and geographic areas within Arkansas. The report is to be filed with the Governor, the House Committee on Insurance and Commerce, and the Senate Committee on Insurance and Commerce. The first report is due by January 1, 2027.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill, if enacted, would be new businesses in Arkansas (those in operation for less than five years), particularly those that are minority-owned, women-owned, or located in underserved geographic regions. By mandating a report that analyzes contract awards and provides recommendations for improvement, the bill aims to increase the visibility and accessibility of state contracts for these emerging enterprises. State agencies and legislative committees focused on economic development and commerce would also benefit from the data and insights provided in the report, enabling them to make more informed decisions and policies.
Who Might Suffer?
This bill does not appear to directly negatively impact any specific groups or entities in its current form. The legislation mandates reporting and recommendations, which are primarily informational and advisory. While existing businesses that have been in operation for more than five years might face increased competition for state contracts if the recommendations lead to a shift in contract awards, this is an indirect consequence of potentially improved access for newer businesses, rather than a direct negative impact imposed by the bill itself. The Arkansas Economic Development Commission and its Director are tasked with fulfilling the reporting requirement, which represents an administrative burden but not a negative impact in terms of financial or operational detriment.