HB1373
To Encourage The Award Of Workforce Development Funding To New Businesses And Businesses That Have Been In Operation For Less Than Five Years.
AI-Generated Summary
This bill proposes to amend Arkansas state law to encourage the allocation of workforce development funding towards new businesses and those in operation for less than five years. Specifically, it directs the Department of Commerce to ensure that at least five percent of workforce development funding supports organizations or programs aimed at individuals starting new businesses in Arkansas. Furthermore, this funding should also support services for businesses established within the last five years that have their principal place of business in the state. The bill aims to foster the growth of nascent enterprises by providing them with crucial workforce development resources. The legislation is scheduled to become effective on January 1, 2027. The proposed changes are intended to stimulate economic activity and job creation by prioritizing emerging businesses.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be individuals starting new businesses in Arkansas and businesses that have been in operation for less than five years with their principal place of business in the state. This includes entrepreneurs looking to launch ventures and early-stage companies seeking to expand their workforce and improve their operational capacity. Organizations and programs that provide services to these specific groups of businesses, such as training providers or business incubators, would also likely benefit from increased funding opportunities.
Who Might Suffer?
The bill does not explicitly identify any groups that would be negatively impacted. However, if the five percent minimum allocation to new and early-stage businesses is mandated, it could potentially lead to a redistribution of existing workforce development funds. This could mean that established businesses or other sectors that previously received a larger share of this funding might see a reduction in the resources available to them, depending on the overall budget and allocation strategies of the Department of Commerce and workforce development boards.