Economic development bills filed

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

The first two months of the 88th General Assembly resulted in few bill filings related to economic development and job growth with the exception of the tax cut debate that engulfed the state legislature.

On the last day of bill filing this past Monday, that equation changed.

Ten significant measures were filed or updated that could have a direct impact on the state’s economy and jobs climate — efforts that can’t come soon enough when weighed in the context of the Talk Business Arkansas Consumer Confidence Report.

On Tuesday (Mar. 7), the report released showed that Arkansans have a deep dissatisfaction with current and future business conditions. Only 6% of those surveyed thought that job conditions were plentiful in Arkansas and just 16.5% thought hiring would get better in the next 6 months. A mere 11% considered state business conditions to be good.

Arkansas lawmakers — many of whom campaigned on the platform of creating jobs — waited until the waning days of bill filing to assemble their plans. Here are a few worth exploring:

HJR 1001 by Rep. Jonathan Barnett (R-Siloam Springs). Barnett’s resolution could be referred to a vote of the people in November 2012. It is the amended version of a highway construction and maintenance plan touted by House Speaker Robert Moore. D-Arkansas City. The bill now has 73 House sponsors and 5 Senate sponsors. It would levy a temporary half-cent sales tax for up to $1.3 billion worth of four-lane highway construction, if approved by voters.

SB 812 by Sen. Joyce Elliott, D-Little Rock, would create a study to explore how to use several public and private organizations to better address "quality of life issues and economic development in underserved areas" of Arkansas.

In the same vein but from a different direction, Sens. Gene Jeffress, D-Louann, Jason Rapert, R-Bigelow, and Rep. David Sanders, R-Little Rock, filed SB 885, the "Arkansas Economic Rehabilitation, Development and Growth Act." The bill seeks to establish tax-based incentives for regions of the state that have suffered massive population losses – in essence, counties predominantly in Arkansas’ Delta.

SB 841 by Sen. Jimmy Jeffress , D-Crossett, would revise the incentives created in the last session for motion picture and digital productions in state. The bill raises the rebates for production-related expenses from 15% to 20%.

SB 923 from Sen. Michael Lamoureux, R-Russellville, creates a task force to recruit and host nuclear facilities in Arkansas. Of course, Lamoureux represents a district that includes Arkansas Nuclear One. His bill charges the task force with presenting a plan to attract the construction of nuclear facilities in the state by December 2013.

In the House, a few measures caught our eye, notably HB 2002 by Rep. Kelley Linck, R-Flippin, which would create the "Arkansas Great Places" program. The program would mirror a successful tourism program in Iowa.

Also, HB 1898 by Rep. Keith Ingram, D-West Memphis, aims to streamline city-wide or county-wide elections to pass temporary sales and use taxes for economic development projects of $10 million or more that create at least 50 new jobs. The measure establishes procedures for triggering these elections. Some cities and counties have dedicated economic development sales taxes to help recruit and expand businesses locally. Ingram’s bill creates a system for shorter-term, tax-backed support.

HB 2048 by Rep. Uvalde Lindsey, D-Fayetteville, would increase investment and start-up funding in Arkansas through the "Arkansas Acceleration Fund." The fund would target knowledge-based jobs and pool the resources of several state agencies, programs and current capital funding mechanisms for a more targeted approach.

Two shell bills to keep your eye on are Sen. Steve Harrelson’s, D-Texarkana, SB 859. The bill calls on the Secretary of State to collect additional data in annual non-profit reports. Harrelson said the bill is a move to better identify non-profits for a future effort to assess their tax-exempt status at the state level.

Finally, HB 2166 by Rep. Debra Hobbs, R-Rogers, has a curious title. It would amend the Governor’s Quick Action Closing Fund. No word on how this shell bill might be modified.