Economic development bills working their way through Legislature

A package of economic development reform bills is making progress through both ends of the State Capitol as the 95th General Assembly counts down its final full week.

Two measures just need House floor votes before making their way to Gov. Sarah Sanders’ desk for signature.

SB 421, the Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2025, is a massive infrastructure bill that outlines how and when the state can issue general obligation bonds to finance and refinance water, waste disposal, pollution control, abatement and prevention, drainage, irrigation, flood control, and wetlands and aquatic resources projects. The Arkansas Natural Resources Commission helps put together the plan.

In total, it would allow for up to $500 million in bonds to finance projects, but there are stipulations on how often those bonds can be pushed and what type of projects must qualify. In other words, the state couldn’t finance $500 million in bonds for one type of project one time; there has to be some diversity in the financing.

Voters would have to approve the bonds in either a general or special election as decided by the governor. Arkansas has used this mechanism of bonds for water and wastewater infrastructure as well as irrigation and wetlands management in the past, so it’s not a novel concept.

SB 421, by Sen. Bart Hester, R-Cave Springs, and Rep. Howard Beaty Jr., R-Crossett, passed the State Senate 24-3 and has passed a House committee. It will be up for a vote in the full House this week.

SB 361, by Sen. Tyler Dees, R-Siloam Springs, and Rep. Howard Beaty Jr., R-Crossett, is also moving through chambers. The bill, the Industrial Development Authorities Expansion Act, changes language to allow for the creation of industrial development authorities with powers similar to port authorities, which are near waterways. Industrial development authorities would be able to form for economic development projects with similar infrastructure and tax incentives.

Northwest Arkansas, which doesn’t have a major nearby waterway for the transportation of goods, would be one area of the state that would benefit greatly from this change to the law.

The measure passed the Senate on a 30-0 vote. It has also cleared a House committee and will be considered by the full House this week.

HB 1923, by Rep. John Maddox, R-Mena, and Sen. Bart Hester, R-Cave Springs, amends The Arkansas Tourism Development Act and aspects of Natural State Initiative Opportunity Zones.

Primarily, it lowers incentive thresholds and broadens the radius of opportunity zones in order to stir more potential business activity. Passed two years ago, state leaders have discovered that businesses they are recruiting have not been as enticed as necessary to pull the trigger on investments around four state parks with zones.

HB 1923 passed the House on a 80-7 vote. It is sitting in the Senate Agriculture and Economic Development Committee and must clear that panel and the full Senate before heading to the governor for signature.