Ark. Code Ann. § 15-71-110 — AR Code / Title 15 / Chapter 71 / Section 15-71-110
Powers and duties - Rules - Definitions
Status: in_force

(a) (1) The Oil and Gas Commission shall have jurisdiction of and authority over all persons and property necessary to administer and enforce effectively the provisions of this act and all other statutory authority of the commission relating to the exploration, production, and conservation of oil and gas. (2) Production of natural gas includes both the production facilities and production process. (3) This jurisdiction includes, but is not limited to, jurisdiction over production facilities and natural gas production facilities wherein natural gas contains one hundred (100) or more parts per million of hydrogen sulfide. (b) (1) "Production facilities" includes, without limitation, piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of natural gas or associated storage or measurement from the wellhead to a meter where the gas is transferred to a custodian other than the well operator for gathering or transport, commonly known as a "custodial transfer meter". (2) "Production process" means the extraction of gas from the geological source of supply to the surface of the earth, then through the lines and equipment used to treat, compress, and measure the gas between the wellhead and the meter, where it is either sold or delivered to a custodian other than the well operator for gathering and transportation to a place of sale, sometimes called the "custodial transfer meter". (c) (1) The commission shall have the authority and it shall be its duty to make inquiries as it deems proper to determine whether or not waste over which it has jurisdiction exists or is imminent. (2) In the exercise of that power, the commission shall have the authority to: (A) Collect data; (B) Make investigations and inspections; (C) Examine properties, leases, papers, books, and records; (D) Examine, check, test, and gauge oil and gas wells, tanks, refineries, and means of transportation; (E) Hold hearings; (F) Provide for the keeping of records and the making of reports; and (G) Take action as reasonably necessary to enforce this act. (d) After hearing and notice as provided in this act, the commission may make such reasonable rules and orders as are necessary from time to time in the proper administration and enforcement of this act, including rules or orders for the following purposes: (1) To require: (A) The drilling, casing, operation, and plugging of wells to be done in such a manner as to: (i) Prevent the escape of oil or gas from one (1) stratum to another; (ii) Prevent the intrusion of water into an oil or gas stratum from a separate stratum; and (iii) Prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water; and (B) A reasonable financial assurance acceptable to the commission conditioned on the performance of the duty to plug each dry or abandoned well; (2) To require the making of reports showing the location of oil and gas wells and the filing of logs and drilling records; (3) To prevent the drowning by water of any stratum or part of any stratum capable of producing oil and gas in paying quantities and to prevent the premature and irregular encroachment of water which reduces, or tends to reduce, the total ultimate recovery of oil and gas from any pool; (4) To require the operation of wells with efficient gas-to-oil ratios and to fix those ratios; (5) To prevent blow outs, caving, and seepage in the sense that conditions indicated by those terms are generally understood in the oil and gas business; (6) To prevent fires; (7) To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants, structures, and all storage and transportation equipment and facilities; (8) To regulate the shooting, perforating, and chemical treatment of wells; (9) To regulate secondary recovery methods, including the introduction of gas, air, water, or other substances into producing formations; (10) To limit and prorate the production of oil or gas, or both, from any pool or field for the prevention of waste as defined in this act; (11) To issue and regulate, either generally or in or from particular areas or wells, certificates of clearance or tenders in connection with the transportation or sale of oil or gas; (12) To regulate the spacing of wells and to establish drilling units; (13) To prevent, so far as is practical, reasonably avoidable drainage from each development unit which is not equalized by counter drainage regarding oil and gas; (14) With respect to the drilling of wells for production and disposal of salt water, the commission shall have the jurisdiction of and authority over all persons and property to the extent necessary to effectively make and enforce rules and orders for the following purposes: (A) To require that before drilling any well in search of salt water or for the injection of salt water into the earth, the operator shall obtain from the commission a permit authorizing that drilling; (B) To require that casing and cementing of supply wells and injection wells be done in accordance with such rules as may be promulgated by the commission; (C) To require the plugging of wells to be done in such a manner as to: (i) Prevent the escape of salt water out of one stratum into another; (ii) Prevent the intrusion of salt water into an oil and gas stratum; and (iii) Prevent the pollution of fresh water supplies by salt water; (D) To require the making of reports showing the completing data, volume of water injected, and the filing of electrical logs of all wells with the commission; (E) To regulate the shooting and perforating of all wells; (F) To require the operation of wells in a manner designed to prevent blow outs, caving, and seepage; (G) To physically identify at the site the ownership of all salt water wells, plants, ponds, structures, and all storage facilities; and (H) (i) To require the annual payment of one hundred dollars ($100) per well for each injection well and disposal well and each well into which debrominated brine is injected. (ii) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; (15) To administer and enforce the applicable provisions of the Natural Gas Policy Act of 1978, Pub. L. No. 95-621; (16) To acquire primary enforcement responsibility either singularly or jointly with the Division of Environmental Quality for the control of underground injection under the applicable provisions of the Safe Drinking Water Act, Pub. L. No. 93-523, as it existed on January 1, 2005; (17) (A) (i) (a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act. (b) The fee shall not exceed five hundred dollars ($500); and (ii) To prescribe a reasonable and necessary charge or fee per copy and per subscription for notices and reports prepared and published by the commission deemed necessary to reimburse the commission for the cost of those notices and reports. (B) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; and (18) To administer and enforce any applicable provisions of the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, and to specifically empower the commission to submit any satisfactory certification required by the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, in connection with: (A) A production process or production facility as defined in this section; or (B) A natural gas pipeline or associated facility whose: (i) Owner is not affiliated with an Arkansas natural gas public utility; and (ii) Majority owner is either a production company or an affiliate of a production company; or (19) To require any owner or operator to provide a meter reading or report of the amount of natural gas sold or to allow the commission to obtain a meter reading of the amount of natural gas sold. (e) The commission has the following specific powers and duties in administering the Abandoned and Orphaned Well Plugging Program and the Abandoned and Orphaned Well Plugging Fund: (1) To adopt rules necessary to implement the program, including rules regarding wells deemed abandoned in accordance with § 15-72-217 ; (2) To collect the fees assessed by the commission under this chapter and to make deposits into the fund; (3) To deposit the amount of any forfeited bond or other financial assurance into the fund; (4) To recover well-site plugging, repair, and restoration costs from well operators who fail to reimburse the fund for expenses attributable to those well operators and to deposit any amounts reimbursed or collected into the fund; (5) To accept, receive, and deposit into the fund any grants, gifts, or other funds that may be made available from public or private sources; (6) To make expenditures of amounts appropriated from the fund, as the commission may deem appropriate in its sole discretion, for the sole purposes of plugging, replugging, or repairing any well or restoring the site of any well, including, but not limited to: (A) Removal of well-site equipment or production facilities; and (B) Reimbursement to landowners through grants for plugging a well and restoring the site of a well, including, but not limited to, removal of well-site equipment located on the landowner's property for which the landowner has no legal obligation to plug the wells or remove the well-site equipment, if the well is determined by the commission to be abandoned or ordered by the commission to be plugged, replugged, repaired, or restored; (7) To enter into contracts and to administer a landowner grant program in accordance with applicable state law; and (8) To dispose of well-site equipment, including an associated tank battery and production facility equipment, and any amount of hydrocarbons from the well that is stored on the lease, in a commercially reasonable manner at generally recognized market value, by either or both of the following methods after the well has been determined to be abandoned by the commission: (A) A plugging contract may provide that the person plugging the well or remediating oil field waste pollution, or both, shall have clear title, subject to any prior perfected claim on all well-site equipment and hydrocarbons from the well that are stored on the lease or hydrocarbons recovered during the plugging operation, in exchange for a sum of money deducted as a credit from the contract price; or (B) (i) (a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale. (b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund. (ii) All well-site equipment and hydrocarbons acquired by a person by sale shall be acquired under clear title subject to any prior perfected claims. (f) Nothing in this section is to affect any hydrogen sulfide emission standards or ambient air standards enacted by the General Assembly. Amended by Act 2019, No. 315,§ 1225, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1224, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 3173, eff. 7/1/2019. Acts 1939, No. 105, § 11; 1969, No. 111, § 1; 1979, No. 113, § 3; 1981, No. 523, § 3; A.S.A. 1947, § 53-111; Acts 1999, No. 1047, § 1; 1999, No. 1164, § 154; 2005, No. 1267, § 1; 2007, No. 859, §§ 1, 2; 2009, No. 452, § 1; 2009, No. 1175, §§ 7-9.

(a) (1) The Oil and Gas Commission shall have jurisdiction of and authority over all persons and property necessary to administer and enforce effectively the provisions of this act and all other statutory authority of the commission relating to the exploration, production, and conservation of oil and gas. (2) Production of natural gas includes both the production facilities and production process. (3) This jurisdiction includes, but is not limited to, jurisdiction over production facilities and natural gas production facilities wherein natural gas contains one hundred (100) or more parts per million of hydrogen sulfide.

(1) The Oil and Gas Commission shall have jurisdiction of and authority over all persons and property necessary to administer and enforce effectively the provisions of this act and all other statutory authority of the commission relating to the exploration, production, and conservation of oil and gas.

(2) Production of natural gas includes both the production facilities and production process.

(3) This jurisdiction includes, but is not limited to, jurisdiction over production facilities and natural gas production facilities wherein natural gas contains one hundred (100) or more parts per million of hydrogen sulfide.

(b) (1) "Production facilities" includes, without limitation, piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of natural gas or associated storage or measurement from the wellhead to a meter where the gas is transferred to a custodian other than the well operator for gathering or transport, commonly known as a "custodial transfer meter". (2) "Production process" means the extraction of gas from the geological source of supply to the surface of the earth, then through the lines and equipment used to treat, compress, and measure the gas between the wellhead and the meter, where it is either sold or delivered to a custodian other than the well operator for gathering and transportation to a place of sale, sometimes called the "custodial transfer meter".

(1) "Production facilities" includes, without limitation, piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of natural gas or associated storage or measurement from the wellhead to a meter where the gas is transferred to a custodian other than the well operator for gathering or transport, commonly known as a "custodial transfer meter".

(2) "Production process" means the extraction of gas from the geological source of supply to the surface of the earth, then through the lines and equipment used to treat, compress, and measure the gas between the wellhead and the meter, where it is either sold or delivered to a custodian other than the well operator for gathering and transportation to a place of sale, sometimes called the "custodial transfer meter".

(c) (1) The commission shall have the authority and it shall be its duty to make inquiries as it deems proper to determine whether or not waste over which it has jurisdiction exists or is imminent. (2) In the exercise of that power, the commission shall have the authority to: (A) Collect data; (B) Make investigations and inspections; (C) Examine properties, leases, papers, books, and records; (D) Examine, check, test, and gauge oil and gas wells, tanks, refineries, and means of transportation; (E) Hold hearings; (F) Provide for the keeping of records and the making of reports; and (G) Take action as reasonably necessary to enforce this act.

(1) The commission shall have the authority and it shall be its duty to make inquiries as it deems proper to determine whether or not waste over which it has jurisdiction exists or is imminent.

(2) In the exercise of that power, the commission shall have the authority to: (A) Collect data; (B) Make investigations and inspections; (C) Examine properties, leases, papers, books, and records; (D) Examine, check, test, and gauge oil and gas wells, tanks, refineries, and means of transportation; (E) Hold hearings; (F) Provide for the keeping of records and the making of reports; and (G) Take action as reasonably necessary to enforce this act.

(A) Collect data;

(B) Make investigations and inspections;

(C) Examine properties, leases, papers, books, and records;

(D) Examine, check, test, and gauge oil and gas wells, tanks, refineries, and means of transportation;

(E) Hold hearings;

(F) Provide for the keeping of records and the making of reports; and

(G) Take action as reasonably necessary to enforce this act.

(d) After hearing and notice as provided in this act, the commission may make such reasonable rules and orders as are necessary from time to time in the proper administration and enforcement of this act, including rules or orders for the following purposes: (1) To require: (A) The drilling, casing, operation, and plugging of wells to be done in such a manner as to: (i) Prevent the escape of oil or gas from one (1) stratum to another; (ii) Prevent the intrusion of water into an oil or gas stratum from a separate stratum; and (iii) Prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water; and (B) A reasonable financial assurance acceptable to the commission conditioned on the performance of the duty to plug each dry or abandoned well; (2) To require the making of reports showing the location of oil and gas wells and the filing of logs and drilling records; (3) To prevent the drowning by water of any stratum or part of any stratum capable of producing oil and gas in paying quantities and to prevent the premature and irregular encroachment of water which reduces, or tends to reduce, the total ultimate recovery of oil and gas from any pool; (4) To require the operation of wells with efficient gas-to-oil ratios and to fix those ratios; (5) To prevent blow outs, caving, and seepage in the sense that conditions indicated by those terms are generally understood in the oil and gas business; (6) To prevent fires; (7) To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants, structures, and all storage and transportation equipment and facilities; (8) To regulate the shooting, perforating, and chemical treatment of wells; (9) To regulate secondary recovery methods, including the introduction of gas, air, water, or other substances into producing formations; (10) To limit and prorate the production of oil or gas, or both, from any pool or field for the prevention of waste as defined in this act; (11) To issue and regulate, either generally or in or from particular areas or wells, certificates of clearance or tenders in connection with the transportation or sale of oil or gas; (12) To regulate the spacing of wells and to establish drilling units; (13) To prevent, so far as is practical, reasonably avoidable drainage from each development unit which is not equalized by counter drainage regarding oil and gas; (14) With respect to the drilling of wells for production and disposal of salt water, the commission shall have the jurisdiction of and authority over all persons and property to the extent necessary to effectively make and enforce rules and orders for the following purposes: (A) To require that before drilling any well in search of salt water or for the injection of salt water into the earth, the operator shall obtain from the commission a permit authorizing that drilling; (B) To require that casing and cementing of supply wells and injection wells be done in accordance with such rules as may be promulgated by the commission; (C) To require the plugging of wells to be done in such a manner as to: (i) Prevent the escape of salt water out of one stratum into another; (ii) Prevent the intrusion of salt water into an oil and gas stratum; and (iii) Prevent the pollution of fresh water supplies by salt water; (D) To require the making of reports showing the completing data, volume of water injected, and the filing of electrical logs of all wells with the commission; (E) To regulate the shooting and perforating of all wells; (F) To require the operation of wells in a manner designed to prevent blow outs, caving, and seepage; (G) To physically identify at the site the ownership of all salt water wells, plants, ponds, structures, and all storage facilities; and (H) (i) To require the annual payment of one hundred dollars ($100) per well for each injection well and disposal well and each well into which debrominated brine is injected. (ii) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; (15) To administer and enforce the applicable provisions of the Natural Gas Policy Act of 1978, Pub. L. No. 95-621; (16) To acquire primary enforcement responsibility either singularly or jointly with the Division of Environmental Quality for the control of underground injection under the applicable provisions of the Safe Drinking Water Act, Pub. L. No. 93-523, as it existed on January 1, 2005; (17) (A) (i) (a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act. (b) The fee shall not exceed five hundred dollars ($500); and (ii) To prescribe a reasonable and necessary charge or fee per copy and per subscription for notices and reports prepared and published by the commission deemed necessary to reimburse the commission for the cost of those notices and reports. (B) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; and (18) To administer and enforce any applicable provisions of the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, and to specifically empower the commission to submit any satisfactory certification required by the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, in connection with: (A) A production process or production facility as defined in this section; or (B) A natural gas pipeline or associated facility whose: (i) Owner is not affiliated with an Arkansas natural gas public utility; and (ii) Majority owner is either a production company or an affiliate of a production company; or (19) To require any owner or operator to provide a meter reading or report of the amount of natural gas sold or to allow the commission to obtain a meter reading of the amount of natural gas sold.

(1) To require: (A) The drilling, casing, operation, and plugging of wells to be done in such a manner as to: (i) Prevent the escape of oil or gas from one (1) stratum to another; (ii) Prevent the intrusion of water into an oil or gas stratum from a separate stratum; and (iii) Prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water; and (B) A reasonable financial assurance acceptable to the commission conditioned on the performance of the duty to plug each dry or abandoned well;

(A) The drilling, casing, operation, and plugging of wells to be done in such a manner as to: (i) Prevent the escape of oil or gas from one (1) stratum to another; (ii) Prevent the intrusion of water into an oil or gas stratum from a separate stratum; and (iii) Prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water; and

(i) Prevent the escape of oil or gas from one (1) stratum to another;

(ii) Prevent the intrusion of water into an oil or gas stratum from a separate stratum; and

(iii) Prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water; and

(B) A reasonable financial assurance acceptable to the commission conditioned on the performance of the duty to plug each dry or abandoned well;

(2) To require the making of reports showing the location of oil and gas wells and the filing of logs and drilling records;

(3) To prevent the drowning by water of any stratum or part of any stratum capable of producing oil and gas in paying quantities and to prevent the premature and irregular encroachment of water which reduces, or tends to reduce, the total ultimate recovery of oil and gas from any pool;

(4) To require the operation of wells with efficient gas-to-oil ratios and to fix those ratios;

(5) To prevent blow outs, caving, and seepage in the sense that conditions indicated by those terms are generally understood in the oil and gas business;

(6) To prevent fires;

(7) To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants, structures, and all storage and transportation equipment and facilities;

(8) To regulate the shooting, perforating, and chemical treatment of wells;

(9) To regulate secondary recovery methods, including the introduction of gas, air, water, or other substances into producing formations;

(10) To limit and prorate the production of oil or gas, or both, from any pool or field for the prevention of waste as defined in this act;

(11) To issue and regulate, either generally or in or from particular areas or wells, certificates of clearance or tenders in connection with the transportation or sale of oil or gas;

(12) To regulate the spacing of wells and to establish drilling units;

(13) To prevent, so far as is practical, reasonably avoidable drainage from each development unit which is not equalized by counter drainage regarding oil and gas;

(14) With respect to the drilling of wells for production and disposal of salt water, the commission shall have the jurisdiction of and authority over all persons and property to the extent necessary to effectively make and enforce rules and orders for the following purposes: (A) To require that before drilling any well in search of salt water or for the injection of salt water into the earth, the operator shall obtain from the commission a permit authorizing that drilling; (B) To require that casing and cementing of supply wells and injection wells be done in accordance with such rules as may be promulgated by the commission; (C) To require the plugging of wells to be done in such a manner as to: (i) Prevent the escape of salt water out of one stratum into another; (ii) Prevent the intrusion of salt water into an oil and gas stratum; and (iii) Prevent the pollution of fresh water supplies by salt water; (D) To require the making of reports showing the completing data, volume of water injected, and the filing of electrical logs of all wells with the commission; (E) To regulate the shooting and perforating of all wells; (F) To require the operation of wells in a manner designed to prevent blow outs, caving, and seepage; (G) To physically identify at the site the ownership of all salt water wells, plants, ponds, structures, and all storage facilities; and (H) (i) To require the annual payment of one hundred dollars ($100) per well for each injection well and disposal well and each well into which debrominated brine is injected. (ii) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law;

(A) To require that before drilling any well in search of salt water or for the injection of salt water into the earth, the operator shall obtain from the commission a permit authorizing that drilling;

(B) To require that casing and cementing of supply wells and injection wells be done in accordance with such rules as may be promulgated by the commission;

(C) To require the plugging of wells to be done in such a manner as to: (i) Prevent the escape of salt water out of one stratum into another; (ii) Prevent the intrusion of salt water into an oil and gas stratum; and (iii) Prevent the pollution of fresh water supplies by salt water;

(i) Prevent the escape of salt water out of one stratum into another;

(ii) Prevent the intrusion of salt water into an oil and gas stratum; and

(iii) Prevent the pollution of fresh water supplies by salt water;

(D) To require the making of reports showing the completing data, volume of water injected, and the filing of electrical logs of all wells with the commission;

(E) To regulate the shooting and perforating of all wells;

(F) To require the operation of wells in a manner designed to prevent blow outs, caving, and seepage;

(G) To physically identify at the site the ownership of all salt water wells, plants, ponds, structures, and all storage facilities; and

(H) (i) To require the annual payment of one hundred dollars ($100) per well for each injection well and disposal well and each well into which debrominated brine is injected. (ii) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law;

(i) To require the annual payment of one hundred dollars ($100) per well for each injection well and disposal well and each well into which debrominated brine is injected.

(ii) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law;

(15) To administer and enforce the applicable provisions of the Natural Gas Policy Act of 1978, Pub. L. No. 95-621;

(16) To acquire primary enforcement responsibility either singularly or jointly with the Division of Environmental Quality for the control of underground injection under the applicable provisions of the Safe Drinking Water Act, Pub. L. No. 93-523, as it existed on January 1, 2005;

(17) (A) (i) (a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act. (b) The fee shall not exceed five hundred dollars ($500); and (ii) To prescribe a reasonable and necessary charge or fee per copy and per subscription for notices and reports prepared and published by the commission deemed necessary to reimburse the commission for the cost of those notices and reports. (B) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; and

(A) (i) (a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act. (b) The fee shall not exceed five hundred dollars ($500); and (ii) To prescribe a reasonable and necessary charge or fee per copy and per subscription for notices and reports prepared and published by the commission deemed necessary to reimburse the commission for the cost of those notices and reports.

(i) (a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act. (b) The fee shall not exceed five hundred dollars ($500); and

(a) To require the payment of a fee of two hundred fifty dollars ($250) or a sum the commission may prescribe for each application for hearing or other proceeding before it under this act.

(b) The fee shall not exceed five hundred dollars ($500); and

(ii) To prescribe a reasonable and necessary charge or fee per copy and per subscription for notices and reports prepared and published by the commission deemed necessary to reimburse the commission for the cost of those notices and reports.

(B) All moneys so collected shall be used solely to pay the expenses and other costs in the administration of this law; and

(18) To administer and enforce any applicable provisions of the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, and to specifically empower the commission to submit any satisfactory certification required by the Natural Gas Pipeline Safety Act of 1968, Pub. L. No. 90-481, in connection with: (A) A production process or production facility as defined in this section; or (B) A natural gas pipeline or associated facility whose: (i) Owner is not affiliated with an Arkansas natural gas public utility; and (ii) Majority owner is either a production company or an affiliate of a production company; or

(A) A production process or production facility as defined in this section; or

(B) A natural gas pipeline or associated facility whose: (i) Owner is not affiliated with an Arkansas natural gas public utility; and (ii) Majority owner is either a production company or an affiliate of a production company; or

(i) Owner is not affiliated with an Arkansas natural gas public utility; and

(ii) Majority owner is either a production company or an affiliate of a production company; or

(19) To require any owner or operator to provide a meter reading or report of the amount of natural gas sold or to allow the commission to obtain a meter reading of the amount of natural gas sold.

(e) The commission has the following specific powers and duties in administering the Abandoned and Orphaned Well Plugging Program and the Abandoned and Orphaned Well Plugging Fund: (1) To adopt rules necessary to implement the program, including rules regarding wells deemed abandoned in accordance with § 15-72-217 ; (2) To collect the fees assessed by the commission under this chapter and to make deposits into the fund; (3) To deposit the amount of any forfeited bond or other financial assurance into the fund; (4) To recover well-site plugging, repair, and restoration costs from well operators who fail to reimburse the fund for expenses attributable to those well operators and to deposit any amounts reimbursed or collected into the fund; (5) To accept, receive, and deposit into the fund any grants, gifts, or other funds that may be made available from public or private sources; (6) To make expenditures of amounts appropriated from the fund, as the commission may deem appropriate in its sole discretion, for the sole purposes of plugging, replugging, or repairing any well or restoring the site of any well, including, but not limited to: (A) Removal of well-site equipment or production facilities; and (B) Reimbursement to landowners through grants for plugging a well and restoring the site of a well, including, but not limited to, removal of well-site equipment located on the landowner's property for which the landowner has no legal obligation to plug the wells or remove the well-site equipment, if the well is determined by the commission to be abandoned or ordered by the commission to be plugged, replugged, repaired, or restored; (7) To enter into contracts and to administer a landowner grant program in accordance with applicable state law; and (8) To dispose of well-site equipment, including an associated tank battery and production facility equipment, and any amount of hydrocarbons from the well that is stored on the lease, in a commercially reasonable manner at generally recognized market value, by either or both of the following methods after the well has been determined to be abandoned by the commission: (A) A plugging contract may provide that the person plugging the well or remediating oil field waste pollution, or both, shall have clear title, subject to any prior perfected claim on all well-site equipment and hydrocarbons from the well that are stored on the lease or hydrocarbons recovered during the plugging operation, in exchange for a sum of money deducted as a credit from the contract price; or (B) (i) (a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale. (b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund. (ii) All well-site equipment and hydrocarbons acquired by a person by sale shall be acquired under clear title subject to any prior perfected claims.

(1) To adopt rules necessary to implement the program, including rules regarding wells deemed abandoned in accordance with § 15-72-217 ;

(2) To collect the fees assessed by the commission under this chapter and to make deposits into the fund;

(3) To deposit the amount of any forfeited bond or other financial assurance into the fund;

(4) To recover well-site plugging, repair, and restoration costs from well operators who fail to reimburse the fund for expenses attributable to those well operators and to deposit any amounts reimbursed or collected into the fund;

(5) To accept, receive, and deposit into the fund any grants, gifts, or other funds that may be made available from public or private sources;

(6) To make expenditures of amounts appropriated from the fund, as the commission may deem appropriate in its sole discretion, for the sole purposes of plugging, replugging, or repairing any well or restoring the site of any well, including, but not limited to: (A) Removal of well-site equipment or production facilities; and (B) Reimbursement to landowners through grants for plugging a well and restoring the site of a well, including, but not limited to, removal of well-site equipment located on the landowner's property for which the landowner has no legal obligation to plug the wells or remove the well-site equipment, if the well is determined by the commission to be abandoned or ordered by the commission to be plugged, replugged, repaired, or restored;

(A) Removal of well-site equipment or production facilities; and

(B) Reimbursement to landowners through grants for plugging a well and restoring the site of a well, including, but not limited to, removal of well-site equipment located on the landowner's property for which the landowner has no legal obligation to plug the wells or remove the well-site equipment, if the well is determined by the commission to be abandoned or ordered by the commission to be plugged, replugged, repaired, or restored;

(7) To enter into contracts and to administer a landowner grant program in accordance with applicable state law; and

(8) To dispose of well-site equipment, including an associated tank battery and production facility equipment, and any amount of hydrocarbons from the well that is stored on the lease, in a commercially reasonable manner at generally recognized market value, by either or both of the following methods after the well has been determined to be abandoned by the commission: (A) A plugging contract may provide that the person plugging the well or remediating oil field waste pollution, or both, shall have clear title, subject to any prior perfected claim on all well-site equipment and hydrocarbons from the well that are stored on the lease or hydrocarbons recovered during the plugging operation, in exchange for a sum of money deducted as a credit from the contract price; or (B) (i) (a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale. (b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund. (ii) All well-site equipment and hydrocarbons acquired by a person by sale shall be acquired under clear title subject to any prior perfected claims.

(A) A plugging contract may provide that the person plugging the well or remediating oil field waste pollution, or both, shall have clear title, subject to any prior perfected claim on all well-site equipment and hydrocarbons from the well that are stored on the lease or hydrocarbons recovered during the plugging operation, in exchange for a sum of money deducted as a credit from the contract price; or

(B) (i) (a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale. (b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund. (ii) All well-site equipment and hydrocarbons acquired by a person by sale shall be acquired under clear title subject to any prior perfected claims.

(i) (a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale. (b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund.

(a) The well-site equipment, including, but not limited to, an associated tank battery and production facility equipment, hydrocarbons from the well that are stored on the lease, and hydrocarbons recovered during the plugging operation may be sold at a public auction or a public or private sale.

(b) The proceeds from any sale under subdivision (e)(8)(B)(i) (a) of this section shall be deposited into the fund.

(ii) All well-site equipment and hydrocarbons acquired by a person by sale shall be acquired under clear title subject to any prior perfected claims.

(f) Nothing in this section is to affect any hydrogen sulfide emission standards or ambient air standards enacted by the General Assembly.

Amended by Act 2019, No. 315,§ 1225, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1224, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 3173, eff. 7/1/2019.

Acts 1939, No. 105, § 11; 1969, No. 111, § 1; 1979, No. 113, § 3; 1981, No. 523, § 3; A.S.A. 1947, § 53-111; Acts 1999, No. 1047, § 1; 1999, No. 1164, § 154; 2005, No. 1267, § 1; 2007, No. 859, §§ 1, 2; 2009, No. 452, § 1; 2009, No. 1175, §§ 7-9.
Ark. Code Ann. § 15-5-709 — AR Code / Title 15 / Chapter 5 / Subchapter 7 / Section 15-5-709
Applications - Review - Confidentiality and public disclosure - Notice
Status: in_force

(a) All applications filed with the Arkansas Development Finance Authority under the provisions of this subchapter shall first be reviewed by the appropriate designated staff officials of the authority or by a committee consisting of members of the Board of Directors of the Arkansas Development Finance Authority for preliminary review and recommendation prior to being submitted for consideration by the authority. (b) All applications submitted to the authority and all supporting documents, instruments, proposed contracts, estimated costs, or other evidence submitted therewith shall be confidential and shall not be open to public review except as provided in this section, and all staff meetings or meetings of the review committee of members of the authority established for the purpose of giving preliminary review of such applications shall be confidential and shall not be open to the public. (c) Upon conclusion of the preliminary review of each request under this subchapter, if the request is submitted to the authority with a recommendation that it be approved, the application and all supporting documents, including the findings and the recommendations resulting from the staff or review committee thereof, shall be an open public record available for inspection during all regular business hours. (d) In the event that an application from a small-business person under this subchapter is not recommended for approval by the authority under this subchapter, that application and all supporting documents, including all findings and recommendations in regard thereto by the staff or review committee, shall continue to be confidential and not open to public inspection. (e) (1) The small-business person shall be notified in writing of any staff or review committee determination that the application is not being submitted to the authority with a recommendation that it be approved. (2) The notice shall advise the small-business person that the application will be kept confidential unless within thirty (30) days from the date of receipt of the written notice the small-business person files a petition with the authority requesting that the authority hold a hearing in regard to the application. In that event, the application and all supporting documents shall become public information available for public inspection. (f) The membership of a review committee, when acting in that capacity, shall never be considered to constitute a quorum of the board for the purpose of approving an application for guaranty under this subchapter. Acts 1989, No. 623, § 7.

(a) All applications filed with the Arkansas Development Finance Authority under the provisions of this subchapter shall first be reviewed by the appropriate designated staff officials of the authority or by a committee consisting of members of the Board of Directors of the Arkansas Development Finance Authority for preliminary review and recommendation prior to being submitted for consideration by the authority.

(b) All applications submitted to the authority and all supporting documents, instruments, proposed contracts, estimated costs, or other evidence submitted therewith shall be confidential and shall not be open to public review except as provided in this section, and all staff meetings or meetings of the review committee of members of the authority established for the purpose of giving preliminary review of such applications shall be confidential and shall not be open to the public.

(c) Upon conclusion of the preliminary review of each request under this subchapter, if the request is submitted to the authority with a recommendation that it be approved, the application and all supporting documents, including the findings and the recommendations resulting from the staff or review committee thereof, shall be an open public record available for inspection during all regular business hours.

(d) In the event that an application from a small-business person under this subchapter is not recommended for approval by the authority under this subchapter, that application and all supporting documents, including all findings and recommendations in regard thereto by the staff or review committee, shall continue to be confidential and not open to public inspection.

(e) (1) The small-business person shall be notified in writing of any staff or review committee determination that the application is not being submitted to the authority with a recommendation that it be approved. (2) The notice shall advise the small-business person that the application will be kept confidential unless within thirty (30) days from the date of receipt of the written notice the small-business person files a petition with the authority requesting that the authority hold a hearing in regard to the application. In that event, the application and all supporting documents shall become public information available for public inspection.

(1) The small-business person shall be notified in writing of any staff or review committee determination that the application is not being submitted to the authority with a recommendation that it be approved.

(2) The notice shall advise the small-business person that the application will be kept confidential unless within thirty (30) days from the date of receipt of the written notice the small-business person files a petition with the authority requesting that the authority hold a hearing in regard to the application. In that event, the application and all supporting documents shall become public information available for public inspection.

(f) The membership of a review committee, when acting in that capacity, shall never be considered to constitute a quorum of the board for the purpose of approving an application for guaranty under this subchapter.

Acts 1989, No. 623, § 7.
Ark. Code Ann. § 15-24-108 — AR Code / Title 15 / Chapter 24 / Section 15-24-108
Receipt of federal or other funds - State Flood Control Fund
Status: in_force

(a) The Arkansas Natural Resources Commission is authorized to receive on behalf of the State of Arkansas any or all federal moneys, grants, contributions, gratuities, or loans available for territory and projects within the jurisdiction of the commission or hereafter made available by the United States Government or any of its agencies or instrumentalities for flood control work and improvement under such rules and regulations not inconsistent with the provisions of this chapter as may be provided by laws of the United States Congress or any federal agency or instrumentality and to receive donations, contributions, and gratuities from any other source and to pay them over to the Treasurer of State. (b) (1) It shall be the duty of the Treasurer of State to set up a fund known as the "State Flood Control Fund", and all money shall be placed into the fund by the Treasurer of State. (2) (A) The fund shall not be used for any purpose except the purposes set forth in this chapter. (B) Provided, there is reserved to all levee districts or drainage districts the authority and right to receive on behalf of the levee districts or drainage districts any and all federal moneys, grants, contributions, gratuities, loans, or other governmental aid whatsoever that may be applicable to the projects, improvements, or territory within any levee district or drainage district. (c) In all matters, the levee districts or drainage districts may deal directly with the United States Government and with its agencies or any of them without the approval, consent, or supervision of the commission and without being subject to its jurisdiction to any extent whatsoever, except that levee districts or drainage districts may voluntarily contract with the commission by contract to be approved and recorded as set out in this chapter. Acts 1937, No. 212, § 16; Pope's Dig., § 12191; A.S.A. 1947, § 9-808.

(a) The Arkansas Natural Resources Commission is authorized to receive on behalf of the State of Arkansas any or all federal moneys, grants, contributions, gratuities, or loans available for territory and projects within the jurisdiction of the commission or hereafter made available by the United States Government or any of its agencies or instrumentalities for flood control work and improvement under such rules and regulations not inconsistent with the provisions of this chapter as may be provided by laws of the United States Congress or any federal agency or instrumentality and to receive donations, contributions, and gratuities from any other source and to pay them over to the Treasurer of State.

(b) (1) It shall be the duty of the Treasurer of State to set up a fund known as the "State Flood Control Fund", and all money shall be placed into the fund by the Treasurer of State. (2) (A) The fund shall not be used for any purpose except the purposes set forth in this chapter. (B) Provided, there is reserved to all levee districts or drainage districts the authority and right to receive on behalf of the levee districts or drainage districts any and all federal moneys, grants, contributions, gratuities, loans, or other governmental aid whatsoever that may be applicable to the projects, improvements, or territory within any levee district or drainage district.

(1) It shall be the duty of the Treasurer of State to set up a fund known as the "State Flood Control Fund", and all money shall be placed into the fund by the Treasurer of State.

(2) (A) The fund shall not be used for any purpose except the purposes set forth in this chapter. (B) Provided, there is reserved to all levee districts or drainage districts the authority and right to receive on behalf of the levee districts or drainage districts any and all federal moneys, grants, contributions, gratuities, loans, or other governmental aid whatsoever that may be applicable to the projects, improvements, or territory within any levee district or drainage district.

(A) The fund shall not be used for any purpose except the purposes set forth in this chapter.

(B) Provided, there is reserved to all levee districts or drainage districts the authority and right to receive on behalf of the levee districts or drainage districts any and all federal moneys, grants, contributions, gratuities, loans, or other governmental aid whatsoever that may be applicable to the projects, improvements, or territory within any levee district or drainage district.

(c) In all matters, the levee districts or drainage districts may deal directly with the United States Government and with its agencies or any of them without the approval, consent, or supervision of the commission and without being subject to its jurisdiction to any extent whatsoever, except that levee districts or drainage districts may voluntarily contract with the commission by contract to be approved and recorded as set out in this chapter.

Acts 1937, No. 212, § 16; Pope's Dig., § 12191; A.S.A. 1947, § 9-808.
Ark. Code Ann. § 15-23-905 — AR Code / Title 15 / Chapter 23 / Subchapter 9 / Section 15-23-905
Port Priority Improvement Program
Status: in_force

The Arkansas Waterways Commission's rules for the Port Priority Improvement Program shall, as a minimum: (1) Provide for the commission to administer the program authorized under this subchapter; (2) Require the commission to take the necessary actions to ensure that the funds are used for the purposes for which they are to be awarded and that they are expended in accordance with all state laws and local ordinances and procedures and regulations; (3) Specify: (A) The procedure for receiving applications; (B) Who is eligible to apply; (C) The goals and objectives of the program for public port infrastructure development; and (D) The procedures for awarding funds; (4) Require the public port authority to file a performance review report with the commission for three (3) consecutive years following completion of the project comparing actual benefits with the projected benefits associated with the project as stated in the application for funding; (5) Require that each public port authority provide matching funds equal to at least ten percent (10%) of the estimated cost of the port infrastructure project for which an application is made; (6) Provide that eligible port infrastructure development projects shall be only for capital improvement projects and shall not be used for any routine maintenance or operational expenses; and (7) Provide that no individual port shall receive more than twenty percent (20%) of the total amount available for public port infrastructure development projects. Amended by Act 2019, No. 315,§ 1146, eff. 7/24/2019. Acts 2001, No. 1546, § 1.

The Arkansas Waterways Commission's rules for the Port Priority Improvement Program shall, as a minimum:

(1) Provide for the commission to administer the program authorized under this subchapter;

(2) Require the commission to take the necessary actions to ensure that the funds are used for the purposes for which they are to be awarded and that they are expended in accordance with all state laws and local ordinances and procedures and regulations;

(3) Specify: (A) The procedure for receiving applications; (B) Who is eligible to apply; (C) The goals and objectives of the program for public port infrastructure development; and (D) The procedures for awarding funds;

(A) The procedure for receiving applications;

(B) Who is eligible to apply;

(C) The goals and objectives of the program for public port infrastructure development; and

(D) The procedures for awarding funds;

(4) Require the public port authority to file a performance review report with the commission for three (3) consecutive years following completion of the project comparing actual benefits with the projected benefits associated with the project as stated in the application for funding;

(5) Require that each public port authority provide matching funds equal to at least ten percent (10%) of the estimated cost of the port infrastructure project for which an application is made;

(6) Provide that eligible port infrastructure development projects shall be only for capital improvement projects and shall not be used for any routine maintenance or operational expenses; and

(7) Provide that no individual port shall receive more than twenty percent (20%) of the total amount available for public port infrastructure development projects.

Amended by Act 2019, No. 315,§ 1146, eff. 7/24/2019.

Acts 2001, No. 1546, § 1.
Ark. Code Ann. § 15-22-807 — AR Code / Title 15 / Chapter 22 / Subchapter 8 / Section 15-22-807
Priority list of projects
Status: in_force

(a) From each year's applications for grants and loans, the Arkansas Natural Resources Commission shall develop a priority list for water resources development projects which ranks each water resources development project in order of its priority. (b) The priority ranking of water resources development projects shall be based on the following factors: (1) The overall cost of the water resources development project weighted against its potential or predicted benefits; (2) The potential for the water resources development project to provide economic development in the area; and (3) The commitment of any state or local government funds to the water resources development project to contribute to the nonfederal interest's share of the cost of the overall water resources development project. Acts 1989, No. 257, § 7.

(a) From each year's applications for grants and loans, the Arkansas Natural Resources Commission shall develop a priority list for water resources development projects which ranks each water resources development project in order of its priority.

(b) The priority ranking of water resources development projects shall be based on the following factors: (1) The overall cost of the water resources development project weighted against its potential or predicted benefits; (2) The potential for the water resources development project to provide economic development in the area; and (3) The commitment of any state or local government funds to the water resources development project to contribute to the nonfederal interest's share of the cost of the overall water resources development project.

(1) The overall cost of the water resources development project weighted against its potential or predicted benefits;

(2) The potential for the water resources development project to provide economic development in the area; and

(3) The commitment of any state or local government funds to the water resources development project to contribute to the nonfederal interest's share of the cost of the overall water resources development project.

Acts 1989, No. 257, § 7.
Ark. Code Ann. § 15-5-1704 — AR Code / Title 15 / Chapter 5 / Subchapter 17 / Section 15-5-1704
Establishment of Arkansas Housing Trust Fund
Status: in_force

(a) There is established on the books of the Arkansas Development Finance Authority a special restricted fund, to be known as the "Arkansas Housing Trust Fund", which shall be maintained and administered by the authority for the purposes stated in this subchapter. (b) All moneys deposited into the fund under this subchapter are cash funds restricted in their use and shall not be deposited into the State Treasury or deemed to be a part of the State Treasury for the purposes of Arkansas Constitution, Article 5, § 29, Arkansas Constitution, Article 16, § 12, or Arkansas Constitution, Amendment 20, or any other constitutional or statutory provisions, but shall be held by the authority and used solely for the purposes stated under this subchapter. Acts 2009, No. 661, § 1.

(a) There is established on the books of the Arkansas Development Finance Authority a special restricted fund, to be known as the "Arkansas Housing Trust Fund", which shall be maintained and administered by the authority for the purposes stated in this subchapter.

(b) All moneys deposited into the fund under this subchapter are cash funds restricted in their use and shall not be deposited into the State Treasury or deemed to be a part of the State Treasury for the purposes of Arkansas Constitution, Article 5, § 29, Arkansas Constitution, Article 16, § 12, or Arkansas Constitution, Amendment 20, or any other constitutional or statutory provisions, but shall be held by the authority and used solely for the purposes stated under this subchapter.

Acts 2009, No. 661, § 1.
Ark. Code Ann. § 15-22-804 — AR Code / Title 15 / Chapter 22 / Subchapter 8 / Section 15-22-804
Duties of commission
Status: in_force

The Arkansas Natural Resources Commission shall: (1) Administer the loan and grant programs authorized under this subchapter; (2) Take necessary action to ensure that the funds are used for the purposes established in this subchapter and in accordance with state and federal laws; and (3) In accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., promulgate such rules and procedures necessary for the operation of this program. Amended by Act 2019, No. 315,§ 1137, eff. 7/24/2019. Acts 1989, No. 257, § 4.

The Arkansas Natural Resources Commission shall:

(1) Administer the loan and grant programs authorized under this subchapter;

(2) Take necessary action to ensure that the funds are used for the purposes established in this subchapter and in accordance with state and federal laws; and

(3) In accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., promulgate such rules and procedures necessary for the operation of this program.

Amended by Act 2019, No. 315,§ 1137, eff. 7/24/2019.

Acts 1989, No. 257, § 4.
Ark. Code Ann. § 15-5-906 — AR Code / Title 15 / Chapter 5 / Subchapter 9 / Section 15-5-906
Security for bonds
Status: in_force

(a) The Arkansas Natural Resources Commission and, with the approval of the commission, the Arkansas Development Finance Authority may use the moneys in the Construction Assistance Revolving Loan Fund, excluding the State Grants Account, and use the assets acquired with moneys in the fund to secure the payment of the principal of and premium, if any, and interest on bonds issued by the commission or the authority if the proceeds of the bonds are deposited into the Construction Assistance Revolving Loan Fund Account and pay the principal of and premium, if any, and interest on and pay costs incurred in connection with bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Construction Assistance Revolving Loan Fund Account. (b) Subject to § 15-5-901(c) , the commission and, with the approval of the commission, the authority may pledge the Construction Assistance Revolving Loan Fund Account, excluding the State Grants Account, and pledge the assets acquired with moneys in the Construction Assistance Revolving Loan Fund Account to secure the payment of the principal of and premium, if any, and interest on bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Drinking Water State Revolving Loan Fund Account established by § 15-22-1102 , consistent with applicable federal law and pay the principal of and premium, if any, and interest on and costs incurred in connection with bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Drinking Water State Revolving Loan Fund Account established by § 15-22-1102 , consistent with applicable federal law. (c) Nothing in subsections (a) and (b) of this section shall be deemed to adversely affect pledges made by the authority to secure the payment of the principal of and premium, if any, and interest on bonds issued by the authority before July 1, 2003, so long as the bonds are outstanding. (d) All accounts within the fund or subaccounts within the accounts established in § 15-5-901 pledged to secure the payment of the principal of and premium, if any, and interest on bonds issued by the authority before July 1, 2003, shall be maintained at the authority so long as the bonds are outstanding. Acts 1991, No. 718, § 1; 2003, No. 548, § 2; 2009, No. 458, § 6.

(a) The Arkansas Natural Resources Commission and, with the approval of the commission, the Arkansas Development Finance Authority may use the moneys in the Construction Assistance Revolving Loan Fund, excluding the State Grants Account, and use the assets acquired with moneys in the fund to secure the payment of the principal of and premium, if any, and interest on bonds issued by the commission or the authority if the proceeds of the bonds are deposited into the Construction Assistance Revolving Loan Fund Account and pay the principal of and premium, if any, and interest on and pay costs incurred in connection with bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Construction Assistance Revolving Loan Fund Account.

(b) Subject to § 15-5-901(c) , the commission and, with the approval of the commission, the authority may pledge the Construction Assistance Revolving Loan Fund Account, excluding the State Grants Account, and pledge the assets acquired with moneys in the Construction Assistance Revolving Loan Fund Account to secure the payment of the principal of and premium, if any, and interest on bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Drinking Water State Revolving Loan Fund Account established by § 15-22-1102 , consistent with applicable federal law and pay the principal of and premium, if any, and interest on and costs incurred in connection with bonds issued by the commission or the authority if proceeds of the bonds are deposited into the Drinking Water State Revolving Loan Fund Account established by § 15-22-1102 , consistent with applicable federal law.

(c) Nothing in subsections (a) and (b) of this section shall be deemed to adversely affect pledges made by the authority to secure the payment of the principal of and premium, if any, and interest on bonds issued by the authority before July 1, 2003, so long as the bonds are outstanding.

(d) All accounts within the fund or subaccounts within the accounts established in § 15-5-901 pledged to secure the payment of the principal of and premium, if any, and interest on bonds issued by the authority before July 1, 2003, shall be maintained at the authority so long as the bonds are outstanding.

Acts 1991, No. 718, § 1; 2003, No. 548, § 2; 2009, No. 458, § 6.
Ark. Code Ann. § 15-41-210 — AR Code / Title 15 / Chapter 41 / Subchapter 2 / Section 15-41-210
Electronic proof of hunter education certificate - Definition
Status: in_force

(a) As used in this section, "acceptable electronic format" means an electronic image produced on the person's own cellular phone or other type of portable electronic device that displays all of the information on the hunter education certificate as clearly as the paper hunter education certificate. (b) When a law or regulation of this state requires a person to carry and display upon request a hunter education certificate, an electronic copy of the hunter education certificate in an acceptable electronic format is sufficient to establish compliance. (c) The presentment of proof of a hunter education certificate in an acceptable electronic format does not: (1) Authorize a search of any other content of an electronic device without a search warrant or probable cause; or (2) Expand or restrict the authority of a law enforcement officer to conduct a search or investigation. Added by Act 2013, No. 472,§ 1, eff. 8/16/2013.

(a) As used in this section, "acceptable electronic format" means an electronic image produced on the person's own cellular phone or other type of portable electronic device that displays all of the information on the hunter education certificate as clearly as the paper hunter education certificate.

(b) When a law or regulation of this state requires a person to carry and display upon request a hunter education certificate, an electronic copy of the hunter education certificate in an acceptable electronic format is sufficient to establish compliance.

(c) The presentment of proof of a hunter education certificate in an acceptable electronic format does not: (1) Authorize a search of any other content of an electronic device without a search warrant or probable cause; or (2) Expand or restrict the authority of a law enforcement officer to conduct a search or investigation.

(1) Authorize a search of any other content of an electronic device without a search warrant or probable cause; or

(2) Expand or restrict the authority of a law enforcement officer to conduct a search or investigation.

Added by Act 2013, No. 472,§ 1, eff. 8/16/2013.
Ark. Code Ann. § 15-21-302 — AR Code / Title 15 / Chapter 21 / Subchapter 3 / Section 15-21-302
Creation of zones
Status: in_force

(a) For the purpose of the use of the Arkansas Coordinate System 1983 the state is divided into a "North Zone" and a "South Zone". (b) The area now included in the following counties shall constitute the North Zone: Baxter, Benton, Boone, Carroll, Clay, Cleburne, Conway, Craighead, Crawford, Crittenden, Cross, Faulkner, Franklin, Fulton, Greene, Independence, Izard, Jackson, Johnson, Lawrence, Logan, Madison, Marion, Mississippi, Newton, Perry, Poinsett, Pope, Pulaski, Randolph, Scott, Searcy, Sebastian, Sharp, St. Francis, Stone, Van Buren, Washington, White, Woodruff, and Yell. (c) The area now included in the following counties shall constitute the South Zone: Arkansas, Ashley, Bradley, Calhoun, Chicot, Clark, Cleveland, Columbia, Dallas, Desha, Drew, Garland, Grant, Hempstead, Hot Spring, Howard, Jefferson, Lafayette, Lee, Lincoln, Little River, Lonoke, Miller, Monroe, Montgomery, Nevada, Ouachita, Phillips, Pike, Polk, Prairie, Saline, Sevier, and Union. Acts 1991, No. 861, § 1.

(a) For the purpose of the use of the Arkansas Coordinate System 1983 the state is divided into a "North Zone" and a "South Zone".

(b) The area now included in the following counties shall constitute the North Zone: Baxter, Benton, Boone, Carroll, Clay, Cleburne, Conway, Craighead, Crawford, Crittenden, Cross, Faulkner, Franklin, Fulton, Greene, Independence, Izard, Jackson, Johnson, Lawrence, Logan, Madison, Marion, Mississippi, Newton, Perry, Poinsett, Pope, Pulaski, Randolph, Scott, Searcy, Sebastian, Sharp, St. Francis, Stone, Van Buren, Washington, White, Woodruff, and Yell.

(c) The area now included in the following counties shall constitute the South Zone: Arkansas, Ashley, Bradley, Calhoun, Chicot, Clark, Cleveland, Columbia, Dallas, Desha, Drew, Garland, Grant, Hempstead, Hot Spring, Howard, Jefferson, Lafayette, Lee, Lincoln, Little River, Lonoke, Miller, Monroe, Montgomery, Nevada, Ouachita, Phillips, Pike, Polk, Prairie, Saline, Sevier, and Union.

Acts 1991, No. 861, § 1.
Ark. Code Ann. § 15-22-901 — AR Code / Title 15 / Chapter 22 / Subchapter 9 / Section 15-22-901
Title
Status: in_force

This subchapter shall be known as the "Arkansas Groundwater Protection and Management Act". Acts 1991, No. 154, § 1; 1991, No. 342, § 1.

This subchapter shall be known as the "Arkansas Groundwater Protection and Management Act".

Acts 1991, No. 154, § 1; 1991, No. 342, § 1.
Ark. Code Ann. § 15-31-114 — AR Code / Title 15 / Chapter 31 / Subchapter 1 / Section 15-31-114
Classification of fines
Status: in_force

Fines deposited into the State Forestry Fund shall be classified as special revenues. Acts 1997, No. 132, § 3.

Fines deposited into the State Forestry Fund shall be classified as special revenues.

Acts 1997, No. 132, § 3.
Ark. Code Ann. § 15-22-1306 — AR Code / Title 15 / Chapter 22 / Subchapter 13 / Section 15-22-1306
Bonds - Sales
Status: in_force

(a) The bonds may be sold in a manner, either at public or private sale, and upon terms that the Arkansas Natural Resources Commission shall determine to be reasonable and expedient for effectuating the purposes for which the bonds are issued. (b) The bonds may be sold at a price the commission may accept, including sale at discount. Acts 2003, No. 598, § 1.

(a) The bonds may be sold in a manner, either at public or private sale, and upon terms that the Arkansas Natural Resources Commission shall determine to be reasonable and expedient for effectuating the purposes for which the bonds are issued.

(b) The bonds may be sold at a price the commission may accept, including sale at discount.

Acts 2003, No. 598, § 1.
Ark. Code Ann. § 15-4-3904 — AR Code / Title 15 / Chapter 4 / Subchapter 39 / Section 15-4-3904
Arkansas Military Affairs Council - Creation - Members
Status: in_force

(a) There is established the Arkansas Military Affairs Council. (b) The purpose of the council is to advise and assist the Director of the Arkansas Economic Development Commission in the performance of his or her duties under this subchapter. (c) (1) The council shall consist of twelve (12) members appointed at the discretion of the Governor. (2) Members of the council shall consist of: (A) Residents of communities near a military installation, including without limitation the following military installations: (i) Little Rock Air Force Base in Jacksonville, Arkansas; (ii) Pine Bluff Arsenal in Pine Bluff, Arkansas; (iii) Robinson Maneuver Training Center in North Little Rock, Arkansas; (iv) Fort Chaffee Joint Maneuver Training Center in Fort Chaffee, Arkansas; and (v) Ebbing Air National Guard Base in Fort Smith, Arkansas; (B) Representatives of aerospace and defense companies located within the State of Arkansas; and (C) The Secretary of the Department of the Military or his or her designee as an ex officio nonvoting member. (3) Members of the council shall serve for five-year terms. (d) The council shall select by majority vote: (1) One (1) member of the council to serve as chair; and (2) One (1) member of the council to serve as vice chair. (e) (1) Members of the council shall serve without compensation. (2) However, if funds are appropriated for expense reimbursement, the members of the council may receive expense reimbursement in accordance with § 25-16-902 . Added by Act 2021, No. 522,§ 2, eff. 7/1/2021.

(a) There is established the Arkansas Military Affairs Council.

(b) The purpose of the council is to advise and assist the Director of the Arkansas Economic Development Commission in the performance of his or her duties under this subchapter.

(c) (1) The council shall consist of twelve (12) members appointed at the discretion of the Governor. (2) Members of the council shall consist of: (A) Residents of communities near a military installation, including without limitation the following military installations: (i) Little Rock Air Force Base in Jacksonville, Arkansas; (ii) Pine Bluff Arsenal in Pine Bluff, Arkansas; (iii) Robinson Maneuver Training Center in North Little Rock, Arkansas; (iv) Fort Chaffee Joint Maneuver Training Center in Fort Chaffee, Arkansas; and (v) Ebbing Air National Guard Base in Fort Smith, Arkansas; (B) Representatives of aerospace and defense companies located within the State of Arkansas; and (C) The Secretary of the Department of the Military or his or her designee as an ex officio nonvoting member. (3) Members of the council shall serve for five-year terms.

(1) The council shall consist of twelve (12) members appointed at the discretion of the Governor.

(2) Members of the council shall consist of: (A) Residents of communities near a military installation, including without limitation the following military installations: (i) Little Rock Air Force Base in Jacksonville, Arkansas; (ii) Pine Bluff Arsenal in Pine Bluff, Arkansas; (iii) Robinson Maneuver Training Center in North Little Rock, Arkansas; (iv) Fort Chaffee Joint Maneuver Training Center in Fort Chaffee, Arkansas; and (v) Ebbing Air National Guard Base in Fort Smith, Arkansas; (B) Representatives of aerospace and defense companies located within the State of Arkansas; and (C) The Secretary of the Department of the Military or his or her designee as an ex officio nonvoting member.

(A) Residents of communities near a military installation, including without limitation the following military installations: (i) Little Rock Air Force Base in Jacksonville, Arkansas; (ii) Pine Bluff Arsenal in Pine Bluff, Arkansas; (iii) Robinson Maneuver Training Center in North Little Rock, Arkansas; (iv) Fort Chaffee Joint Maneuver Training Center in Fort Chaffee, Arkansas; and (v) Ebbing Air National Guard Base in Fort Smith, Arkansas;

(i) Little Rock Air Force Base in Jacksonville, Arkansas;

(ii) Pine Bluff Arsenal in Pine Bluff, Arkansas;

(iii) Robinson Maneuver Training Center in North Little Rock, Arkansas;

(iv) Fort Chaffee Joint Maneuver Training Center in Fort Chaffee, Arkansas; and

(v) Ebbing Air National Guard Base in Fort Smith, Arkansas;

(B) Representatives of aerospace and defense companies located within the State of Arkansas; and

(C) The Secretary of the Department of the Military or his or her designee as an ex officio nonvoting member.

(3) Members of the council shall serve for five-year terms.

(d) The council shall select by majority vote: (1) One (1) member of the council to serve as chair; and (2) One (1) member of the council to serve as vice chair.

(1) One (1) member of the council to serve as chair; and

(2) One (1) member of the council to serve as vice chair.

(e) (1) Members of the council shall serve without compensation. (2) However, if funds are appropriated for expense reimbursement, the members of the council may receive expense reimbursement in accordance with § 25-16-902 .

(1) Members of the council shall serve without compensation.

(2) However, if funds are appropriated for expense reimbursement, the members of the council may receive expense reimbursement in accordance with § 25-16-902 .

Added by Act 2021, No. 522,§ 2, eff. 7/1/2021.
Ark. Code Ann. § 15-5-1403 — AR Code / Title 15 / Chapter 5 / Subchapter 14 / Section 15-5-1403
Definitions
Status: in_force

As used in this subchapter: (1) "Accredited investor" means an accredited investor as defined in 17 C.F.R. § 230.215 , as it existed on January 1, 2013; (2) "Authority" means the Arkansas Development Finance Authority; (3) "Bond guaranty" means a special obligation of the Bond Guaranty Reserve Account as defined in § 15-5-403 ; (4) "Capital guaranty" means the guaranty provided by the authority under § 15-5-1405 ; (5) "Certificate" means a document executed by the authority extending a capital guaranty to the designated investor group; (6) "Designated investor group" means the investor group selected by the authority under this subchapter; (7) "Equity capital" means capital invested in common stock or preferred stock, royalty rights, limited partnership interests, limited liability company interests, and any other equity, securities, or rights that evidence ownership or investment in private enterprises; (8) "Investor group" means any individual, corporation, partnership, limited liability company, or other lawfully organized entity; (9) "Near-equity capital" means capital invested in unsecured, undersecured, subordinated, or convertible loans or debt securities; (10) "Person" means any individual, corporation, partnership, or other lawfully organized entity; (11) "Review committee" means a committee composed of the President of the Arkansas Development Finance Authority, the Director of the Arkansas Economic Development Commission, and the members of the Board of Directors of the Arkansas Development Finance Authority; (12) "Revolving fund" means a bank account: (A) Created by the designated investor group in a financial institution located in this state; and (B) Used solely as provided in this subchapter; (13) "Tax credit" means an income tax credit granted to the authority under this subchapter; (14) "Technology-based enterprises" means a group of growing businesses in one (1) or more of the following business sectors: (A) Advanced materials and manufacturing systems; (B) Agriculture, food, and environmental sciences; (C) Biotechnology, bioengineering, medical technology, and life sciences; (D) Information technology; (E) Transportation logistics; and (F) Biobased products; (15) "Venture capital funds" means private, for-profit investment funds that seek to invest in technology-based enterprises; and (16) "Venture Capital Investment Trust" means the public trust formed July 21, 2003, under § 28-72-201 et seq., the trustees of which are the President of the Arkansas Development Finance Authority, the Director of the Arkansas Economic Development Commission, and the Secretary of the Department of Finance and Administration, and that has as a principal purpose increasing the availability of equity capital and near-equity capital for emerging and expanding enterprises in the State of Arkansas. Amended by Act 2019, No. 925,§ 4, eff. 7/24/2019. Acts 2001, No. 1791, § 3.

As used in this subchapter:

(1) "Accredited investor" means an accredited investor as defined in 17 C.F.R. § 230.215 , as it existed on January 1, 2013;

(2) "Authority" means the Arkansas Development Finance Authority;

(3) "Bond guaranty" means a special obligation of the Bond Guaranty Reserve Account as defined in § 15-5-403 ;

(4) "Capital guaranty" means the guaranty provided by the authority under § 15-5-1405 ;

(5) "Certificate" means a document executed by the authority extending a capital guaranty to the designated investor group;

(6) "Designated investor group" means the investor group selected by the authority under this subchapter;

(7) "Equity capital" means capital invested in common stock or preferred stock, royalty rights, limited partnership interests, limited liability company interests, and any other equity, securities, or rights that evidence ownership or investment in private enterprises;

(8) "Investor group" means any individual, corporation, partnership, limited liability company, or other lawfully organized entity;

(9) "Near-equity capital" means capital invested in unsecured, undersecured, subordinated, or convertible loans or debt securities;

(10) "Person" means any individual, corporation, partnership, or other lawfully organized entity;

(11) "Review committee" means a committee composed of the President of the Arkansas Development Finance Authority, the Director of the Arkansas Economic Development Commission, and the members of the Board of Directors of the Arkansas Development Finance Authority;

(12) "Revolving fund" means a bank account: (A) Created by the designated investor group in a financial institution located in this state; and (B) Used solely as provided in this subchapter;

(A) Created by the designated investor group in a financial institution located in this state; and

(B) Used solely as provided in this subchapter;

(13) "Tax credit" means an income tax credit granted to the authority under this subchapter;

(14) "Technology-based enterprises" means a group of growing businesses in one (1) or more of the following business sectors: (A) Advanced materials and manufacturing systems; (B) Agriculture, food, and environmental sciences; (C) Biotechnology, bioengineering, medical technology, and life sciences; (D) Information technology; (E) Transportation logistics; and (F) Biobased products;

(A) Advanced materials and manufacturing systems;

(B) Agriculture, food, and environmental sciences;

(C) Biotechnology, bioengineering, medical technology, and life sciences;

(D) Information technology;

(E) Transportation logistics; and

(F) Biobased products;

(15) "Venture capital funds" means private, for-profit investment funds that seek to invest in technology-based enterprises; and

(16) "Venture Capital Investment Trust" means the public trust formed July 21, 2003, under § 28-72-201 et seq., the trustees of which are the President of the Arkansas Development Finance Authority, the Director of the Arkansas Economic Development Commission, and the Secretary of the Department of Finance and Administration, and that has as a principal purpose increasing the availability of equity capital and near-equity capital for emerging and expanding enterprises in the State of Arkansas.

Amended by Act 2019, No. 925,§ 4, eff. 7/24/2019.

Acts 2001, No. 1791, § 3.
Ark. Code Ann. § 15-11-703 — AR Code / Title 15 / Chapter 11 / Subchapter 7 / Section 15-11-703
Definition
Status: in_force

"Wildlife observation trail" means a trail route designed to promote conservation and management of wildlife resources of the state and to promote tourism and economic development through the enjoyment, use, protection, and improvement of the natural resources of Arkansas. Acts 2009, No. 686, § 1.

"Wildlife observation trail" means a trail route designed to promote conservation and management of wildlife resources of the state and to promote tourism and economic development through the enjoyment, use, protection, and improvement of the natural resources of Arkansas.

Acts 2009, No. 686, § 1.
Ark. Code Ann. § 15-5-308 — AR Code / Title 15 / Chapter 5 / Subchapter 3 / Section 15-5-308
Notice of issue - Disapproval
Status: in_force

(a) Not less than thirty (30) days prior to the issuance of any bonds authorized under this subchapter and §§ 15-5-101 - 15-5-106 , 15-5-201 - 15-5-211 , and 15-5-213 with respect to any project or activity which is to be undertaken for the direct benefit of any person or entity which is not a state agency or a political subdivision, written notice of the intention of the Arkansas Development Finance Authority to provide financing and issue bonds therefor shall be given by the President of the Arkansas Development Finance Authority to the mayor of the municipality in which the project or activity is to be located, or, if the project or activity is not proposed to be located within a municipality, the notice shall be given to the county judge of the county. (b) No bonds for the financing of the project or activity shall be issued by the authority or any other political subdivision or instrumentality of the state for a one-year period if, within fifteen (15) days after the giving of the notice, the legislative body of the political subdivision in which the project or activity is proposed to be located shall have duly enacted an ordinance or resolution stating express disapproval by the legislative body of the project or activity and the reasons therefor. (c) Such disapproval shall not be effective unless a certified copy of the ordinance or resolution shall have been delivered to the president within twenty (20) days of the giving of notice by the president as herein required. (d) (1) Any notice required by this section may be given by the mailing thereof or actual delivery thereof to the proper person, and it shall be conclusively presumed that any notice given by mail, with proper postage prepaid, has been timely received by the addressee. (2) However, it shall not be necessary to give the notice provided for in this section if the project or activity is of such a nature that a public hearing has been held in the affected political subdivision with respect thereto and approval given in the manner required by 26 U.S.C. § 147(f) . (e) This section shall not apply to the issuance of bonds to provide financing on a pooled or consolidated basis for a series of related or unrelated activities or projects when the activities or projects have not been specifically identified prior to the issuance of the bonds. Acts 1985, No. 1062, § 6.00; A.S.A. 1947, § 13-2906; Acts 1987, No. 900, § 5.

(a) Not less than thirty (30) days prior to the issuance of any bonds authorized under this subchapter and §§ 15-5-101 - 15-5-106 , 15-5-201 - 15-5-211 , and 15-5-213 with respect to any project or activity which is to be undertaken for the direct benefit of any person or entity which is not a state agency or a political subdivision, written notice of the intention of the Arkansas Development Finance Authority to provide financing and issue bonds therefor shall be given by the President of the Arkansas Development Finance Authority to the mayor of the municipality in which the project or activity is to be located, or, if the project or activity is not proposed to be located within a municipality, the notice shall be given to the county judge of the county.

(b) No bonds for the financing of the project or activity shall be issued by the authority or any other political subdivision or instrumentality of the state for a one-year period if, within fifteen (15) days after the giving of the notice, the legislative body of the political subdivision in which the project or activity is proposed to be located shall have duly enacted an ordinance or resolution stating express disapproval by the legislative body of the project or activity and the reasons therefor.

(c) Such disapproval shall not be effective unless a certified copy of the ordinance or resolution shall have been delivered to the president within twenty (20) days of the giving of notice by the president as herein required.

(d) (1) Any notice required by this section may be given by the mailing thereof or actual delivery thereof to the proper person, and it shall be conclusively presumed that any notice given by mail, with proper postage prepaid, has been timely received by the addressee. (2) However, it shall not be necessary to give the notice provided for in this section if the project or activity is of such a nature that a public hearing has been held in the affected political subdivision with respect thereto and approval given in the manner required by 26 U.S.C. § 147(f) .

(1) Any notice required by this section may be given by the mailing thereof or actual delivery thereof to the proper person, and it shall be conclusively presumed that any notice given by mail, with proper postage prepaid, has been timely received by the addressee.

(2) However, it shall not be necessary to give the notice provided for in this section if the project or activity is of such a nature that a public hearing has been held in the affected political subdivision with respect thereto and approval given in the manner required by 26 U.S.C. § 147(f) .

(e) This section shall not apply to the issuance of bonds to provide financing on a pooled or consolidated basis for a series of related or unrelated activities or projects when the activities or projects have not been specifically identified prior to the issuance of the bonds.

Acts 1985, No. 1062, § 6.00; A.S.A. 1947, § 13-2906; Acts 1987, No. 900, § 5.
Ark. Code Ann. § 15-72-601 — AR Code / Title 15 / Chapter 72 / Subchapter 6 / Section 15-72-601
Title
Status: in_force

This subchapter shall be known and may be cited as the "Underground Storage of Gas Law". Acts 1957, No. 82, § 1; A.S.A. 1947, § 53-901.

This subchapter shall be known and may be cited as the "Underground Storage of Gas Law".

Acts 1957, No. 82, § 1; A.S.A. 1947, § 53-901.
Ark. Code Ann. § 15-75-323 — AR Code / Title 15 / Chapter 75 / Subchapter 3 / Section 15-75-323
Civil penalty
Status: in_force

(a) In addition to any other penalty provided in this chapter, any person who violates any provision of this chapter, or any rule pertaining thereto, shall pay to the Liquefied Petroleum Gas Board a civil penalty of not more than five thousand dollars ($5,000) for each offense. (b) (1) If a person against whom a civil penalty has been imposed by the board fails to pay the penalty, the board may file an action in the Pulaski County Circuit Court to collect the civil penalty. (2) If the board prevails in the action, the defendant shall be directed to pay, in addition to the civil penalty, reasonable attorney's fees and costs incurred by the board in prosecuting the action. Amended by Act 2019, No. 315,§ 1274, eff. 7/24/2019. Acts 1995, No. 477, § 11.

(a) In addition to any other penalty provided in this chapter, any person who violates any provision of this chapter, or any rule pertaining thereto, shall pay to the Liquefied Petroleum Gas Board a civil penalty of not more than five thousand dollars ($5,000) for each offense.

(b) (1) If a person against whom a civil penalty has been imposed by the board fails to pay the penalty, the board may file an action in the Pulaski County Circuit Court to collect the civil penalty. (2) If the board prevails in the action, the defendant shall be directed to pay, in addition to the civil penalty, reasonable attorney's fees and costs incurred by the board in prosecuting the action.

(1) If a person against whom a civil penalty has been imposed by the board fails to pay the penalty, the board may file an action in the Pulaski County Circuit Court to collect the civil penalty.

(2) If the board prevails in the action, the defendant shall be directed to pay, in addition to the civil penalty, reasonable attorney's fees and costs incurred by the board in prosecuting the action.

Amended by Act 2019, No. 315,§ 1274, eff. 7/24/2019.

Acts 1995, No. 477, § 11.
Ark. Code Ann. § 15-22-618 — AR Code / Title 15 / Chapter 22 / Subchapter 6 / Section 15-22-618
Contract not to be impaired - Remedies of bondholder
Status: in_force

(a) (1) This subchapter shall constitute a contract between the State of Arkansas and the holders and registered owners of all bonds issued under this subchapter which shall never be impaired. (2) Any violation of its terms, whether under purported legislative authority or otherwise, shall be enjoined by the courts at the suit of any bondholder or of any taxpayer. (b) The courts, in like suit against the Arkansas Natural Resources Commission, the Treasurer of State, or other appropriate officer or official of the state, shall prevent a diversion of any revenues pledged under this subchapter and shall compel the restoration of diverted revenues, by injunction or mandamus. (c) Also and without limitation as to any other appropriate remedy at law or in equity, any bondholder, by an appropriate action, including, without limitation, injunction or mandamus, may compel the performance of all covenants and obligations of the state and its officers and officials under this subchapter. Acts 1981, No. 496, § 14; A.S.A. 1947, § 21-2314.

(a) (1) This subchapter shall constitute a contract between the State of Arkansas and the holders and registered owners of all bonds issued under this subchapter which shall never be impaired. (2) Any violation of its terms, whether under purported legislative authority or otherwise, shall be enjoined by the courts at the suit of any bondholder or of any taxpayer.

(1) This subchapter shall constitute a contract between the State of Arkansas and the holders and registered owners of all bonds issued under this subchapter which shall never be impaired.

(2) Any violation of its terms, whether under purported legislative authority or otherwise, shall be enjoined by the courts at the suit of any bondholder or of any taxpayer.

(b) The courts, in like suit against the Arkansas Natural Resources Commission, the Treasurer of State, or other appropriate officer or official of the state, shall prevent a diversion of any revenues pledged under this subchapter and shall compel the restoration of diverted revenues, by injunction or mandamus.

(c) Also and without limitation as to any other appropriate remedy at law or in equity, any bondholder, by an appropriate action, including, without limitation, injunction or mandamus, may compel the performance of all covenants and obligations of the state and its officers and officials under this subchapter.

Acts 1981, No. 496, § 14; A.S.A. 1947, § 21-2314.
Ark. Code Ann. § 15-32-310 — AR Code / Title 15 / Chapter 32 / Subchapter 3 / Section 15-32-310
Certificate of Secretary of State - Presumptive evidence
Status: in_force

In any criminal or civil action growing out of a trespass upon any public lands, the certificate of the Secretary of State under the Great Seal of the State of Arkansas that any specified piece or tract of land belongs to the state or is mortgaged to the state or that the state has any interest legal or equitable in the piece or tract of land shall be presumptive evidence of the facts stated therein. Acts 1883, No. 83, § 23, p. 140; C. & M. Dig., § 7014; Pope's Dig., § 8994; A.S.A. 1947, § 54-213.

In any criminal or civil action growing out of a trespass upon any public lands, the certificate of the Secretary of State under the Great Seal of the State of Arkansas that any specified piece or tract of land belongs to the state or is mortgaged to the state or that the state has any interest legal or equitable in the piece or tract of land shall be presumptive evidence of the facts stated therein.

Acts 1883, No. 83, § 23, p. 140; C. & M. Dig., § 7014; Pope's Dig., § 8994; A.S.A. 1947, § 54-213.
Ark. Code Ann. § 15-5-1803 — AR Code / Title 15 / Chapter 5 / Subchapter 18 / Section 15-5-1803
Definitions
Status: in_force

As used in this subchapter: (1) "Bonds" means all bonds, notes, certificates, financing leases, or other interest-bearing instruments or evidences of indebtedness that are issued under this subchapter; (2) "Energy efficiency project" means an improvement, repair, alteration, or renovation of a new building design or an existing building or facility owned or operated by a state entity or any equipment, fixture, or furnishing to be added to or used in a building or facility owned or operated by a state entity that is designed to reduce energy consumption or operating costs; and (3) "State entity" means: (A) The state; and (B) An agency, board, commission, or instrumentality of the state. Added by Act 2013, No. 1252,§ 1, eff. 8/16/2013.

As used in this subchapter:

(1) "Bonds" means all bonds, notes, certificates, financing leases, or other interest-bearing instruments or evidences of indebtedness that are issued under this subchapter;

(2) "Energy efficiency project" means an improvement, repair, alteration, or renovation of a new building design or an existing building or facility owned or operated by a state entity or any equipment, fixture, or furnishing to be added to or used in a building or facility owned or operated by a state entity that is designed to reduce energy consumption or operating costs; and

(3) "State entity" means: (A) The state; and (B) An agency, board, commission, or instrumentality of the state.

(A) The state; and

(B) An agency, board, commission, or instrumentality of the state.

Added by Act 2013, No. 1252,§ 1, eff. 8/16/2013.
Ark. Code Ann. § 15-56-403 — AR Code / Title 15 / Chapter 56 / Subchapter 4 / Section 15-56-403
Petition to lease by life tenant - Contents
Status: in_force

(a) Whenever any life tenant shall desire to lease any land for the production of any minerals, other than oil and gas, he or she shall file a verified petition with the circuit court of the county in which the lands, or the greater part of the lands, may be situated, praying for authority to execute a lease. A certified copy of the will or conveyance under which he or she claims shall be attached to the petition. The life tenant shall make as parties respondent to the petition all persons then in being who under the terms of the will or grant would become vested with title to the lands or any interests therein should the death of the life tenant occur on the date of the filing of the petition. (b) The petition shall set forth: (1) The description of the land; (2) From whom the petitioner acquired his or her title; (3) The nature and kind of minerals, other than oil and gas, to be covered by and included in the lease; (4) The name of the proposed lessee; (5) The true consideration for the lease; (6) The nature and amount of the royalty proposed to be reserved therein; and (7) A general statement as to the provisions of the proposed lease. (c) The petition shall pray: (1) For authority to execute the lease; (2) That the court award the life tenant with title to the proportion of the royalties reserved in the lease and which may accrue under the lease, not exceeding one-half (1/2) of the royalties, together with a part of the bonus consideration paid therefor and delay rentals, if any, payable under the lease, and any other payments provided for in the lease, as the court shall determine is fair compensation to the life tenant for the lease upon his or her interest in the premises and as damages to the life estate by the use of the surface of the lands in the exploration for and production of the minerals therefrom; and (3) For the appointment of a trustee to receive and hold moneys, rents, and royalties that accrue to the contingent remainder estate under the lease. Acts 1961, No. 94, § 2; A.S.A. 1947, § 52-216.

(a) Whenever any life tenant shall desire to lease any land for the production of any minerals, other than oil and gas, he or she shall file a verified petition with the circuit court of the county in which the lands, or the greater part of the lands, may be situated, praying for authority to execute a lease. A certified copy of the will or conveyance under which he or she claims shall be attached to the petition. The life tenant shall make as parties respondent to the petition all persons then in being who under the terms of the will or grant would become vested with title to the lands or any interests therein should the death of the life tenant occur on the date of the filing of the petition.

(b) The petition shall set forth: (1) The description of the land; (2) From whom the petitioner acquired his or her title; (3) The nature and kind of minerals, other than oil and gas, to be covered by and included in the lease; (4) The name of the proposed lessee; (5) The true consideration for the lease; (6) The nature and amount of the royalty proposed to be reserved therein; and (7) A general statement as to the provisions of the proposed lease.

(1) The description of the land;

(2) From whom the petitioner acquired his or her title;

(3) The nature and kind of minerals, other than oil and gas, to be covered by and included in the lease;

(4) The name of the proposed lessee;

(5) The true consideration for the lease;

(6) The nature and amount of the royalty proposed to be reserved therein; and

(7) A general statement as to the provisions of the proposed lease.

(c) The petition shall pray: (1) For authority to execute the lease; (2) That the court award the life tenant with title to the proportion of the royalties reserved in the lease and which may accrue under the lease, not exceeding one-half (1/2) of the royalties, together with a part of the bonus consideration paid therefor and delay rentals, if any, payable under the lease, and any other payments provided for in the lease, as the court shall determine is fair compensation to the life tenant for the lease upon his or her interest in the premises and as damages to the life estate by the use of the surface of the lands in the exploration for and production of the minerals therefrom; and (3) For the appointment of a trustee to receive and hold moneys, rents, and royalties that accrue to the contingent remainder estate under the lease.

(1) For authority to execute the lease;

(2) That the court award the life tenant with title to the proportion of the royalties reserved in the lease and which may accrue under the lease, not exceeding one-half (1/2) of the royalties, together with a part of the bonus consideration paid therefor and delay rentals, if any, payable under the lease, and any other payments provided for in the lease, as the court shall determine is fair compensation to the life tenant for the lease upon his or her interest in the premises and as damages to the life estate by the use of the surface of the lands in the exploration for and production of the minerals therefrom; and

(3) For the appointment of a trustee to receive and hold moneys, rents, and royalties that accrue to the contingent remainder estate under the lease.

Acts 1961, No. 94, § 2; A.S.A. 1947, § 52-216.
Ark. Code Ann. § 15-4-1906 — AR Code / Title 15 / Chapter 4 / Subchapter 19 / Section 15-4-1906
Refund of sales and use tax - Income tax credit
Status: in_force

(a) (1) The Revenue Division of the Department of Finance and Administration shall authorize a refund of sales and use taxes imposed by the state and a municipality or county if the municipality or county authorized the refund of its local tax on the purchases of the material used in the construction of a building or buildings or any addition or improvement thereon for housing any legitimate business enterprise and machinery and equipment to be located in or in connection with such a building. (2) A refund shall not be authorized for routine operating expenditures. (3) (A) (i) A refund shall not be authorized for the purchase of replacements of items previously purchased as part of a project under this subchapter unless the items previously purchased will not enable the project to function as originally intended. (ii) In order to qualify for a refund under this subchapter, the replacement of an item previously purchased must be necessary for the implementation or completion of the project. (B) However, a program participant may make changes in a project by amendment to the financial incentive plan entered into with the Arkansas Economic Development Commission. (4) (A) All claims for sales and use tax refunds under this subchapter shall be filed with the division within three (3) years from the date of the qualified purchase or purchases. (B) Claims filed after three (3) years from the date of the qualified purchase or purchases shall be disallowed. (5) (A) The time limitation in this section for filing claims shall be tolled if: (i) A program participant fails to pay sales or use tax on an item that was taxable; and (ii) The applicable tax is subsequently assessed as a result of an audit by the division. (B) All claims for sales and use tax refunds relating to an audited purchase shall be filed with the division within one (1) year after payment of the assessed tax or the date of a final administrative or judicial order, whichever is later. (6) A program participant that files a claim for a sales or use tax refund relating to an audited purchase shall be entitled to a refund of interest paid on the amount of tax assessed on the audited purchase if a refund is approved for the purchase. (b) (1) A sales and use tax refund as provided for in subsection (a) of this section shall be authorized, provided that: (A) The company is an eligible business as defined in § 15-4-1902 ; (B) The business and its contractors give preference and priority to Arkansas manufacturers, suppliers, contractors, and labor, except when it is not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operational efficiency; and (C) (i) The business: (a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and (b) Files with the department a copy of the financial incentive plan the business entered into with the commission. (ii) The endorsement resolution must be approved by the governing body of a municipality or county in whose jurisdiction the facility is located and must: (a) Approve the specific entity's participation in the program; and (b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it. (2) (A) The requisite number of net new full-time permanent employees must be employed by the business within twenty-four (24) months following the date the financial incentive plan was signed. (B) In the event that the requisite number of net new full-time permanent employees cannot be employed within the twenty-four-month period, the business can file a written application with the commission explaining why additional time is necessary. The business can be afforded up to twenty-four (24) more months to hire the requisite number of employees if the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State determine that the need for additional time is due to: (i) Unanticipated and unavoidable delay in the construction of a facility that must be completed before the employees can be hired; (ii) The project as originally planned will require more than twenty-four (24) months to complete; or (iii) A change in the business ownership or business structure due to a merger or acquisition. (c) (1) (A) The division shall authorize an income tax credit based on the total investment in land, buildings, and equipment divided by the term of the financial incentive plan for each tax year. (B) (i) The amount of income tax credit taken during any tax year shall not exceed the Arkansas income tax liability resulting from the project plant or facility. (ii) The income tax liability of the project plant or facility shall be determined by adding the sales factor, the payroll factor, and the property factor of the plant or facility and dividing the sum by three (3) to arrive at the project apportionment percentage. The total Arkansas corporate income tax liability of the corporation shall be multiplied by the project apportionment percentage to arrive at the income tax liability arising from the project. (iii) The income tax credit available may then be used to offset the income tax liability arising from the project as agreed upon in the financial incentive plan. (2) However, if the entire credit cannot be used in the year earned, the remainder may be applied against the income tax for the succeeding nine (9) tax years or until the financial incentive plan expires, whichever occurs first. (d) An income tax credit as provided for in subsection (c) of this section shall be authorized, provided that: (1) The request for such a credit is accompanied by an endorsement resolution approved by the governing body of the appropriate municipality or county in whose jurisdiction the establishment is to be located and a copy of the financial incentive plan the business entered into with the commission; (2) All of the net new full-time permanent employees are employed at the facility; and (3) Benefits for the same project are not being claimed under the Arkansas Economic Development Incentive Act of 1993, § 15-4-1601 et seq. (e) (1) (A) If the number of net new full-time permanent employees drops below one hundred (100) after twenty-four (24) months from the date the financial incentive plan is signed, all benefits under the financial incentive plan will be terminated unless the Chief Fiscal Officer of the State approves a written request filed by the business explaining why the number of net new full-time permanent employees fell below one hundred (100). (B) The Chief Fiscal Officer of the State may grant the business up to twenty-four (24) months to bring the number of net new full-time permanent employees back up to at least one hundred (100) and may approve the continuation of the benefits during that period. (2) In the event that a business fails to notify the department that the number of employees has fallen below one hundred (100) or that the average hourly wage has fallen below the amount specified in the financial incentive plan, the business will be liable for the repayment of all benefits which were received by the business, plus penalty and interest. (f) (1) Any business receiving benefits under this program shall be liable for the repayment of any benefits received, plus penalty and interest, if it does not comply with: (A) The terms of the financial incentive plan; (B) The requirements of this subchapter; or (C) Any rule promulgated pursuant to this subchapter. (2) The Chief Fiscal Officer of the State may bring any lawful action to recover any amount for which the recipient is liable. Amended by Act 2019, No. 315,§ 1069, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 380, eff. 7/1/2019. Acts 1995, No. 831, § 6; 1997, No. 807, §§ 17, 18, 24; 1999, No. 575, § 4; 2001, No. 975, § 13; 2001, No. 1401, § 3.

(a) (1) The Revenue Division of the Department of Finance and Administration shall authorize a refund of sales and use taxes imposed by the state and a municipality or county if the municipality or county authorized the refund of its local tax on the purchases of the material used in the construction of a building or buildings or any addition or improvement thereon for housing any legitimate business enterprise and machinery and equipment to be located in or in connection with such a building. (2) A refund shall not be authorized for routine operating expenditures. (3) (A) (i) A refund shall not be authorized for the purchase of replacements of items previously purchased as part of a project under this subchapter unless the items previously purchased will not enable the project to function as originally intended. (ii) In order to qualify for a refund under this subchapter, the replacement of an item previously purchased must be necessary for the implementation or completion of the project. (B) However, a program participant may make changes in a project by amendment to the financial incentive plan entered into with the Arkansas Economic Development Commission. (4) (A) All claims for sales and use tax refunds under this subchapter shall be filed with the division within three (3) years from the date of the qualified purchase or purchases. (B) Claims filed after three (3) years from the date of the qualified purchase or purchases shall be disallowed. (5) (A) The time limitation in this section for filing claims shall be tolled if: (i) A program participant fails to pay sales or use tax on an item that was taxable; and (ii) The applicable tax is subsequently assessed as a result of an audit by the division. (B) All claims for sales and use tax refunds relating to an audited purchase shall be filed with the division within one (1) year after payment of the assessed tax or the date of a final administrative or judicial order, whichever is later. (6) A program participant that files a claim for a sales or use tax refund relating to an audited purchase shall be entitled to a refund of interest paid on the amount of tax assessed on the audited purchase if a refund is approved for the purchase.

(1) The Revenue Division of the Department of Finance and Administration shall authorize a refund of sales and use taxes imposed by the state and a municipality or county if the municipality or county authorized the refund of its local tax on the purchases of the material used in the construction of a building or buildings or any addition or improvement thereon for housing any legitimate business enterprise and machinery and equipment to be located in or in connection with such a building.

(2) A refund shall not be authorized for routine operating expenditures.

(3) (A) (i) A refund shall not be authorized for the purchase of replacements of items previously purchased as part of a project under this subchapter unless the items previously purchased will not enable the project to function as originally intended. (ii) In order to qualify for a refund under this subchapter, the replacement of an item previously purchased must be necessary for the implementation or completion of the project. (B) However, a program participant may make changes in a project by amendment to the financial incentive plan entered into with the Arkansas Economic Development Commission.

(A) (i) A refund shall not be authorized for the purchase of replacements of items previously purchased as part of a project under this subchapter unless the items previously purchased will not enable the project to function as originally intended. (ii) In order to qualify for a refund under this subchapter, the replacement of an item previously purchased must be necessary for the implementation or completion of the project.

(i) A refund shall not be authorized for the purchase of replacements of items previously purchased as part of a project under this subchapter unless the items previously purchased will not enable the project to function as originally intended.

(ii) In order to qualify for a refund under this subchapter, the replacement of an item previously purchased must be necessary for the implementation or completion of the project.

(B) However, a program participant may make changes in a project by amendment to the financial incentive plan entered into with the Arkansas Economic Development Commission.

(4) (A) All claims for sales and use tax refunds under this subchapter shall be filed with the division within three (3) years from the date of the qualified purchase or purchases. (B) Claims filed after three (3) years from the date of the qualified purchase or purchases shall be disallowed.

(A) All claims for sales and use tax refunds under this subchapter shall be filed with the division within three (3) years from the date of the qualified purchase or purchases.

(B) Claims filed after three (3) years from the date of the qualified purchase or purchases shall be disallowed.

(5) (A) The time limitation in this section for filing claims shall be tolled if: (i) A program participant fails to pay sales or use tax on an item that was taxable; and (ii) The applicable tax is subsequently assessed as a result of an audit by the division. (B) All claims for sales and use tax refunds relating to an audited purchase shall be filed with the division within one (1) year after payment of the assessed tax or the date of a final administrative or judicial order, whichever is later.

(A) The time limitation in this section for filing claims shall be tolled if: (i) A program participant fails to pay sales or use tax on an item that was taxable; and (ii) The applicable tax is subsequently assessed as a result of an audit by the division.

(i) A program participant fails to pay sales or use tax on an item that was taxable; and

(ii) The applicable tax is subsequently assessed as a result of an audit by the division.

(B) All claims for sales and use tax refunds relating to an audited purchase shall be filed with the division within one (1) year after payment of the assessed tax or the date of a final administrative or judicial order, whichever is later.

(6) A program participant that files a claim for a sales or use tax refund relating to an audited purchase shall be entitled to a refund of interest paid on the amount of tax assessed on the audited purchase if a refund is approved for the purchase.

(b) (1) A sales and use tax refund as provided for in subsection (a) of this section shall be authorized, provided that: (A) The company is an eligible business as defined in § 15-4-1902 ; (B) The business and its contractors give preference and priority to Arkansas manufacturers, suppliers, contractors, and labor, except when it is not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operational efficiency; and (C) (i) The business: (a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and (b) Files with the department a copy of the financial incentive plan the business entered into with the commission. (ii) The endorsement resolution must be approved by the governing body of a municipality or county in whose jurisdiction the facility is located and must: (a) Approve the specific entity's participation in the program; and (b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it. (2) (A) The requisite number of net new full-time permanent employees must be employed by the business within twenty-four (24) months following the date the financial incentive plan was signed. (B) In the event that the requisite number of net new full-time permanent employees cannot be employed within the twenty-four-month period, the business can file a written application with the commission explaining why additional time is necessary. The business can be afforded up to twenty-four (24) more months to hire the requisite number of employees if the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State determine that the need for additional time is due to: (i) Unanticipated and unavoidable delay in the construction of a facility that must be completed before the employees can be hired; (ii) The project as originally planned will require more than twenty-four (24) months to complete; or (iii) A change in the business ownership or business structure due to a merger or acquisition.

(1) A sales and use tax refund as provided for in subsection (a) of this section shall be authorized, provided that: (A) The company is an eligible business as defined in § 15-4-1902 ; (B) The business and its contractors give preference and priority to Arkansas manufacturers, suppliers, contractors, and labor, except when it is not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operational efficiency; and (C) (i) The business: (a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and (b) Files with the department a copy of the financial incentive plan the business entered into with the commission. (ii) The endorsement resolution must be approved by the governing body of a municipality or county in whose jurisdiction the facility is located and must: (a) Approve the specific entity's participation in the program; and (b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it.

(A) The company is an eligible business as defined in § 15-4-1902 ;

(B) The business and its contractors give preference and priority to Arkansas manufacturers, suppliers, contractors, and labor, except when it is not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operational efficiency; and

(C) (i) The business: (a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and (b) Files with the department a copy of the financial incentive plan the business entered into with the commission. (ii) The endorsement resolution must be approved by the governing body of a municipality or county in whose jurisdiction the facility is located and must: (a) Approve the specific entity's participation in the program; and (b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it.

(i) The business: (a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and (b) Files with the department a copy of the financial incentive plan the business entered into with the commission.

(a) Files an endorsement resolution with the commission and the Department of Finance and Administration; and

(b) Files with the department a copy of the financial incentive plan the business entered into with the commission.

(ii) The endorsement resolution must be approved by the governing body of a municipality or county in whose jurisdiction the facility is located and must: (a) Approve the specific entity's participation in the program; and (b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it.

(a) Approve the specific entity's participation in the program; and

(b) (1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program. (2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it.

(1) Specifically state whether the municipality or county authorizes the commission to refund local sales and use taxes to the entity under the program.

(2) A municipality or county can authorize the refund of all or part of a tax levied by it but cannot authorize the refund of any tax not levied by it.

(2) (A) The requisite number of net new full-time permanent employees must be employed by the business within twenty-four (24) months following the date the financial incentive plan was signed. (B) In the event that the requisite number of net new full-time permanent employees cannot be employed within the twenty-four-month period, the business can file a written application with the commission explaining why additional time is necessary. The business can be afforded up to twenty-four (24) more months to hire the requisite number of employees if the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State determine that the need for additional time is due to: (i) Unanticipated and unavoidable delay in the construction of a facility that must be completed before the employees can be hired; (ii) The project as originally planned will require more than twenty-four (24) months to complete; or (iii) A change in the business ownership or business structure due to a merger or acquisition.

(A) The requisite number of net new full-time permanent employees must be employed by the business within twenty-four (24) months following the date the financial incentive plan was signed.

(B) In the event that the requisite number of net new full-time permanent employees cannot be employed within the twenty-four-month period, the business can file a written application with the commission explaining why additional time is necessary. The business can be afforded up to twenty-four (24) more months to hire the requisite number of employees if the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State determine that the need for additional time is due to: (i) Unanticipated and unavoidable delay in the construction of a facility that must be completed before the employees can be hired; (ii) The project as originally planned will require more than twenty-four (24) months to complete; or (iii) A change in the business ownership or business structure due to a merger or acquisition.

(i) Unanticipated and unavoidable delay in the construction of a facility that must be completed before the employees can be hired;

(ii) The project as originally planned will require more than twenty-four (24) months to complete; or

(iii) A change in the business ownership or business structure due to a merger or acquisition.

(c) (1) (A) The division shall authorize an income tax credit based on the total investment in land, buildings, and equipment divided by the term of the financial incentive plan for each tax year. (B) (i) The amount of income tax credit taken during any tax year shall not exceed the Arkansas income tax liability resulting from the project plant or facility. (ii) The income tax liability of the project plant or facility shall be determined by adding the sales factor, the payroll factor, and the property factor of the plant or facility and dividing the sum by three (3) to arrive at the project apportionment percentage. The total Arkansas corporate income tax liability of the corporation shall be multiplied by the project apportionment percentage to arrive at the income tax liability arising from the project. (iii) The income tax credit available may then be used to offset the income tax liability arising from the project as agreed upon in the financial incentive plan. (2) However, if the entire credit cannot be used in the year earned, the remainder may be applied against the income tax for the succeeding nine (9) tax years or until the financial incentive plan expires, whichever occurs first.

(1) (A) The division shall authorize an income tax credit based on the total investment in land, buildings, and equipment divided by the term of the financial incentive plan for each tax year. (B) (i) The amount of income tax credit taken during any tax year shall not exceed the Arkansas income tax liability resulting from the project plant or facility. (ii) The income tax liability of the project plant or facility shall be determined by adding the sales factor, the payroll factor, and the property factor of the plant or facility and dividing the sum by three (3) to arrive at the project apportionment percentage. The total Arkansas corporate income tax liability of the corporation shall be multiplied by the project apportionment percentage to arrive at the income tax liability arising from the project. (iii) The income tax credit available may then be used to offset the income tax liability arising from the project as agreed upon in the financial incentive plan.

(A) The division shall authorize an income tax credit based on the total investment in land, buildings, and equipment divided by the term of the financial incentive plan for each tax year.

(B) (i) The amount of income tax credit taken during any tax year shall not exceed the Arkansas income tax liability resulting from the project plant or facility. (ii) The income tax liability of the project plant or facility shall be determined by adding the sales factor, the payroll factor, and the property factor of the plant or facility and dividing the sum by three (3) to arrive at the project apportionment percentage. The total Arkansas corporate income tax liability of the corporation shall be multiplied by the project apportionment percentage to arrive at the income tax liability arising from the project. (iii) The income tax credit available may then be used to offset the income tax liability arising from the project as agreed upon in the financial incentive plan.

(i) The amount of income tax credit taken during any tax year shall not exceed the Arkansas income tax liability resulting from the project plant or facility.

(ii) The income tax liability of the project plant or facility shall be determined by adding the sales factor, the payroll factor, and the property factor of the plant or facility and dividing the sum by three (3) to arrive at the project apportionment percentage. The total Arkansas corporate income tax liability of the corporation shall be multiplied by the project apportionment percentage to arrive at the income tax liability arising from the project.

(iii) The income tax credit available may then be used to offset the income tax liability arising from the project as agreed upon in the financial incentive plan.

(2) However, if the entire credit cannot be used in the year earned, the remainder may be applied against the income tax for the succeeding nine (9) tax years or until the financial incentive plan expires, whichever occurs first.

(d) An income tax credit as provided for in subsection (c) of this section shall be authorized, provided that: (1) The request for such a credit is accompanied by an endorsement resolution approved by the governing body of the appropriate municipality or county in whose jurisdiction the establishment is to be located and a copy of the financial incentive plan the business entered into with the commission; (2) All of the net new full-time permanent employees are employed at the facility; and (3) Benefits for the same project are not being claimed under the Arkansas Economic Development Incentive Act of 1993, § 15-4-1601 et seq.

(1) The request for such a credit is accompanied by an endorsement resolution approved by the governing body of the appropriate municipality or county in whose jurisdiction the establishment is to be located and a copy of the financial incentive plan the business entered into with the commission;

(2) All of the net new full-time permanent employees are employed at the facility; and

(3) Benefits for the same project are not being claimed under the Arkansas Economic Development Incentive Act of 1993, § 15-4-1601 et seq.

(e) (1) (A) If the number of net new full-time permanent employees drops below one hundred (100) after twenty-four (24) months from the date the financial incentive plan is signed, all benefits under the financial incentive plan will be terminated unless the Chief Fiscal Officer of the State approves a written request filed by the business explaining why the number of net new full-time permanent employees fell below one hundred (100). (B) The Chief Fiscal Officer of the State may grant the business up to twenty-four (24) months to bring the number of net new full-time permanent employees back up to at least one hundred (100) and may approve the continuation of the benefits during that period. (2) In the event that a business fails to notify the department that the number of employees has fallen below one hundred (100) or that the average hourly wage has fallen below the amount specified in the financial incentive plan, the business will be liable for the repayment of all benefits which were received by the business, plus penalty and interest.

(1) (A) If the number of net new full-time permanent employees drops below one hundred (100) after twenty-four (24) months from the date the financial incentive plan is signed, all benefits under the financial incentive plan will be terminated unless the Chief Fiscal Officer of the State approves a written request filed by the business explaining why the number of net new full-time permanent employees fell below one hundred (100). (B) The Chief Fiscal Officer of the State may grant the business up to twenty-four (24) months to bring the number of net new full-time permanent employees back up to at least one hundred (100) and may approve the continuation of the benefits during that period.

(A) If the number of net new full-time permanent employees drops below one hundred (100) after twenty-four (24) months from the date the financial incentive plan is signed, all benefits under the financial incentive plan will be terminated unless the Chief Fiscal Officer of the State approves a written request filed by the business explaining why the number of net new full-time permanent employees fell below one hundred (100).

(B) The Chief Fiscal Officer of the State may grant the business up to twenty-four (24) months to bring the number of net new full-time permanent employees back up to at least one hundred (100) and may approve the continuation of the benefits during that period.

(2) In the event that a business fails to notify the department that the number of employees has fallen below one hundred (100) or that the average hourly wage has fallen below the amount specified in the financial incentive plan, the business will be liable for the repayment of all benefits which were received by the business, plus penalty and interest.

(f) (1) Any business receiving benefits under this program shall be liable for the repayment of any benefits received, plus penalty and interest, if it does not comply with: (A) The terms of the financial incentive plan; (B) The requirements of this subchapter; or (C) Any rule promulgated pursuant to this subchapter. (2) The Chief Fiscal Officer of the State may bring any lawful action to recover any amount for which the recipient is liable.

(1) Any business receiving benefits under this program shall be liable for the repayment of any benefits received, plus penalty and interest, if it does not comply with: (A) The terms of the financial incentive plan; (B) The requirements of this subchapter; or (C) Any rule promulgated pursuant to this subchapter.

(A) The terms of the financial incentive plan;

(B) The requirements of this subchapter; or

(C) Any rule promulgated pursuant to this subchapter.

(2) The Chief Fiscal Officer of the State may bring any lawful action to recover any amount for which the recipient is liable.

Amended by Act 2019, No. 315,§ 1069, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 380, eff. 7/1/2019.

Acts 1995, No. 831, § 6; 1997, No. 807, §§ 17, 18, 24; 1999, No. 575, § 4; 2001, No. 975, § 13; 2001, No. 1401, § 3.
Ark. Code Ann. § 15-4-313 — AR Code / Title 15 / Chapter 4 / Subchapter 3 / Section 15-4-313
Accelerated payments
Status: in_force

To ensure that minority business enterprises and women-owned business enterprises are not financially hindered due to delays in payment by state agencies entering into state contracts with minority business enterprises and women-owned business enterprises under this subchapter, state agencies shall accelerate payment to minority vendors and women-owned vendors to preclude accounts receivable problems of minority business enterprises and women-owned business enterprises caused by the State of Arkansas. Amended by Act 2017, No. 1080,§ 1, eff. 8/1/2017. Acts 1991, No. 698, § 3; 1995, No. 1296, § 48; 1997, No. 540, § 25; 2003, No. 487, § 12; 2007, No. 692, § 2; 2009, No. 481, § 1; 2009, No. 1222, § 9.

To ensure that minority business enterprises and women-owned business enterprises are not financially hindered due to delays in payment by state agencies entering into state contracts with minority business enterprises and women-owned business enterprises under this subchapter, state agencies shall accelerate payment to minority vendors and women-owned vendors to preclude accounts receivable problems of minority business enterprises and women-owned business enterprises caused by the State of Arkansas.

Amended by Act 2017, No. 1080,§ 1, eff. 8/1/2017.

Acts 1991, No. 698, § 3; 1995, No. 1296, § 48; 1997, No. 540, § 25; 2003, No. 487, § 12; 2007, No. 692, § 2; 2009, No. 481, § 1; 2009, No. 1222, § 9.
Ark. Code Ann. § 15-3-705 — AR Code / Title 15 / Chapter 3 / Subchapter 7 / Section 15-3-705
Eligibility
Status: in_force

(a) To be eligible for a matching grant under this subchapter, an applicant shall: (1) Be an eligible business; and (2) Certify that: (A) The eligible business: (i) For Phase I applications, has received a Small Business Innovation Research grant from a sponsoring agency in response to a specific federal solicitation; or (ii) For Phase II applications, has: (a) Submitted a final Phase I report to the sponsoring agency; (b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and (c) Submitted a Phase II proposal to the sponsoring agency; and (B) All federal Small Business Innovation Research grant requirements will be met. (b) An eligible business awarded a matching grant under this subchapter shall: (1) Remain in Arkansas for the duration of the matching grant project; (2) Designate an Arkansas resident or employee as the principal investigator/project manager during the duration of the matching grant; and (3) Be principally engaged in one (1) or more of the following targeted business activities: (A) Advanced materials and manufacturing systems; (B) Agriculture, food, and environmental sciences; (C) Biotechnology, bioengineering, and life sciences; (D) Information technology; (E) Transportation logistics; and (F) Bio-based products. Amended by Act 2019, No. 384,§ 1, eff. 7/24/2019. Added by Act 2017, No. 166,§ 2, eff. 10/1/2017.

(a) To be eligible for a matching grant under this subchapter, an applicant shall: (1) Be an eligible business; and (2) Certify that: (A) The eligible business: (i) For Phase I applications, has received a Small Business Innovation Research grant from a sponsoring agency in response to a specific federal solicitation; or (ii) For Phase II applications, has: (a) Submitted a final Phase I report to the sponsoring agency; (b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and (c) Submitted a Phase II proposal to the sponsoring agency; and (B) All federal Small Business Innovation Research grant requirements will be met.

(1) Be an eligible business; and

(2) Certify that: (A) The eligible business: (i) For Phase I applications, has received a Small Business Innovation Research grant from a sponsoring agency in response to a specific federal solicitation; or (ii) For Phase II applications, has: (a) Submitted a final Phase I report to the sponsoring agency; (b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and (c) Submitted a Phase II proposal to the sponsoring agency; and (B) All federal Small Business Innovation Research grant requirements will be met.

(A) The eligible business: (i) For Phase I applications, has received a Small Business Innovation Research grant from a sponsoring agency in response to a specific federal solicitation; or (ii) For Phase II applications, has: (a) Submitted a final Phase I report to the sponsoring agency; (b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and (c) Submitted a Phase II proposal to the sponsoring agency; and

(i) For Phase I applications, has received a Small Business Innovation Research grant from a sponsoring agency in response to a specific federal solicitation; or

(ii) For Phase II applications, has: (a) Submitted a final Phase I report to the sponsoring agency; (b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and (c) Submitted a Phase II proposal to the sponsoring agency; and

(a) Submitted a final Phase I report to the sponsoring agency;

(b) Demonstrated that the sponsoring agency has interest in the Phase II proposal; and

(c) Submitted a Phase II proposal to the sponsoring agency; and

(B) All federal Small Business Innovation Research grant requirements will be met.

(b) An eligible business awarded a matching grant under this subchapter shall: (1) Remain in Arkansas for the duration of the matching grant project; (2) Designate an Arkansas resident or employee as the principal investigator/project manager during the duration of the matching grant; and (3) Be principally engaged in one (1) or more of the following targeted business activities: (A) Advanced materials and manufacturing systems; (B) Agriculture, food, and environmental sciences; (C) Biotechnology, bioengineering, and life sciences; (D) Information technology; (E) Transportation logistics; and (F) Bio-based products.

(1) Remain in Arkansas for the duration of the matching grant project;

(2) Designate an Arkansas resident or employee as the principal investigator/project manager during the duration of the matching grant; and

(3) Be principally engaged in one (1) or more of the following targeted business activities: (A) Advanced materials and manufacturing systems; (B) Agriculture, food, and environmental sciences; (C) Biotechnology, bioengineering, and life sciences; (D) Information technology; (E) Transportation logistics; and (F) Bio-based products.

(A) Advanced materials and manufacturing systems;

(B) Agriculture, food, and environmental sciences;

(C) Biotechnology, bioengineering, and life sciences;

(D) Information technology;

(E) Transportation logistics; and

(F) Bio-based products.

Amended by Act 2019, No. 384,§ 1, eff. 7/24/2019.

Added by Act 2017, No. 166,§ 2, eff. 10/1/2017.
Ark. Code Ann. § 15-4-3012 — AR Code / Title 15 / Chapter 4 / Subchapter 30 / Section 15-4-3012
Deposit of bond proceeds
Status: in_force

(a) The proceeds from the sale of the bonds, together with all revenues derived by the Arkansas Development Finance Authority from any superproject financed or refinanced under this subchapter shall be deposited by the recipient, as received, into trust funds either established in the State Treasury or into accounts established outside the State Treasury in the name of the authority to accomplish the purposes of this subchapter, in amounts or portions as set forth in the resolution or trust indenture authorizing or securing the bonds issued to finance or refinance the superproject. (b) There is created as a trust fund in the State Treasury an account designated as the "Economic Development Superprojects Project Fund" to provide for payment of all or a part of debt service on bonds issued under this subchapter and to directly fund superprojects on a pay-as-you-go basis should bonds neither be approved nor issued. (c) (1) The Treasurer of State shall establish separate accounts and subaccounts within the fund to correspond to the applicable series of bonds. (2) In addition, there may be created in the State Treasury other funds, accounts, or subaccounts as the authority may determine to be necessary to accomplish the purposes of this subchapter. (d) All procedures and methods for application of proceeds of any series of bonds to the financing or refinancing of project costs shall be developed in consultation with and approved by the Arkansas Economic Development Commission and shall be set forth in writings and shall be maintained as part of the records of the authority. (e) Any arrangements undertaken pursuant to subsection (b) of this section whereby a local entity will administer funds composed in whole or in part of proceeds of bonds or disbursements from the fund shall include provision for the auditing of the funds no less frequently than annually. (f) The proceeds from the sale of the bonds together with all revenues derived by the authority from any superproject financed or refinanced under this subchapter may be invested and reinvested by the Treasurer of State in any of the following: (1) Direct obligations of the United States, including obligations issued or held in book entry form on the books of the United States Department of the Treasury or obligations the principal of and interest on which are unconditionally guaranteed by the United States; (2) Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any United States Government agency if the obligations are backed by the full faith and credit of the United States; (3) Non-full faith and credit senior debt obligations issued or guaranteed by United States Government agencies; (4) Money market funds investing exclusively in the investments described in subdivisions (f)(1)-(3) of this section; (5) (A) Certificates of deposit providing for deposits secured at all times by collateral described in subdivisions (f)(1)-(3) of this section. (B) The certificates must be issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral must be held by a third party. (C) The Treasurer of State, or assigns, must have a perfected first security interest in the collateral; (6) Certificates of deposit, savings accounts, deposit accounts, or money market deposits, all of which are fully insured by the Federal Deposit Insurance Corporation; (7) Bonds or notes issued by this state or any municipality, county, or school district in this state, or any agency or instrumentality thereof; (8) Investment agreements with financial institutions or insurance companies that are rated in one (1) of the two (2) highest rating categories of a nationally recognized rating agency; (9) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm to the Treasurer of State, and the transfer of cash from the Treasurer of State to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Treasurer of State in exchange for the securities at a specified date. Repurchase agreements must satisfy the following criteria: (A) Repurchase agreements must be between the Treasurer of State and a dealer bank or securities firm described as follows: (i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or (ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and (B) The written repurchase agreement contract must include the following: (i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section; (ii) The term of the repurchase agreement may not exceed thirty (30) calendar days; (iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and (iv) (a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest. (b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and (10) Any other investment authorized by state law. Acts 2003, No. 1751, § 12.

(a) The proceeds from the sale of the bonds, together with all revenues derived by the Arkansas Development Finance Authority from any superproject financed or refinanced under this subchapter shall be deposited by the recipient, as received, into trust funds either established in the State Treasury or into accounts established outside the State Treasury in the name of the authority to accomplish the purposes of this subchapter, in amounts or portions as set forth in the resolution or trust indenture authorizing or securing the bonds issued to finance or refinance the superproject.

(b) There is created as a trust fund in the State Treasury an account designated as the "Economic Development Superprojects Project Fund" to provide for payment of all or a part of debt service on bonds issued under this subchapter and to directly fund superprojects on a pay-as-you-go basis should bonds neither be approved nor issued.

(c) (1) The Treasurer of State shall establish separate accounts and subaccounts within the fund to correspond to the applicable series of bonds. (2) In addition, there may be created in the State Treasury other funds, accounts, or subaccounts as the authority may determine to be necessary to accomplish the purposes of this subchapter.

(1) The Treasurer of State shall establish separate accounts and subaccounts within the fund to correspond to the applicable series of bonds.

(2) In addition, there may be created in the State Treasury other funds, accounts, or subaccounts as the authority may determine to be necessary to accomplish the purposes of this subchapter.

(d) All procedures and methods for application of proceeds of any series of bonds to the financing or refinancing of project costs shall be developed in consultation with and approved by the Arkansas Economic Development Commission and shall be set forth in writings and shall be maintained as part of the records of the authority.

(e) Any arrangements undertaken pursuant to subsection (b) of this section whereby a local entity will administer funds composed in whole or in part of proceeds of bonds or disbursements from the fund shall include provision for the auditing of the funds no less frequently than annually.

(f) The proceeds from the sale of the bonds together with all revenues derived by the authority from any superproject financed or refinanced under this subchapter may be invested and reinvested by the Treasurer of State in any of the following: (1) Direct obligations of the United States, including obligations issued or held in book entry form on the books of the United States Department of the Treasury or obligations the principal of and interest on which are unconditionally guaranteed by the United States; (2) Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any United States Government agency if the obligations are backed by the full faith and credit of the United States; (3) Non-full faith and credit senior debt obligations issued or guaranteed by United States Government agencies; (4) Money market funds investing exclusively in the investments described in subdivisions (f)(1)-(3) of this section; (5) (A) Certificates of deposit providing for deposits secured at all times by collateral described in subdivisions (f)(1)-(3) of this section. (B) The certificates must be issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral must be held by a third party. (C) The Treasurer of State, or assigns, must have a perfected first security interest in the collateral; (6) Certificates of deposit, savings accounts, deposit accounts, or money market deposits, all of which are fully insured by the Federal Deposit Insurance Corporation; (7) Bonds or notes issued by this state or any municipality, county, or school district in this state, or any agency or instrumentality thereof; (8) Investment agreements with financial institutions or insurance companies that are rated in one (1) of the two (2) highest rating categories of a nationally recognized rating agency; (9) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm to the Treasurer of State, and the transfer of cash from the Treasurer of State to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Treasurer of State in exchange for the securities at a specified date. Repurchase agreements must satisfy the following criteria: (A) Repurchase agreements must be between the Treasurer of State and a dealer bank or securities firm described as follows: (i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or (ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and (B) The written repurchase agreement contract must include the following: (i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section; (ii) The term of the repurchase agreement may not exceed thirty (30) calendar days; (iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and (iv) (a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest. (b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and (10) Any other investment authorized by state law.

(1) Direct obligations of the United States, including obligations issued or held in book entry form on the books of the United States Department of the Treasury or obligations the principal of and interest on which are unconditionally guaranteed by the United States;

(2) Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any United States Government agency if the obligations are backed by the full faith and credit of the United States;

(3) Non-full faith and credit senior debt obligations issued or guaranteed by United States Government agencies;

(4) Money market funds investing exclusively in the investments described in subdivisions (f)(1)-(3) of this section;

(5) (A) Certificates of deposit providing for deposits secured at all times by collateral described in subdivisions (f)(1)-(3) of this section. (B) The certificates must be issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral must be held by a third party. (C) The Treasurer of State, or assigns, must have a perfected first security interest in the collateral;

(A) Certificates of deposit providing for deposits secured at all times by collateral described in subdivisions (f)(1)-(3) of this section.

(B) The certificates must be issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral must be held by a third party.

(C) The Treasurer of State, or assigns, must have a perfected first security interest in the collateral;

(6) Certificates of deposit, savings accounts, deposit accounts, or money market deposits, all of which are fully insured by the Federal Deposit Insurance Corporation;

(7) Bonds or notes issued by this state or any municipality, county, or school district in this state, or any agency or instrumentality thereof;

(8) Investment agreements with financial institutions or insurance companies that are rated in one (1) of the two (2) highest rating categories of a nationally recognized rating agency;

(9) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm to the Treasurer of State, and the transfer of cash from the Treasurer of State to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Treasurer of State in exchange for the securities at a specified date. Repurchase agreements must satisfy the following criteria: (A) Repurchase agreements must be between the Treasurer of State and a dealer bank or securities firm described as follows: (i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or (ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and (B) The written repurchase agreement contract must include the following: (i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section; (ii) The term of the repurchase agreement may not exceed thirty (30) calendar days; (iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and (iv) (a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest. (b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(A) Repurchase agreements must be between the Treasurer of State and a dealer bank or securities firm described as follows: (i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or (ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and

(i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or

(ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and

(B) The written repurchase agreement contract must include the following: (i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section; (ii) The term of the repurchase agreement may not exceed thirty (30) calendar days; (iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and (iv) (a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest. (b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section;

(ii) The term of the repurchase agreement may not exceed thirty (30) calendar days;

(iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and

(iv) (a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest. (b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest.

(b) (1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest. (2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest.

(2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(10) Any other investment authorized by state law.

Acts 2003, No. 1751, § 12.
Ark. Code Ann. § 15-20-1316 — AR Code / Title 15 / Chapter 20 / Subchapter 13 / Section 15-20-1316
No obligations until bonds issued
Status: in_force

This subchapter shall not create any right of any character unless the first series of bonds authorized by this subchapter has been sold and delivered. Acts 2007, No. 631, § 1.

This subchapter shall not create any right of any character unless the first series of bonds authorized by this subchapter has been sold and delivered.

Acts 2007, No. 631, § 1.
Ark. Code Ann. § 15-4-3003 — AR Code / Title 15 / Chapter 4 / Subchapter 30 / Section 15-4-3003
Definitions
Status: in_force

As used in this subchapter: (1) "Authority" means the Arkansas Development Finance Authority and any successor agency or department; (2) "Bonds" means bonds issued under this subchapter; (3) "Commission" means the Arkansas Economic Development Commission; (4) "Debt service" means principal, interest, redemption premiums, if any, and trustees', paying agents', dissemination agents', and like servicing fees relative to the bonds; (5) "Develop" means to plan, design, construct, acquire by purchase or by eminent domain, own, operate, rehabilitate, lease as lessor or lessee, enter into lease-purchase agreements with respect to, lend, make grants in respect of, or install or equip any lands, buildings, improvements, machinery, equipment, or other properties of whatever nature, real, personal, or mixed; (6) "Federal Deposit Insurance Corporation" means the federal agency by that name or any successor agency that insures deposits of commercial banks; (7) "General revenues" means the revenues described and enumerated in § 19-6-201 et seq., or in any successor law; (8) "Infrastructure of a superproject" means: (A) Land acquisition; (B) Site preparation; (C) Road and highway improvements; (D) Rail spur construction; (E) Water service; (F) Wastewater treatment; (G) Employee training, which may include equipment used for the training; (H) Environmental mitigation; and (I) Training and research facilities and the necessary equipment for the facilities; (9) "Investment" means money expended by the sponsor on capital assets directly related to the superproject and does not include amounts expended in aid of the superproject by the state pursuant to this subchapter, or otherwise, or amounts expended in aid of the superproject by a local entity, however financed; (10) "Local entity" means any nonprofit corporation, county, city of the first class, city of the second class, incorporated town, improvement district, or school district in the state or any agency or instrumentality thereof, including the authority and the commission; (11) "Nationally recognized rating agency" means Moody's Investors Service, Inc., Standard & Poor's Ratings Group, or any other nationally recognized rating agency approved by the Treasurer of State; (12) (A) "New full-time permanent employee" means a position or job that was created pursuant to a signed incentive plan between the sponsor and the commission and that is filled by one (1) or more employees or contractual employees who are Arkansas taxpayers. The position or job held by the employee or employees must have been filled for at least twenty-six (26) consecutive weeks with an average of at least thirty (30) hours' work per week. (B) A contractual employee must be offered a benefits package comparable to a direct employee of the sponsor; (13) "New job" means a position for a new full-time permanent employee created at a superproject in this state but does not include a job created when an employee is shifted from an existing location in this state to a new or expanded facility if the transferred job is from or to a superproject of the sponsor or a related person; (14) "Person" means any local entity or any individual, corporation, trust, limited liability company, or partnership; (15) "Project costs" means: (A) All or any part of the costs of developing a superproject and costs incidental or appropriate to the superproject, including without limitation, all costs to the commission associated with the development or operation of a superproject in a supervisory capacity; and (B) Costs incidental or appropriate to the financing of the superproject, including without limitation, capitalized interest, costs of issuance of and appropriate reserves for the bonds, loan or commitment fees, loan or grant administration fees, and costs for engineering, legal, and other administrative and consultant services; (16) "Project fund" means the Economic Development Superprojects Project Fund created by this subchapter; (17) "Related person" means any entity or person that bears a relationship to the sponsor as described in 26 U.S.C. § 267 , as it existed on February 1, 2003; (18) "Sponsor" means a sole proprietor, partnership, corporation, limited liability company, or association taxable as a business entity or any combination of these entities; (19) "State" means the State of Arkansas; (20) "State Apportionment Fund" means the fund by that name created by § 19-5-201 or any successor law; and (21) "Superproject" means infrastructure, land, buildings, and other improvements on the land and all other machinery, apparatus, equipment, office facilities, and furnishings that are necessary, suitable, or useful by a sponsor and in which a total of at least four hundred million dollars ($400,000,000) is invested by the sponsor and at least four hundred (400) new jobs are created at the project by the sponsor. Acts 2003, No. 1751, § 2.

As used in this subchapter:

(1) "Authority" means the Arkansas Development Finance Authority and any successor agency or department;

(2) "Bonds" means bonds issued under this subchapter;

(3) "Commission" means the Arkansas Economic Development Commission;

(4) "Debt service" means principal, interest, redemption premiums, if any, and trustees', paying agents', dissemination agents', and like servicing fees relative to the bonds;

(5) "Develop" means to plan, design, construct, acquire by purchase or by eminent domain, own, operate, rehabilitate, lease as lessor or lessee, enter into lease-purchase agreements with respect to, lend, make grants in respect of, or install or equip any lands, buildings, improvements, machinery, equipment, or other properties of whatever nature, real, personal, or mixed;

(6) "Federal Deposit Insurance Corporation" means the federal agency by that name or any successor agency that insures deposits of commercial banks;

(7) "General revenues" means the revenues described and enumerated in § 19-6-201 et seq., or in any successor law;

(8) "Infrastructure of a superproject" means: (A) Land acquisition; (B) Site preparation; (C) Road and highway improvements; (D) Rail spur construction; (E) Water service; (F) Wastewater treatment; (G) Employee training, which may include equipment used for the training; (H) Environmental mitigation; and (I) Training and research facilities and the necessary equipment for the facilities;

(A) Land acquisition;

(B) Site preparation;

(C) Road and highway improvements;

(D) Rail spur construction;

(E) Water service;

(F) Wastewater treatment;

(G) Employee training, which may include equipment used for the training;

(H) Environmental mitigation; and

(I) Training and research facilities and the necessary equipment for the facilities;

(9) "Investment" means money expended by the sponsor on capital assets directly related to the superproject and does not include amounts expended in aid of the superproject by the state pursuant to this subchapter, or otherwise, or amounts expended in aid of the superproject by a local entity, however financed;

(10) "Local entity" means any nonprofit corporation, county, city of the first class, city of the second class, incorporated town, improvement district, or school district in the state or any agency or instrumentality thereof, including the authority and the commission;

(11) "Nationally recognized rating agency" means Moody's Investors Service, Inc., Standard & Poor's Ratings Group, or any other nationally recognized rating agency approved by the Treasurer of State;

(12) (A) "New full-time permanent employee" means a position or job that was created pursuant to a signed incentive plan between the sponsor and the commission and that is filled by one (1) or more employees or contractual employees who are Arkansas taxpayers. The position or job held by the employee or employees must have been filled for at least twenty-six (26) consecutive weeks with an average of at least thirty (30) hours' work per week. (B) A contractual employee must be offered a benefits package comparable to a direct employee of the sponsor;

(A) "New full-time permanent employee" means a position or job that was created pursuant to a signed incentive plan between the sponsor and the commission and that is filled by one (1) or more employees or contractual employees who are Arkansas taxpayers. The position or job held by the employee or employees must have been filled for at least twenty-six (26) consecutive weeks with an average of at least thirty (30) hours' work per week.

(B) A contractual employee must be offered a benefits package comparable to a direct employee of the sponsor;

(13) "New job" means a position for a new full-time permanent employee created at a superproject in this state but does not include a job created when an employee is shifted from an existing location in this state to a new or expanded facility if the transferred job is from or to a superproject of the sponsor or a related person;

(14) "Person" means any local entity or any individual, corporation, trust, limited liability company, or partnership;

(15) "Project costs" means: (A) All or any part of the costs of developing a superproject and costs incidental or appropriate to the superproject, including without limitation, all costs to the commission associated with the development or operation of a superproject in a supervisory capacity; and (B) Costs incidental or appropriate to the financing of the superproject, including without limitation, capitalized interest, costs of issuance of and appropriate reserves for the bonds, loan or commitment fees, loan or grant administration fees, and costs for engineering, legal, and other administrative and consultant services;

(A) All or any part of the costs of developing a superproject and costs incidental or appropriate to the superproject, including without limitation, all costs to the commission associated with the development or operation of a superproject in a supervisory capacity; and

(B) Costs incidental or appropriate to the financing of the superproject, including without limitation, capitalized interest, costs of issuance of and appropriate reserves for the bonds, loan or commitment fees, loan or grant administration fees, and costs for engineering, legal, and other administrative and consultant services;

(16) "Project fund" means the Economic Development Superprojects Project Fund created by this subchapter;

(17) "Related person" means any entity or person that bears a relationship to the sponsor as described in 26 U.S.C. § 267 , as it existed on February 1, 2003;

(18) "Sponsor" means a sole proprietor, partnership, corporation, limited liability company, or association taxable as a business entity or any combination of these entities;

(19) "State" means the State of Arkansas;

(20) "State Apportionment Fund" means the fund by that name created by § 19-5-201 or any successor law; and

(21) "Superproject" means infrastructure, land, buildings, and other improvements on the land and all other machinery, apparatus, equipment, office facilities, and furnishings that are necessary, suitable, or useful by a sponsor and in which a total of at least four hundred million dollars ($400,000,000) is invested by the sponsor and at least four hundred (400) new jobs are created at the project by the sponsor.

Acts 2003, No. 1751, § 2.
Ark. Code Ann. § 15-4-2007 — AR Code / Title 15 / Chapter 4 / Subchapter 20 / Section 15-4-2007
Application for tax incentive
Status: in_force

(a) (1) To apply for the tax incentives provided under this subchapter, a production company shall submit an application for a tax incentive and provide an estimate of total expenditures to be made in Arkansas in connection with the production. (2) The application for a tax incentive and estimate of expenditures required under subdivision (a)(1) of this section shall be filed with the Arkansas Economic Development Commission and approved by the Director of the Arkansas Economic Development Commission as eligible for the tax incentive provided by this subchapter before the commencement of production in Arkansas. (b) (1) If an application for a tax incentive is approved under subsection (a) of this section, the production company and the director shall sign a financial incentive agreement. (2) (A) The financial incentive agreement shall define the incentives to be received and the start and end date of the project. (B) The financial incentive agreement shall include the: (i) Effective date of the financial incentive agreement; (ii) Term of the financial incentive agreement, which shall be calculated from the date the financial incentive agreement is signed by the production company and the director; (iii) Incentive for which the production company may qualify; (iv) Investment threshold requirements necessary to qualify for eligibility; (v) Production company's responsibilities for certifying eligibility requirements; (vi) Production company's responsibilities for failure to meet or maintain eligibility requirements; and (vii) Whether the tax incentive in the agreement is for a rebate under § 15-4-2008 or a tax credit under § 15-4-2012 . (c) At the time the production company registers and provides the estimate of expenditures to the commission, the production company also shall designate a member or representative to work with the commission and the Film Office on the reporting of expenditures and other information necessary to qualify for the tax incentives. (d) No later than one hundred eighty (180) days after the last production expenses or costs are incurred in the production of a qualified production, the production company shall: (1) Apply to the commission for a production tax-incentive certificate; and (2) Provide a final expenditure report that includes the amount of the production company's production expenses or costs. (e) (1) Production companies are encouraged to make payments for production and postproduction expenses from a checking account from an Arkansas financial institution. (2) Direct cash payments by a production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts may be allowed if the sum of the cash payments does not exceed forty percent (40%) of the total verifiable expenditures. (3) The following are eligible expenditures: (A) Per diem expenditures by the cast or crew for lodging when accompanied by receipts; and (B) Fringe contributions being paid for work performed in this state, including: (i) Health benefits; (ii) Pension contributions; (iii) Welfare contributions; (iv) Stipends; and (v) Living allowances. (f) Expenditure reports also shall include information as required by the Revenue Division of the Department of Finance and Administration to ensure compliance with this subchapter. (g) Payments for salaries or wages shall be eligible for the tax incentive if they are reported to the division and are subject to state income taxes. (h) (1) If approved by the director, the employment tax incentive under subsection (g) of this section also entitles a state-certified production to an additional tax incentive for employing full-time residents of Arkansas. (2) The employment tax incentive under subsection (g) of this section authorizes an additional credit of ten percent (10%) for the aggregate payroll of salaries and wages to Arkansas residents who are below-the-line employees of the state-certified production. (3) The veteran hire tax credit under §§ 15-4-2005 and 15-4-2006 also entitles a state-certified production to receive an additional tax credit for employing veterans. (i) If approved by the director, the tax incentives under subsections (g) and (h) of this section may include the first five hundred thousand dollars ($500,000) of a highly compensated individual's salary. (j) Payments for penalties or fines, payments to nonprofit organizations, and payments to federal and state entities that do not pay state taxes are not eligible. (k) If a production company hires a payroll service company to handle the payroll of a production, the payroll payments otherwise allowable may be allowed as eligible expenditures if all eligible income payments to employees and independent contractors done through the payroll service are subject to Arkansas state income taxes. (l) (1) (A) Within two (2) weeks after principal photography begins, the production company shall begin filing weekly expenditure reports. (B) Failure to file weekly expenditure reports may result in a delay in the disbursement of the tax incentives provided in §§ 15-4-2005 and 15-4-2006 . (2) The weekly expenditure report shall be filed in accordance with but shall not be limited to the following: (A) Direct cash payments by the production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts shall be allowed if the sum of those cash payments does not exceed forty percent (40%) of the total verifiable expenditures; (B) Per diem expenditures by cast or crew, or both, for lodging, when accompanied by receipts, shall be allowed as eligible expenditures; and (C) Expenditure reports shall include without limitation: (i) Check identification number; (ii) Date of payment; (iii) Name of payee; (iv) Address of payee; (v) Amount paid; and (vi) Other information the division deems necessary to ensure compliance with this subsection. (m) When a production company hires a food catering service company that is located outside the state, payments otherwise allowable that are made by the out-of-state food catering service to food businesses located in Arkansas shall be allowed as eligible expenditures. (n) (1) Upon completion of filming or production, or both, in Arkansas, the production company shall file an application for a tax incentive allowed under this subchapter. (2) The application for a tax incentive shall include a proof of performance expenditure list that provides the total amount of expenditures that were made in the state in connection with the filming or production, or both, of a film and digital product that complies with this subchapter. (3) When filing the application for a tax incentive under subdivision (n)(1) of this section, the production company shall provide a final expenditure report that includes the amount of the production company's production expenses or costs. Amended by Act 2023, No. 204,§ 6, eff. 8/1/2023. Amended by Act 2023, No. 204,§ 5, eff. 8/1/2023. Amended by Act 2021, No. 797,§ 7, eff. 7/28/2021. Amended by Act 2021, No. 797,§ 6, eff. 7/28/2021. Amended by Act 2021, No. 797,§ 5, eff. 7/28/2021. Amended by Act 2021, No. 797,§ 4, eff. 7/28/2021. Amended by Act 2021, No. 474,§ 2, eff. 7/28/2021. Amended by Act 2019, No. 367,§ 7, eff. 7/24/2019. Amended by Act 2019, No. 367,§ 6, eff. 7/24/2019. Amended by Act 2019, No. 367,§ 5, eff. 7/24/2019. Amended by Act 2019, No. 367,§ 4, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 383, eff. 7/1/2019. Amended by Act 2013, No. 496,§ 7, eff. 8/16/2013. Acts 1997, No. 919, § 6; 2009, No. 816, § 1.

(a) (1) To apply for the tax incentives provided under this subchapter, a production company shall submit an application for a tax incentive and provide an estimate of total expenditures to be made in Arkansas in connection with the production. (2) The application for a tax incentive and estimate of expenditures required under subdivision (a)(1) of this section shall be filed with the Arkansas Economic Development Commission and approved by the Director of the Arkansas Economic Development Commission as eligible for the tax incentive provided by this subchapter before the commencement of production in Arkansas.

(1) To apply for the tax incentives provided under this subchapter, a production company shall submit an application for a tax incentive and provide an estimate of total expenditures to be made in Arkansas in connection with the production.

(2) The application for a tax incentive and estimate of expenditures required under subdivision (a)(1) of this section shall be filed with the Arkansas Economic Development Commission and approved by the Director of the Arkansas Economic Development Commission as eligible for the tax incentive provided by this subchapter before the commencement of production in Arkansas.

(b) (1) If an application for a tax incentive is approved under subsection (a) of this section, the production company and the director shall sign a financial incentive agreement. (2) (A) The financial incentive agreement shall define the incentives to be received and the start and end date of the project. (B) The financial incentive agreement shall include the: (i) Effective date of the financial incentive agreement; (ii) Term of the financial incentive agreement, which shall be calculated from the date the financial incentive agreement is signed by the production company and the director; (iii) Incentive for which the production company may qualify; (iv) Investment threshold requirements necessary to qualify for eligibility; (v) Production company's responsibilities for certifying eligibility requirements; (vi) Production company's responsibilities for failure to meet or maintain eligibility requirements; and (vii) Whether the tax incentive in the agreement is for a rebate under § 15-4-2008 or a tax credit under § 15-4-2012 .

(1) If an application for a tax incentive is approved under subsection (a) of this section, the production company and the director shall sign a financial incentive agreement.

(2) (A) The financial incentive agreement shall define the incentives to be received and the start and end date of the project. (B) The financial incentive agreement shall include the: (i) Effective date of the financial incentive agreement; (ii) Term of the financial incentive agreement, which shall be calculated from the date the financial incentive agreement is signed by the production company and the director; (iii) Incentive for which the production company may qualify; (iv) Investment threshold requirements necessary to qualify for eligibility; (v) Production company's responsibilities for certifying eligibility requirements; (vi) Production company's responsibilities for failure to meet or maintain eligibility requirements; and (vii) Whether the tax incentive in the agreement is for a rebate under § 15-4-2008 or a tax credit under § 15-4-2012 .

(A) The financial incentive agreement shall define the incentives to be received and the start and end date of the project.

(B) The financial incentive agreement shall include the: (i) Effective date of the financial incentive agreement; (ii) Term of the financial incentive agreement, which shall be calculated from the date the financial incentive agreement is signed by the production company and the director; (iii) Incentive for which the production company may qualify; (iv) Investment threshold requirements necessary to qualify for eligibility; (v) Production company's responsibilities for certifying eligibility requirements; (vi) Production company's responsibilities for failure to meet or maintain eligibility requirements; and (vii) Whether the tax incentive in the agreement is for a rebate under § 15-4-2008 or a tax credit under § 15-4-2012 .

(i) Effective date of the financial incentive agreement;

(ii) Term of the financial incentive agreement, which shall be calculated from the date the financial incentive agreement is signed by the production company and the director;

(iii) Incentive for which the production company may qualify;

(iv) Investment threshold requirements necessary to qualify for eligibility;

(v) Production company's responsibilities for certifying eligibility requirements;

(vi) Production company's responsibilities for failure to meet or maintain eligibility requirements; and

(vii) Whether the tax incentive in the agreement is for a rebate under § 15-4-2008 or a tax credit under § 15-4-2012 .

(c) At the time the production company registers and provides the estimate of expenditures to the commission, the production company also shall designate a member or representative to work with the commission and the Film Office on the reporting of expenditures and other information necessary to qualify for the tax incentives.

(d) No later than one hundred eighty (180) days after the last production expenses or costs are incurred in the production of a qualified production, the production company shall: (1) Apply to the commission for a production tax-incentive certificate; and (2) Provide a final expenditure report that includes the amount of the production company's production expenses or costs.

(1) Apply to the commission for a production tax-incentive certificate; and

(2) Provide a final expenditure report that includes the amount of the production company's production expenses or costs.

(e) (1) Production companies are encouraged to make payments for production and postproduction expenses from a checking account from an Arkansas financial institution. (2) Direct cash payments by a production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts may be allowed if the sum of the cash payments does not exceed forty percent (40%) of the total verifiable expenditures. (3) The following are eligible expenditures: (A) Per diem expenditures by the cast or crew for lodging when accompanied by receipts; and (B) Fringe contributions being paid for work performed in this state, including: (i) Health benefits; (ii) Pension contributions; (iii) Welfare contributions; (iv) Stipends; and (v) Living allowances.

(1) Production companies are encouraged to make payments for production and postproduction expenses from a checking account from an Arkansas financial institution.

(2) Direct cash payments by a production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts may be allowed if the sum of the cash payments does not exceed forty percent (40%) of the total verifiable expenditures.

(3) The following are eligible expenditures: (A) Per diem expenditures by the cast or crew for lodging when accompanied by receipts; and (B) Fringe contributions being paid for work performed in this state, including: (i) Health benefits; (ii) Pension contributions; (iii) Welfare contributions; (iv) Stipends; and (v) Living allowances.

(A) Per diem expenditures by the cast or crew for lodging when accompanied by receipts; and

(B) Fringe contributions being paid for work performed in this state, including: (i) Health benefits; (ii) Pension contributions; (iii) Welfare contributions; (iv) Stipends; and (v) Living allowances.

(i) Health benefits;

(ii) Pension contributions;

(iii) Welfare contributions;

(iv) Stipends; and

(v) Living allowances.

(f) Expenditure reports also shall include information as required by the Revenue Division of the Department of Finance and Administration to ensure compliance with this subchapter.

(g) Payments for salaries or wages shall be eligible for the tax incentive if they are reported to the division and are subject to state income taxes.

(h) (1) If approved by the director, the employment tax incentive under subsection (g) of this section also entitles a state-certified production to an additional tax incentive for employing full-time residents of Arkansas. (2) The employment tax incentive under subsection (g) of this section authorizes an additional credit of ten percent (10%) for the aggregate payroll of salaries and wages to Arkansas residents who are below-the-line employees of the state-certified production. (3) The veteran hire tax credit under §§ 15-4-2005 and 15-4-2006 also entitles a state-certified production to receive an additional tax credit for employing veterans.

(1) If approved by the director, the employment tax incentive under subsection (g) of this section also entitles a state-certified production to an additional tax incentive for employing full-time residents of Arkansas.

(2) The employment tax incentive under subsection (g) of this section authorizes an additional credit of ten percent (10%) for the aggregate payroll of salaries and wages to Arkansas residents who are below-the-line employees of the state-certified production.

(3) The veteran hire tax credit under §§ 15-4-2005 and 15-4-2006 also entitles a state-certified production to receive an additional tax credit for employing veterans.

(i) If approved by the director, the tax incentives under subsections (g) and (h) of this section may include the first five hundred thousand dollars ($500,000) of a highly compensated individual's salary.

(j) Payments for penalties or fines, payments to nonprofit organizations, and payments to federal and state entities that do not pay state taxes are not eligible.

(k) If a production company hires a payroll service company to handle the payroll of a production, the payroll payments otherwise allowable may be allowed as eligible expenditures if all eligible income payments to employees and independent contractors done through the payroll service are subject to Arkansas state income taxes.

(l) (1) (A) Within two (2) weeks after principal photography begins, the production company shall begin filing weekly expenditure reports. (B) Failure to file weekly expenditure reports may result in a delay in the disbursement of the tax incentives provided in §§ 15-4-2005 and 15-4-2006 . (2) The weekly expenditure report shall be filed in accordance with but shall not be limited to the following: (A) Direct cash payments by the production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts shall be allowed if the sum of those cash payments does not exceed forty percent (40%) of the total verifiable expenditures; (B) Per diem expenditures by cast or crew, or both, for lodging, when accompanied by receipts, shall be allowed as eligible expenditures; and (C) Expenditure reports shall include without limitation: (i) Check identification number; (ii) Date of payment; (iii) Name of payee; (iv) Address of payee; (v) Amount paid; and (vi) Other information the division deems necessary to ensure compliance with this subsection.

(1) (A) Within two (2) weeks after principal photography begins, the production company shall begin filing weekly expenditure reports. (B) Failure to file weekly expenditure reports may result in a delay in the disbursement of the tax incentives provided in §§ 15-4-2005 and 15-4-2006 .

(A) Within two (2) weeks after principal photography begins, the production company shall begin filing weekly expenditure reports.

(B) Failure to file weekly expenditure reports may result in a delay in the disbursement of the tax incentives provided in §§ 15-4-2005 and 15-4-2006 .

(2) The weekly expenditure report shall be filed in accordance with but shall not be limited to the following: (A) Direct cash payments by the production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts shall be allowed if the sum of those cash payments does not exceed forty percent (40%) of the total verifiable expenditures; (B) Per diem expenditures by cast or crew, or both, for lodging, when accompanied by receipts, shall be allowed as eligible expenditures; and (C) Expenditure reports shall include without limitation: (i) Check identification number; (ii) Date of payment; (iii) Name of payee; (iv) Address of payee; (v) Amount paid; and (vi) Other information the division deems necessary to ensure compliance with this subsection.

(A) Direct cash payments by the production company to Arkansas vendors, businesses, or citizens hired as cast or crew that are accompanied by receipts shall be allowed if the sum of those cash payments does not exceed forty percent (40%) of the total verifiable expenditures;

(B) Per diem expenditures by cast or crew, or both, for lodging, when accompanied by receipts, shall be allowed as eligible expenditures; and

(C) Expenditure reports shall include without limitation: (i) Check identification number; (ii) Date of payment; (iii) Name of payee; (iv) Address of payee; (v) Amount paid; and (vi) Other information the division deems necessary to ensure compliance with this subsection.

(i) Check identification number;

(ii) Date of payment;

(iii) Name of payee;

(iv) Address of payee;

(v) Amount paid; and

(vi) Other information the division deems necessary to ensure compliance with this subsection.

(m) When a production company hires a food catering service company that is located outside the state, payments otherwise allowable that are made by the out-of-state food catering service to food businesses located in Arkansas shall be allowed as eligible expenditures.

(n) (1) Upon completion of filming or production, or both, in Arkansas, the production company shall file an application for a tax incentive allowed under this subchapter. (2) The application for a tax incentive shall include a proof of performance expenditure list that provides the total amount of expenditures that were made in the state in connection with the filming or production, or both, of a film and digital product that complies with this subchapter. (3) When filing the application for a tax incentive under subdivision (n)(1) of this section, the production company shall provide a final expenditure report that includes the amount of the production company's production expenses or costs.

(1) Upon completion of filming or production, or both, in Arkansas, the production company shall file an application for a tax incentive allowed under this subchapter.

(2) The application for a tax incentive shall include a proof of performance expenditure list that provides the total amount of expenditures that were made in the state in connection with the filming or production, or both, of a film and digital product that complies with this subchapter.

(3) When filing the application for a tax incentive under subdivision (n)(1) of this section, the production company shall provide a final expenditure report that includes the amount of the production company's production expenses or costs.

Amended by Act 2023, No. 204,§ 6, eff. 8/1/2023.

Amended by Act 2023, No. 204,§ 5, eff. 8/1/2023.

Amended by Act 2021, No. 797,§ 7, eff. 7/28/2021.

Amended by Act 2021, No. 797,§ 6, eff. 7/28/2021.

Amended by Act 2021, No. 797,§ 5, eff. 7/28/2021.

Amended by Act 2021, No. 797,§ 4, eff. 7/28/2021.

Amended by Act 2021, No. 474,§ 2, eff. 7/28/2021.

Amended by Act 2019, No. 367,§ 7, eff. 7/24/2019.

Amended by Act 2019, No. 367,§ 6, eff. 7/24/2019.

Amended by Act 2019, No. 367,§ 5, eff. 7/24/2019.

Amended by Act 2019, No. 367,§ 4, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 383, eff. 7/1/2019.

Amended by Act 2013, No. 496,§ 7, eff. 8/16/2013.

Acts 1997, No. 919, § 6; 2009, No. 816, § 1.