Ark. Code Ann. § 15-2-101 — AR Code / Title 15 / Chapter 2 / Section 15-2-101
Enactment and text
Status: in_force

The Southern Growth Policies Agreement is hereby enacted into law and entered into by this State with all other states legally joining therein in the form substantially as follows: SOUTHERN GROWTH POLICIES AGREEMENT ARTICLE I Findings and Purposes (a) The party states find that the South has a sense of community based on common social, cultural, and economic needs and fostered by a regional tradition. There are vast potentialities for mutual improvement of each state in the region by cooperative planning for the development, conservation, and efficient utilization of human and natural resources in a geographic area large enough to afford a high degree of flexibility in identifying and taking maximum advantage of opportunities for healthy and beneficial growth. The independence of each state and the special needs of subregions are recognized and are to be safeguarded. Accordingly, the cooperation resulting from this Agreement is intended to assist the states in meeting their own problems by enhancing their abilities to recognize and analyze regional opportunities and take account of regional influences in planning and implementing their public policies. (b) The purposes of this agreement are to provide: 1. Improved facilities and procedures for study, analysis, and planning of governmental policies, programs, and activities of regional significance; 2. Assistance in the prevention of interstate conflicts and the promotion of regional cooperation; 3. Mechanisms for the coordination of state and local interests on a regional basis; 4. An agency to assist the states in accomplishing the foregoing. ARTICLE II The Board (a) There is hereby created the Southern Growth Policies Board, hereinafter called "the board." (b) The board shall consist of five (5) members from each party state, as follows: 1. The Governor; 2. One (1) member appointed by the Speaker of the House of Representatives to serve at his pleasure; 3. One (1) member appointed by the President Pro Tempore of the Senate to serve at his pleasure; and 4. Two (2) residents of the state who shall be appointed by the Governor to serve at his pleasure. (c) In making appointments pursuant to paragraph (b)4, a Governor shall, to the greatest extent practicable, select persons who, along with the other members serving pursuant to paragraph (b), will make the state's representation on the board broadly representative of the several socio-economic elements within his state. (d) 1. A Governor may be represented by an alternate with power to act in his place and stead, if notice of the designation of such alternate is given to the board in such manner as its bylaws may provide. 2. A member of the board serving pursuant to paragraph (b)4 of this Article may be represented by another resident of his state who may participate in his place and stead, except that he shall not vote; provided that notice of the identity and designation of the representative selected by the member is given to the board in such manner as its bylaws may provide. ARTICLE III Powers (a) The board shall prepare and keep current a Statement of Regional Objectives, including recommended approaches to regional problems. The statement may also identify projects deemed by the board to be of regional significance. The statement shall be available in its initial form two (2) years from the effective date of this agreement and shall be amended or revised no less frequently than once every six (6) years. The statement shall be in such detail as the board may prescribe. Amendments, revisions, supplements, or evaluations may be transmitted at any time. An annual commentary on the statement shall be submitted at a regular time to be determined by the board. (b) In addition to powers conferred on the board elsewhere in this agreement, the board shall have the power to make or commission studies, investigations, and recommendations with respect to: 1. The planning and programming of projects of interstate or regional significance; 2. Planning and scheduling of governmental services and programs which would be of assistance to the orderly growth and prosperity of the region and to the well-being of its population; 3. Effective utilization of such federal assistance as may be available on a regional basis or as may have an interstate or regional impact; 4. Measure for influencing population distribution, land use, development of new communities, and redevelopment of existing ones; 5. Transportation patterns and systems of interstate and regional significance; 6. Improved utilization of human and natural resources for the advancement of the region as a whole; 7. Any other matters of a planning, data collection, or informational character that the board may determine to be of value to the party states. ARTICLE IV Avoidance of Duplication (a) To avoid duplication of effort and in the interest of economy, the board shall make use of existing studies, surveys, plans, and data and other materials in the possession of the governmental agencies of the party states and their respective subdivisions or in the possession of other interstate agencies. Each such agency, within available appropriations and if not expressly prevented or limited by law, is hereby authorized to make such materials available to the board and to otherwise assist it in the performance of its functions. At the request of the board, each such agency is further authorized to provide information regarding plans and programs affecting the region, or any subarea thereof, so that the board may have available to it current information with respect thereto. (b) The board shall use qualified public and private agencies to make investigations and conduct research, but if it is unable to secure the undertaking of such investigations or original research by a qualified public or private agency, it shall have the power to make its own investigations and conduct its own research. The board may make contracts with any public or private agencies or private persons or entities for the undertaking of such investigations or original research within its purview. (c) In general, the policy of paragraph (b) of this Article shall apply to the activities of the board relating to its Statement of Regional Objectives, but nothing herein shall be construed to require the board to rely on the services of other persons or agencies in developing the Statement of Regional Objectives or any amendment, supplement, or revision thereof. ARTICLE V Advisory Committees The board shall establish a Local Government Advisory Committee. In addition, the board may establish advisory committees representative of subregions of the South, civic and community interests, industry, agriculture, labor, or other categories or any combinations thereof. Unless the laws of a party state contain a contrary requirement, any public official of the party state or a subdivision thereof may serve on an advisory committee established pursuant hereto and such service may be considered as a duty of his regular office or employment. ARTICLE VI Internal Management of the Board (a) The members of the board shall be entitled to one (1) vote each. No action of the board shall be binding unless taken at a meeting at which a majority of the total number of votes on the board are cast in favor thereof. Action of the board shall be only at a meeting at which a majority of the members or their alternates are present. The Board shall meet at least once a year. In its bylaws, and subject to such directions and limitations as may be contained therein, the board may delegate the exercise of any of its powers relating to internal administration and management to an executive committee or the executive director. In no event shall any such delegation include final approval of: 1. A budget or appropriation request; 2. The Statement of Regional Objectives or any amendment, supplement, or revision thereof; 3. Official comments on or recommendations with respect to projects of interstate or regional significance; 4. The annual report. (b) To assist in the expeditious conduct of its business when the full board is not meeting, the board shall elect an executive committee of not to exceed seventeen (17) members, including at least one (1) member from each party state. The executive committee, subject to the provisions of this agreement and consistent with the policies of the board, shall be constituted and function as provided in the bylaws of the board. One-half (1/2) of the membership of the executive committee shall consist of Governors, and the remainder shall consist of other members of the board, except that at any time when there is an odd number of members on the executive committee, the number of Governors shall be one (1) less than one-half (1/2) of the total membership. The members of the executive committee shall serve for terms of two (2) years, except that members elected to the first executive committee shall be elected as follows: one (1) less than one-half (1/2) of the membership for two (2) years and the remainder for one (1) year. The chairman, chairman-elect, vice-chairman and treasurer of the board shall be members of the executive committee and anything in this paragraph to the contrary notwithstanding shall serve during their continuance in these offices. Vacancies in the executive committee shall not affect its authority to act, but the board at its next regularly ensuing meeting following the occurrence of any vacancy shall fill it for the unexpired term. (c) The board shall have a seal. (d) The board shall elect, from among its members, a chairman, a chairman-elect, a vice-chairman and a treasurer. Elections shall be annual. The chairman-elect shall succeed to the office of chairman for the year following his service as chairman-elect. For purposes of the election and service of officers of the board, the year shall be deemed to commence at the conclusion of the annual meeting of the board and terminate at the conclusion of the next annual meeting of the board. The board shall provide for the appointment of an executive director. Such executive director shall serve at the pleasure of the board, and together with the treasurer and such other personnel as the board may deem appropriate shall be bonded in such amounts as the board shall determine. The executive director shall be secretary. (e) The executive director, subject to the policy set forth in this agreement and any applicable directions given by the board, may make contracts on behalf of the board. (f) Irrespective of the civil service, personnel, or other merit system laws of any of the party states, the executive director, subject to the approval of the board, shall appoint, remove, or discharge such personnel as may be necessary for the performance of the functions of the board, and shall fix the duties and compensation of such personnel. The board in its bylaws shall provide for the personnel policies and programs of the board. (g) The board may borrow, accept, or contract for the services of personnel from any party jurisdiction, the United States, or any subdivision or agency of the aforementioned governments, or from any agency of two (2) or more of the party jurisdictions or their subdivisions. (h) The board may accept for any of its purposes and functions under this agreement any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency or from any person, firm, association, foundation, or corporation, and may receive, utilize, and dispose of the same. Any donation or grant accepted by the board pursuant to this paragraph or services borrowed pursuant to paragraph (g) of this Article shall be reported in the annual report of the board. Such report shall include the nature, amount, and conditions, if any, of the donation, grant, or services borrowed, and the identity of the donor or lender. (i) The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein. (j) The board shall adopt bylaws for the conduct of its business and shall have the power to amend and rescind these bylaws. The board shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendment thereto with the appropriate agency or officer in each of the party states. (k) The board annually shall make to the governor and legislature of each party state a report covering the activities of the board for the preceding year. The board at any time may make such additional reports and transmit such studies as it may deem desirable. (l) The board may do any other or additional things appropriate to implement powers conferred upon it by this agreement. ARTICLE VII Finance (a) The board shall advise the Governor or designated officer or officers of each party state of its budget of estimated expenditures for such period as may be required by the laws of that party state. Each of the board's budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. (b) The total amount of appropriation requests under any budget shall be apportioned among the party states. Such apportionment shall be in accordance with the following formula: 1. One-third (1/3) in equal shares; 2. One-third (1/3) in the proportion that the population of a party state bears to the population of all party states; and 3. One-third (1/3) in the proportion that the per capita income in a party state bears to the per capita income in all party states. In implementing this formula, the board shall employ the most recent authoritative sources of information and shall specify the sources used. (c) The board shall not pledge the credit of any party state. The board may meet any of its obligations in whole or in part with funds available to it pursuant to Article VI(h) of this agreement, provided that the board takes specific action setting aside such funds prior to incurring an obligation to be met in whole or in part in such manner. Except where the board makes use of funds available to it pursuant to Article VI(h), or borrows pursuant to this paragraph, the board shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. The board may borrow against anticipated revenues for terms not to exceed two (2) years, but in any such event the credit pledged shall be that of the board and not of a party state. (d) The board shall keep accurate accounts of all receipts and disbursements of the board, which shall be subject to the audit and accounting procedures established by its bylaws. However, all receipts and disbursements of funds handled by the board shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the board. (e) The accounts of the board shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the board. (f) Nothing contained herein shall be construed to prevent board compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the board. ARTICLE VIII Cooperation with the Federal Government and Other Governmental Entities Each party state is hereby authorized to participate in cooperative or joint planning undertakings with the federal government, and any appropriate agency or agencies thereof, or with any interstate agency or agencies. Such participation shall be at the instance of the Governor or in such manner as state law may provide or authorize. The board may facilitate the work of state representatives in any joint interstate or cooperative federal-state undertaking authorized by this Article, and each such state shall keep the board advised of its activities in respect of such undertakings, to the extent that they have interstate or regional significance. ARTICLE IX Subregional Activities The board may undertake studies or investigations centering on the problems of one or more selected subareas within the region; provided that, in its judgment, such studies or investigations will have value as demonstrations for similar or other areas within the region. If a study or investigation that would be of primary benefit to a given state, unit of local government, or intrastate or interstate area is proposed, and if the board finds that it is not justified in undertaking the work for its regional value as a demonstration, the board may undertake the study or investigation as a special project. In any such event, it shall be a condition precedent that satisfactory financing and personnel arrangements be concluded to assure that the party or parties benefited bear all costs which the board determines that it would be inequitable for it to assume. Prior to undertaking any study or investigation pursuant to this Article as a special project, the board shall make reasonable efforts to secure the undertaking of the work by another responsible public or private entity in accordance with the policy set forth in Article IV(b). ARTICLE X Comprehensive Land Use Planning If any two (2) or more contiguous party states desire to prepare a single or consolidated comprehensive land use plan, or a land use plan for any interstate area lying partly within each such state, the governors of the states involved may designate the board as their joint agency for the purpose. The board shall accept such designation and carry out such responsibility, provided that the states involved make arrangements satisfactory to the board to reimburse it or otherwise provide the resources with which the land use plan is to be prepared. Nothing contained in this Article shall be construed to deny the availability for use in the preparation of any such plan of data and information already in the possession of the board or to require payment on account of the use thereof in addition to payments otherwise required to be made pursuant to other provisions of this agreement. ARTICLE XI Compacts and Agencies Unaffected Nothing in this agreement shall be construed to: 1. Affect the powers or jurisdiction of any agency of a party state or any subdivision thereof; 2. Affect the rights or obligations of any governmental units, agencies, or officials, or of any private persons or entities conferred or imposed by any interstate or interstate-federal compacts to which any one or more states participating herein are parties; 3. Impinge on the jurisdiction of any existing interstate-federal mechanism for regional planning or development. ARTICLE XII Eligible Parties; Entry into and Withdrawal (a) This agreement shall have as eligible parties the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the territories of Puerto Rico and the Virgin Islands. (b) Any eligible state may enter into this agreement, and it shall become binding thereon when it has adopted the same, provided that in order to enter into initial effect, adoption by at least five (5) states shall be required. (c) Adoption of the agreement may be either by enactment thereof or by adherence thereto by the Governor; provided that in the absence of enactment, adherence by the Governor shall be sufficient to make his state a party only until December 31, 1973. During any period when a state is participating in this agreement through gubernatorial action, the Governor may provide to the board an equitable share of the financial support of the board from any source available to him. Nothing in this paragraph shall be construed to require a governor to take action contrary to the constitution or laws of his state. (d) Except for a withdrawal effective on December 31, 1973, in accordance with paragraph (c) of this Article, any party state may withdraw from this agreement by enacting a statute repealing the same, but no such withdrawal shall take effect until one (1) year after the Governor of the withdrawing state has given notice in writing of the withdrawal to the governors of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal. ARTICLE XIII Construction and Severability This agreement shall be liberally construed so as to effectuate the purposes thereof. The provisions of this agreement shall be severable, and if any phrase, clause, sentence, or provision of this agreement is declared to be contrary to the constitution of any state or of the United States, or the application thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this agreement and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this agreement shall be held contrary to the constitution of any state participating therein, the agreement shall remain in full force and effect as to the state affected as to all severable matters. Amended by Act 2013, No. 1287,§ 2, eff. 8/16/2013. Acts 1973, No. 327, § 1; 1979, No. 429, § 1; A.S.A. 1947, § 9-1501.

The Southern Growth Policies Agreement is hereby enacted into law and entered into by this State with all other states legally joining therein in the form substantially as follows:

SOUTHERN GROWTH POLICIES AGREEMENT

ARTICLE I Findings and Purposes (a) The party states find that the South has a sense of community based on common social, cultural, and economic needs and fostered by a regional tradition. There are vast potentialities for mutual improvement of each state in the region by cooperative planning for the development, conservation, and efficient utilization of human and natural resources in a geographic area large enough to afford a high degree of flexibility in identifying and taking maximum advantage of opportunities for healthy and beneficial growth. The independence of each state and the special needs of subregions are recognized and are to be safeguarded. Accordingly, the cooperation resulting from this Agreement is intended to assist the states in meeting their own problems by enhancing their abilities to recognize and analyze regional opportunities and take account of regional influences in planning and implementing their public policies. (b) The purposes of this agreement are to provide: 1. Improved facilities and procedures for study, analysis, and planning of governmental policies, programs, and activities of regional significance; 2. Assistance in the prevention of interstate conflicts and the promotion of regional cooperation; 3. Mechanisms for the coordination of state and local interests on a regional basis; 4. An agency to assist the states in accomplishing the foregoing.

(a) The party states find that the South has a sense of community based on common social, cultural, and economic needs and fostered by a regional tradition. There are vast potentialities for mutual improvement of each state in the region by cooperative planning for the development, conservation, and efficient utilization of human and natural resources in a geographic area large enough to afford a high degree of flexibility in identifying and taking maximum advantage of opportunities for healthy and beneficial growth. The independence of each state and the special needs of subregions are recognized and are to be safeguarded. Accordingly, the cooperation resulting from this Agreement is intended to assist the states in meeting their own problems by enhancing their abilities to recognize and analyze regional opportunities and take account of regional influences in planning and implementing their public policies.

(b) The purposes of this agreement are to provide: 1. Improved facilities and procedures for study, analysis, and planning of governmental policies, programs, and activities of regional significance; 2. Assistance in the prevention of interstate conflicts and the promotion of regional cooperation; 3. Mechanisms for the coordination of state and local interests on a regional basis; 4. An agency to assist the states in accomplishing the foregoing.

1. Improved facilities and procedures for study, analysis, and planning of governmental policies, programs, and activities of regional significance;

2. Assistance in the prevention of interstate conflicts and the promotion of regional cooperation;

3. Mechanisms for the coordination of state and local interests on a regional basis;

4. An agency to assist the states in accomplishing the foregoing.

ARTICLE II The Board (a) There is hereby created the Southern Growth Policies Board, hereinafter called "the board." (b) The board shall consist of five (5) members from each party state, as follows: 1. The Governor; 2. One (1) member appointed by the Speaker of the House of Representatives to serve at his pleasure; 3. One (1) member appointed by the President Pro Tempore of the Senate to serve at his pleasure; and 4. Two (2) residents of the state who shall be appointed by the Governor to serve at his pleasure. (c) In making appointments pursuant to paragraph (b)4, a Governor shall, to the greatest extent practicable, select persons who, along with the other members serving pursuant to paragraph (b), will make the state's representation on the board broadly representative of the several socio-economic elements within his state. (d) 1. A Governor may be represented by an alternate with power to act in his place and stead, if notice of the designation of such alternate is given to the board in such manner as its bylaws may provide. 2. A member of the board serving pursuant to paragraph (b)4 of this Article may be represented by another resident of his state who may participate in his place and stead, except that he shall not vote; provided that notice of the identity and designation of the representative selected by the member is given to the board in such manner as its bylaws may provide.

(a) There is hereby created the Southern Growth Policies Board, hereinafter called "the board."

(b) The board shall consist of five (5) members from each party state, as follows: 1. The Governor; 2. One (1) member appointed by the Speaker of the House of Representatives to serve at his pleasure; 3. One (1) member appointed by the President Pro Tempore of the Senate to serve at his pleasure; and 4. Two (2) residents of the state who shall be appointed by the Governor to serve at his pleasure.

1. The Governor;

2. One (1) member appointed by the Speaker of the House of Representatives to serve at his pleasure;

3. One (1) member appointed by the President Pro Tempore of the Senate to serve at his pleasure; and

4. Two (2) residents of the state who shall be appointed by the Governor to serve at his pleasure.

(c) In making appointments pursuant to paragraph (b)4, a Governor shall, to the greatest extent practicable, select persons who, along with the other members serving pursuant to paragraph (b), will make the state's representation on the board broadly representative of the several socio-economic elements within his state.

(d) 1. A Governor may be represented by an alternate with power to act in his place and stead, if notice of the designation of such alternate is given to the board in such manner as its bylaws may provide. 2. A member of the board serving pursuant to paragraph (b)4 of this Article may be represented by another resident of his state who may participate in his place and stead, except that he shall not vote; provided that notice of the identity and designation of the representative selected by the member is given to the board in such manner as its bylaws may provide.

1. A Governor may be represented by an alternate with power to act in his place and stead, if notice of the designation of such alternate is given to the board in such manner as its bylaws may provide.

2. A member of the board serving pursuant to paragraph (b)4 of this Article may be represented by another resident of his state who may participate in his place and stead, except that he shall not vote; provided that notice of the identity and designation of the representative selected by the member is given to the board in such manner as its bylaws may provide.

ARTICLE III Powers (a) The board shall prepare and keep current a Statement of Regional Objectives, including recommended approaches to regional problems. The statement may also identify projects deemed by the board to be of regional significance. The statement shall be available in its initial form two (2) years from the effective date of this agreement and shall be amended or revised no less frequently than once every six (6) years. The statement shall be in such detail as the board may prescribe. Amendments, revisions, supplements, or evaluations may be transmitted at any time. An annual commentary on the statement shall be submitted at a regular time to be determined by the board. (b) In addition to powers conferred on the board elsewhere in this agreement, the board shall have the power to make or commission studies, investigations, and recommendations with respect to: 1. The planning and programming of projects of interstate or regional significance; 2. Planning and scheduling of governmental services and programs which would be of assistance to the orderly growth and prosperity of the region and to the well-being of its population; 3. Effective utilization of such federal assistance as may be available on a regional basis or as may have an interstate or regional impact; 4. Measure for influencing population distribution, land use, development of new communities, and redevelopment of existing ones; 5. Transportation patterns and systems of interstate and regional significance; 6. Improved utilization of human and natural resources for the advancement of the region as a whole; 7. Any other matters of a planning, data collection, or informational character that the board may determine to be of value to the party states.

(a) The board shall prepare and keep current a Statement of Regional Objectives, including recommended approaches to regional problems. The statement may also identify projects deemed by the board to be of regional significance. The statement shall be available in its initial form two (2) years from the effective date of this agreement and shall be amended or revised no less frequently than once every six (6) years. The statement shall be in such detail as the board may prescribe. Amendments, revisions, supplements, or evaluations may be transmitted at any time. An annual commentary on the statement shall be submitted at a regular time to be determined by the board.

(b) In addition to powers conferred on the board elsewhere in this agreement, the board shall have the power to make or commission studies, investigations, and recommendations with respect to: 1. The planning and programming of projects of interstate or regional significance; 2. Planning and scheduling of governmental services and programs which would be of assistance to the orderly growth and prosperity of the region and to the well-being of its population; 3. Effective utilization of such federal assistance as may be available on a regional basis or as may have an interstate or regional impact; 4. Measure for influencing population distribution, land use, development of new communities, and redevelopment of existing ones; 5. Transportation patterns and systems of interstate and regional significance; 6. Improved utilization of human and natural resources for the advancement of the region as a whole; 7. Any other matters of a planning, data collection, or informational character that the board may determine to be of value to the party states.

1. The planning and programming of projects of interstate or regional significance;

2. Planning and scheduling of governmental services and programs which would be of assistance to the orderly growth and prosperity of the region and to the well-being of its population;

3. Effective utilization of such federal assistance as may be available on a regional basis or as may have an interstate or regional impact;

4. Measure for influencing population distribution, land use, development of new communities, and redevelopment of existing ones;

5. Transportation patterns and systems of interstate and regional significance;

6. Improved utilization of human and natural resources for the advancement of the region as a whole;

7. Any other matters of a planning, data collection, or informational character that the board may determine to be of value to the party states.

ARTICLE IV Avoidance of Duplication (a) To avoid duplication of effort and in the interest of economy, the board shall make use of existing studies, surveys, plans, and data and other materials in the possession of the governmental agencies of the party states and their respective subdivisions or in the possession of other interstate agencies. Each such agency, within available appropriations and if not expressly prevented or limited by law, is hereby authorized to make such materials available to the board and to otherwise assist it in the performance of its functions. At the request of the board, each such agency is further authorized to provide information regarding plans and programs affecting the region, or any subarea thereof, so that the board may have available to it current information with respect thereto. (b) The board shall use qualified public and private agencies to make investigations and conduct research, but if it is unable to secure the undertaking of such investigations or original research by a qualified public or private agency, it shall have the power to make its own investigations and conduct its own research. The board may make contracts with any public or private agencies or private persons or entities for the undertaking of such investigations or original research within its purview. (c) In general, the policy of paragraph (b) of this Article shall apply to the activities of the board relating to its Statement of Regional Objectives, but nothing herein shall be construed to require the board to rely on the services of other persons or agencies in developing the Statement of Regional Objectives or any amendment, supplement, or revision thereof.

(a) To avoid duplication of effort and in the interest of economy, the board shall make use of existing studies, surveys, plans, and data and other materials in the possession of the governmental agencies of the party states and their respective subdivisions or in the possession of other interstate agencies. Each such agency, within available appropriations and if not expressly prevented or limited by law, is hereby authorized to make such materials available to the board and to otherwise assist it in the performance of its functions. At the request of the board, each such agency is further authorized to provide information regarding plans and programs affecting the region, or any subarea thereof, so that the board may have available to it current information with respect thereto.

(b) The board shall use qualified public and private agencies to make investigations and conduct research, but if it is unable to secure the undertaking of such investigations or original research by a qualified public or private agency, it shall have the power to make its own investigations and conduct its own research. The board may make contracts with any public or private agencies or private persons or entities for the undertaking of such investigations or original research within its purview.

(c) In general, the policy of paragraph (b) of this Article shall apply to the activities of the board relating to its Statement of Regional Objectives, but nothing herein shall be construed to require the board to rely on the services of other persons or agencies in developing the Statement of Regional Objectives or any amendment, supplement, or revision thereof.

ARTICLE V Advisory Committees The board shall establish a Local Government Advisory Committee. In addition, the board may establish advisory committees representative of subregions of the South, civic and community interests, industry, agriculture, labor, or other categories or any combinations thereof. Unless the laws of a party state contain a contrary requirement, any public official of the party state or a subdivision thereof may serve on an advisory committee established pursuant hereto and such service may be considered as a duty of his regular office or employment.

The board shall establish a Local Government Advisory Committee. In addition, the board may establish advisory committees representative of subregions of the South, civic and community interests, industry, agriculture, labor, or other categories or any combinations thereof. Unless the laws of a party state contain a contrary requirement, any public official of the party state or a subdivision thereof may serve on an advisory committee established pursuant hereto and such service may be considered as a duty of his regular office or employment.

ARTICLE VI Internal Management of the Board (a) The members of the board shall be entitled to one (1) vote each. No action of the board shall be binding unless taken at a meeting at which a majority of the total number of votes on the board are cast in favor thereof. Action of the board shall be only at a meeting at which a majority of the members or their alternates are present. The Board shall meet at least once a year. In its bylaws, and subject to such directions and limitations as may be contained therein, the board may delegate the exercise of any of its powers relating to internal administration and management to an executive committee or the executive director. In no event shall any such delegation include final approval of: 1. A budget or appropriation request; 2. The Statement of Regional Objectives or any amendment, supplement, or revision thereof; 3. Official comments on or recommendations with respect to projects of interstate or regional significance; 4. The annual report. (b) To assist in the expeditious conduct of its business when the full board is not meeting, the board shall elect an executive committee of not to exceed seventeen (17) members, including at least one (1) member from each party state. The executive committee, subject to the provisions of this agreement and consistent with the policies of the board, shall be constituted and function as provided in the bylaws of the board. One-half (1/2) of the membership of the executive committee shall consist of Governors, and the remainder shall consist of other members of the board, except that at any time when there is an odd number of members on the executive committee, the number of Governors shall be one (1) less than one-half (1/2) of the total membership. The members of the executive committee shall serve for terms of two (2) years, except that members elected to the first executive committee shall be elected as follows: one (1) less than one-half (1/2) of the membership for two (2) years and the remainder for one (1) year. The chairman, chairman-elect, vice-chairman and treasurer of the board shall be members of the executive committee and anything in this paragraph to the contrary notwithstanding shall serve during their continuance in these offices. Vacancies in the executive committee shall not affect its authority to act, but the board at its next regularly ensuing meeting following the occurrence of any vacancy shall fill it for the unexpired term. (c) The board shall have a seal. (d) The board shall elect, from among its members, a chairman, a chairman-elect, a vice-chairman and a treasurer. Elections shall be annual. The chairman-elect shall succeed to the office of chairman for the year following his service as chairman-elect. For purposes of the election and service of officers of the board, the year shall be deemed to commence at the conclusion of the annual meeting of the board and terminate at the conclusion of the next annual meeting of the board. The board shall provide for the appointment of an executive director. Such executive director shall serve at the pleasure of the board, and together with the treasurer and such other personnel as the board may deem appropriate shall be bonded in such amounts as the board shall determine. The executive director shall be secretary. (e) The executive director, subject to the policy set forth in this agreement and any applicable directions given by the board, may make contracts on behalf of the board. (f) Irrespective of the civil service, personnel, or other merit system laws of any of the party states, the executive director, subject to the approval of the board, shall appoint, remove, or discharge such personnel as may be necessary for the performance of the functions of the board, and shall fix the duties and compensation of such personnel. The board in its bylaws shall provide for the personnel policies and programs of the board. (g) The board may borrow, accept, or contract for the services of personnel from any party jurisdiction, the United States, or any subdivision or agency of the aforementioned governments, or from any agency of two (2) or more of the party jurisdictions or their subdivisions. (h) The board may accept for any of its purposes and functions under this agreement any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency or from any person, firm, association, foundation, or corporation, and may receive, utilize, and dispose of the same. Any donation or grant accepted by the board pursuant to this paragraph or services borrowed pursuant to paragraph (g) of this Article shall be reported in the annual report of the board. Such report shall include the nature, amount, and conditions, if any, of the donation, grant, or services borrowed, and the identity of the donor or lender. (i) The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein. (j) The board shall adopt bylaws for the conduct of its business and shall have the power to amend and rescind these bylaws. The board shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendment thereto with the appropriate agency or officer in each of the party states. (k) The board annually shall make to the governor and legislature of each party state a report covering the activities of the board for the preceding year. The board at any time may make such additional reports and transmit such studies as it may deem desirable. (l) The board may do any other or additional things appropriate to implement powers conferred upon it by this agreement.

(a) The members of the board shall be entitled to one (1) vote each. No action of the board shall be binding unless taken at a meeting at which a majority of the total number of votes on the board are cast in favor thereof. Action of the board shall be only at a meeting at which a majority of the members or their alternates are present. The Board shall meet at least once a year. In its bylaws, and subject to such directions and limitations as may be contained therein, the board may delegate the exercise of any of its powers relating to internal administration and management to an executive committee or the executive director. In no event shall any such delegation include final approval of: 1. A budget or appropriation request; 2. The Statement of Regional Objectives or any amendment, supplement, or revision thereof; 3. Official comments on or recommendations with respect to projects of interstate or regional significance; 4. The annual report.

1. A budget or appropriation request;

2. The Statement of Regional Objectives or any amendment, supplement, or revision thereof;

3. Official comments on or recommendations with respect to projects of interstate or regional significance;

4. The annual report.

(b) To assist in the expeditious conduct of its business when the full board is not meeting, the board shall elect an executive committee of not to exceed seventeen (17) members, including at least one (1) member from each party state. The executive committee, subject to the provisions of this agreement and consistent with the policies of the board, shall be constituted and function as provided in the bylaws of the board. One-half (1/2) of the membership of the executive committee shall consist of Governors, and the remainder shall consist of other members of the board, except that at any time when there is an odd number of members on the executive committee, the number of Governors shall be one (1) less than one-half (1/2) of the total membership. The members of the executive committee shall serve for terms of two (2) years, except that members elected to the first executive committee shall be elected as follows: one (1) less than one-half (1/2) of the membership for two (2) years and the remainder for one (1) year. The chairman, chairman-elect, vice-chairman and treasurer of the board shall be members of the executive committee and anything in this paragraph to the contrary notwithstanding shall serve during their continuance in these offices. Vacancies in the executive committee shall not affect its authority to act, but the board at its next regularly ensuing meeting following the occurrence of any vacancy shall fill it for the unexpired term.

(c) The board shall have a seal.

(d) The board shall elect, from among its members, a chairman, a chairman-elect, a vice-chairman and a treasurer. Elections shall be annual. The chairman-elect shall succeed to the office of chairman for the year following his service as chairman-elect. For purposes of the election and service of officers of the board, the year shall be deemed to commence at the conclusion of the annual meeting of the board and terminate at the conclusion of the next annual meeting of the board. The board shall provide for the appointment of an executive director. Such executive director shall serve at the pleasure of the board, and together with the treasurer and such other personnel as the board may deem appropriate shall be bonded in such amounts as the board shall determine. The executive director shall be secretary.

(e) The executive director, subject to the policy set forth in this agreement and any applicable directions given by the board, may make contracts on behalf of the board.

(f) Irrespective of the civil service, personnel, or other merit system laws of any of the party states, the executive director, subject to the approval of the board, shall appoint, remove, or discharge such personnel as may be necessary for the performance of the functions of the board, and shall fix the duties and compensation of such personnel. The board in its bylaws shall provide for the personnel policies and programs of the board.

(g) The board may borrow, accept, or contract for the services of personnel from any party jurisdiction, the United States, or any subdivision or agency of the aforementioned governments, or from any agency of two (2) or more of the party jurisdictions or their subdivisions.

(h) The board may accept for any of its purposes and functions under this agreement any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency or from any person, firm, association, foundation, or corporation, and may receive, utilize, and dispose of the same. Any donation or grant accepted by the board pursuant to this paragraph or services borrowed pursuant to paragraph (g) of this Article shall be reported in the annual report of the board. Such report shall include the nature, amount, and conditions, if any, of the donation, grant, or services borrowed, and the identity of the donor or lender.

(i) The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein.

(j) The board shall adopt bylaws for the conduct of its business and shall have the power to amend and rescind these bylaws. The board shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendment thereto with the appropriate agency or officer in each of the party states.

(k) The board annually shall make to the governor and legislature of each party state a report covering the activities of the board for the preceding year. The board at any time may make such additional reports and transmit such studies as it may deem desirable.

(l) The board may do any other or additional things appropriate to implement powers conferred upon it by this agreement.

ARTICLE VII Finance (a) The board shall advise the Governor or designated officer or officers of each party state of its budget of estimated expenditures for such period as may be required by the laws of that party state. Each of the board's budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. (b) The total amount of appropriation requests under any budget shall be apportioned among the party states. Such apportionment shall be in accordance with the following formula: 1. One-third (1/3) in equal shares; 2. One-third (1/3) in the proportion that the population of a party state bears to the population of all party states; and 3. One-third (1/3) in the proportion that the per capita income in a party state bears to the per capita income in all party states. In implementing this formula, the board shall employ the most recent authoritative sources of information and shall specify the sources used. (c) The board shall not pledge the credit of any party state. The board may meet any of its obligations in whole or in part with funds available to it pursuant to Article VI(h) of this agreement, provided that the board takes specific action setting aside such funds prior to incurring an obligation to be met in whole or in part in such manner. Except where the board makes use of funds available to it pursuant to Article VI(h), or borrows pursuant to this paragraph, the board shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. The board may borrow against anticipated revenues for terms not to exceed two (2) years, but in any such event the credit pledged shall be that of the board and not of a party state. (d) The board shall keep accurate accounts of all receipts and disbursements of the board, which shall be subject to the audit and accounting procedures established by its bylaws. However, all receipts and disbursements of funds handled by the board shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the board. (e) The accounts of the board shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the board. (f) Nothing contained herein shall be construed to prevent board compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the board.

(a) The board shall advise the Governor or designated officer or officers of each party state of its budget of estimated expenditures for such period as may be required by the laws of that party state. Each of the board's budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states.

(b) The total amount of appropriation requests under any budget shall be apportioned among the party states. Such apportionment shall be in accordance with the following formula: 1. One-third (1/3) in equal shares; 2. One-third (1/3) in the proportion that the population of a party state bears to the population of all party states; and 3. One-third (1/3) in the proportion that the per capita income in a party state bears to the per capita income in all party states. In implementing this formula, the board shall employ the most recent authoritative sources of information and shall specify the sources used.

1. One-third (1/3) in equal shares;

2. One-third (1/3) in the proportion that the population of a party state bears to the population of all party states; and

3. One-third (1/3) in the proportion that the per capita income in a party state bears to the per capita income in all party states. In implementing this formula, the board shall employ the most recent authoritative sources of information and shall specify the sources used.

In implementing this formula, the board shall employ the most recent authoritative sources of information and shall specify the sources used.

(c) The board shall not pledge the credit of any party state. The board may meet any of its obligations in whole or in part with funds available to it pursuant to Article VI(h) of this agreement, provided that the board takes specific action setting aside such funds prior to incurring an obligation to be met in whole or in part in such manner. Except where the board makes use of funds available to it pursuant to Article VI(h), or borrows pursuant to this paragraph, the board shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. The board may borrow against anticipated revenues for terms not to exceed two (2) years, but in any such event the credit pledged shall be that of the board and not of a party state.

Except where the board makes use of funds available to it pursuant to Article VI(h), or borrows pursuant to this paragraph, the board shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. The board may borrow against anticipated revenues for terms not to exceed two (2) years, but in any such event the credit pledged shall be that of the board and not of a party state.

(d) The board shall keep accurate accounts of all receipts and disbursements of the board, which shall be subject to the audit and accounting procedures established by its bylaws. However, all receipts and disbursements of funds handled by the board shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the board.

(e) The accounts of the board shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the board.

(f) Nothing contained herein shall be construed to prevent board compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the board.

ARTICLE VIII Cooperation with the Federal Government and Other Governmental Entities Each party state is hereby authorized to participate in cooperative or joint planning undertakings with the federal government, and any appropriate agency or agencies thereof, or with any interstate agency or agencies. Such participation shall be at the instance of the Governor or in such manner as state law may provide or authorize. The board may facilitate the work of state representatives in any joint interstate or cooperative federal-state undertaking authorized by this Article, and each such state shall keep the board advised of its activities in respect of such undertakings, to the extent that they have interstate or regional significance.

Each party state is hereby authorized to participate in cooperative or joint planning undertakings with the federal government, and any appropriate agency or agencies thereof, or with any interstate agency or agencies. Such participation shall be at the instance of the Governor or in such manner as state law may provide or authorize. The board may facilitate the work of state representatives in any joint interstate or cooperative federal-state undertaking authorized by this Article, and each such state shall keep the board advised of its activities in respect of such undertakings, to the extent that they have interstate or regional significance.

ARTICLE IX Subregional Activities The board may undertake studies or investigations centering on the problems of one or more selected subareas within the region; provided that, in its judgment, such studies or investigations will have value as demonstrations for similar or other areas within the region. If a study or investigation that would be of primary benefit to a given state, unit of local government, or intrastate or interstate area is proposed, and if the board finds that it is not justified in undertaking the work for its regional value as a demonstration, the board may undertake the study or investigation as a special project. In any such event, it shall be a condition precedent that satisfactory financing and personnel arrangements be concluded to assure that the party or parties benefited bear all costs which the board determines that it would be inequitable for it to assume. Prior to undertaking any study or investigation pursuant to this Article as a special project, the board shall make reasonable efforts to secure the undertaking of the work by another responsible public or private entity in accordance with the policy set forth in Article IV(b).

The board may undertake studies or investigations centering on the problems of one or more selected subareas within the region; provided that, in its judgment, such studies or investigations will have value as demonstrations for similar or other areas within the region. If a study or investigation that would be of primary benefit to a given state, unit of local government, or intrastate or interstate area is proposed, and if the board finds that it is not justified in undertaking the work for its regional value as a demonstration, the board may undertake the study or investigation as a special project. In any such event, it shall be a condition precedent that satisfactory financing and personnel arrangements be concluded to assure that the party or parties benefited bear all costs which the board determines that it would be inequitable for it to assume. Prior to undertaking any study or investigation pursuant to this Article as a special project, the board shall make reasonable efforts to secure the undertaking of the work by another responsible public or private entity in accordance with the policy set forth in Article IV(b).

ARTICLE X Comprehensive Land Use Planning If any two (2) or more contiguous party states desire to prepare a single or consolidated comprehensive land use plan, or a land use plan for any interstate area lying partly within each such state, the governors of the states involved may designate the board as their joint agency for the purpose. The board shall accept such designation and carry out such responsibility, provided that the states involved make arrangements satisfactory to the board to reimburse it or otherwise provide the resources with which the land use plan is to be prepared. Nothing contained in this Article shall be construed to deny the availability for use in the preparation of any such plan of data and information already in the possession of the board or to require payment on account of the use thereof in addition to payments otherwise required to be made pursuant to other provisions of this agreement.

If any two (2) or more contiguous party states desire to prepare a single or consolidated comprehensive land use plan, or a land use plan for any interstate area lying partly within each such state, the governors of the states involved may designate the board as their joint agency for the purpose. The board shall accept such designation and carry out such responsibility, provided that the states involved make arrangements satisfactory to the board to reimburse it or otherwise provide the resources with which the land use plan is to be prepared. Nothing contained in this Article shall be construed to deny the availability for use in the preparation of any such plan of data and information already in the possession of the board or to require payment on account of the use thereof in addition to payments otherwise required to be made pursuant to other provisions of this agreement.

ARTICLE XI Compacts and Agencies Unaffected Nothing in this agreement shall be construed to: 1. Affect the powers or jurisdiction of any agency of a party state or any subdivision thereof; 2. Affect the rights or obligations of any governmental units, agencies, or officials, or of any private persons or entities conferred or imposed by any interstate or interstate-federal compacts to which any one or more states participating herein are parties; 3. Impinge on the jurisdiction of any existing interstate-federal mechanism for regional planning or development.

Nothing in this agreement shall be construed to:

1. Affect the powers or jurisdiction of any agency of a party state or any subdivision thereof;

2. Affect the rights or obligations of any governmental units, agencies, or officials, or of any private persons or entities conferred or imposed by any interstate or interstate-federal compacts to which any one or more states participating herein are parties;

3. Impinge on the jurisdiction of any existing interstate-federal mechanism for regional planning or development.

ARTICLE XII Eligible Parties; Entry into and Withdrawal (a) This agreement shall have as eligible parties the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the territories of Puerto Rico and the Virgin Islands. (b) Any eligible state may enter into this agreement, and it shall become binding thereon when it has adopted the same, provided that in order to enter into initial effect, adoption by at least five (5) states shall be required. (c) Adoption of the agreement may be either by enactment thereof or by adherence thereto by the Governor; provided that in the absence of enactment, adherence by the Governor shall be sufficient to make his state a party only until December 31, 1973. During any period when a state is participating in this agreement through gubernatorial action, the Governor may provide to the board an equitable share of the financial support of the board from any source available to him. Nothing in this paragraph shall be construed to require a governor to take action contrary to the constitution or laws of his state. (d) Except for a withdrawal effective on December 31, 1973, in accordance with paragraph (c) of this Article, any party state may withdraw from this agreement by enacting a statute repealing the same, but no such withdrawal shall take effect until one (1) year after the Governor of the withdrawing state has given notice in writing of the withdrawal to the governors of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

(a) This agreement shall have as eligible parties the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the territories of Puerto Rico and the Virgin Islands.

(b) Any eligible state may enter into this agreement, and it shall become binding thereon when it has adopted the same, provided that in order to enter into initial effect, adoption by at least five (5) states shall be required.

(c) Adoption of the agreement may be either by enactment thereof or by adherence thereto by the Governor; provided that in the absence of enactment, adherence by the Governor shall be sufficient to make his state a party only until December 31, 1973. During any period when a state is participating in this agreement through gubernatorial action, the Governor may provide to the board an equitable share of the financial support of the board from any source available to him. Nothing in this paragraph shall be construed to require a governor to take action contrary to the constitution or laws of his state.

(d) Except for a withdrawal effective on December 31, 1973, in accordance with paragraph (c) of this Article, any party state may withdraw from this agreement by enacting a statute repealing the same, but no such withdrawal shall take effect until one (1) year after the Governor of the withdrawing state has given notice in writing of the withdrawal to the governors of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

ARTICLE XIII Construction and Severability This agreement shall be liberally construed so as to effectuate the purposes thereof. The provisions of this agreement shall be severable, and if any phrase, clause, sentence, or provision of this agreement is declared to be contrary to the constitution of any state or of the United States, or the application thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this agreement and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this agreement shall be held contrary to the constitution of any state participating therein, the agreement shall remain in full force and effect as to the state affected as to all severable matters.

This agreement shall be liberally construed so as to effectuate the purposes thereof. The provisions of this agreement shall be severable, and if any phrase, clause, sentence, or provision of this agreement is declared to be contrary to the constitution of any state or of the United States, or the application thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this agreement and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this agreement shall be held contrary to the constitution of any state participating therein, the agreement shall remain in full force and effect as to the state affected as to all severable matters.

Amended by Act 2013, No. 1287,§ 2, eff. 8/16/2013.

Acts 1973, No. 327, § 1; 1979, No. 429, § 1; A.S.A. 1947, § 9-1501.
Ark. Code Ann. § 15-72-302 — AR Code / Title 15 / Chapter 72 / Subchapter 3 / Section 15-72-302
Just and equitable shares - Preventing waste, avoiding risks, etc. - Drilling units
Status: in_force

(a) Whether or not the total production from a pool is limited or prorated, no rule or order of the Oil and Gas Commission shall be such in terms or effect: (1) That it shall be necessary at any time for the producer from or the owner of a tract of land in the pool, in order that he or she may obtain the tract's just and equitable share of the production of the pool, as the share is set forth in this section, to drill and operate any well or wells on the tract in addition to the well or wells as can without waste produce the share; or (2) As to occasion net drainage from a tract unless there is drilled and operated upon the tract a well or wells in addition to the wells thereon as can without waste produce the tract's just and equitable share, as set forth in this section, of the production of the pool. (b) (1) For the prevention of waste and to avoid the augmenting and accumulation of risks arising from the drilling of an excessive number of wells, after a hearing the commission shall establish a drilling unit or units for each pool except in those pools that, prior to February 20, 1939, have been developed to an extent and where conditions are such that it would be impracticable or unreasonable to use a drilling unit at the present stage of development. (2) (A) As used in this subchapter, "drilling unit" means a single governmental section or the equivalent unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission. The drilling unit shall constitute a developed unit as long as a well is located thereon that is capable of producing oil or gas in paying quantities. (B) The commission shall have the continuing authority to: (i) Designate the number of wells that may be drilled and produced within a drilling unit; and (ii) Regulate the spacing among multiple wells drilled and produced within a drilling unit. (c) (1) Each well permitted to be drilled upon any drilling unit shall be drilled at a location that is in compliance with rules adopted by the commission, with such exception as may be reasonably necessary where it is shown, after notice and an opportunity for a hearing, and the commission finds that a well drilled at a different location is likely to prevent waste or protect correlative rights of owners within the unit, or both. (2) Whenever an exception is granted, the commission shall take action to offset any advantage that the person securing the exception may have over other producers by reason of drilling the well as an exception, and so that drainage from developed units to the tract with respect to which the exception is granted will be prevented or minimized and the producer of the well drilled as an exception will be allowed to produce no more than his or her just and equitable share of the oil and gas in the pool, as the share is set forth in this section. (d) (1) Subject to the reasonable requirements for prevention of waste, a producer's just and equitable share of the oil and gas in the pool, also sometimes referred to as a tract's just and equitable share, is that part of the authorized production for the pool, whether it is the total that could be produced without any restriction on the amount of production or whether it is an amount less than that which the pool could produce if no restriction on amount were imposed, which is substantially in the proportion that the quantity of recoverable oil and gas in the developed area of the producer's tract in the pool bears to the recoverable oil and gas in the total developed area of the pool, insofar as these amounts can be practically ascertained. (2) To that end, the rules, permits, and orders of the commission shall be such as will prevent or minimize reasonably avoidable net drainage from each developed unit, that is, drainage that is not equalized by counter drainage and will give to each producer the opportunity to use his or her just and equitable share of the reservoir energy. (e) (1) After public hearing held pursuant to notice given as required by law and by any rules or orders of the commission, the commission may establish a drilling unit as defined in subsection (b) of this section for an exploratory well to be drilled therein. (2) Any drilling unit so established shall be composed of a governmental section or the equivalent thereof unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission, determined by the commission to be prospective of oil or gas, or both. The commission shall have the authority to integrate separately owned tracts embraced therein when the owners thereof fail or refuse voluntarily to do so provided that persons who own at least an undivided fifty-percent interest in the right to drill and produce oil or gas, or both, from the total proposed unit area agree thereto. (3) However, any such order of the commission and drilling unit as established for exploratory purposes thereunder shall remain in force for a period no longer than the later of one (1) year following the effective date thereof or one (1) year following the cessation of drilling operations or production within the unit, whereupon the order of the commission and the provisions thereof shall automatically terminate. Amended by Act 2019, No. 315,§ 1250, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1249, eff. 7/24/2019. Acts 1939, No. 105, § 14; 1941, No. 305, § 1; 1951, No. 28, § 1; 1985, No. 881, § 1; A.S.A. 1947, § 53-114; Acts 2003, No. 964, § 1; 2009, No. 1175, § 15.

(a) Whether or not the total production from a pool is limited or prorated, no rule or order of the Oil and Gas Commission shall be such in terms or effect: (1) That it shall be necessary at any time for the producer from or the owner of a tract of land in the pool, in order that he or she may obtain the tract's just and equitable share of the production of the pool, as the share is set forth in this section, to drill and operate any well or wells on the tract in addition to the well or wells as can without waste produce the share; or (2) As to occasion net drainage from a tract unless there is drilled and operated upon the tract a well or wells in addition to the wells thereon as can without waste produce the tract's just and equitable share, as set forth in this section, of the production of the pool.

(1) That it shall be necessary at any time for the producer from or the owner of a tract of land in the pool, in order that he or she may obtain the tract's just and equitable share of the production of the pool, as the share is set forth in this section, to drill and operate any well or wells on the tract in addition to the well or wells as can without waste produce the share; or

(2) As to occasion net drainage from a tract unless there is drilled and operated upon the tract a well or wells in addition to the wells thereon as can without waste produce the tract's just and equitable share, as set forth in this section, of the production of the pool.

(b) (1) For the prevention of waste and to avoid the augmenting and accumulation of risks arising from the drilling of an excessive number of wells, after a hearing the commission shall establish a drilling unit or units for each pool except in those pools that, prior to February 20, 1939, have been developed to an extent and where conditions are such that it would be impracticable or unreasonable to use a drilling unit at the present stage of development. (2) (A) As used in this subchapter, "drilling unit" means a single governmental section or the equivalent unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission. The drilling unit shall constitute a developed unit as long as a well is located thereon that is capable of producing oil or gas in paying quantities. (B) The commission shall have the continuing authority to: (i) Designate the number of wells that may be drilled and produced within a drilling unit; and (ii) Regulate the spacing among multiple wells drilled and produced within a drilling unit.

(1) For the prevention of waste and to avoid the augmenting and accumulation of risks arising from the drilling of an excessive number of wells, after a hearing the commission shall establish a drilling unit or units for each pool except in those pools that, prior to February 20, 1939, have been developed to an extent and where conditions are such that it would be impracticable or unreasonable to use a drilling unit at the present stage of development.

(2) (A) As used in this subchapter, "drilling unit" means a single governmental section or the equivalent unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission. The drilling unit shall constitute a developed unit as long as a well is located thereon that is capable of producing oil or gas in paying quantities. (B) The commission shall have the continuing authority to: (i) Designate the number of wells that may be drilled and produced within a drilling unit; and (ii) Regulate the spacing among multiple wells drilled and produced within a drilling unit.

(A) As used in this subchapter, "drilling unit" means a single governmental section or the equivalent unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission. The drilling unit shall constitute a developed unit as long as a well is located thereon that is capable of producing oil or gas in paying quantities.

(B) The commission shall have the continuing authority to: (i) Designate the number of wells that may be drilled and produced within a drilling unit; and (ii) Regulate the spacing among multiple wells drilled and produced within a drilling unit.

(i) Designate the number of wells that may be drilled and produced within a drilling unit; and

(ii) Regulate the spacing among multiple wells drilled and produced within a drilling unit.

(c) (1) Each well permitted to be drilled upon any drilling unit shall be drilled at a location that is in compliance with rules adopted by the commission, with such exception as may be reasonably necessary where it is shown, after notice and an opportunity for a hearing, and the commission finds that a well drilled at a different location is likely to prevent waste or protect correlative rights of owners within the unit, or both. (2) Whenever an exception is granted, the commission shall take action to offset any advantage that the person securing the exception may have over other producers by reason of drilling the well as an exception, and so that drainage from developed units to the tract with respect to which the exception is granted will be prevented or minimized and the producer of the well drilled as an exception will be allowed to produce no more than his or her just and equitable share of the oil and gas in the pool, as the share is set forth in this section.

(1) Each well permitted to be drilled upon any drilling unit shall be drilled at a location that is in compliance with rules adopted by the commission, with such exception as may be reasonably necessary where it is shown, after notice and an opportunity for a hearing, and the commission finds that a well drilled at a different location is likely to prevent waste or protect correlative rights of owners within the unit, or both.

(2) Whenever an exception is granted, the commission shall take action to offset any advantage that the person securing the exception may have over other producers by reason of drilling the well as an exception, and so that drainage from developed units to the tract with respect to which the exception is granted will be prevented or minimized and the producer of the well drilled as an exception will be allowed to produce no more than his or her just and equitable share of the oil and gas in the pool, as the share is set forth in this section.

(d) (1) Subject to the reasonable requirements for prevention of waste, a producer's just and equitable share of the oil and gas in the pool, also sometimes referred to as a tract's just and equitable share, is that part of the authorized production for the pool, whether it is the total that could be produced without any restriction on the amount of production or whether it is an amount less than that which the pool could produce if no restriction on amount were imposed, which is substantially in the proportion that the quantity of recoverable oil and gas in the developed area of the producer's tract in the pool bears to the recoverable oil and gas in the total developed area of the pool, insofar as these amounts can be practically ascertained. (2) To that end, the rules, permits, and orders of the commission shall be such as will prevent or minimize reasonably avoidable net drainage from each developed unit, that is, drainage that is not equalized by counter drainage and will give to each producer the opportunity to use his or her just and equitable share of the reservoir energy.

(1) Subject to the reasonable requirements for prevention of waste, a producer's just and equitable share of the oil and gas in the pool, also sometimes referred to as a tract's just and equitable share, is that part of the authorized production for the pool, whether it is the total that could be produced without any restriction on the amount of production or whether it is an amount less than that which the pool could produce if no restriction on amount were imposed, which is substantially in the proportion that the quantity of recoverable oil and gas in the developed area of the producer's tract in the pool bears to the recoverable oil and gas in the total developed area of the pool, insofar as these amounts can be practically ascertained.

(2) To that end, the rules, permits, and orders of the commission shall be such as will prevent or minimize reasonably avoidable net drainage from each developed unit, that is, drainage that is not equalized by counter drainage and will give to each producer the opportunity to use his or her just and equitable share of the reservoir energy.

(e) (1) After public hearing held pursuant to notice given as required by law and by any rules or orders of the commission, the commission may establish a drilling unit as defined in subsection (b) of this section for an exploratory well to be drilled therein. (2) Any drilling unit so established shall be composed of a governmental section or the equivalent thereof unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission, determined by the commission to be prospective of oil or gas, or both. The commission shall have the authority to integrate separately owned tracts embraced therein when the owners thereof fail or refuse voluntarily to do so provided that persons who own at least an undivided fifty-percent interest in the right to drill and produce oil or gas, or both, from the total proposed unit area agree thereto. (3) However, any such order of the commission and drilling unit as established for exploratory purposes thereunder shall remain in force for a period no longer than the later of one (1) year following the effective date thereof or one (1) year following the cessation of drilling operations or production within the unit, whereupon the order of the commission and the provisions thereof shall automatically terminate.

(1) After public hearing held pursuant to notice given as required by law and by any rules or orders of the commission, the commission may establish a drilling unit as defined in subsection (b) of this section for an exploratory well to be drilled therein.

(2) Any drilling unit so established shall be composed of a governmental section or the equivalent thereof unless a larger or smaller area is requested by an owner, as defined in § 15-72-102 , within the drilling unit to be established and a larger or smaller area is established by order of the commission, determined by the commission to be prospective of oil or gas, or both. The commission shall have the authority to integrate separately owned tracts embraced therein when the owners thereof fail or refuse voluntarily to do so provided that persons who own at least an undivided fifty-percent interest in the right to drill and produce oil or gas, or both, from the total proposed unit area agree thereto.

(3) However, any such order of the commission and drilling unit as established for exploratory purposes thereunder shall remain in force for a period no longer than the later of one (1) year following the effective date thereof or one (1) year following the cessation of drilling operations or production within the unit, whereupon the order of the commission and the provisions thereof shall automatically terminate.

Amended by Act 2019, No. 315,§ 1250, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1249, eff. 7/24/2019.

Acts 1939, No. 105, § 14; 1941, No. 305, § 1; 1951, No. 28, § 1; 1985, No. 881, § 1; A.S.A. 1947, § 53-114; Acts 2003, No. 964, § 1; 2009, No. 1175, § 15.
Ark. Code Ann. § 15-32-204 — AR Code / Title 15 / Chapter 32 / Subchapter 2 / Section 15-32-204
Oath and bond filed in recorder's office - Suit on bond
Status: in_force

The oath of office and bond as county timber inspector shall be filed in the county recorder's office. Any person feeling himself or herself aggrieved may commence an action in his or her own name on the bond in like manner as actions may be brought on other official bonds. Acts 1883, No. 83, § 10, p. 140; 1901, No. 130, § 4, p. 202; C. & M. Dig., § 6988; Pope's Dig., § 8968; A.S.A. 1947, § 54-104.

The oath of office and bond as county timber inspector shall be filed in the county recorder's office. Any person feeling himself or herself aggrieved may commence an action in his or her own name on the bond in like manner as actions may be brought on other official bonds.

Acts 1883, No. 83, § 10, p. 140; 1901, No. 130, § 4, p. 202; C. & M. Dig., § 6988; Pope's Dig., § 8968; A.S.A. 1947, § 54-104.
Ark. Code Ann. § 15-4-2706 — AR Code / Title 15 / Chapter 4 / Subchapter 27 / Section 15-4-2706
Investment tax incentives
Status: in_force

(a) There are established investment tax incentives to: (1) Encourage capital investment for the long-term viability of businesses in the state; and (2) Create new jobs. (b) (1) The award of incentives under this section are at the discretion of the Director of the Arkansas Economic Development Commission. (2) If offered, an application for an income tax credit under this section shall be submitted to the Arkansas Economic Development Commission. (3) Eligibility for incentives under this section is dependent upon the tier in which the project is located, as follows: (A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000); (B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000); (C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and (D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000). (4) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration. (5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved financial incentive agreement, except for lease payments authorized by subdivision (b)(6)(D) of this section or subdivision (c)(6) of this section. (6) (A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement. (ii) The department shall authorize an income tax credit of ten percent (10%) of total audited eligible project costs. (B) The amount of income tax credit authorized under subdivision (a)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax liability annually. (C) Unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first. (D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive. (7) Technology-based enterprises, as defined by § 14-164-203 , may earn, at the discretion of the director, an income tax credit or sales and use tax credit based on new investment, provided that the technology-based enterprise: (A) Creates a new payroll of at least two hundred fifty thousand dollars ($250,000); and (B) Pays an average hourly wage that is at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands. (8) (A) The income tax credit or sales and use tax credit that may be earned by a technology-based enterprise is based on the amount of investment as follows: (i) The income tax credit or sales and use tax credit is equal to two percent (2%) of the investment for an investment that is between two hundred fifty thousand dollars ($250,000) and five hundred thousand dollars ($500,000); (ii) The income tax credit or sales and use tax credit is equal to four percent (4%) of the investment for that part of the investment that is over five hundred thousand dollars ($500,000) and less than one million dollars ($1,000,000); (iii) The income tax credit or sales and use tax credit is equal to six percent (6%) of the investment for that part of the investment that is over one million dollars ($1,000,000) and less than two million dollars ($2,000,000); and (iv) The income tax credit or sales and use tax credit is equal to eight percent (8%) of the investment for that part of the investment that is over two million dollars ($2,000,000). (B) The amount of credit earned is determined based upon the amount invested, as verified by an audit by the department. (9) All investments by a technology-based enterprise shall be made within four (4) years of the date of the approved financial incentive agreement. (10) Prior to commission approval of a financial incentive agreement, the business shall elect to receive the tax credits as either: (A) A sales and use tax credit; or (B) An income tax credit. (11) The income tax credit or sales and use tax credit earned by a technology-based enterprise may offset income tax liabilities or sales and use tax liabilities as follows: (A) A technology-based enterprise that pays at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to fifty percent (50%) of its income tax liability or sales and use tax liability annually; (B) A technology-based enterprise that pays at least one hundred seventy-five percent (175%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to seventy-five percent (75%) of its income tax liability or sales and use tax liability annually; and (C) A technology-based enterprise that pays at least two hundred percent (200%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to one hundred percent (100%) of its income tax liability or sales and use tax liability annually. (12) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs and average hourly wages annually at the end of each tax year for the term of the financial incentive agreement. (13) Unused income tax credits or sales and use tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first. (c) (1) (A) An application for a retention tax credit under this subsection shall be submitted to the commission. (B) (i) The application shall be submitted to the commission before incurring any project costs. (ii) With the exception of preconstruction costs, only those costs incurred after the commission's approval are eligible for the tax credit. (2) The tax credit against the qualified business's sales and use tax liability is available only to Arkansas businesses that: (A) Have been in continuous operation in the state for at least two (2) years; (B) Invest a minimum of five million dollars ($5,000,000) in a project, including land, buildings, and equipment used in the construction, expansion, or modernization; and (C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives. (3) (A) If allowed, the credit shall be a percentage of the eligible project costs. (B) The amount of the credit shall be five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time a financial incentive agreement is signed with the commission. (C) In any one (1) year following the year of the expenditures, credits taken cannot exceed fifty percent (50%) of the direct pay sales and use tax liability of the qualified business for taxable purchases. (D) Unused credits may be carried forward for a period of up to five (5) years beyond the year in which the credit was first earned. (E) Retention tax credits earned between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement may be taken only: (i) On and after July 1, 2023; (ii) After the director has determined, based on evidence provided by the applicant, that the applicant's investment in the part of the qualified project to be completed between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement will generate a return that will likely be equal to or greater than the amount of retention tax credits under this subdivision (c)(3)(E); and (iii) For an application filed with the commission between June 22, 2017, and June 28, 2017. (F) The maximum amount of retention tax credits under subdivision (c)(3)(E) of this section that may be used in any fiscal year by a qualified applicant is seven hundred fifty thousand dollars ($750,000). (4) (A) Upon determination by the director that the project qualifies for credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit with his or her certification the documents or copies of the documents upon which the certification was based. (B) The secretary shall provide forms to the qualified business on which to claim the credit. (C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the form provided by the secretary the amount of expenditures on the project during the preceding calendar year. (D) Upon receipt of the form certifying expenditures, the secretary shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business. (E) The credit against the qualified business's sales and use tax liability shall be a percentage of the eligible project costs equal to five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time the financial incentive agreement was approved by the commission. (5) If a business plans to apply for incentives under this subsection and also plans to apply for incentives under § 15-4-2705 , the financial incentive agreement under § 15-4-2705 shall be approved within two (2) years after signing the financial incentive agreement under this subsection. (6) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive. (7) (A) A business may apply for the retention tax credit under this subsection through June 30, 2017. (B) (i) An application for the retention tax credit under this subsection shall not be accepted on or after July 1, 2017. (ii) However, projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits as provided in this section. (iii) Retention tax credits issued on a project that qualifies for retention tax credits based on an application filed through June 30, 2017, shall remain in effect and shall be taken and carried forward as otherwise provided in this section. (d) (1) (A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales taxes to the qualified business. (C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows: (i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000); (ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000); (iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and (iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000). (2) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project. (3) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan. (4) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years from the date of the qualified purchase or purchases. (5) (A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707 . (ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years. (B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved. (e) (1) A targeted business may be eligible for a refund of state and local sales and use taxes for qualified expenditures at the discretion of the director if: (A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000). (ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and (B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000). (2) (A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business. (3) An approved financial incentive agreement and any other pertinent documentation shall be forwarded to the secretary. (4) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project. (5) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan. (6) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years after the date of the qualified purchase or purchases. (7) If a targeted business plans to apply for benefits under this subsection and also plans to apply for benefits under § 15-4-2709 , the financial incentive agreement under § 15-4-2709 must be signed within twenty-four (24) months of signing the financial incentive agreement under this subsection and comply with the eligibility requirements of the financial incentive agreements. (8) To be eligible for the incentives under this subsection, a targeted business shall meet all payroll creation requirements of an approved financial incentive agreement under § 15-4-2707 or § 15-4-2709 within two (2) years of the date of the approved financial incentive agreement under this subsection or other subsequent date if approved by the director. Amended by Act 2021, No. 911,§ 2, eff. 7/28/2021. Amended by Act 2019, No. 327,§ 1, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 407, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 406, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 405, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 404, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 403, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 402, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 401, eff. 7/1/2019. Amended by Act 2017, No. 465,§ 1, eff. 3/13/2017. Acts 2003, No. 182, § 1; 2005, No. 1296, § 4; 2007, No. 1596, § 2; 2009, No. 716, §§ 7, 8.

(a) There are established investment tax incentives to: (1) Encourage capital investment for the long-term viability of businesses in the state; and (2) Create new jobs.

(1) Encourage capital investment for the long-term viability of businesses in the state; and

(2) Create new jobs.

(b) (1) The award of incentives under this section are at the discretion of the Director of the Arkansas Economic Development Commission. (2) If offered, an application for an income tax credit under this section shall be submitted to the Arkansas Economic Development Commission. (3) Eligibility for incentives under this section is dependent upon the tier in which the project is located, as follows: (A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000); (B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000); (C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and (D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000). (4) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration. (5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved financial incentive agreement, except for lease payments authorized by subdivision (b)(6)(D) of this section or subdivision (c)(6) of this section. (6) (A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement. (ii) The department shall authorize an income tax credit of ten percent (10%) of total audited eligible project costs. (B) The amount of income tax credit authorized under subdivision (a)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax liability annually. (C) Unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first. (D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive. (7) Technology-based enterprises, as defined by § 14-164-203 , may earn, at the discretion of the director, an income tax credit or sales and use tax credit based on new investment, provided that the technology-based enterprise: (A) Creates a new payroll of at least two hundred fifty thousand dollars ($250,000); and (B) Pays an average hourly wage that is at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands. (8) (A) The income tax credit or sales and use tax credit that may be earned by a technology-based enterprise is based on the amount of investment as follows: (i) The income tax credit or sales and use tax credit is equal to two percent (2%) of the investment for an investment that is between two hundred fifty thousand dollars ($250,000) and five hundred thousand dollars ($500,000); (ii) The income tax credit or sales and use tax credit is equal to four percent (4%) of the investment for that part of the investment that is over five hundred thousand dollars ($500,000) and less than one million dollars ($1,000,000); (iii) The income tax credit or sales and use tax credit is equal to six percent (6%) of the investment for that part of the investment that is over one million dollars ($1,000,000) and less than two million dollars ($2,000,000); and (iv) The income tax credit or sales and use tax credit is equal to eight percent (8%) of the investment for that part of the investment that is over two million dollars ($2,000,000). (B) The amount of credit earned is determined based upon the amount invested, as verified by an audit by the department. (9) All investments by a technology-based enterprise shall be made within four (4) years of the date of the approved financial incentive agreement. (10) Prior to commission approval of a financial incentive agreement, the business shall elect to receive the tax credits as either: (A) A sales and use tax credit; or (B) An income tax credit. (11) The income tax credit or sales and use tax credit earned by a technology-based enterprise may offset income tax liabilities or sales and use tax liabilities as follows: (A) A technology-based enterprise that pays at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to fifty percent (50%) of its income tax liability or sales and use tax liability annually; (B) A technology-based enterprise that pays at least one hundred seventy-five percent (175%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to seventy-five percent (75%) of its income tax liability or sales and use tax liability annually; and (C) A technology-based enterprise that pays at least two hundred percent (200%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to one hundred percent (100%) of its income tax liability or sales and use tax liability annually. (12) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs and average hourly wages annually at the end of each tax year for the term of the financial incentive agreement. (13) Unused income tax credits or sales and use tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.

(1) The award of incentives under this section are at the discretion of the Director of the Arkansas Economic Development Commission.

(2) If offered, an application for an income tax credit under this section shall be submitted to the Arkansas Economic Development Commission.

(3) Eligibility for incentives under this section is dependent upon the tier in which the project is located, as follows: (A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000); (B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000); (C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and (D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).

(A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000);

(B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000);

(C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and

(D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).

(4) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration.

(5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved financial incentive agreement, except for lease payments authorized by subdivision (b)(6)(D) of this section or subdivision (c)(6) of this section.

(6) (A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement. (ii) The department shall authorize an income tax credit of ten percent (10%) of total audited eligible project costs. (B) The amount of income tax credit authorized under subdivision (a)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax liability annually. (C) Unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first. (D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.

(A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement. (ii) The department shall authorize an income tax credit of ten percent (10%) of total audited eligible project costs.

(i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement.

(ii) The department shall authorize an income tax credit of ten percent (10%) of total audited eligible project costs.

(B) The amount of income tax credit authorized under subdivision (a)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax liability annually.

(C) Unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.

(D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.

(7) Technology-based enterprises, as defined by § 14-164-203 , may earn, at the discretion of the director, an income tax credit or sales and use tax credit based on new investment, provided that the technology-based enterprise: (A) Creates a new payroll of at least two hundred fifty thousand dollars ($250,000); and (B) Pays an average hourly wage that is at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands.

(A) Creates a new payroll of at least two hundred fifty thousand dollars ($250,000); and

(B) Pays an average hourly wage that is at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands.

(8) (A) The income tax credit or sales and use tax credit that may be earned by a technology-based enterprise is based on the amount of investment as follows: (i) The income tax credit or sales and use tax credit is equal to two percent (2%) of the investment for an investment that is between two hundred fifty thousand dollars ($250,000) and five hundred thousand dollars ($500,000); (ii) The income tax credit or sales and use tax credit is equal to four percent (4%) of the investment for that part of the investment that is over five hundred thousand dollars ($500,000) and less than one million dollars ($1,000,000); (iii) The income tax credit or sales and use tax credit is equal to six percent (6%) of the investment for that part of the investment that is over one million dollars ($1,000,000) and less than two million dollars ($2,000,000); and (iv) The income tax credit or sales and use tax credit is equal to eight percent (8%) of the investment for that part of the investment that is over two million dollars ($2,000,000). (B) The amount of credit earned is determined based upon the amount invested, as verified by an audit by the department.

(A) The income tax credit or sales and use tax credit that may be earned by a technology-based enterprise is based on the amount of investment as follows: (i) The income tax credit or sales and use tax credit is equal to two percent (2%) of the investment for an investment that is between two hundred fifty thousand dollars ($250,000) and five hundred thousand dollars ($500,000); (ii) The income tax credit or sales and use tax credit is equal to four percent (4%) of the investment for that part of the investment that is over five hundred thousand dollars ($500,000) and less than one million dollars ($1,000,000); (iii) The income tax credit or sales and use tax credit is equal to six percent (6%) of the investment for that part of the investment that is over one million dollars ($1,000,000) and less than two million dollars ($2,000,000); and (iv) The income tax credit or sales and use tax credit is equal to eight percent (8%) of the investment for that part of the investment that is over two million dollars ($2,000,000).

(i) The income tax credit or sales and use tax credit is equal to two percent (2%) of the investment for an investment that is between two hundred fifty thousand dollars ($250,000) and five hundred thousand dollars ($500,000);

(ii) The income tax credit or sales and use tax credit is equal to four percent (4%) of the investment for that part of the investment that is over five hundred thousand dollars ($500,000) and less than one million dollars ($1,000,000);

(iii) The income tax credit or sales and use tax credit is equal to six percent (6%) of the investment for that part of the investment that is over one million dollars ($1,000,000) and less than two million dollars ($2,000,000); and

(iv) The income tax credit or sales and use tax credit is equal to eight percent (8%) of the investment for that part of the investment that is over two million dollars ($2,000,000).

(B) The amount of credit earned is determined based upon the amount invested, as verified by an audit by the department.

(9) All investments by a technology-based enterprise shall be made within four (4) years of the date of the approved financial incentive agreement.

(10) Prior to commission approval of a financial incentive agreement, the business shall elect to receive the tax credits as either: (A) A sales and use tax credit; or (B) An income tax credit.

(A) A sales and use tax credit; or

(B) An income tax credit.

(11) The income tax credit or sales and use tax credit earned by a technology-based enterprise may offset income tax liabilities or sales and use tax liabilities as follows: (A) A technology-based enterprise that pays at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to fifty percent (50%) of its income tax liability or sales and use tax liability annually; (B) A technology-based enterprise that pays at least one hundred seventy-five percent (175%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to seventy-five percent (75%) of its income tax liability or sales and use tax liability annually; and (C) A technology-based enterprise that pays at least two hundred percent (200%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to one hundred percent (100%) of its income tax liability or sales and use tax liability annually.

(A) A technology-based enterprise that pays at least one hundred fifty percent (150%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to fifty percent (50%) of its income tax liability or sales and use tax liability annually;

(B) A technology-based enterprise that pays at least one hundred seventy-five percent (175%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to seventy-five percent (75%) of its income tax liability or sales and use tax liability annually; and

(C) A technology-based enterprise that pays at least two hundred percent (200%) of the lesser of the state or county average hourly wage for the county in which the business locates or expands may offset up to one hundred percent (100%) of its income tax liability or sales and use tax liability annually.

(12) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs and average hourly wages annually at the end of each tax year for the term of the financial incentive agreement.

(13) Unused income tax credits or sales and use tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.

(c) (1) (A) An application for a retention tax credit under this subsection shall be submitted to the commission. (B) (i) The application shall be submitted to the commission before incurring any project costs. (ii) With the exception of preconstruction costs, only those costs incurred after the commission's approval are eligible for the tax credit. (2) The tax credit against the qualified business's sales and use tax liability is available only to Arkansas businesses that: (A) Have been in continuous operation in the state for at least two (2) years; (B) Invest a minimum of five million dollars ($5,000,000) in a project, including land, buildings, and equipment used in the construction, expansion, or modernization; and (C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives. (3) (A) If allowed, the credit shall be a percentage of the eligible project costs. (B) The amount of the credit shall be five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time a financial incentive agreement is signed with the commission. (C) In any one (1) year following the year of the expenditures, credits taken cannot exceed fifty percent (50%) of the direct pay sales and use tax liability of the qualified business for taxable purchases. (D) Unused credits may be carried forward for a period of up to five (5) years beyond the year in which the credit was first earned. (E) Retention tax credits earned between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement may be taken only: (i) On and after July 1, 2023; (ii) After the director has determined, based on evidence provided by the applicant, that the applicant's investment in the part of the qualified project to be completed between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement will generate a return that will likely be equal to or greater than the amount of retention tax credits under this subdivision (c)(3)(E); and (iii) For an application filed with the commission between June 22, 2017, and June 28, 2017. (F) The maximum amount of retention tax credits under subdivision (c)(3)(E) of this section that may be used in any fiscal year by a qualified applicant is seven hundred fifty thousand dollars ($750,000). (4) (A) Upon determination by the director that the project qualifies for credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit with his or her certification the documents or copies of the documents upon which the certification was based. (B) The secretary shall provide forms to the qualified business on which to claim the credit. (C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the form provided by the secretary the amount of expenditures on the project during the preceding calendar year. (D) Upon receipt of the form certifying expenditures, the secretary shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business. (E) The credit against the qualified business's sales and use tax liability shall be a percentage of the eligible project costs equal to five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time the financial incentive agreement was approved by the commission. (5) If a business plans to apply for incentives under this subsection and also plans to apply for incentives under § 15-4-2705 , the financial incentive agreement under § 15-4-2705 shall be approved within two (2) years after signing the financial incentive agreement under this subsection. (6) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive. (7) (A) A business may apply for the retention tax credit under this subsection through June 30, 2017. (B) (i) An application for the retention tax credit under this subsection shall not be accepted on or after July 1, 2017. (ii) However, projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits as provided in this section. (iii) Retention tax credits issued on a project that qualifies for retention tax credits based on an application filed through June 30, 2017, shall remain in effect and shall be taken and carried forward as otherwise provided in this section.

(1) (A) An application for a retention tax credit under this subsection shall be submitted to the commission. (B) (i) The application shall be submitted to the commission before incurring any project costs. (ii) With the exception of preconstruction costs, only those costs incurred after the commission's approval are eligible for the tax credit.

(A) An application for a retention tax credit under this subsection shall be submitted to the commission.

(B) (i) The application shall be submitted to the commission before incurring any project costs. (ii) With the exception of preconstruction costs, only those costs incurred after the commission's approval are eligible for the tax credit.

(i) The application shall be submitted to the commission before incurring any project costs.

(ii) With the exception of preconstruction costs, only those costs incurred after the commission's approval are eligible for the tax credit.

(2) The tax credit against the qualified business's sales and use tax liability is available only to Arkansas businesses that: (A) Have been in continuous operation in the state for at least two (2) years; (B) Invest a minimum of five million dollars ($5,000,000) in a project, including land, buildings, and equipment used in the construction, expansion, or modernization; and (C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives.

(A) Have been in continuous operation in the state for at least two (2) years;

(B) Invest a minimum of five million dollars ($5,000,000) in a project, including land, buildings, and equipment used in the construction, expansion, or modernization; and

(C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives.

(3) (A) If allowed, the credit shall be a percentage of the eligible project costs. (B) The amount of the credit shall be five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time a financial incentive agreement is signed with the commission. (C) In any one (1) year following the year of the expenditures, credits taken cannot exceed fifty percent (50%) of the direct pay sales and use tax liability of the qualified business for taxable purchases. (D) Unused credits may be carried forward for a period of up to five (5) years beyond the year in which the credit was first earned. (E) Retention tax credits earned between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement may be taken only: (i) On and after July 1, 2023; (ii) After the director has determined, based on evidence provided by the applicant, that the applicant's investment in the part of the qualified project to be completed between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement will generate a return that will likely be equal to or greater than the amount of retention tax credits under this subdivision (c)(3)(E); and (iii) For an application filed with the commission between June 22, 2017, and June 28, 2017. (F) The maximum amount of retention tax credits under subdivision (c)(3)(E) of this section that may be used in any fiscal year by a qualified applicant is seven hundred fifty thousand dollars ($750,000).

(A) If allowed, the credit shall be a percentage of the eligible project costs.

(B) The amount of the credit shall be five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time a financial incentive agreement is signed with the commission.

(C) In any one (1) year following the year of the expenditures, credits taken cannot exceed fifty percent (50%) of the direct pay sales and use tax liability of the qualified business for taxable purchases.

(D) Unused credits may be carried forward for a period of up to five (5) years beyond the year in which the credit was first earned.

(E) Retention tax credits earned between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement may be taken only: (i) On and after July 1, 2023; (ii) After the director has determined, based on evidence provided by the applicant, that the applicant's investment in the part of the qualified project to be completed between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement will generate a return that will likely be equal to or greater than the amount of retention tax credits under this subdivision (c)(3)(E); and (iii) For an application filed with the commission between June 22, 2017, and June 28, 2017.

(i) On and after July 1, 2023;

(ii) After the director has determined, based on evidence provided by the applicant, that the applicant's investment in the part of the qualified project to be completed between forty-nine (49) and seventy-two (72) months after the commission approved the financial incentive agreement will generate a return that will likely be equal to or greater than the amount of retention tax credits under this subdivision (c)(3)(E); and

(iii) For an application filed with the commission between June 22, 2017, and June 28, 2017.

(F) The maximum amount of retention tax credits under subdivision (c)(3)(E) of this section that may be used in any fiscal year by a qualified applicant is seven hundred fifty thousand dollars ($750,000).

(4) (A) Upon determination by the director that the project qualifies for credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit with his or her certification the documents or copies of the documents upon which the certification was based. (B) The secretary shall provide forms to the qualified business on which to claim the credit. (C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the form provided by the secretary the amount of expenditures on the project during the preceding calendar year. (D) Upon receipt of the form certifying expenditures, the secretary shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business. (E) The credit against the qualified business's sales and use tax liability shall be a percentage of the eligible project costs equal to five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time the financial incentive agreement was approved by the commission.

(A) Upon determination by the director that the project qualifies for credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit with his or her certification the documents or copies of the documents upon which the certification was based.

(B) The secretary shall provide forms to the qualified business on which to claim the credit.

(C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the form provided by the secretary the amount of expenditures on the project during the preceding calendar year.

(D) Upon receipt of the form certifying expenditures, the secretary shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business.

(E) The credit against the qualified business's sales and use tax liability shall be a percentage of the eligible project costs equal to five-tenths percent (0.5%) above the state sales and use tax rate in effect at the time the financial incentive agreement was approved by the commission.

(5) If a business plans to apply for incentives under this subsection and also plans to apply for incentives under § 15-4-2705 , the financial incentive agreement under § 15-4-2705 shall be approved within two (2) years after signing the financial incentive agreement under this subsection.

(6) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.

(7) (A) A business may apply for the retention tax credit under this subsection through June 30, 2017. (B) (i) An application for the retention tax credit under this subsection shall not be accepted on or after July 1, 2017. (ii) However, projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits as provided in this section. (iii) Retention tax credits issued on a project that qualifies for retention tax credits based on an application filed through June 30, 2017, shall remain in effect and shall be taken and carried forward as otherwise provided in this section.

(A) A business may apply for the retention tax credit under this subsection through June 30, 2017.

(B) (i) An application for the retention tax credit under this subsection shall not be accepted on or after July 1, 2017. (ii) However, projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits as provided in this section. (iii) Retention tax credits issued on a project that qualifies for retention tax credits based on an application filed through June 30, 2017, shall remain in effect and shall be taken and carried forward as otherwise provided in this section.

(i) An application for the retention tax credit under this subsection shall not be accepted on or after July 1, 2017.

(ii) However, projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits as provided in this section.

(iii) Retention tax credits issued on a project that qualifies for retention tax credits based on an application filed through June 30, 2017, shall remain in effect and shall be taken and carried forward as otherwise provided in this section.

(d) (1) (A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales taxes to the qualified business. (C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows: (i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000); (ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000); (iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and (iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000). (2) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project. (3) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan. (4) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years from the date of the qualified purchase or purchases. (5) (A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707 . (ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years. (B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.

(1) (A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales taxes to the qualified business. (C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows: (i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000); (ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000); (iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and (iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).

(A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located.

(B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales taxes to the qualified business.

(i) Endorse the business's participation in this sales and use tax refund program; and

(ii) Specify that the department is authorized to refund local sales taxes to the qualified business.

(C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows: (i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000); (ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000); (iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and (iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).

(i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000);

(ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000);

(iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and

(iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).

(2) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.

(i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.

(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.

(B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(i) Routine operating expenditures; or

(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(3) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.

(A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.

(B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.

(4) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years from the date of the qualified purchase or purchases.

(5) (A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707 . (ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years. (B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.

(A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707 . (ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.

(i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707 .

(ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.

(a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or

(b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.

(B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.

(e) (1) A targeted business may be eligible for a refund of state and local sales and use taxes for qualified expenditures at the discretion of the director if: (A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000). (ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and (B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000). (2) (A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business. (3) An approved financial incentive agreement and any other pertinent documentation shall be forwarded to the secretary. (4) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project. (5) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan. (6) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years after the date of the qualified purchase or purchases. (7) If a targeted business plans to apply for benefits under this subsection and also plans to apply for benefits under § 15-4-2709 , the financial incentive agreement under § 15-4-2709 must be signed within twenty-four (24) months of signing the financial incentive agreement under this subsection and comply with the eligibility requirements of the financial incentive agreements. (8) To be eligible for the incentives under this subsection, a targeted business shall meet all payroll creation requirements of an approved financial incentive agreement under § 15-4-2707 or § 15-4-2709 within two (2) years of the date of the approved financial incentive agreement under this subsection or other subsequent date if approved by the director.

(1) A targeted business may be eligible for a refund of state and local sales and use taxes for qualified expenditures at the discretion of the director if: (A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000). (ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and (B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000).

(A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000). (ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and

(i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000).

(ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and

(B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000).

(2) (A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located. (B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.

(A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located.

(B) The resolution shall: (i) Endorse the business's participation in this sales and use tax refund program; and (ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.

(i) Endorse the business's participation in this sales and use tax refund program; and

(ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.

(3) An approved financial incentive agreement and any other pertinent documentation shall be forwarded to the secretary.

(4) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located. (B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building. (ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.

(i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.

(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.

(B) A refund shall not be authorized for: (i) Routine operating expenditures; or (ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(i) Routine operating expenditures; or

(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.

(5) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission. (B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.

(A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.

(B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.

(6) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years after the date of the qualified purchase or purchases.

(7) If a targeted business plans to apply for benefits under this subsection and also plans to apply for benefits under § 15-4-2709 , the financial incentive agreement under § 15-4-2709 must be signed within twenty-four (24) months of signing the financial incentive agreement under this subsection and comply with the eligibility requirements of the financial incentive agreements.

(8) To be eligible for the incentives under this subsection, a targeted business shall meet all payroll creation requirements of an approved financial incentive agreement under § 15-4-2707 or § 15-4-2709 within two (2) years of the date of the approved financial incentive agreement under this subsection or other subsequent date if approved by the director.

Amended by Act 2021, No. 911,§ 2, eff. 7/28/2021.

Amended by Act 2019, No. 327,§ 1, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 407, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 406, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 405, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 404, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 403, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 402, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 401, eff. 7/1/2019.

Amended by Act 2017, No. 465,§ 1, eff. 3/13/2017.

Acts 2003, No. 182, § 1; 2005, No. 1296, § 4; 2007, No. 1596, § 2; 2009, No. 716, §§ 7, 8.
Ark. Code Ann. § 15-56-405 — AR Code / Title 15 / Chapter 56 / Subchapter 4 / Section 15-56-405
Court order - Disposition of royalties
Status: in_force

(a) If the court after hearing as provided in § 15-56-404 shall determine that the lease should be executed, the judge shall enter an order authorizing the life tenant to execute the lease. (b) The court shall further: (1) Fix and determine the part of the bonus consideration paid for the lease; the delay rentals, if any, payable under the lease; other payments, if any, other than royalties provided for in the lease, which shall be allowed the life tenant; and the portion of the royalties reserved in the lease and that may accrue under the lease which shall be allowed the life tenant. In so doing, the court may allow the life tenant all or any part of the bonus consideration paid for the lease, the delay rentals, if any, payable under the lease, and other payments, if any, other than royalties, payable under the lease, but not more than one-half (1/2) of the royalties reserved in and which may accrue under the lease. The order of the court, upon the approval and confirmation of the lease, as provided in § 15-56-407 , shall vest in the life tenant title to such part of the bonus consideration paid for the lease and delay rentals, if any, and title to other payments, if any, provided for in the lease, other than royalties, as are allowed to the life tenant and shall vest title to such proportionate part of the royalties reserved in and which may accrue under the lease as are allowed to the life tenant, free and clear of any limitations, conditions, and restrictions imposed by the will or deed by which the petitioner acquired title and free and clear of any present or future claim of any persons asserting or attempting to assert a reversional or remainder interest therein on account of the deed or will. However, any interest allowed the life tenant in the royalties reserved in or accruing under the terms of the lease shall expire upon the termination of the lease; (2) Appoint some suitable person as trustee for the benefit of the contingent remaindermen and reversioners and require that the trustee shall execute bond in a sum the court deems proper, which bond shall be approved by the court; (3) Direct and authorize the life tenant, after the filing of the bond by the trustee and its approval by the court, to execute to the lessee a mineral lease covering the lands, which lease shall reserve a royalty in kind, quantity, or amount approved by the court; and (4) Make further orders in the premises as seem equitable and just. Acts 1961, No. 94, § 4; A.S.A. 1947, § 52-218.

(a) If the court after hearing as provided in § 15-56-404 shall determine that the lease should be executed, the judge shall enter an order authorizing the life tenant to execute the lease.

(b) The court shall further: (1) Fix and determine the part of the bonus consideration paid for the lease; the delay rentals, if any, payable under the lease; other payments, if any, other than royalties provided for in the lease, which shall be allowed the life tenant; and the portion of the royalties reserved in the lease and that may accrue under the lease which shall be allowed the life tenant. In so doing, the court may allow the life tenant all or any part of the bonus consideration paid for the lease, the delay rentals, if any, payable under the lease, and other payments, if any, other than royalties, payable under the lease, but not more than one-half (1/2) of the royalties reserved in and which may accrue under the lease. The order of the court, upon the approval and confirmation of the lease, as provided in § 15-56-407 , shall vest in the life tenant title to such part of the bonus consideration paid for the lease and delay rentals, if any, and title to other payments, if any, provided for in the lease, other than royalties, as are allowed to the life tenant and shall vest title to such proportionate part of the royalties reserved in and which may accrue under the lease as are allowed to the life tenant, free and clear of any limitations, conditions, and restrictions imposed by the will or deed by which the petitioner acquired title and free and clear of any present or future claim of any persons asserting or attempting to assert a reversional or remainder interest therein on account of the deed or will. However, any interest allowed the life tenant in the royalties reserved in or accruing under the terms of the lease shall expire upon the termination of the lease; (2) Appoint some suitable person as trustee for the benefit of the contingent remaindermen and reversioners and require that the trustee shall execute bond in a sum the court deems proper, which bond shall be approved by the court; (3) Direct and authorize the life tenant, after the filing of the bond by the trustee and its approval by the court, to execute to the lessee a mineral lease covering the lands, which lease shall reserve a royalty in kind, quantity, or amount approved by the court; and (4) Make further orders in the premises as seem equitable and just.

(1) Fix and determine the part of the bonus consideration paid for the lease; the delay rentals, if any, payable under the lease; other payments, if any, other than royalties provided for in the lease, which shall be allowed the life tenant; and the portion of the royalties reserved in the lease and that may accrue under the lease which shall be allowed the life tenant. In so doing, the court may allow the life tenant all or any part of the bonus consideration paid for the lease, the delay rentals, if any, payable under the lease, and other payments, if any, other than royalties, payable under the lease, but not more than one-half (1/2) of the royalties reserved in and which may accrue under the lease. The order of the court, upon the approval and confirmation of the lease, as provided in § 15-56-407 , shall vest in the life tenant title to such part of the bonus consideration paid for the lease and delay rentals, if any, and title to other payments, if any, provided for in the lease, other than royalties, as are allowed to the life tenant and shall vest title to such proportionate part of the royalties reserved in and which may accrue under the lease as are allowed to the life tenant, free and clear of any limitations, conditions, and restrictions imposed by the will or deed by which the petitioner acquired title and free and clear of any present or future claim of any persons asserting or attempting to assert a reversional or remainder interest therein on account of the deed or will. However, any interest allowed the life tenant in the royalties reserved in or accruing under the terms of the lease shall expire upon the termination of the lease;

(2) Appoint some suitable person as trustee for the benefit of the contingent remaindermen and reversioners and require that the trustee shall execute bond in a sum the court deems proper, which bond shall be approved by the court;

(3) Direct and authorize the life tenant, after the filing of the bond by the trustee and its approval by the court, to execute to the lessee a mineral lease covering the lands, which lease shall reserve a royalty in kind, quantity, or amount approved by the court; and

(4) Make further orders in the premises as seem equitable and just.

Acts 1961, No. 94, § 4; A.S.A. 1947, § 52-218.
Ark. Code Ann. § 15-5-1705 — AR Code / Title 15 / Chapter 5 / Subchapter 17 / Section 15-5-1705
Sources and deposits - Administration of Arkansas Housing Trust Fund - Responsibilities of the Arkansas Development Finance Authority
Status: in_force

(a) The following moneys shall be deposited into the Arkansas Housing Trust Fund: (1) Money designated by the General Assembly or by the Governor for the purpose of funding the fund; (2) Grants or other moneys from the federal government or federal agencies that can be used for the purpose of funding the fund; (3) Any money received by the Arkansas Development Finance Authority or the state from private sources as a contribution, gift, or donation to the fund; (4) Repayments of any loans made from the fund under this subchapter; (5) Any interest or investment earnings on amounts held in the fund; and (6) Any other money legally designated for the fund. (b) The fund shall be maintained and administered by the authority. The authority is authorized and directed: (1) To invest and reinvest all money held in the fund in investments under the authority's investment policies, pending its use for the purposes described in this subchapter; (2) To keep books and records relating to the investment, interest earnings, and uses of moneys deposited into the fund; (3) To establish procedures for the withdrawal, allocation, and use of the moneys held in the fund for the purposes described in this subchapter; (4) To cause to be prepared an annual independent audit of the fund; (5) To enter into contracts and agreements in connection with the operation of the fund, including contracts and agreements with federal agencies, local governmental entities, community developers, and other persons, to implement this subchapter; (6) To develop rules for the competitive evaluation of projects seeking to receive moneys from the fund and as needed to implement this subchapter; and (7) To engage in ongoing efforts to increase funding sources for the fund, including any additional ongoing state-dedicated funding source. (c) The Board of Directors of the Arkansas Development Finance Authority shall have the final decision-making authority on all matters relating to the fund and the programs administered under this subchapter. (d) (1) To reimburse the authority for its services in administering the fund, the authority shall be periodically paid a reasonable fee from amounts deposited to the fund. (2) On an annual basis, the authority shall not be paid in excess of six percent (6%) of the total annual deposits to the fund or the average outstanding balance of the assets of the fund, whichever is greater. Amended by Act 2023, No. 365,§ 29, eff. 7/1/2023. Acts 2009, No. 661, § 1.

(a) The following moneys shall be deposited into the Arkansas Housing Trust Fund: (1) Money designated by the General Assembly or by the Governor for the purpose of funding the fund; (2) Grants or other moneys from the federal government or federal agencies that can be used for the purpose of funding the fund; (3) Any money received by the Arkansas Development Finance Authority or the state from private sources as a contribution, gift, or donation to the fund; (4) Repayments of any loans made from the fund under this subchapter; (5) Any interest or investment earnings on amounts held in the fund; and (6) Any other money legally designated for the fund.

(1) Money designated by the General Assembly or by the Governor for the purpose of funding the fund;

(2) Grants or other moneys from the federal government or federal agencies that can be used for the purpose of funding the fund;

(3) Any money received by the Arkansas Development Finance Authority or the state from private sources as a contribution, gift, or donation to the fund;

(4) Repayments of any loans made from the fund under this subchapter;

(5) Any interest or investment earnings on amounts held in the fund; and

(6) Any other money legally designated for the fund.

(b) The fund shall be maintained and administered by the authority. The authority is authorized and directed: (1) To invest and reinvest all money held in the fund in investments under the authority's investment policies, pending its use for the purposes described in this subchapter; (2) To keep books and records relating to the investment, interest earnings, and uses of moneys deposited into the fund; (3) To establish procedures for the withdrawal, allocation, and use of the moneys held in the fund for the purposes described in this subchapter; (4) To cause to be prepared an annual independent audit of the fund; (5) To enter into contracts and agreements in connection with the operation of the fund, including contracts and agreements with federal agencies, local governmental entities, community developers, and other persons, to implement this subchapter; (6) To develop rules for the competitive evaluation of projects seeking to receive moneys from the fund and as needed to implement this subchapter; and (7) To engage in ongoing efforts to increase funding sources for the fund, including any additional ongoing state-dedicated funding source.

(1) To invest and reinvest all money held in the fund in investments under the authority's investment policies, pending its use for the purposes described in this subchapter;

(2) To keep books and records relating to the investment, interest earnings, and uses of moneys deposited into the fund;

(3) To establish procedures for the withdrawal, allocation, and use of the moneys held in the fund for the purposes described in this subchapter;

(4) To cause to be prepared an annual independent audit of the fund;

(5) To enter into contracts and agreements in connection with the operation of the fund, including contracts and agreements with federal agencies, local governmental entities, community developers, and other persons, to implement this subchapter;

(6) To develop rules for the competitive evaluation of projects seeking to receive moneys from the fund and as needed to implement this subchapter; and

(7) To engage in ongoing efforts to increase funding sources for the fund, including any additional ongoing state-dedicated funding source.

(c) The Board of Directors of the Arkansas Development Finance Authority shall have the final decision-making authority on all matters relating to the fund and the programs administered under this subchapter.

(d) (1) To reimburse the authority for its services in administering the fund, the authority shall be periodically paid a reasonable fee from amounts deposited to the fund. (2) On an annual basis, the authority shall not be paid in excess of six percent (6%) of the total annual deposits to the fund or the average outstanding balance of the assets of the fund, whichever is greater.

(1) To reimburse the authority for its services in administering the fund, the authority shall be periodically paid a reasonable fee from amounts deposited to the fund.

(2) On an annual basis, the authority shall not be paid in excess of six percent (6%) of the total annual deposits to the fund or the average outstanding balance of the assets of the fund, whichever is greater.

Amended by Act 2023, No. 365,§ 29, eff. 7/1/2023.

Acts 2009, No. 661, § 1.
Ark. Code Ann. § 15-5-904 — AR Code / Title 15 / Chapter 5 / Subchapter 9 / Section 15-5-904
Fees for technical and administrative services
Status: in_force

(a) (1) The Arkansas Natural Resources Commission may establish and collect fees for its technical and administrative services in connection with the planning, design, acquisition, construction, expansion, equipping, or rehabilitation of wastewater systems, water systems, solid and hazardous waste facilities, recycling facilities, nonpoint source management facilities, wetlands conservation and management facilities, and other environmental projects or parts of environmental projects and in connection with assessments, investigations, and remedial actions with respect to abandoned industrial, commercial, or agricultural sites, financed in whole or in part with moneys in the Construction Assistance Revolving Loan Fund. (2) The authority granted in this section shall be supplemental to the authority granted to the commission under other laws to establish and collect fees for its services. (b) The fees shall be payable in any one (1) or more of the following methods: (1) From proceeds of loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased from moneys in the fund; (2) From proceeds of bonds issued by the commission or the Arkansas Development Finance Authority in connection with the fund; or (3) From periodic payments due on the loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased with moneys in the fund. (c) If requested by the commission, the authority will collect the fees from the local governmental entities or other environmental project owners receiving financial assistance from the Construction Assistance Revolving Loan Fund and deposit the fees into the Construction Assistance Administrative Account within five (5) days after each periodic payment is made. Acts 1991, No. 718, § 1; 1993, No. 833, § 3; 1997, No. 1042, § 9; 2003, No. 548, § 2; 2009, No. 458, § 4.

(a) (1) The Arkansas Natural Resources Commission may establish and collect fees for its technical and administrative services in connection with the planning, design, acquisition, construction, expansion, equipping, or rehabilitation of wastewater systems, water systems, solid and hazardous waste facilities, recycling facilities, nonpoint source management facilities, wetlands conservation and management facilities, and other environmental projects or parts of environmental projects and in connection with assessments, investigations, and remedial actions with respect to abandoned industrial, commercial, or agricultural sites, financed in whole or in part with moneys in the Construction Assistance Revolving Loan Fund. (2) The authority granted in this section shall be supplemental to the authority granted to the commission under other laws to establish and collect fees for its services.

(1) The Arkansas Natural Resources Commission may establish and collect fees for its technical and administrative services in connection with the planning, design, acquisition, construction, expansion, equipping, or rehabilitation of wastewater systems, water systems, solid and hazardous waste facilities, recycling facilities, nonpoint source management facilities, wetlands conservation and management facilities, and other environmental projects or parts of environmental projects and in connection with assessments, investigations, and remedial actions with respect to abandoned industrial, commercial, or agricultural sites, financed in whole or in part with moneys in the Construction Assistance Revolving Loan Fund.

(2) The authority granted in this section shall be supplemental to the authority granted to the commission under other laws to establish and collect fees for its services.

(b) The fees shall be payable in any one (1) or more of the following methods: (1) From proceeds of loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased from moneys in the fund; (2) From proceeds of bonds issued by the commission or the Arkansas Development Finance Authority in connection with the fund; or (3) From periodic payments due on the loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased with moneys in the fund.

(1) From proceeds of loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased from moneys in the fund;

(2) From proceeds of bonds issued by the commission or the Arkansas Development Finance Authority in connection with the fund; or

(3) From periodic payments due on the loans, bonds, notes, or other evidences of indebtedness of a local governmental entity or other owner of an environmental project purchased with moneys in the fund.

(c) If requested by the commission, the authority will collect the fees from the local governmental entities or other environmental project owners receiving financial assistance from the Construction Assistance Revolving Loan Fund and deposit the fees into the Construction Assistance Administrative Account within five (5) days after each periodic payment is made.

Acts 1991, No. 718, § 1; 1993, No. 833, § 3; 1997, No. 1042, § 9; 2003, No. 548, § 2; 2009, No. 458, § 4.
Ark. Code Ann. § 15-3-203 — AR Code / Title 15 / Chapter 3 / Subchapter 2 / Section 15-3-203
Administration
Status: in_force

(a) In order to obtain moneys from the Arkansas Research Matching Fund: (1) A college or university may provide the Arkansas Economic Development Commission with the research grant proposal for federal funds submitted with a letter of intent to apply for a match to one (1) of the funding agencies identified in § 15-3-205 ; (2) (A) A college or university shall apply to the commission for a match from this fund in writing within two (2) weeks of the notice of an award of federal funds from one (1) of the funding agencies identified in § 15-3-205 . (B) In addition to the grant proposal submitted to the federal agency, the application shall include an approved budget and an official notice of the grant award from the federal funding agency; and (3) A college or university shall adhere to the rules that may be promulgated by the commission for administration of this fund. (b) (1) Upon receipt of an application for matching funds to match federal funds from one (1) of the funding agencies identified in § 15-3-205 , the commission, with the advice of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission, shall determine the eligibility for matching funds based on a finding that the proposed research is in fields having long-term economic or commercial value to the state and which have been identified in the research and development plan approved by the Director of the Arkansas Economic Development Commission. (2) The commission shall promptly review applications for matching funds for consistency with this subchapter. (3) The commission shall ensure that no commitments for matching funds shall be made in excess of funds available for any given year and may review and approve those applications that have: (A) Provided the information on the application for matching funds in accordance with the provisions of this subchapter; (B) Included an official notice of award of a research grant from one (1) of the funding agencies identified in § 15-3-205 ; and (C) Filed a proposal for federal funding consistent with the types of research authorized by this subchapter. Amended by Act 2019, No. 315,§ 1053, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 349, eff. 7/1/2019. Amended by Act 2015EX1, No. 8,§ 78, eff. 7/1/2015. Amended by Act 2015EX1, No. 7,§ 78, eff. 7/1/2015. Acts 1999, No. 1545, § 3; 2003, No. 417, § 1.

(a) In order to obtain moneys from the Arkansas Research Matching Fund: (1) A college or university may provide the Arkansas Economic Development Commission with the research grant proposal for federal funds submitted with a letter of intent to apply for a match to one (1) of the funding agencies identified in § 15-3-205 ; (2) (A) A college or university shall apply to the commission for a match from this fund in writing within two (2) weeks of the notice of an award of federal funds from one (1) of the funding agencies identified in § 15-3-205 . (B) In addition to the grant proposal submitted to the federal agency, the application shall include an approved budget and an official notice of the grant award from the federal funding agency; and (3) A college or university shall adhere to the rules that may be promulgated by the commission for administration of this fund.

(1) A college or university may provide the Arkansas Economic Development Commission with the research grant proposal for federal funds submitted with a letter of intent to apply for a match to one (1) of the funding agencies identified in § 15-3-205 ;

(2) (A) A college or university shall apply to the commission for a match from this fund in writing within two (2) weeks of the notice of an award of federal funds from one (1) of the funding agencies identified in § 15-3-205 . (B) In addition to the grant proposal submitted to the federal agency, the application shall include an approved budget and an official notice of the grant award from the federal funding agency; and

(A) A college or university shall apply to the commission for a match from this fund in writing within two (2) weeks of the notice of an award of federal funds from one (1) of the funding agencies identified in § 15-3-205 .

(B) In addition to the grant proposal submitted to the federal agency, the application shall include an approved budget and an official notice of the grant award from the federal funding agency; and

(3) A college or university shall adhere to the rules that may be promulgated by the commission for administration of this fund.

(b) (1) Upon receipt of an application for matching funds to match federal funds from one (1) of the funding agencies identified in § 15-3-205 , the commission, with the advice of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission, shall determine the eligibility for matching funds based on a finding that the proposed research is in fields having long-term economic or commercial value to the state and which have been identified in the research and development plan approved by the Director of the Arkansas Economic Development Commission. (2) The commission shall promptly review applications for matching funds for consistency with this subchapter. (3) The commission shall ensure that no commitments for matching funds shall be made in excess of funds available for any given year and may review and approve those applications that have: (A) Provided the information on the application for matching funds in accordance with the provisions of this subchapter; (B) Included an official notice of award of a research grant from one (1) of the funding agencies identified in § 15-3-205 ; and (C) Filed a proposal for federal funding consistent with the types of research authorized by this subchapter.

(1) Upon receipt of an application for matching funds to match federal funds from one (1) of the funding agencies identified in § 15-3-205 , the commission, with the advice of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission, shall determine the eligibility for matching funds based on a finding that the proposed research is in fields having long-term economic or commercial value to the state and which have been identified in the research and development plan approved by the Director of the Arkansas Economic Development Commission.

(2) The commission shall promptly review applications for matching funds for consistency with this subchapter.

(3) The commission shall ensure that no commitments for matching funds shall be made in excess of funds available for any given year and may review and approve those applications that have: (A) Provided the information on the application for matching funds in accordance with the provisions of this subchapter; (B) Included an official notice of award of a research grant from one (1) of the funding agencies identified in § 15-3-205 ; and (C) Filed a proposal for federal funding consistent with the types of research authorized by this subchapter.

(A) Provided the information on the application for matching funds in accordance with the provisions of this subchapter;

(B) Included an official notice of award of a research grant from one (1) of the funding agencies identified in § 15-3-205 ; and

(C) Filed a proposal for federal funding consistent with the types of research authorized by this subchapter.

Amended by Act 2019, No. 315,§ 1053, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 349, eff. 7/1/2019.

Amended by Act 2015EX1, No. 8,§ 78, eff. 7/1/2015.

Amended by Act 2015EX1, No. 7,§ 78, eff. 7/1/2015.

Acts 1999, No. 1545, § 3; 2003, No. 417, § 1.