Representative Howard M. Beaty

Meeting — April 1, 2025 (2:27:24)

Yes, ma'am. Is it through special revenue? No, it's through the income and fees that they generate from the

Meeting — April 1, 2025 (2:26:53)

There's no general revenue that goes to fund ADFA. They're self-supported. They're supported by the operations of the revenue and the fees that they generate. So there's no money going in on that side. And along the same lines, we'd still have control because the governor's going to appoint that board and they'll have that control. So it's not going to be another game in fish. Follow up,

Meeting — April 1, 2025 (2:26:44)

there. In short, I would say no, we're not going to create another game and fish. Right now, ADFA relies, ADFA doesn't rely on any state-funded money.

Meeting — April 1, 2025 (2:25:46)

this would remove ADFA from under Department of Commerce it's something that Department of Commerce and Secretary McDonald supports is something that the governor supports all in all state finance it plays a very vital role in economic development supporting the growth of our state by providing access to capital and the resources overall well-being of of the state so with that I would appreciate a good vote representative Kavanaugh for what

Meeting — April 1, 2025 (2:25:15)

its operational agility. Basically it's going to allow for private investment and independence from the government structure. Private investors, right now we have private investors even some of the foundations and philanthropic organizations of the state that contribute work with out-of-state finance administrations for housing developments. When you get the politics involved sometimes they're unwilling to to participate this is an agency bill

Meeting — April 1, 2025 (2:24:42)

provide more below-market funding for higher education. Insulating ADFA from the political pressures would ensure resource deployment based on expertise and market needs in the state. This shift would transfer financial and operational risk away from the state. With greater hiring flexibility, Adva can attract retain top talent and improve their service and delivery and add more value to Arkansans in our communities. Removing governmental constraints will increase and enhance

Meeting — April 1, 2025 (2:24:09)

entities. Their outcomes are greater than Arkansas's due to the benefits that these independent structures provide. Some of the benefits of transitioning NAFA to an independent entity would enhance the mission and fulfillment of its broadened and broadened its impact by expanding its reach. ADFA can increase home ownership rates, swiftly address workforce and affordable housing needs throughout the state, increase financial partnerships that drive economic growth in the state, and

Meeting — April 1, 2025 (2:23:38)

Code 155201, ADFA was created as a public body politic and corporate with corporate succession meant to operate like a corporate entity. However, due to bureaucratic processes, ADFA never fully transitioned to this intended structure and was absorbed into a state agency through time. Currently, 42 of the 49 other states, there are a few exceptions, operate as independent

Meeting — April 1, 2025 (2:23:07)

would reduce the size of state government and enable ADFA to increase its speed to market to move more effectively and drive economic growth. It's to enhance ADFA's ability to fulfill its mission for the state by allowing business and free market principles to overcome current governmental obstacles. Background. ADFA was originally intended to function as independent instrumentality rather than a state agency. According to the Arkansas

Meeting — April 1, 2025 (2:22:30)

explain the bill. Thank You Mr. Speaker. Members, House Bill 1797 deals with the Arkansas Development Finance Authority. Basically, the ADFA plays a pivotal role in driving the economic expansion and prosperity across the state of Arkansas. And this bill primarily tries to affect the efficiency and effectiveness of this of ADFA so that it can better serve Arkansas as an independent entity rather than a state governmental agency. The transition

Meeting — April 1, 2025 (2:21:24)

Thank you, Mr. Speaker. Members, House Bill 1470 is basically just what the title says, repeal the law concerning the review of information technology plans. Representative Richardson ran a bill this session that provides for these plans to be reviewed. So with that, I'd appreciate a good vote. Representative Beatty has explained the bill. Would anyone like to

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:41:11)

Well, we can't, 'cause we're bound by the Constitution. It doesn't allow us the authority to do this. This is important to your community, important to your constituents, and so I would encourage you to consider that when you're ranking. A lot of these resolutions are good. This will have the biggest impact on the quality of life in your communities. So I'd ask you to rate this as one, and let's move from there, 'cause it's gonna have a great impact, and we'll see great things come from this. And with that, I'm closed and thank you.

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:40:40)

They just haven't made it into the room yet. But what I would say in closing is, you know, if you want real change and you want to make a real impact in your communities and throughout this state and see some of this investment in Arkansas that you're seeing in neighboring states, this is the resolution to rank number one. I think if you went back and you talked with your mayors, your county judges, or even your constituents in your community that always complain, why can't we? Why can't we?

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:40:34)

the bus is pulling up for all of the folks that are going to speak in favor of this bill.

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:40:05)

This gives them the resources to utilize and try to attract that private investment into their community. And right now we don't have anything. Okay, thank you. All right, seeing no other questions, we have no

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:39:33)

it all ties back to the jobs that are going to be created. And, I mean, you come in and put a billion dollars in, or two billion, or five billion, and it's going to go back to the jobs that are created. You may get a little bit on the property tax and ad valorem that's coming in, but the state incentives are all tied to job creation. And basically this deal could be as simple as your city decides they want a restaurant in town and they want to work to get a restaurant or a hotel or something along those lines in your community.

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:38:57)

So I think that's going to be up to the folks that decide what they want in the community. But this bill doesn't specify a de minimis amount or size of a business. This is all about providing the tools and the resources for our counties and for our small communities and our cities to attract the investment and assist with the development in their communities. As small as maybe

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:38:25)

like a de minimis amount on the size or quality of this business. I think what it would come down to is what your leadership, what either the governing body, be that the quorum court, be that the city or municipality, what they would want to target as far as what they would want in their community, because it's going to give you the tools to attract and to tailor and customize incentive packages to locate these businesses in your community.

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:37:52)

The school funding would still be protected on that side. My understanding is that the school taxes are provided for, so there would be no reduction in the school taxes. That's my understanding. Okay. Thank you. Representative Berry.

State Agencies & Govt'l Affairs (House) — April 2, 2025 (2:37:04)

Right now, you can't abate those property tax. You can't do a payment in lieu of tax on a retail development. It's always got to be a job creation or economic development project, and retail doesn't provide for this. So that's one of the ways I look at this,