§ 15-4-1602 - Definitions. - Arkansas Statutes

15-4-1602. Definitions.

As used in this subchapter:

(1) "Annual payroll" means the wages of the net new full-time permanent employees based on the payroll for the previous twelve (12) months reported to the Department of Workforce Services and is computed by using the total of the net new full-time permanent employees' reported taxable earnings, including overtime pay;

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

(3) "Corporate or regional headquarters" means the home or center of operations, including research and development, of a national or multinational corporation;

(4) "Director" means the Director of the Arkansas Economic Development Commission;

(5) "Distribution center" means a facility for the reception, storage, or shipping of:

(A) A business' own products or products which the business wholesales to retail businesses or ships to its own retail outlets;

(B) Products owned by other companies with which the business has contracts for storage and shipping if seventy-five percent (75%) of the sales revenues are from out-of-state customers; or

(C) Products for sale to the general public if seventy-five percent (75%) of the sales revenues are from out-of-state customers;

(6) (A) "Existing employees" means those employees hired by the business prior to the date of the signed financial incentive plan.

(B) Existing employees may be considered "net new full-time permanent employees" only if:

(i) The position or job filled by the existing employee was created in accordance with the signed financial incentive plan; and

(ii) The position vacated by the existing employee was either filled by a subsequent employee or no subsequent employee will be hired because the business no longer conducts the particular business activity requiring such classification;

(7) "Financial incentive plan" means an agreement entered into by a business and the Arkansas Economic Development Commission to provide the business an incentive to locate a new facility or expand an existing facility in Arkansas;

(8) "Fund" means the Economic Development Incentive Fund;

(9) (A) "High unemployment" means an unemployment rate equal to or in excess of one hundred fifty percent (150%) of the state's average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Department of Workforce Services when the state's annual average unemployment rate is six percent (6%) or below.

(B) When the state's annual average unemployment rate is above six percent (6%), "high unemployment" means equal to or in excess of three percent (3%) above the state's average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Department of Workforce Services;

(10) (A) (i) "Net new full-time permanent employee" means a position or job which was created pursuant to a signed financial incentive plan and which is filled by one (1) or more employees or contractual employees who were Arkansas taxpayers during the year in which the tax credits or incentives were earned.

(ii) The position or job held by such an employee or employees must have been filled for at least twenty-six (26) consecutive weeks with an average of at least thirty (30) hours per week.

(B) However, in order to qualify for the provisions of this subchapter, a contractual employee must be offered a benefits package comparable to a direct employee of the business seeking incentives under this subchapter; and

(11) "Office sector " means control centers that influence the environment in which data processing, customer service, credit accounting, telemarketing, claims processing, and other administrative functions that act as production centers are performed.