§ 15-4-3106 - Economic Development Incentive Fund -- Payroll rebate. - Arkansas Statutes

15-4-3106. Economic Development Incentive Fund -- Payroll rebate.

(a) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the "Economic Development Incentive Fund".

(b) The fund shall consist of revenues designated for this fund by the Director of the Department of Finance and Administration pursuant to agreements entered into by the Arkansas Economic Development Commission with qualified nonprofit organizations.

(c) After the Department of Finance and Administration has received the certification of the payroll of a nonprofit organization that has entered into financial incentive agreements with the commission for the payroll rebate authorized by this section, the Director of the Department of Finance and Administration shall transfer the appropriate amount of money for the payroll rebate designated by the financial incentive agreement from the General Revenue Fund Account of the State Apportionment Fund to the Economic Development Incentive Fund.

(d) (1) The award of the incentive authorized by this section is at the discretion of the Director of the Arkansas Economic Development Commission.

(2) Benefits are conditioned upon the hiring of new full-time permanent employees and certifying to the Department of Finance and Administration that the requisite payroll thresholds have been met.

(3) The requisite annual payroll of five hundred thousand dollars ($500,000) shall be reached within twenty-four (24) months of the signing of the financial incentive agreement for the benefits of this section to be approved.

(4) If the Director of the Arkansas Economic Development Commission and the Director of the Department of Finance and Administration find that the nonprofit organization has presented compelling reasons for an extension of time, the Director of the Arkansas Economic Development Commission may grant an extension of time not to exceed twenty-four (24) months to reach the requisite annual payroll of five hundred thousand dollars ($500,000).

(5) In addition to having an annual payroll of five hundred thousand dollars ($500,000) or more, the nonprofit organization applying for benefits under this subchapter shall pay average hourly wages in excess of one hundred ten percent (110%) of the lesser of the state or county average wage for the county in which the organization locates or expands.

(6) Payments to a nonprofit organization with an annual payroll in excess of five hundred thousand dollars ($500,000) shall be considered and may be authorized by the Director of the Arkansas Economic Development Commission, after the Director of the Arkansas Economic Development Commission has signed a financial incentive agreement with the nonprofit organization, in the amount of four percent (4%) of the annual payroll of the new full-time permanent employees.

(7) The Director of the Arkansas Economic Development Commission may authorize a payroll rebate for up to five (5) years.