§ 15-4-1606 - Limitations.
15-4-1606. Limitations.
The following limitations shall apply to all financial incentive plans negotiated by the Arkansas Economic Development Commission:
(1) (A) The term of a financial incentive plan shall not exceed one hundred twenty-six (126) months.
(B) (i) For defense industry projects, as defined in 26-52-702, the one hundred and twenty-six (126) months shall be calculated forward from the date certification of the mandatory number of employees is granted by the Department of Finance and Administration.
(ii) For all other financial incentive plans, the one hundred twenty-six (126) months shall be calculated forward from the date of the financial incentive plan entered into by the business and the Arkansas Economic Development Commission;
(2) The business shall not be entitled to the benefits of a financial incentive plan entered into with the Arkansas Economic Development Commission until twelve (12) months after it has hired the requisite number of net new full-time permanent employees and has certified that fact to the Department of Finance and Administration as required by this subchapter;
(3) (A) If the number of net new full-time permanent employees drops below the requisite number provided in 15-4-1605, all benefits under the financial incentive plan entered into with the Arkansas Economic Development Commission shall be terminated unless the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State approve a written request filed by the business explaining why the number of net new full-time permanent employees fell below the requisite number. The Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State may grant the business up to twenty-four (24) months to bring the number of net new full-time permanent employees back up to the requisite number and may approve the continuation of benefits during that period.
(B) (i) In the event that the requisite number of net new full-time permanent employees cannot be employed within the twenty-four-month period, the business can file a written application with the Arkansas Economic Development Commission explaining why additional time is necessary. The business can be afforded up to twenty-four (24) more months to hire the requisite number of employees if the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State agree.
(ii) In the event that a business fails to notify the Department of Finance and Administration that the number of net new full-time permanent employees has fallen below the required number to continue to receive benefits under a financial incentive plan, that business will be liable for the repayment of all benefits which were paid to the business after it no longer qualified for the benefits. Interest shall also be due at the rate of ten percent (10%) per annum;
(4) (A) The financial benefits received by a business shall be used in accordance with the financial incentive plan entered into with the Arkansas Economic Development Commission.
(B) (i) Financial incentive plans shall designate how the funds are to be used by the business.
(ii) A financial incentive plan may designate funds for employee training, infrastructure, or other purposes agreed to by the business and the Director of the Arkansas Economic Development Commission; and
(5) Recipients of benefits under this subchapter are precluded from receiving benefits under 2-8-101 et seq. [repealed] and the Arkansas Economic Development Act of 1995, 15-4-1901 et seq.