Current through Register Vol. 49, No. 9, September, 2024
I.
Introduction
Overview
Act 522 of 2021 created the Arkansas Military Affairs Council
Act. The Act codified the existing Military Affairs Grant Program administered
by the Arkansas Economic Development Commission.
Funds allocated to the MAGP may be granted, at the discretion
of the AEDC Executive Director, to applicants meeting eligibility requirements
for projects and programs that strengthen and sustain military installations in
Arkansas, resulting in economic growth in host communities, surrounding
regions, and the State of Arkansas. As such, grants are intended to leverage,
not supplant, other funding sources.
Program Rule Summary
1. AEDC will periodically solicit MAGP
applications as funding becomes available.
2. Eligible applicants shall submit completed
applications, on forms prescribed by AEDC and in accordance with submittal
deadlines, to request grant funding from the MAGP.
3. The AEDC Military Affairs Director, with
advice from the Governor's Military Affairs Council, shall review and recommend
applications for grant funding to the Executive Director.
4. Applicants receiving approval from the
Executive Director shall execute grant agreements with AEDC specifying grant
terms and conditions.
5. Grant
funding shall be made available to grantees on a cost incurred basis,
subsequent to submittal of requests for payment on forms prescribed by
AEDC.
6. Grantees shall submit
quarterly progress reports throughout the duration of the grant project in
accordance with grant terms and conditions.
7. A contingency of up to ten percent (10%)
of the grant award may be withheld from final payment until all closeout
documents have been submitted and have been approved by AEDC.
Contact Information
For more information, please contact:
Arkansas Economic Development Commission
Military Affairs Director
One Commerce Way
Little Rock, AR 72202
(501) 682-1121
II.
Definitions
1. "AEDC" means the Arkansas Economic
Development Commission;
2. "City"
means any city of the first class, city of the second class, or any
incorporated town in this state;
3.
"Council" means the Arkansas Military Affairs Council appointed by the Governor
pursuant to 15-4-3904;
4. "County"
means any county in this state;
5.
"Director" shall mean the Military Affairs Director of the Military Affairs
Division of AEDC.
6. "Economic
development organization" means a-business entity:
A. In good standing with the Secretary of
State; and
B. Formed to promote
community and economic development in a geographic area in Arkansas.
7. "Eligible applicant" means a:
A. City;
B. County;
C. Economic development
organization;
D. Military Community
Council;
E. Military installation;
and
F. State agency;
8. "Executive Director" shall mean
the Executive Director of AEDC.
9.
"Ineligible costs" means:
A. Obligations
incurred prior to the eligibility date for incurring project costs as specified
in the grant agreement;
B.
Expenditures for routine repair, maintenance, and operation;
C. Expenditures that are unsupported by
documentation;
D. Project
administration costs, including salaries and benefits for grantee personnel, in
excess of ten percent (10%) of the grant award;
E. Lobbying expenditures;
F. Purchases of alcohol;
G. Entertainment expenses, including meals
and activity fees;
H. Travel not
directly related to the project; and
I. Purchases of material and services that
result in benefits accruing to areas outside the State of Arkansas;
10. "MAGP" means the Military
Affairs Grant Program as administered by the Military Affairs Division of
AEDC;
11. "Military Community
Council" means a business entity:
A. In good
standing with the Arkansas Secretary of State;
B. Formed to promote cooperation between
military and civilian components of a designated geographic area within
Arkansas through the adoption and implementation of matters of joint interest
to a military installation and the surrounding community by establishing and
maintaining:
(i) Necessary
infrastructure;
(ii) Safe and
secure communities; and
(iii)
Support services.
12. "Military installation" means:
A. Facilities located in Arkansas under the
jurisdiction of the United States Department of Defense or the Arkansas
Department of the Military, including a:
(i)
Base;
(ii) Camp;
(iii) Post;
(iv) Station;
(v) Yard;
(vi) Center; and
(vii) Homeport facility for any
ship.
B. "Military
installation" does not include any facility used primarily for:
(i) National guard armories;
(ii) Civil works;
(iii) Rivers and harbors projects;
and
(iv) Flood control
projects.
III.
Eligibility
Applicants
To be eligible to receive MAGP funding, an applicant
shall:
1. Meet program objectives
stated in these rules;
2. Meet the
definition of "eligible applicant";
3. For projects within the legal boundaries
of military installations, provide written support for the project by the
commander of the military installation to which benefits will accrue;
and
4. Submit a completed
application on the forms developed for such purpose by the Military Affairs
Division, including any required attachments and supplemental information
specified on the forms.
Eligible Costs
AEDC will review all expenditure requests prior to payment to
ensure that costs are consistent with the terms and conditions of the grant
agreement and are not "ineligible costs" as defined by these rules. AEDC will
disallow all ineligible costs and will only fund expenditures directly related
to projects.
IV.
Application Process, Review, and Approval
Application Process
AEDC will periodically solicit MAGP applications as funding
becomes available. To request funds under the MAGP, eligible applicants shall,
utilizing forms prescribed by AEDC, submit a completed, signed application with
all supporting documentation to the Director by the specified submittal due
date. Applications shall include:
1. A
project title;
2. Applicant contact
information;
3. Organizational
information;
4. Sources of all
funds, including prior MAGP awards, for this project;
5. Previous MAGP awards not included in item
#4 above;
6. Proposal
information;
7. The amount of
funding requested; and
8. Start and
completion dates of the project.
Application Review and Approval
No grant offer shall be made by the Executive Director to an
applicant until the applicant has completed the following review and approval
process.
1. The Director shall conduct
a preliminary review of each application to confirm that it:
A. Was received on or before the due date
specified in the application solicitation;
B. Was submitted by an eligible
applicant;
C. Meets the objectives
of the program;
D. Identifies
clearly defined, measurable outcomes;
E. Includes a letter of support from the
installation commander if the project is located within the legal boundaries of
the military installation; and
F.
Is complete, including all required appendices and attachments.
2. All applications meeting
preliminary review requirements, as determined by the Director, will be
forwarded to the Military Affairs Council at least fifteen (15) days prior to
the next scheduled Council meeting.
3. The Council shall:
A. Review each application in accordance with
the MAGP Funding Recommendation Worksheet; and
B. Forward completed MAGP Funding
Recommendation Worksheets to the Director.
4. The Director shall review each application
in accordance with AEDC scoring criteria and funding recommendations provided
by the Committee.
5. Upon
completion of reviews, the Director will provide funding recommendations to the
Executive Director.
6. The
Executive Director, after reviewing the Director's recommendations, will
specify which applicants may receive grants.
A. Unsuccessful applicants will be notified
in writing by the Director.
B.
Approved applicants will be required to execute a grant agreement with AEDC
outlining the amount, terms, and conditions of the grant.
V.
Grant
Agreements
1. All MAGP grants shall be
awarded at the discretion of the Executive Director. Grant agreements shall
specify:
A. The eligibility date for incurring
costs for the project or program;
B. Projected completion date of the portion
of the project or program funded by the grant;
C. Terms and conditions of the grant
agreement;
D. The amount of
approved costs; and
E. The process
by which grant funds shall be disbursed to the grantee.
2. The amount of the grant shall be
discretionary and may be for amounts less than requested, subject to funding
availability, and Executive Director's discretion.
3. Grants may be funded from any source of
funds appropriated and allocated to the MAGP.
4. Grants will be executed according to the
following process:
A. Two original copies of
the grant agreement will be prepared by the Director and forwarded to the
grantee for signature and return.
B. Upon receipt of the signed grant
agreements from the grantee, the Director will prepare an approval letter and
forward the grant agreement and the approval letter to the Executive Director
for signature.
C. One original copy
of the grant agreement will be forwarded to the grantee with the approval
letter.
VI.
Grant Disbursement
1.
Expenditures incurred before the eligibility date for incurring projects costs
specified in the grant agreement are ineligible.
2. A contingency of up to ten percent (10%)
of the grant award may be withheld from final payment until all closeout
documents have been submitted and have been approved by AEDC.
VII.
Reporting
Grantees shall submit quarterly progress reports throughout the
duration of the grant agreement in accordance with terms specified in the grant
agreement. Failure to submit reports in a timely manner may delay disbursement
of grant funds.
The Director shall submit quarterly reports to the Council for
discussion at Council meetings.
VIII.
Rulemaking Authority
AEDC has authority, at §
15-4-3910, to promulgate rules
necessary to administer the Military Affairs Grant Program
Summary of Amended Rule Military Affairs Grant
Program
Purpose
The Arkansas Economic Development Commission (AEDC) has
promulgated an amended rule for the agency's Military Affairs Grant Program.
The amended rule conforms the program's rule to Act 522 of 2021.
Background
Act 522 of 2021 codified AEDC's existing Military Affairs Grant
Program in the Arkansas Military Affairs Council Act at §
15-4-3908. The
rule defines the process by which AEDC administers the discretionary grant
program. The program grants funding to eligible applicants for programs and
projects that strengthen and sustain military installations in Arkansas. The
rule outlines the application and approval process, disbursement of grant
funds, and reporting requirements by a grantee.
Key Points
Amendments to the rule are as follows:
* Clarifies the definition of Council to mean the Arkansas
Military Affairs Council;
* Adds a definition of "executive director" to mean the
executive director of AEDC;
* Amends the definition of "Military Community Council" to
reflect language in Act 522 of 2021;
* Amends the rule to include rulemaking authority to administer
the program provided to AEDC in Act 522 of 2021; and
* Makes various technical corrections to the rule.
Effective date
The final rule is effective on November 29,
2021
