Arkansas Administrative Code
Agency 168 - Arkansas Economic Development Commission
Rule 168.00.13-004 - Regional Economic Development Partnership Act
Universal Citation: AR Admin Rules 168.00.13-004
Current through Register Vol. 49, No. 9, September, 2024
I. Program Summary
Act 895 of 2011 (§ 15-4-3401 et seq.), as amended, authorized the creation of regional economic development partnerships and addressed the governance of these partnerships as well as funding opportunities and responsibilities. The 2011 act, and 2013 amendment, outlined the provisions needed to implement the legislation and provide the Arkansas Economic Development Commission with the ability to promulgate rules and regulations addressing all aspects of the approval and funding of a regional economic development partnership.
It is the purpose of this rulemaking to make as clear as possible the procedures and approvals required by this act.
II. Definitions
A. "Commission" means the state agency known
as the Arkansas Economic Development Commission;
B. "Economic development region" means a
group of municipalities or counties that includes at least two (2) counties and
has formed a regional economic development partnership;
C. "In-kind contributions" means items given
to a regional economic development partnership, including, without limitation,
donated office space, equipment, staff, and other items specifically approved
by the commission; and
D. "Regional
economic development partnership" means an organization whose mission is to
promote specific regions within the state in accordance with the intent
described under §
15-4-3402.
III. Membership in a Regional Economic Development Partnership
A. A regional
economic development partnership shall satisfy the following requirements:
1. The economic development region proposed
includes the active participation of at least two (2) contiguous
counties;
2. The economic
development region is of adequate size in population to:
a. Effectively undertake economic development
activities while remaining a distinct and viable region for attracting new
investment; and
b. Generate
adequate regional resources to provide matching funds;
3. The economic development region is
economically integrated as determined by commuting patterns, economic base,
major employers, membership in a defined metropolitan or micropolitan
statistical area, or other indicators determined by the Arkansas Economic
Development Commission;
4. Any
county seeking to join a regional economic development partnership must adopt
an ordinance seeking membership in the regional economic development
partnership; and
5. The regional
economic development partnership, by a majority vote of its board of directors,
that are residents of Arkansas, may approve the membership of a requesting
county after having received a copy of the approved ordinance seeking
membership.
B. The
Arkansas Economic Development Commission may allow an existing entity that
applies to be a regional economic development partnership to maintain the
entity's existing rules regarding membership, terms, and duties of the board of
directors.
IV. Board of Directors
A regional economic development partnership formed on or after January 1, 2013, shall be governed by a board of directors that shall operate, manage and control the regional economic development partnership in all respects. The following shall apply to boards of directors of regional partnerships formed on or after January 1, 2013:
1. The Board of Directors shall contain at
least one (1) representative from each county that is a member of the regional
economic development partnership.
2. The governing body of each county that is
a member of the regional economic development partnership shall appoint members
of the board of directors.
3. Each
member of the board shall serve for a term as provided under the bylaws of the
regional economic development partnership.
4. A person appointed to the board of
directors may be a representative of either a public or a private
entity.
V. Application for Approval
A. An
entity seeking approval from the Arkansas Economic Development Commission as a
regional economic development partnership under §
15-4-3401 et seq. shall
submit an application provided by AEDC.
B. The application shall contain at least a
three-year strategic plan that is consistent with the Governor's Strategic Plan
for Economic Development and includes the following:
1. The proposed activities of the
partnership; and
2. A budget for
the next calendar year clearly identifying the proposed expenditure for which
the grant funds are requested.
C. Also, the application shall provide the
following information:
1. Proof of
organization (include copies of corporation filings with the Secretary of
State);
2. A copy of the entity's:
a. Governing documents approved by the
entity's governing board;
b.
Bylaws; or
c. If incorporated, the
Articles of Incorporation;
3. A map of the economic development region
and the population served by the partnership, based on the latest decennial
census;
4. The identity of each
public organization and private organization, active in economic development,
within the economic development region and the role each organization will
undertake in the regional economic development partnership;
5. A list of the current members of the board
of directors and the entity each member represents;
6. Evidence of:
a. The staff dedicated to the regional
economic development partnership; or
b. The staff dedicated to program management
of the regional economic development partnership.
i. Dedicated staff may be employed by an
entity other than the regional economic development partnership; and
7. Be prepared to
provide local match, in a ratio of 1:1 to access state funding for regional
economic development. These agreements between the regional partnerships and
the state will be for a term of one-year and may be renewed beyond the year in
which funding was first provided under this act.
VI. Staff
A. Staff members and positions may be
comprised in whole or in part by direct employees hired by the regional
economic development partnership, persons employed by entities contracting with
and performing services on behalf of the regional economic development
partnership, volunteers or interns contributing in-kind staffing services to
the regional economic development partnership, and persons employed and
compensated by third-party entities to perform services on behalf, and at the
request of, the regional economic development partnership.
B. The primary responsibility of the staff is
to market, promote and develop the economic development region to attract site
selectors and business prospects and to accomplish the goals and objectives of
the strategic plan required by §
15-4-3405 (b)(1).
VII. Termination of Partnership
A. A board of directors of a regional
economic development partnership may terminate the regional economic
development partnership upon a majority vote of the board of
directors.
B. At least a thirty
(30) day notice of intent to terminate a regional economic development
partnership must be sent to the Arkansas Economic Development Commission prior
to the vote on termination.
C. Upon
termination of a partnership, the board of directors shall remit any unspent
state funds to the commission within sixty (60) days of the notice to terminate
the regional economic development partnership.
VIII. Funding
A. State Funds
1. Each regional economic development
partnership approved by the commission shall enter into an agreement with the
Arkansas Economic Development Commission to receive state funds, if
available.
2. The agreement shall
be:
a. For a term not to exceed one (1) year;
and
b. Identify the eligible
expenses for which the regional economic development partnership intends to use
state funds.
3.
a.
Subsequent one (1) year agreements may be entered into by the regional economic development partnership and AEDC, following the commission's review of the annual report of the regional economic development partnership.
b. If a
regional economic development partnership was initially approved as a
multi-year project, a one-year renewal may by granted by the commission without
the regional economic development partnership submitting an annual
application.
4. Each
year the commission shall allocate funds specifically appropriated by the
General Assembly or the commission for regional economic development.
a. The funds shall be distributed equally to
the qualifying regional economic development partnerships that meet the
matching fund requirements under §
15-4-3408.
b. Funds that are not disbursed under this
section during a fiscal year may be distributed in a subsequent fiscal
year.
5. If a regional
economic development partnership includes a territory located in another state,
regional funding provided under this subchapter shall only be provided to a
county in Arkansas.
B.
Matching Funds
1. A regional
economic development partnership shall match the state funds allocated to the
regional economic development partnership on the basis of at least one dollar
($1.00) local matching funds for every one dollar ($1.00) of state
funds.
2. If a regional economic
development partnership does not provide proof of sufficient matching funds
before the release of state funds, the Arkansas Economic Development Commission
shall reduce the award of state funds in the amount necessary to adhere to the
required one-to-one ratio of local matching dollars to state dollars.
3. Local matching funds may be:
a. Provided by public sources, private
sources, or a combination of public and private sources;
b. Received in the form of cash, in-kind
contributions, or a combination of cash and in-kind contributions;
and
c. In-kind contributions shall
not be more than forty percent (40%) of the regional economic development
partnership's total matching funds.
C. Eligible Uses of State Funds
State funds under § 15-4-3401 et seq., shall be used only for marketing, advertising, promoting, and other activities related to implementing the required strategic plan.
D. Ineligible Uses of State Funds
1. State funds under §
15-4-3401 et seq.,
shall not be used for administrative costs.
2. Ineligible uses of state funds include,
without limitation, payment for the following expenses:
a. Administrative salaries, benefits, general
administrative costs, and salaries and benefits related to economic
development;
b. Overhead expenses,
including, without limitation, postage, shipping, rent, subscriptions,
equipment, furniture, fixtures, telephone and utilities;
c. Travel and conference expenses within the
state;
d. Local promotions or
sponsorships;
e. Stationery, paper,
pens, and general office supplies;
f. Construction and infrastructure
costs;
g. Membership
dues;
h. Alcoholic beverages;
and
i. Gratuity on meals, including
meals related to activities classified as eligible expenses.
IX. AEDC Responsibilities
A. The
commission shall review each application submitted under the provisions of
§
15-4-3405 and shall certify that:
1. The
applicant satisfies the general qualification requirements in §
15-4-3404;
and
2. The application submitted
under §
15-4-3401 et seq. includes the information required. B. The
commission shall notify unsuccessful applicants in writing of the deficiencies
of the application.
X. Annual Reports
A. A regional economic development
partnership that receives state funding under §
15-4-3401 et seq., shall
submit an annual report to the Arkansas Economic Development
Commission.
B. The annual report
shall include the following:
1. A description
of the economic development activities and organizational activities of the
regional economic development partnership in the preceding twelve (12)
months;
2. A detailed financial
report;
3. A detailed budget for
the next twelve (12) months; and
4.
A description of the proposed activities of the regional economic development
partnership for the next twelve (12) months for which state funding under
§
15-4-3401 et seq., is being requested.
XI. Rules
§ 15 -4-3401 et seq. authorizes the Arkansas Economic Development Commission to promulgate these rules.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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