Audit of economic incentive programs

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  1. (a) In order to provide information to the General Assembly regarding the benefits of certain economic incentive programs, Arkansas Legislative Audit shall prepare annually a cost-benefit analysis of the projects provided incentives under the Consolidated Incentive Act of 2003, § 15-4-2701 et seq.

  2. (b) The analysis may include without limitation:

    1. (1) The dollar amount of incentives actually provided;

    2. (2) The direct, indirect, and induced state tax benefits associated with each project, including without limitation:

      1. (A) Estimated tax revenues;

      2. (B) Full-time equivalent jobs created;

      3. (C) Wages; and

      4. (D) Investment; and

    3. (3) The safeguards to protect noneconomic influences in the award of incentives.

  3. (c)

    1. (1) The analysis required under subsection (a) of this section may be conducted on a rotating basis so that each project is evaluated at least one (1) time before the completion of the financial incentive agreement under the Consolidated Incentive Act of 2003, § 15-4-2701 et seq.

    2. (2) If the staff of Arkansas Legislative Audit is insufficient to conduct the scheduled analysis in a given year, the executive committee of the Legislative Joint Auditing Committee may establish the priority and number of projects that can be reasonably analyzed with the available resources for a particular year.

  4. (d)

    1. (1) All records, data, and other information from whatever source that the Legislative Auditor deems necessary in the examination of the incentive programs shall be made available to Arkansas Legislative Audit.

    2. (2) However, this subsection does not authorize publication of information protected from publication by law.

    3. (3) Records and information exempt from public disclosure shall remain exempt in the custody of Arkansas Legislative Audit.

  5. (e) Arkansas Legislative Audit and the Arkansas Economic Development Commission shall enter into a memorandum of understanding concerning the need for common definitions and rules for evaluating economic incentive projects.


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