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Senate committee approves measure to give ADFA more flexibility; lawmakers seek safeguards
Summary
House Bill 17‑97 would give the Arkansas Development Finance Authority greater operational flexibility and exemptions from some administrative rules and procurement requirements; ADFA leaders said the authority does not spend state tax dollars and would remain subject to board oversight and federal program rules.
A Senate committee voted to pass House Bill 17‑97 as amended after a lengthy hearing in which the Arkansas Development Finance Authority (ADFA) described the bill as a measure to increase its flexibility to partner in private‑market transactions that support affordable housing, student loans and economic development.
Mark Conant, president of ADFA, told the committee the authority operates as a finance entity that "does not receive state tax dollars. We do not receive special revenue, general revenue, no penny of any kind, but we have a public mission." Conant and ADFA staff said the bill is intended to allow the authority to act more nimbly in private markets, to attract investment, and to offer incentive‑based compensation to private‑sector hires needed for loan servicing and other programs.
The bill and its amendments would exempt specified ADFA activities from parts of the Administrative Procedure Act and certain procurement and cash‑appropriation rules, the transcript shows. ADFA representatives said that many federal program rules would continue to apply and that reporting requirements were not removed.
Senators asked about oversight and potential loss of legislative control. Senator Peyton and Senator Sullivan pressed on what oversight the legislature would retain and whether ADFA would still be required to obtain appropriations for federal funds it administers. ADFA and staff responded that the governor‑appointed board, statutory reporting requirements and federal program rules would remain, and that appropriations still apply to federal funds when the legislature directs their use.
Senator Dodson asked about exemptions from cash fund appropriation statutes; ADFA counsel explained that the bill's language was intended to avoid unintentionally amending an initiated act and to place the exemption in a different code section. ADFA staff and the sponsor said the authority would remain subject to legislative oversight and that the General Assembly could reverse statutory changes in subsequent sessions.
After debate and an adopted technical amendment clarifying initiated‑act language, the committee approved the bill by voice vote. Supporters said the changes will help ADFA expand mortgage and down‑payment assistance programs and pursue more investment for affordable housing; critics in the hearing asked for careful guardrails and retained reporting requirements.
