The proposed bill aims to promote economic growth by encouraging state agencies in Arkansas to allocate a portion of state contracts to local businesses that have been in operation for less than five years. Specifically, it introduces a new section to the Arkansas Code, which defines "state agency" and mandates that the Office of State Procurement encourage these agencies to award at least five percent (5%) of their contracts to eligible businesses. To qualify, these businesses must have been operational for less than five years and have their principal place of business located within the state.

This initiative is designed to support emerging businesses and foster a more competitive economic environment in Arkansas. By ensuring that a minimum percentage of state contracts is directed towards newer local enterprises, the bill seeks to enhance opportunities for small businesses, stimulate job creation, and contribute to the overall economic development of the state.