1. (a) Purpose.

   1. (1) The purpose of the Natural State Initiative Opportunity Zones is to:

      1. (A) Promote Arkansas’s growing outdoor recreation industry and the economic impact of outdoor infrastructure investment;
      2. (B) Recruit new outdoor recreation businesses to Arkansas;
      3. (C) Expand existing outdoor recreation businesses; and
      4. (D) Foster entrepreneurial growth by using economic development incentives, site selection services, funding, and training resources within the Arkansas Economic Development Commission.
   2. (2) The commission and the Department of Parks, Heritage, and Tourism shall work cooperatively to accomplish the purposes of the program.

2. (b) Criteria for designating Natural State Initiative Opportunity Zones.

   1. (1) The Director of the Arkansas Economic Development Commission, in consultation with the Secretary of the Department of Parks, Heritage, and Tourism, shall establish no more than four (4) Natural State Initiative Opportunity Zones.

   2. (2)

      1. (A) Each Natural State Initiative Opportunity Zone may include all or a portion of, and up to one-eighth (1/8) of a mile outside the boundary of:

3. (i) A state park;

   1. (ii) A cultural site;

      1. (iii) A historic site; or

         1. (iv) An educational center.
      2. (B) The director may modify the physical boundaries of the opportunity zone at any time following its initial designation.
      3. (C) However, if an approved company has entered into a financial incentive agreement for a project located in an opportunity zone, during the term of the incentive agreement the director may not modify the boundaries of the opportunity zone so as to cause the project to no longer be located within the opportunity zone.

   2. (3) In designating the location of each Natural State Initiative Opportunity Zone, the director shall take into account the following criteria:

      1. (A) The geographic diversity in the locations of the opportunity zones; and

      2. (B) The potential for economic development opportunities within each proposed opportunity zone, to include such factors as:

         1. (i) The number of visitors likely to visit the state park located within the opportunity zone;
         2. (ii) The likelihood that the opportunity zone will attract at least twenty-five percent (25%) of its visitors from outside of Arkansas;
         3. (iii) Whether the attributes of the state park, such as geography and existing amenities, would be compatible with additional economic development opportunities;
         4. (iv) The proximity of the opportunity zone to other complementing economic development activities; and
         5. (v) Whether there is a sufficient workforce to support economic development in the opportunity zone without adversely affecting existing businesses in the area.
         6. (c) Designation of Natural State Initiative Opportunity Zones.

   3. (1) The following locations are designated as Natural State Initiative Opportunity Zones:

      1. (A) The area located within the boundaries of Queen Wilhelmina State Park, plus the area extending one-eighth (1/8) of a mile immediately adjacent to the outside boundary of the park;
      2. (B) The area located within the boundaries of Petit Jean State Park, plus the area extending one-eighth (1/8) of a mile immediately adjacent to the outside boundary of the park;
      3. (C) The area located within the boundaries of Pinnacle Mountain State Park, plus the area extending one-eighth (1/8) of a mile immediately adjacent to the outside boundary of the park; and
      4. (D) The area located within the boundaries of Delta Heritage Trail State Park, plus the area extending one-eighth (1/8) of a mile immediately adjacent to the outside boundary of the park.
   4. (2) The director and the secretary shall prepare GIS maps that clearly identify the boundaries of each opportunity zone.
   5. (3) In order for a project to be eligible for income tax credits and sales/use tax credits applicable to a Natural State Initiative Opportunity Zone, at least fifty-one percent (51%) of the land upon which the project is located must be within the boundary of the opportunity zone.

Codification Notes: "GIS" means geographic information system.