(a)

(1) Before entering into a contract for an economic development project, the governing body shall review and approve an economic impact and cost-benefit analysis of the economic development project.

(2) The economic impact and cost-benefit analysis under subdivision (a)(1) of this section may be paid for by the governing body.

(3) The requirement for an economic impact and cost-benefit analysis under subdivision (a)(1) of this section does not apply to an economic development project in which the total appropriation does not exceed one hundred thousand dollars ($100,000).

(b) Economic development project contracts shall:

(1) Be approved by the governing body in ordinance or resolution form after following applicable bidding, procurement, and professional services procedures in accordance with state law or local ordinance;

(2) Be memorialized in writing;

(3) Not exceed one (1) year in length unless there is a public finding by the governing body that multiple years are necessary for the success of the economic development project and that multiple years are both lawful and a matter of public benefit;

(4) Not be renewed automatically without a vote of the governing body;

(5) State a proper public purpose, such as the creation of new jobs, job retention, or the expansion of the tax base by construction or improvements to real property;

(6) Articulate specific criteria to measure the progress toward, or achievement of, the proper public purpose; and

(7) Contain a recapture provision, including without limitation:

(A) A specific time frame in which the recipient of the funding shall provide a written financial accounting to the chief executive and governing body of the use of the moneys with documentation generally acceptable to Arkansas Legislative Audit's requirements and a report detailing the recipient's progress toward, or achievement of, the specific criteria in the economic development project contract;

(B) A specific time frame in which the governing body may formally demand by resolution the refunding of the moneys by the recipient upon the governing body's decision that the reporting in subdivision (b)(7)(A) of this section was insufficient and without merit or that the agreed-upon progress or criteria has not been made or achieved in a timely manner as provided for in the economic development project contract; and

(C) If the moneys are not returned when demand is made by the municipality or county, the governing body may authorize a cause of action to recapture the moneys in the circuit court of the county with proper jurisdiction and venue.

(c) (1) The following are exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., as related to economic development projects:

(A) Files and materials that if disclosed would give advantage to the competitors or bidders; and

(B) Records maintained by the municipality or county related to an economic development project's:

(i) Planning;

(ii) Site location;

(iii) Expansion;

(iv) Operations; or

(v) Product development and marketing.

(2)

(A) However, quarterly reports shall be provided to the governing body by parties to the economic development project contract and shall be available to the public.

(B) The reports shall include a statement of the specific items contained in the economic development project contract and articulation of compliance as to each of those items.